Management and Organizational Analysis of Tesco

Running Head: Management and Organizational Analysis
Management and Organizational Analysis
TESCO

Management and Organizational Analysis 1
Contents
Introduction.................................................................................................................................................2
Brief Overview.............................................................................................................................................2
Structure of Tesco.......................................................................................................................................3
Mintzberg’s Configurations.........................................................................................................................3
Morgan’s Metaphor Model.........................................................................................................................5
System Theory.............................................................................................................................................6
Management Approaches...........................................................................................................................7
Competing Value Framework......................................................................................................................8
Managing Across Cultures.........................................................................................................................10
Senge’s Five Disciplines.............................................................................................................................11
Theory v/s Practice and Strengths and Weaknesses.................................................................................12
Recommendations.....................................................................................................................................14
Conclusion.................................................................................................................................................15
References.................................................................................................................................................16
Appendix...................................................................................................................................................22
Multifactor Leadership Questionnaire...................................................................................................22
Organizational Audit..............................................................................................................................24

Management and Organizational Analysis 2
Introduction
TESCO is the biggest and the leading supermarkets which sells a variety of food line. The food
provided is fresh and local. This is more practical according to TESCO and it is of great value in
UK and the city centers. It also provides its customers with nonfood lines such as electronics and
stationary etc. It also includes a few of the seasonal things such as garden furniture. With having
360,000 employees worldwide, the major employer sector is covered by TESCO in UK. 86% of
the sales is done from UK only(Tesco, 2018). Variety of Tesco stores from the local Tesco
express to having large Tesco superstores, this organization in total operates in 12 countries
outside of the UK. The countries include China, Japan and Turkey too. The organization was
also opened in United States but very late. This was called to be an international expansion of the
company to grow the business in the international market. In Thailand, there are floating markets
from where people buy goods. The produce is not packaged there. There is a rewards system
started by Tesco for the customers too where the customers get 1% of the total purchase. A
voucher is made for this reward which can be used by the customers in various ways. The major
part of the group sales in UK is done by Tesco with the entire percentage of 70 of the group
sales. There are a total of 2,200 stores in UK only(tesco, 2018). During the recession times,
Tesco learned that people want more value for their money and the customers will never any
compromise in the quality of the product. Tesco then designed strategies like Club card, a loyalty
program which helped the organization to understand its customers in a better way.
Brief Overview
In the year 1919, Tesco was founded by Jack Cohen. It has made an immense amount of growth
and success in the field of grocery selling and merchandising chain. In today’s world, it is the
largest retailer in the UK domestic market(Clark & Chan, 2014). It has acquired a market share
in which the profit exceeds 2 billion pounds. At first, the organization made itself an expert in
food and drink chain and later it diverted its way towards different areas such as financial
services, insurance, clothing, electronics and others. The leaders of Tesco define the values of
Tesco as the kind of help they can do for their customers and in any way possible. They also

Management and Organizational Analysis 3
always look forward to be loyal to their customers. The company believes in working hard to
make its buyers happy as well as act sensibly with its employees too. They also believe in
respecting each and every employee of the company. The market strategy to attract the
customers all throughout the year is to sell great quality of products at affordable prices and the
products should be of huge variety. It aims to produce outstanding value and provide its
customers with the good they need or want. To create such values, social and environmental
challenges should be taken care of by Tesco(Theguardian, 2018).
Structure of Tesco
Tesco’s structure is simplest but it has a high amount of labor force under its belt. This company
has found out the efficient ways of task completion or any business activity. It has that
advancement that a company should have in terms of technology. This technology minimizes the
human error(Michael, 2017). For e.g.: Delivery schedules or in stock ordering etc. Tesco has
given the independence to the staff and they get most of the responsibilities too while helping the
customers. The Tesco culture is deeply enhanced with great values and beliefs. Culture of Tesco
is the behavior which results when the groups have to work together on a set of rules that are
implicit and unrecorded. Tesco leaders show friendly approach and supporting behavior every
day with the staff members and even to the people outside the organization. Monitoring of the
staff and manager’s decision is done constantly by the management(Dudovskiy, 2016).
Mintzberg’s Configurations
There are five parts of the configurations in Henry Mintzberg’s model. These configurations are
done below in terms of the Tesco Company.

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Mintzberg's Model
Source: (Management Mania, 2016)
 The Operating Core: This includes all the basic work that is done in the operations and
the output is directly related to goods and services when the organization sells. In Tesco,
the operations are monitored constantly and the operating core is always kept in place in
order to maintain the core operations working(Lunenburg, 2012).
 The Strategic Apex: Strategic Apex includes senior management and leaders who provide
the goals and the mission to the company. They give a sense of purpose to the employees
to work upon. In Tesco, the top management regularly works with their employees and
get ideas from them so that the employees too feel respected and valued.
 Middle Level Managers: This phase is like a sandwich which lies in between the strategic
apex and operating core. People in this phase take the orders from the higher hierarchy
and gives them to the people under them to start working on them. This is a very essential
function is Tesco as leaders have to keep deep knowledge as to what exactly is going on
with the order they have given. This means that the middle level managers have to be
very precise with the lower level people in terms of the orders given(Kumar, 2015).
 Techno structure: This consists of planners, trainers and analysts who do all the
intellectual work. They do function in the advisory capacity as they take orders from the
other parts of the configuration(Ramezani et al., 2011).

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 Support Staff: In this phase, people do the supporting kind of work. In Tesco, this is
considered to be important as Tesco does not believe in human errors. They make sure
that even the small task is done efficiently.
Morgan’s Metaphor Model
Morgan initiated the idea of the metaphors just for understanding the organization’s obstacles
and issues if any. There are eight metaphors which are discussed below in terms of the
organizational analysis of Tesco.
 Metaphor of Organization as Machine: It consists of the tailored management principles.
This situation occurs when the organization is ruined like machines are ruined. The
metaphor that was adopted was Max Weber’s bureaucracy concepts and principles of
management by Fayol are which consists of regularity, precision, efficiency and speed. In
Tesco, all these are achieved by dividing the tasks into hierarchy and supervision.
Efficiency is guaranteed and the wastages are minimalistic. The culture is maintained
properly and the performance is done in synchronized manner with timely
deadlines(Ortenblad et al., 2016).
 Metaphor of Organization as Organism: In this metaphor, the organisms try and adapt
according to the organization’s environment. The environment is sometimes demanding
which calls for the people who can survive by being the best in the organization. It is
known to be as survival of the fittest. Morgan found out that, for becoming the fittest of
all employees, the organisms need to adapt according to the rules and regulations of the
company. Tesco in itself is the disciplined but it still does not put much pressure on its
employees. Although, without being harsh and putting pressure, the leaders of Tesco
motivate the employees to be open to the challenges and perform better(Lawley, 2001).
 Metaphor of Organization as Brain: When the organization works as a brain, it needs to
become the source of the information and have to understand the theoretical ways of
understanding the work culture. The level of intelligence a brain has and the thoughts it
preserve in itself that it could enable system to organize and evolve when the challenges
arrives in the organization. In Tesco, when any challenge arrives, the CEO of the