Comprehensive Analysis of TESCO Business Operations and Strategies

This report offers a comprehensive analysis of TESCO's business operations. It begins with an introduction to the business environment, encompassing both public and private sectors, and delves into TESCO's organizational structure. The report explores the impact of local, national, and global economic factors on TESCO's performance. It emphasizes the importance of accounting for business success, detailing key functions such as planning, controlling, and budgeting. The role of the HR department is examined, including functions like organizing, employee engagement, and training. The report also discusses employee legislation, including anti-discrimination and minimum wage laws. Furthermore, it provides an interpretation of TESCO's profit and loss account, analyzes stages of team development, and compares motivational theories. Different leadership styles and their impact on TESCO are also analyzed. Finally, the report assesses the impact of customer service and the benefits of customer profiling on business success. The report concludes with a summary of key findings and recommendations.

How Business operate

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1 ............................................................................................................................................3
1.1 Types of organisation in public and private sector...............................................................3
1.2 Different organisation structures within the businesses and reason for variation................4
1.3 Describe how the local, national and global economic environment impact TESCO
business.......................................................................................................................................4
TASK2.............................................................................................................................................5
2.1 Importance of accounting for business success....................................................................5
5.1 Different function carried out by HR department in business..............................................5
5.2 Features of employee legislations.........................................................................................6
TASK3.............................................................................................................................................6
3.1 Interpret the information on profit and loss account ............................................................6
TASK4.............................................................................................................................................7
4.1 Stages of team development..................................................................................................7
4.2 Description of motivational theories....................................................................................7
4.3 Comparison of motivational theories....................................................................................8
4.4 Different leadership styles.....................................................................................................8
TASK5.............................................................................................................................................8
6.1 Impact of customer service on business success ..................................................................8
6.2 Benefits of customer profiling to a business........................................................................9
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
It is very important for organisation to scan the environment in such manner that help
them to know all the changes in customer taste, choices and preferences which allow them to
earn higher profit and sustain in competitive market for longer period (Baden-Fuller and
Morgan ,2010). Further at the time operating business different situations are arises which
businessman has to face and evaluate such type of solutions which reduce risk and bring better
outcomes. Apart from in dynamic both internal and external factor need to be consider so that
organisation easily grab market opportunities and remove all the threats. The company which is
taken in this report is TESCO which is UK based largest supermarket retail industry deals in
clothing and grocery sector. This assignment discuss about the type of business sector, various
organisation structure, significance of accounting and benefits of customer profiling that help in
achieving daily targets.
TASK1
1.1 Types of organisation in public and private sector
Every organisation has carry out different activities in order to perform various task and
operation for accomplishing objectives and targets of business. Further company has to deal in
different products and services which help in accomplishing the objectives and targets of
organisation. Basically these businesses make objective is to earn profits and uplift living
standard also.
Public sector:- It include all the public sector and government undertaking who formulate their
own rules regulation in order to serve the whole public in which they provide products at
affordable prices. Types of public sector are stated below:-
 Departmental undertaking:- This is the oldest form of undertaking in which strategic
planning and important decisions are taken by government only.
 Statutory undertaking:- this is another type of public corporations which enforced their
working after getting pass from the special act of parliament. Further government
consider as shareholders of company. Government undertaking:- this type of association covered under companies act, 1985
and 2006 fully or partially owned by public sector only.

Private company:- these company are owned, Controlled by private person only. Further, legal
rules and regulation are framed by management team only which an objective of earning profits
only.
Sole proprietorship:- This type of business is establish by one person only and they come with
their own capital and share profit losses of business. They are responsible for losses and profit
and decision taken by owner only.
Partnership:- This business has been establish with the partnership of two or more person and
all the terms condition related to profit sharing, capital and working hours are prescribed in
partnership deed only. Partners having unlimited liability so they have use their personal asset
for the payment of debt.
1.2 Different organisation structures within the businesses and reason for variation
Organisation structure means follow particular hierarchy on the basis of which roles and
responsibilities are delegated among employees which lead to effective working style. Further
company adopt their own organisation structure according to their objective and goals which suit
whole workforce and motivate them to work in most effective manner.
TESCO is a big retail supermarket comprises of large number of employees so on the
basis of past performance and suitability of business they adopt decentralised organisation
structure where employees and management actively participate in business and share their own
thought and choices which leads to rational decision making. But on the basis of dynamic
environment company have to make variations in their structure that improve the performance of
workforce by providing better quality of goods and services.
1.3 Describe how the local, national and global economic environment impact TESCO business
TESCO is large multinational supermarket who expand their business at different countries so
they have to arrange their operations that leads to optimum utilisation of resources and reduce
wastage also. Retail sector is one of the growing market that has to deals with the complexity of
business due to modification in costumer taste preferences because of many innovation and
digitalisation in product services of company. TESCO is effected by economic conditions at
different level:-
Local level:- Due to unfavourable economic condition unemployment is increase which affect
purchasing power of individual and adversely affect sale of company.

National level:- TESCO is also affected by changing economic policies and legal legislation
adopted in different countries affect sales and profitability.
Global level:- At global level organisation has to adhere with the economic conditions prevail
globally. Further, in developing sector people choices are affected by the culture and taste of
business.
Therefore, it is important for TESCO to consider all the above level circumstances and take
corrective step for better results. TESCO is large multinational supermarket who expand their
business at different countries so they have to arrange their operations that leads to optimum
utilisation of resources and reduce wastage also. Retail sector is one of the growing market that
has to deals with the complexity of business due to modification in costumer taste preferences
because of many innovation and digitalisation in product services of company.
TASK2
2.1 Importance of accounting for business success
Accounting is one the important operation in which all the business transactions are
recorded for proper financing (Bharadwaj and et. al. ,2013). Further, accounting is essential for
maintaining data and information which used by organisation at the time of formulating their
policies and procedures.
Importance of accounting are described below:- Planning:- Under this step organisation has to plan their accounting activity in proper and
appropriate manner. Further they have to establish their own tactics that help in arranging
cash, sales planning and for maintaining cost of company. Controlling and monitoring:- It is important for business to control and monitor all the
activities and task related to employee performance in order to conduct business activity
in proper and effective manner. Compare actual performance with standard performance
on the basis of accounting principles and records.
 Budgeting:- Preparation of all budgets is very important for running operations of
business adequately. At the time of preparing budgets previous or past data is required
which can taken from accounting records only.
Therefore it is essential for TESCO to maintain their accounting records properly so they utilise
it for the benefits and better outcomes.

5.1 Different function carried out by HR department in business
TESCO comprises of large employee base who need to communicate with customers on
daily basis so in order to create professionalism in workforce various function has been
performed by HR manager which described below:- Organising:- The important function of HR is to organise all the business activity in
proper manner in which they divide the work among different departments according to
the specialisation of workforce (Boons and Lüdeke-Freund , 2013). Employee engagement:- Another function of HR is to engage their employee in different
activity of organisation which motivate them and satisfy their organisational needs.
 Training development:- HR manager has to know about the strength and weaknesses of
company and on the basis of such observation company organise training events which
improve their performance and capabilities.
5.2 Features of employee legislations
Different types of employee legislation has to adhere with all legal rules and regulation enforced
by UK government. Following laws made for employee protection are stated below:-
 Anti discrimination act:- This act state that no workforce can be discriminated on the
basis of caste, creed and racism. If any individual is distinguish on such measure then he
or she has right to sue against company.
 Minimum wages act:- According to this law employee must getting minimum salary for
their efforts. If any company does not minimum salary prescribed by government then
that company is liable for huge penalty.
So, compliance of all laws is vital for TESCO in order to run their business operation in most
effective manner.
TASK3
3.1 Interpret the information on profit and loss account
Profit and loss account is generally made in order to understand the financial position of
company. Following is the P&L account of TESCO which is given below:-
Profit and loss Account of TESCO (2017)
Revenue 2017
Total Revenue 31907000
Cost of Revenue 25652000

Gross Profit 1988000
Operating Expenses
Research Development -
Selling General and Administrative 1205000
Operating Income or Loss 881000
Income from Continuing Operations
Total Other Income/Expenses Net 40000
Earnings Before Interest and Taxes 888000
Interest Expense 155000
Income Before Tax 613000
Income Tax Expense 150000
Net Income From Continuing Ops 416000
Non-recurring Events
Net Income
Net Income 600000
Preferred Stock And Other Adjustments -
Net Income Applicable To Common Shares 600000
Interpretation
From the above diagram it has been interpreted that organisation has total revenue of 31907000
and net income of 600000 that help company to attract investor to invest further in the capital of
business which increase their profits.
TASK4
4.1 Stages of team development
Following are the stages involved in team development that discuss below:- Forming stage:- It is an introductory stage of individual when he first enter in
organisation. Storming stage:- Under this stage burden is on individual in order to complete team task
and initial feeling of joy is goes down. Norming stage:- In this stage after finding out the talent and skill of employee he is
appreciated by his team members.

 Performing stage:- Under this employee is familiar with the working style and
accomplish daily target in effective manner.
 Adjourning stage:- This is the last stage under which project of company is completed
and its time to stay from team members and focus on other goals.
Therefore, it is important for TESCO at the time of team goals use above approach for team
development (Casadesus-Masanell and Ricart ,2011).
4.2 Description of motivational theories
Their are different types of motivational theories used by organisation in their working style in
order to motivate employees for effective performance which describe below:-
 Maslow hierarchy theory:-
This theory divided their needs into different stages in first stage employee focus on
satisfying their basic needs I.e. food, clothes and house known as physiological needs, second
related to safety and security which means safety from danger of life and security in respect of
job where person presently working, third related to esteem needs in which individual wants
respect and power in particular society and last needs is self actualisation in which whatever the
passion person has they think to accomplishing it (Chesbrough ,2010).
Therefore, TESCO must utilise this style in order to motivate the employees for higher
performance in organisation.
4.3 Comparison of motivational theories
Maslow theory Alderfer's ERG model
Safety and security needs It discuss about the existence needs of
individuals.
Description in respect of real passion and
dream of individuals.
It discuss about the relatedness of workforce.
4.4 Different leadership styles
Their are different types of leadership styles that adopted by TESCO in order to improve
leadership qualities of employees which described below:-

 Strategic leadership style:- Under this leadership style leader is consider as superior
person in organisation who take all the decision by concerning the view point of their
team members.
 Transformational leadership style:- This leadership style suggests that leader must take
an initiative for managing changes coming in organisation structure and guide employees
that modification is beneficial for their personal growth and development
(JohnWalker ,2014)
TASK5
6.1 Impact of customer service on business success
Different impact that can be evaluated at the time of providing customer services by TESCO is
stated below:-
 Company need to establish team of agent who always ready to solve all the problems of
customers related to goods and services and they require to maintain effective
communication with them.
 Further, next thing is to give relevant suggestion to employees that in what manner they
use their products that provide utmost benefits to them.
 Apart from it increase the exception of customers in respect of product and services of
company which leads to higher sales and long term relations with clients.
6.2 Benefits of customer profiling to a business
Different type of benefits that can be gained by maintaining better customer profiling and
methods used by TESCO which leads to effective sales and profits. Advantage of customer
profiling are described below:-
 Provide them opportunities to increase their brand image by providing relevant
suggestion they get through customer feedbacks.
 Maintenance of effective communication with the customers at global level leads to
establishment of long term relationship and trust.
 Fix the price and improve the quality standard for products and services leads to
effectiveness and efficiency in operations.
CONCLUSION
It has been concluded from whole project that business operate effectively is not easy
task because under this company has to face various challenges in the innovation and

digitalisation coming in their products and service through rivalry which induce organisation to
update their structure in such manner that help in gaining competitive advantages over
competitors.

REFERENCES
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Online:-
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