Management and Organisation: Organisational Structure and Management Approach for Tesco in the Wake of Brexit

MANAGEMENT
AND
ORGANISATION

1
Contents
INTRODUCTION.................................................................................................................................1
Organisational structure and its effectiveness........................................................................................1
One management approach that could help Tesco.................................................................................3
Industry analysis of Tesco.....................................................................................................................4
Conclusion.............................................................................................................................................5
REFERENCES......................................................................................................................................6

2
INTRODUCTION
Tesco is one of the biggest groceries and general merchandises firm in Britain. In terms of
gross revenue it is the third largest retailer in the world and ninth in terms of revenues. It is
having its branch in seven nations across Europe and Asia. In UK its market share is around
28.4% and is leader in groceries market of UK, Hungary, Thailand and Ireland. It was started
as group of market shells by Jack Cohen in 1919 (Grant, 2016). In 1924, he purchased a tea
shipment from T.E. Stockwell and named it Tesco. This report showcases the way in which
structure functions appropriately after the decision of Brexit. It also suggests a modern day
management approach that might help the firm in dealing with this situation. Last part of this
report shows the industry analysis in the wake of Brexit.
Organisational structure and its effectiveness
Political environment in UK has changed and the decisions such as Brexit have affected the
business operations up to a great extent. Both EU and Britain are calculating potential
impacts that will be caused by the separation and hence companies will also have to plan their
strategies to make sure that they reduce the impact of Brexit.
Organisational structure is understood to be as the system that shapes the way in which
different tasks are directed so as to achieve the organisational goals. It has a very crucial role
in the management of business in different situations (Clarke, et al. 2017). Tesco’s
organisational structure at the corporate governance level is parallel where there are several
departments headed directors with a CEO heading them all.
At the store level its organisational structure is hierarchical which is reflecting its large size.
There are four levels management in bigger stores but it is not rigid in the case of all the
Tesco stores. The flexibility comes according to the size, range of store specific factors and
also the location (Yueh, 2017).