An In-depth Analysis of Corporate Strategy and Governance at Tesco PLC

This report presents a comprehensive analysis of corporate strategy and governance at Tesco PLC, focusing on the challenges related to Corporate Social Responsibility (CSR) implementation and technological risks. It begins with an introduction outlining the problem, aims, and objectives, followed by a literature review exploring the relationship between corporate governance, company performance, and the role of corporate strategy in overcoming barriers. The research methodology, including qualitative methods, an exploratory research design, and a deductive approach, is detailed. Data collection involved questionnaires distributed to Tesco PLC managers, with thematic analysis used for data interpretation. The findings, presented through thematic analysis and interpretations of survey results, highlight the importance of corporate governance strategies for long-term profitability, the role of CSR in improving operations, the impact of corporate strategies on decision-making, and the significance of corporate governance in ensuring economic growth and brand development. The report concludes with recommendations aimed at enhancing operational activities and overcoming challenges faced by Tesco PLC.

CORPORATE STRATEGY
AND GOVERNANCE

Table of Contents
MAIN BODY...................................................................................................................................1
Research Proposal.......................................................................................................................1
Introduction, background and review of the problem.................................................................5
Literature review.........................................................................................................................5
Discussion of primary and secondary research data ..................................................................5
Critically reviewing results of research.......................................................................................5
Recommendation and action plan...............................................................................................5
REFERENCES................................................................................................................................6

MAIN BODY
Research Proposal
Introduction about problem
The major issue or problem faced by Tesco PLC was issue in proper implementation of
CSR in company. The report aims to provide recommendation to firm on how failure can be
overcome and overall operational activities can be enhanced in a better manner. This will help
firm to enhance its operations and seeking recommendations, desired profits would be
accomplished upscaling corporate strategy and governance.
Aim
To determine the significance of corporate strategy and governance for resolving issue in
retail sector- A study on Tesco PLC
Objectives
 To evaluate industry life cycle of Tesco on corporate strategy.
 To understand the corporate governance structure and its effectiveness in Tesco.
 To examine Corporate governance failure and give suggestion which contributes in
eliminating barriers in Tesco.
Research Questions
Q1. What are the factors leading for corporate governance in accomplishing solution to problem
in Tesco PLC?
Q2. Do implementation of corporate governance leads to attainment of solutions to problem
being identified in Tesco PLC?
Q3. Do corporate governance failure leads to affect overall performance of Tesco PLC?
Significance of study
The significance of conducting present research is to effectively identify how corporate
governance can be used for resolving issues being faced by company. It is required that problem
should be reviewed in a better way by the researcher. Principal issue or problem faced by Tesco
PLC is technology as risk is continuously increasing and needs to resolve at the earliest (Tesco
PLC strategic report. 2018). In this report, there was issues in relation to implementation of CSR
in Tesco and it has to be executed to develop IT structures and key IT systems, well-defined
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corporate strategy needs to be implemented so that efficiency can be met. If failure continue to
exist, inability in meeting financial or regulatory penalties will prevail which will impact overall
reputation of Tesco PLC. Thus, study will be conducted for providing solution to business
Literature Review
Theme 1- Relationship of corporate governance and company's performance in industry life
cycle
As per the views of McCahery, Sautner and Starks (2016), business is to effectively
formulate strategies so that it may be able to attain benefits in the form of increased profits. The
sustainability of long run in the market is achieved by firm when it implements effective
corporate governance in effective manner. The shareholder's value creation is the ultimate aim of
company so that relationship with them can be strengthened leading to have ample of invested
amount for meeting funding requirements. It means that firm will be able to achieve desired
profits as it could invest in things so that adequate returns may be generated in a better way.
These returns are passed on to shareholders as per their respective shares in company and
dividends are paid. This leads to achievement of shareholders' objectives with the help of
corporate governance.
Davies (2016) says that corporate strategy is important for up scaling the business ahead
of its competitors and earn good amount of market share. Corporate governance refers to how
internal management and policies are being regulated by business in accomplishing set targets by
generating desired output. For accomplishing this, internal rules are required to be implemented
which determines how a company is directed to meet its goals. The industry life cycle of retail
sector in UK is at growth stage leading to earn more profits. By strengthening corporate
governance in effective manner, organisation become able to earn more profits. The retail
industry also provides clarity that there is fierce competition in firm which corporate governance
plays crucial role leading to attainment of firm's objectives.
Theme 2- How corporate strategy and governance is helpful in meeting solutions and
overcoming barriers
Rao and Tilt (2016) analysed that corporate strategy and governance are interrelated and
interdependent terms which leads company to be directed in a better way for achieving group
goals. The contribution of corporate governance help business to analyse, interpret problems.
This help to make or formulate well-constructed teams which then wholly analyse issue and
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recommend solutions in effective way. It provides benefits to firm as strategic management is
strengthened and goals can be attained without any difficulty. Furthermore, root cause of issue is
analysed and proper corporate framework is then implemented for achieving efficiency in
effective manner.
In accordance to ArAs (2016), strategy formulation of company provides way to
company for strengthening organisation internally by implementation of rules, policies and legal
framework. It then serves as the base for company in filing the gap by which desired output
could be achieved. In simple words, organisation gets directed in proper way which helps to
accomplish objectives and rivalries are reduced up to a high extent. Company gets benefit as
issues are handled as per the corporate governance framework for outreaching rivalries. The
barriers of company can be overcome by following and implementing well-mannered rules so
that firm may be able to attain efficiency in meeting CSR and benefit society in effective
manner.
Research Methodology
Research Type-
The research type can be categorised into qualitative and quantitative method (Silverman,
2016). For current research, scholar will implement qualitative method so as to analyse
significance of corporate governance in resolving technological issue being faced by Tesco PLC.
Research Design-
Research design helps to execute research in a proper direction. Exploratory and
descriptive are mainly used techniques for research design. Researcher will use exploratory
research design in order to attain useful insight about corporate governance and strategy in Tesco
PLC and thus, research aim will be met.
Research Approach-
The research approach consists of deductive and inductive. For assessing the importance
of corporate governance, deductive approach will be utilised in order to make proper framework
in effective manner and hypothesis is formulated and then observations are made for accepting or
rejecting the same.
Research Philosophy-
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There are mainly used two types of research philosophies such as interpretivism and
positivism. For present research, researcher will use interpretivism philosophy for interpreting
topic in hand.
Sampling-
The sampling serves as the basis for getting data (Vaioleti, 2016). Researcher will apply
simple random sampling method for gathering data by issuing online questionnaire to 30
managers of Tesco PLC. The responses will be recorded and results will be attained of research.
Data Collection-
Primary and secondary data will be used by researcher. For achieving primary data,
questionnaire will be offered to 30 managers of Tesco PLC. On the other hand, secondary data
will be gathered from reliable articles, books, journals etc.
Data Analysis-
Data analysis is crucial part in research. For analysing data, thematic analysis will be
implemented by researcher for making themes and results will be interpreted thereof. Thus,
research aim and objectives will be met.
Research Timeline (Gantt chart)
Activities 1 2 3 4 5 6 7 8 9 10 11 12 13
Topic of
Research
proposal
Devising
aim and
objectives
of research
Research
Background
4

Implementin
g
methodologi
es of
research
Gathering
data from
primary and
secondary
sources
Examining
collected
information
Interpreting
data
Conclusion
and
recommend
ations
Submitting
draft
Completing
feedback
Submitting
report
It can be interpreted from above Gantt chart that project will get completed within 13 weeks.
Research Project
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Introduction
The corporate governance has become the buzz word in management. This will be
inclusive of system and procedures that are designed to structure the authority and to build
strategic planning to develop the working in the enterprise (Mutlu and et.al., 2018.).
Furthermore, the corporate governance is the term that is helpful in order to balancing the
profitability in the enterprise. The recognisance of the external stakeholder is one of the crucial
part of the corporate governance. It provides business enterprise the ability to offer high quality
and fairly priced product and services. The present report is based on resolving the issues on
retail sector so that firm can achieve high term of growth. However, the consumer buying
behaviour is continually evolving as the new technical advancement gain more popularity in the
market. Thus, retailers need to leverage the technologies to better understand and target the
customer in order to maximise the effectiveness in market.
Background of the project
The present report is based on business activities of Tesco Plc, in this the strategic and
impact of corporate governance has to be identified so that all things can be done in better mode.
Thus, by strategically managing the relation with external stakeholder will be crucial in order to
place high value on business ability to offer high quality and fairly price product and services to
the customers. It will be inclusive of the system and procedures that designed to produce and
provide accountability so that profitability and sustainability can be enhanced. Thus, with help of
implementing the corporate social responsibility there will be effective and fastest growth in
corporate governance (Bottenberg, Tuschke and Flickinger, 2017 ). In this, the main object of
CSR is to embrace responsibility and impact of environmental, social and community issues can
be determined in better mode.
Aim
To determine the significance of corporate strategy and governance for resolving issue in
retail sector- A study on Tesco PLC
Objectives
 To evaluate industry life cycle of Tesco on corporate strategy.
 To understand the corporate governance structure and its effectiveness in Tesco.
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 To examine Corporate governance failure and give suggestion which contributes in
eliminating barriers in Tesco.
Statement of the problem
The retail industry is the driving force in the UK. There are number of the issues as are
lack of worker continuity, employment turnover and the number of the another issues that can
impact the growth of enterprise. In order to resolve the issues, the Tesco is taking initiatives to
implement the concept of strategic plan for conducting better operational functions. Furthermore,
corporate governance is about balancing the profitability and sustainability in the enterprise.
With help of it, there can be possibility to offer high quality and fairly priced product and
services. However, despite the expected growth the enterprise will continue to evolve and there
are number of the retailers that will work as to face the challenges in order to address the highly
competitive marketplace and it also adapts the number of consumer preferences and
expectations.
Literature review
Theme 1: Assess the importance of corporate strategy in Tesco PLC for taking decisions
and industry life cycle of retail industry
According to the view of Ojo, (2017) stated that consumer buying behaviour is one of the
concept in which organisation has to face exciting and dynamic challenges. The corporate
strategy will be inclusive of the commitments, decision and action required for the entity in order
to achieved the strategic competitiveness and it helps to earn the above average returns. In
addition to this, Aguilera, Judge and Terjesen, (2018) stated that lack of worker continuity and
employee turnover are one of major challenges faced by the retail industry. The corporate social
responsibility helps to enhance the brand image of the enterprise so that the firm can able to
achieve its competitive advantage in market. Thus, auditing is another process and it is need to
be conducted on the regular basis. There are number of the retail business and they work as to
engaged in the competitor with one another. As per the view of Aguilera, Judge and Terjesen,
(2018) stated that retail strategy is the part of the strategic marketing plan that will be helpful in
order to attracts and reaches the consumer in the directive manner.
According to the view of Bottenberg, Tuschke and Flickinger (2017), it can be stated that
corporate governance is the technique that aids to works as to directed and managed the all
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function in better mode. The corporate governance is one of interaction between various
participants so that shaping corporation performance so that all things can be conducted in better
mode. In order bring long term sustainability in the retail sector it is crucial to maintain and
manage the healthy relationship between employees so that all things can be undertaken in better
mode. As per the view of Schmidt and Fahlenbrach, (2017) states that corporate governance is
helpful in terms to determining the ways with help of which there are possibilities to determining
the ways to undertake the effective strategic decision so that all things can be conducted in better
and efficient mode. It is about the enterprise that is taking the responsibility and it aids to
determine the impact of decision and activities in terms to aspects of society. This is helpful
terms in order to build brand recognition in market and effective financial resources can be
gained so that firm can perform its activities in the better manner. It is about taking the
responsibility of the enterprise so that there can be possibilities in terms to enhancement in sales,
customer loyalty and brand awareness. This kind of facilities will help to build customer
awareness in market.
According to the view of Min and Chen, (2017) it can be stated that corporate
governance is the that works as to build the transparency and that helps to maintain the strong
and balanced economic development. Thus, it is term that is inclusive of the both social and
institutional aspects. It is term that works as to encourage trustworthy, moral and ethical
environment. As per the view of Singh and Delios, (2017) it can be stated that it is the
formation and develop of the strategical compliance in systematic mode. Thus, corporate
governance is the term that works as to develop added value to the stakeholders. In addition to
this, stated that The essence of good and better corporation strategy will be helpful to maintain
quality, transparency and dependability of the relation between the management, employees,
shareholder and board of directors.
As per the view of Ojo, (2017) it can be stated that the main elements of corporate
governance are responsibility, accountability, fairness, transparency and to bring effectiveness so
that all things can be done in the expertise mode. In this term, Aguilera, Judge and Terjesen,
(2018) stated that the enterprise need to gain the trust of the employees so that it can be possible
to bring long term advantage in market. The retailers should produce better quality so that it can
attract the customer by the services and firm can able to promote effective and creating the good
environment so that brand strategy can be developed. Thus, strategic governance is the
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corporation that can work as to develop the process of business function by brining long term
innovation in the market. In the retail sector it is crucial to minimise the wastage, corruption and
to maintain the risk management so that all things can be done in expertise mode. This is one of
the effective that is useful in order to formation and to develop the brand strategy in the expertise
mode. According to the view of Schmidt and Fahlenbrach, (2017) stated that with the help of
better corporate strategy there are possibilities to ensure strong and balanced economic
development. In contrary to stated that climate changes can also impacts the profitability and
productivity to the enterprise.
Thus, internal governance mechanisms will be helpful in order to maximise the
contribution and this kind of the activities will sustain long term growth in the enterprise. In
contrary to Min and Chen, (2017) stated that strategic plan will be helpful in order to make the
better planning of the all business activities. Under this, there is possibility to frame the better
and effective strategical plan so that all things can be conducted in better and efficient mode. The
effective corporate governance plan will be helpful in terms to analyse the factors that can affect
the working of the enterprise from the both internal and external working of the enterprise.
According to the view of Singh and Delios, (2017) stated that the customer service is one of
activity that helps to boosting the working so that they can be feel valued and it must be
appreciated. As per the view of it can be stated that the technology is the advancement will
help to compelling opportunities for the growth of small business. Thus, the main importance of
corporate governance strategy is to bring long term competitive advantage in market. The
industry life cycle of retail sector is changing rapidly which needs to be taken into account by
organisation so that it may respond to market changes. Corporate strategy is required to be
enhanced so that firm may be able to provide better services by establishing corporate
governance strategy quite effectually.
Theme 2: Analyse the factors of corporate strategy and governance in Tesco PLC for
resolving issue and giving suggestion for improvement
The corporate governance framework should protect the shareholders and this is helpful
in terms to facilitate the right in the business enterprise. As per the view of Ojo, (2017)
Aguilera, Judge and Terjesen, (2018) states that the managerial authorities of Tesco should
works as to recognise the legal right of the stakeholder and to facilitate the corporation so that
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there is possibility to create wealth, employment and sustainable enterprise so that each thing can
be done in better and efficient mode. According to the view of Schmidt and Fahlenbrach, (2017)
stated that purpose and value of the firm will work as to set down its constitutional documents
and reflecting the objectives of the founders so that each things can be done in better and
efficient mode. In contrary to Min and Chen, (2017) states that good and better corporate
governance is critical in terms to helping and to build successful business activities so that all
things can be sustained for longer period of time. As per the view of stated that with help of
substantial enhancement will likely to achieve the significant increase in productivity and also
raise long term motivation within the customers. With the help of maximising the contribution
the all things in the enterprise can be conducted in better mode. According to the view of Singh
and Delios, (2017) stated that good corporate governance is critical to helping out the things in
better mode and this also impacts the working of the enterprise. The Tesco PLC board are taken
at the right level of the business and it also allows to conduct the business activities in the
appropriate mode. With help of it, the decision can be taken by the higher authorities and
strategic direction to enterprise can provide. This kind of the activities will lead to gain the
competitive advantage in market. In addition to this, the governance framework at the Tesco will
provide the clear parameters of delegation and responsibility so that each things can be done in
more proficient mode. In the present scenario, strong corporate governance maintain the fair
return on the investment and this is helpful in terms to build better and effective strategy. The
corporate governance failure can be removed by taking structural approach of continual
efficiency in managing things in a better manner. With proper commitment of enhancing
management activities, barriers can be overcome and strong corporate governance can be
enhanced.
According to the view of Bottenberg, Tuschke and Flickinger, (2017) stated that
corporate governance is the term that will be helpful in order to prove the entities and that can
also works as to be highly valuable and also ultimately leads to have higher valuation of the
enterprise. In contrary to states that corporate governance will be assistive in order to facilitates
effective and better management so that long term success can be achieved. This is the system
with help of which the function of entities can be controlled and directed. In contrary to states
that effective corporate governance strategy has the following pillars as accountability,
transparency, assurance, leadership and stakeholder management. As per the view of Mutlu and
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