TESCO's Organizational Structure: A Multinational Analysis

This presentation examines TESCO as a multinational enterprise, focusing on its organizational structure, functions, and cultural adaptations across different countries, including the UK and the USA. It explores the differences in organizational structures, such as the tall hierarchical structure in the UK and the flat structure in the USA, and how TESCO tailors its operations to suit the local environment. The presentation also details key functions within the company, such as human resources, production, and sales and marketing, highlighting their importance in TESCO's success. Furthermore, it discusses both internal difficulties, such as organizational culture and employee behavior, and external challenges, including political hindrances, technical changes, and societal preferences. The analysis concludes by emphasizing the importance of adapting to local cultures and environments for multinational companies to thrive in the global market. The presentation is well-researched and references multiple academic sources for its claims.

PRESENTATION

INTRODUCTION
Multinational Enterprise refers to an enterprise which operates beyond the boundaries of
headquarter or operates outside the home country. TESCO company is taken into consideration
for the research for which the company's organizational structure, function and culture is
identified in different countries. Companies operating multinationally needs to fulfil various
criteria and requires to function according to the culture of the country.
TASK
TESCO is a multinational company headquartered in UK operating in more than 13
countries follows an organizational structure in order of smooth functioning in the organization.
The companies follows different structure in different operating countries like in UK, Poland,
Thailand, etc. with different functions and cultures.
Organizational structure refers to a blueprint of an organization which every company
prepares to achieve its goals. It generally includes rules and regulations, policies and framework
upon which company acts.
ORGANIZATIONAL STRUCTURE OF TESCO IN UK
Organizational Structure in TESCO is under:
Tall hierarchical structure is followed by TESCO in UK which comprises of long chain
of functions but majority of the powers are accessed by the top level in the organization.
President of the company has all major powers in his hands. The company is having nine
separate executives for the functioning of each department in the organization. The structure is
bifurcated into three stages that is Top level followed by Middle level and Lower Level of
management. At middle level of management the functioning for Finance, marketing, human
resource,etc. Is done by the managers supported by Vice President. At the lower level of
management TESCO focuses upon assistant managers, regional managers. The functions
performed at this level is food and non food trading, and personal section. TESCO follows this
structure in UK.

ORGANIZATIONAL STRUCTURE OF TESCO IN USA
In USA TESCO follows Flat Organizational Structure of management which comprises
of few or less management personal. In USA the employees are required directly to report their
boss for any decision, discussion or regarding any issue. This type of organizational structure
provides more responsibilities to the employees and supports free flow of communication.
Every company needs to follow different organizational structure in different countries
due to difference in policies, laws and regulations. In UK TESCO follows Tall Hierarchical
Organizational Structure whereas in USA the company follows Flat organizational Structure
according to the needs and condition of the office.
FUNCTIONS
Every Company operates efficiently based on various functions within the organization. If in any
organization any of the function is absent or is week then it affects all other functions and
hinders the working of the company. The various functions which are present in the organization
are Production, Human Resource, Finance, Sales and Marketing, Technical, etc. which all have
their separate importance and place in the organization.
 Human Resource: Human resource department focuses on the recruitment of employees,
payroll, training and development, etc. Since TESCO operated in more than one country
so it takes a good of its employees and maintains a quality in recruiting employees.
 Production: Production refers to the process of giving final output prepared from the raw
material or is processed by adopting several steps. TESCO does not compromises with

the quality of its products and services so maintains standard quality in all its operating
countries.
 Sales and Marketing: This function is related to the sale and advertisement of the product
in the market. TESCO has its different sales and marketing department in each country
who takes care of the distribution of products in their own countries.
DIFFICULTIES FACED BY TESCO INTERNALLY
Difficulties are something which is present in every organization. No organization can
work and survive without facing difficulties or hurdles. It is inseparable form the functioning of
the company. Difficulties can be either internal or can be from outside the boundaries of the
company. Internal difficulties such as difference in organizational culture, employees behaviour,
management control, etc. External difficulties such as Political hindrance, Technical change,
Societal preference, etc. These difficulties are discussed below:
 Organizational Culture: Organizational culture refers to the internal environment of the
organization upon which directly or indirectly the efficiencies of employees depends.
Every nation has its own culture and behaviour which is hard to balance of all the
operating countries equally.
 Employees Behaviour: Employees behaviour plays a very important role in an healthy
environment of the organization. Behaviour of every employee is different in nature so
sometimes it is difficult to know the perception of each employee and their behaviour.
Negative behaviour by the employees will keep the company in trouble whereas the
positive behaviour can lead to success.
 Political Hindrance: Since TESCO operates in more than one country and every country
has its own political structure and parties. For TESCO it may be a difficulty to follow the
rules and guidelines of each and every operating country at a same time.
 Technical Change: Technical changes may be either in the form of up gradation or can be
of any change in existing one. TESCO adopts the technological change in an efficient
way and as soon as possible but sometimes it becomes difficult to match with the
technology as technology gets obsolete very frequently.
 Social Preference: Social prefers indicates the acceptance and preferences made by the
society people for the product or services. Operating in different countries always brings
difficulties in the society's preference as different countries is supported by different

nature of society hence varies in preference and acceptance. Acceptance by one country
may not be by other which creates hurdle for the company.
CONCLUSION
Every company is required to follow different organizational culture in different operating
countries in order to survive according to the culture and environment of the nation. Due to
difference in society's behaviour, perception every company setup different functions in the
organization for the smooth functioning of the operations. If organization does not goes with the
culture and environment of the country then it will be tough for it to survive in the market.

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