Tesco PLC: A Comprehensive Analysis of Business Operations

This report provides a detailed analysis of Tesco PLC, a British multinational retail company. It begins with the company's background, tracing its history from its founding in 1919 by Jack Cohen to its current global presence. The report outlines Tesco's aims, which include providing products at competit...Read More

Assessment 2

Table of Contents
 Introduction
 Company background
 History of organization:-
 Aim :-
 Achievements :-
 Challenges :-
 References

Company background
Tesco plc is a public limited British multinational company that do retail
business at global level. Its founded in 1919 by Jack Cohen. It
headquarters located in Shire park. Tesco has 6569 shops and 460000
employees engaged in it. It product is supermarket, hypermarket,
superstore and convince shops. This organization covered area in United
kingdom, Ireland, India, Malaysia, Thailand, Czech republic, hungry and
Poland

History of organization:-
Tesco retailer is founded by Jack Cohen so in starting he sells groceries
and products in street market. So it becomes brand in 1924. He bought
shipment of tea form Thomas Edward. Firstly Tesco open self service
shop then open supermarket. 1950 to 1960 it set their 800 shops. So
Cohen has only one motto that increase sale through provide products
on cheap rates. In 1987 organization takeover 40 supermarkets from
hillards chain. In 1960 Tesco increase their product like house hold goods
and clothes as well. From 2001 it start internet marketing facility that
boost their market . So it expands their business at global level and it
helps in increase profit of organization.

Aim :-
Tesco has aim that provide clothes, groceries and all products to
customers at global level on cheap rates. It means that it objective that
provide product on less rate compare to other competitors. For achieve
their targets it researches markets time to time for understand
customers needs and wants and provide products according to their
choice. Its major aim is that establish long term relation with customers
and increase number of customers.
Tesco has aim that provides better services to customer through internet
and online services that helps to customer through save time and cost.
Increase technology and improve product quality for increase sale is also
a aim of organization

Internal structure :-
Tesco's internal structure is very well maintained and it follows
hierarchical organizational structure. In this organization 10 members
include in board of director. It fully follows hierarchical because it has
very large range. So it has wide management system that is divide in
many levels.
Its board contain five level like audit committee, corporate
responsibility committee, nominations committee, remuneration
committee and disclosure committee. It does business and global level
and many products includes in their organization so need of more
management for systematic work and provide well services to customers
of different country.

Its store level also very wide and it includes many levels of management that
helps in establish well distribution and management channels. Three types of
store manager present in organization like food trading and it includes fresh food
section manager and ambient food section, non food trading includes electrical
section and clothing section and personal manager includes personal assistant.
Two managers also work under of every managers so it makes easy to work.
This structure influence to business because it works at global level and provide
different product. This structure manage work properly and make strong
distribution channels that attract customers. Strategy of Tesco is also good and
sound that built great plan for increase sales through provide products on cheap
rates. All level of their structure separately work and coordination also very well.
Structure made of this organization like pyramid and chain of command and all
level of structure follow to superior level and it controls to performance of
members in organization

Achievements :-
Tesco achieve their success through customer satisfaction because it markets
share is very down. But its customer satisfaction high so it helps in achieve
many things. It only focuses on increase large numbers of customers and
provide product on cheap price.
It has large numbers of products and own label. Following
achievements is reasons behind customer's satisfaction.
Tesco got many achievements related to environment, health and
community. It put carbon labels on every product that owned by this
organization. It also reduces use of carbon in 10 years approx 60 %. It attracts
to customers and provide satisfaction.
This organization prevent use of 2500 tonnes of saturated fat and
3000 tonnes of salt from their products since 2005 and 4.5 million people got
activeness (Mirvis, 2016). Through this things deal of product increase so it's

Conti….
a achievement of organization related to buy and sells and health of
people.
It donates £6.2 million for Marie curie cancer care centre located
in United Kingdom per year. So all these achievement shows that it
achieve many things and it success day by day

Challenges :-
Many factors present in environment that impact to external
environment of Tesco. Its affect not regular and it is not controllable. So
pest is a tool and techniques that use for analyse factors that affect and
organization use that and reduce effect. PEST stands for P- political, E-
economics, S- social and T- technological.
 Political factors - it is a major factor that affect to Tesco
because it does business at global level and also has to follow all
rules and policies of different countries. Organization affects from this
when political party not stable for long time and frequently change
rules by government that it create difficulties and organization also
has to adopt policies and change many things that it affect

 Economics :- it is a factor of external environment that affect to
organization. It includes inflation, exchange rates and tax rates that
direct affect to business because it inflation increase so demand
decrease and if tax and exchange rate increase so organization has to
pay more money to government of different countries so Tesco
decrease their export and import and it impacts to performance.
 Social :- this factors mainly affected to Tesco because customers
fashion, choice and trend changing frequently and it has to change
their products and research frequently according to their needs and
wants so it consumes more cost and time and it performance is
affected and through all these things decrease profitability

 Technology:- day by day technology increase and Tesco has to
establish and adopt for improve and develop products. It do business
with different countries so it has to adopt new innovations for provide
cusomer satisfaction and it consume more cost and time

References
Books and journals
 Wood, S., Wrigley, N. and Coe, N.M. 2016. Capital discipline and financial
market relations in retail globalization: insights from the case of Tesco
plc. Journal of Economic Geography. 17(1). pp.31-57.
 Adewuyi, A.W. 2016. Ratio Analysis of Tesco Plc Financial Performance
between 2010 and 2014 in Comparison to Both Sainsbury and
Morrisons. Open Journal of Accounting. 5(03). p.45.
 Tortoriello, M. 2015. The social underpinnings of absorptive capacity: The
moderating effects of structural holes on innovation generation based on
external knowledge. Strategic Management Journal. 36(4). pp.586-597.
 Agnihotri, R. And et.al., 2016. Social media: Influencing customer
satisfaction in B2B sales. Industrial Marketing Management. 53. pp.172-180.
 Mirvis, P.H. 2016. Reputation and corporate social responsibility: A global
view. In Corporate Reputation (pp. 105-126). Routledge.