Organizational Development and Challenges at Tesco: A Report

This report provides an in-depth analysis of Tesco's organizational development, encompassing its structure, culture, and the challenges it faces in the global market. The report begins with an executive summary and introduction, setting the stage for an examination of Tesco's characteristics, goals, and objectives, considering its ethos and motives. It reviews literature on organizational change, cultural change, and new leadership, followed by a detailed methodology section outlining the research approach and design. The findings cover socio-cultural factors, PESTLE analysis, organizational structure, and culture, as well as change management and resistance to change. The report also explores the influences of organizational culture and adaptation to change, concluding with a discussion, references, and appendices that support the analysis. The report emphasizes the importance of sustainable organizational development and the impact of Tesco on other organizations, providing a comprehensive overview of Tesco's business practices and its evolution within a globalized context.

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Executive summary
This report focuses on the different characteristics and forms of business organizations followed
by the organizational structure, culture and formation of Tesco. It also highlights the different
characteristics, activities, key influential goals and purposes of Tesco by considering its ethos
and motives. The organizational structure, culture are critically analyzed along with the
challenges that the company face in the globalized market. Sustainable organizational
development is the main requirement of the company and that is being stated in this report. The
company’s influence on the other organizational bodies are also highlighted with referred
examples and current market situations.

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Contents
Introduction......................................................................................................................................2
Literature review..............................................................................................................................4
Organizational change..................................................................................................................4
Cultural change............................................................................................................................5
New leadership.............................................................................................................................5
Methodology....................................................................................................................................6
Research findings.............................................................................................................................9
Socio-cultural factors...................................................................................................................9
P.E.S.T.L.E..................................................................................................................................9
Organizational structure.............................................................................................................11
Organization culture......................................................................................................................14
Organizational change...................................................................................................................15
Resistance to change......................................................................................................................16
Influences of organisational culture...............................................................................................16
Adapting to organisational change................................................................................................17
Discussion and conclusion.............................................................................................................18
References......................................................................................................................................19
Appendices....................................................................................................................................21
Appendix 1- Karl Weick’s.........................................................................................................21

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Appendix 2- Deal & Kennedy...................................................................................................21
Appendix 3- Cameron & Quinn.................................................................................................22
Appendix 4- Kurt Lewin’s.........................................................................................................23

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Introduction
The following report focuses on the formation of business organisations in different sectors
along with the organisational development of a specified organisation. Here, the learner has
taken up Tesco to analyse the main characteristics, goals and objectives of the company. The key
environmental influences of the organisation are taken into consideration in accordance with its
ethos and purpose. The organisational development and the changes that occur are devoted to the
research and development theories and all forms of organisations. The organisational structure
and culture designs are explained, and the challenges are highlighted that they face in the
globalised market. Sustainable organisational development and organisational culture on the
multinational organisation are stated in the diversified environment.
Tesco is a multinational grocery business of British origin found in 1919. It expanded its market
globally and diversified itself in many sectors. The main objectives of the company are to expand
and earn higher profit margin. Tesco is one of the biggest supermarket chains in the UK as well
as across the globe. According to DICKINSON (2012), the objectives are set to meet them in
ethical considerations and improvise the business management. Tesco holds some basic
objectives that they are working on to meet them and achieve success. The basic examples of the
organizational development and planning can be set by evaluating its organizational behavior.
The company sets a perfect array of rules and ethics that help the employees to work in a
peaceful manner and get then maximum job satisfaction.
 Tesco aims at developing a peaceful working environment for their staffs that would
encourage and motivate them to serve more for the company. Motivating the staffs
becomes an asset because the human resource is the human capital the company is
investing in the business.

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 Tesco targets to expand their sales of organic products and manufacturing.
 Tesco has 6.5% share of the market in the non-food sector and thus, they aim to be
equally demanded as the food sectors.
Tesco usually carries some basic objectives that include serving the customers with best products
that are manufactured with the help of hygienic and improved technology. According to Durand
and Vergne (2012), being competitive in the market and the whole global platform is another
requirement of the company.
Literature review
Organizational change
The challenges faced by Tesco in the global market field demands a high reformation in the
marketing management body and the technological departments. The use of technology is
essential to carry on the competition and fast working strategies than other companies. Thus, the
human resource department must hire eligible and efficient management level executive who can
formulate new ideas and bring in innovation to develop the marketing condition of the company.
The products need severe attention keeping in mind the need of hygiene factors and financial
factors of the company.
There are two kinds of basic organisation that are profit making and non-profit making. The
profit making organisations are mainly the ones organising the business with some primary
goals. For-profit organisations or corporation solely aims to operate the business and earn
revenue stressing on their objectives and favours, unlike that of public. These organisations are
under private sector, and they generate their shares extending them to the general public. The
public who purchase their shares becomes the shareholders and owns shared ownership.

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According to Balasubramanian et al., (2014), this kind of organisations has to pay taxes and
register themselves with state authorities to operate their smooth flow of business.
New ideas and strategy development are needed to build up the advantage of overseas again.
Vaněk, Mikoláš and Žváková (2012) stated that the organisational structure of Tesco follows
features like geographical based, empowering high employability, decentralised structure and
decision making, flexible and friendly working environment with values and ethics ().
Cultural change
There are the lots of companies with whom we can compare TESCO's cultural structure and
other organisational structure but among those Sainsbury can be compared with the TESCO
because the organisational and the cultural structure of both company is similar to each other.
Here Sainsbury is an example from here we can understand corporate strategy and corporate
cultures intimate power relationship. The performance of the economic firm is managed by the
corporate culture because the corporate culture plays a vital role in the decision making of the
corporate sector. From these, it can be understandable that corporate culture can give a lot of
advantage to the company by motivating the employers and the managers. This helps the
manager to involve their employers in some activities by which they can enjoy their work.
Corporate culture signifies that the business mentality and a good working environment can give
the employers and both the managers to maintain their good work which will help the company
to run the business in the market. Corporate culture helps the company to create the new strategy
and the ideas which will attract the both the employers. New strategies like marketing strategies
are the best example because in marketing strategy many companies show the new type of
strategy which is different from other companies. But at the same time this also a disadvantage
for the company because the corporate culture becomes a burden for the organisation because the

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organisation culture gives more and vast responsibility to the employers. This led the
disadvantage of the organisational culture.
New leadership
When a company is not doing well under the leader or the leader is retired then the company start
to choose or appoint a new leader for the team. When a new leader comes, the leader has to face
new challenges and has to face new opportunities. It is not easy for a new leader to start the work
smoothly, but then also the leader has to start his work smoothly to show the way to the
employers or the team. The new leader has to transform the old concept and start to build it a
new way. The new leader should have new visionary for the company. The leader should inspire
the employers by an example.
Methodology
In accordance with the need of the research, the appropriate and legal techniques are to be used.
Therefore, the methodology is the key aspect for judging the motive and philosophy with which
the researcher is trying to set the researcher and find out definite conclusions.
Research philosophy
The investigation techniques are the primary stage before initiating the research. The research
philosophy elaborates the nature of data and information that are to be used in the research.
There are three types of research philosophy that are known as positivism, interpretivism and
realism.
Research approach
Following the need of the research philosophy, the approach is also to be taken care of as this is
the base of research functioning while in the mindset of data collection. The nature of the data

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collection is a minute material that needs proper attention seeking for thru best results out of the
whole procedure. There are two types of approach as in inductive and deductive. Inductive deals
with the quality of the information whereas the deductive approach represents the quantification
of the data. Deductive approach is mostly acceptable as it helps to grab most important and
useful functions of the company than that of the inductive approach.
Research design
The framework of the research formation and evaluation is known as the research design that
will facilitate the researcher to measure the accuracy of the data and information that are
accumulated. The research design is categories in three types like exploratory, explanatory and
descriptive. Just like the deductive approach, the descriptive research design will elaborate the
significance of the research materials and information taken into consideration.
Research onion
There are different stages to the whole system of researching and research onion is considered to
be the layered structural formation of the research procedures that highlight the individual
importance of each stage.
Data collection method
Qualitative data collection: The secondary data that are used in the research are data from
articles, journals, magazines, the internet, newspaper, blogs, etc. The accountability of the data
collected is measured by the terms of its quality that would help the researcher to conclude on
some subjective and highly qualified recommendations and results.

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Quantitative data collection: The quantity of the data and researches according to the research
techniques and methods are considered in the quantity that is mainly analysed in the primary data
collection and statistics features.
Sampling
After deciding the selection of philosophy, approach, design and data collection method under
this department the researcher will decide whether the research will be executed inside or outside
of the organisation by selecting any one of probability or non-probability methods. Elaborating
the same probability method will direct the researcher to conduct the research outside the
organisation and non-probability will direct to conduct within the organisation. As marketing is
done for outsiders, the researcher will go with probability method.
Ethical consideration
The ethical issues and considerations relate to the values of the research rules as well as the data
that the researcher is going to use. The authentication of the data and information matters a lot
for the evaluation of correct informative and standard result. The standardisation of the
regulatory measures and significant attention seeking according to the different stages have to
execute with appropriate communication strategies, and confidentiality is also the most important
factor that should be taken into consideration while remembering the ethical issues of the rules
and objectives of the research. The researcher should pay significant attention to every
department related with research to perform it in a legal manner. Moreover, good communication
and maintaining confidentiality are required skills to execute the research in an ethical manner.
Data analysis

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The data analysis procedure is the most important element that decides the ways and approach
through which the researcher will adapt to seek the appropriate results out of the collected
materials. The software techniques, procedures, graphs, surveys, secondary data collection
methods and primary data collection methods are to be analysed.
Research limitations
As we find not every task is easy to perform, and it depends on the individual how they carry out
their tasks, they also face some hindrances, and that's where the limitations of performing
research are to be taken into consideration. Talking about issues related to research the first and
foremost is time management. As there are so many activities, need to be performed by the
proper research allocation of time is required to each and every topic included in research
schedule. Moreover additional funds are also required while executing a research of big size
organisation.
Research findings
Socio-cultural factors
The surveys for the UK shows that people there prefer bulk and one-stop shopping centres.
Social trends seek company's attention, and thus, they formulate their strategies of marketing in
that manner to adjust and meet the demands. The constant health awareness is popular amongst
the customers, and they are highly concerned with their health issue. Therefore, according to
Fiedler and Welpe (2010), Tesco has improvised organic food qualities and offer customers with
hygienic items.

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P.E.S.T.L.E
The environmental factors that influence Tesco can be analysed with the PESTLE analysis.
PESTLE is short for political, economic, social, technological, legal and environmental factors.
Political factors: The retailing base of Tesco is worldwide, and thus, these factors influence the
company's performance greatly that includes the tax rates and the act of legislations. Donais
(2011) said that the ongoing financial issues of the whole world encourage the government of
countries to foster employment needs and employability in the companies. Tesco created great
employment opportunities in the diversified working environment.
Economic factors: The economic status and related financial issues are factors that influence the
internal environment of the company. The leverage costs, profits, and losses, debts, and liabilities
are the parameters based on which the financial accessibility of the company is analysed
(Donais, 2011). The company is holding 30% of the UK market share and is still dependent on
them to generate best revenue output.
Social factors: The surveys for the UK shows that people there prefer bulk and one-stop
shopping centres. Social trends seek company's attention, and thus, they formulate their
strategies of marketing in that manner to adjust and meet the demands. The constant health
awareness is popular amongst the customers, and they are highly concerned with their health
issue. Therefore, Fiedler and Welpe (2010) said that Tesco has improvised organic food qualities
and offer customers with hygienic items.
Technological factors: The technological advancements have created high opportunities for the
company. The development of digital marketing by the company has enabled customers to shop
online, and Tesco has facilitated them with home delivery services. The self-service points have