BTEC HND: Tesco's Organisational Types, Functions, and Structures

This report provides an overview of Tesco's organizational structure, functions, and product development strategies. It discusses Tesco's various product and service offerings, including hypermarkets, supermarkets, express stores, and fuel stations. The report evaluates Tesco's clothing line and its lifecycle stages, highlighting the importance of product lifecycle management (PLM) and renovation techniques. It also examines the product development process for introducing new products, such as vegan meat, emphasizing the significance of market analysis and strategic planning. The report concludes by underscoring the importance of product development strategies for long-term sustainability and competitiveness in the market. Desklib offers a wealth of similar solved assignments and study resources for students.

Organisational types
functions and structure

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Company overview......................................................................................................................3
Product and services offered by Tesco Plc..................................................................................3
Evaluation of Tesco clothing and its life cycle............................................................................4
Product life cycle management (PLM)........................................................................................5
PLM. Of recycled clothing line of Tesco....................................................................................5
Product development process......................................................................................................5
Importance of product development strategies............................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The ways in which an organization is operating to gain profit is called organization type
and function. Organization structure refers to the flow of direction to perform business activity.
The following report will be discussing how Tesco a UK based grocery retailing firm is
operating, what are the different product and services offered by the company, product line
management strategies and life cycle of a product and service. Strategy with which the company
can introduce new product and services will be a part of the report.
MAIN BODY
Company overview
Tesco was established in 1919 by Hackney in London as the group of market stalls. It has
now became one of the largest supermarket chain established in UK and third largest in the
world. The company has flourished in 11 countries of the world with diversification in product
ranges such as retailing, clothing, electronics, toys, furniture, telecom services etc. (Evans and
Mason, 2018). Some subsidiaries acquired by Tesco are Booker group, Tesco bank, Tesco
mobile, Tesco tech support and Florence & Fred (F&F). Competitors of Tesco are ASDA,
Sainsbury's and Morrison's. These four companies including Tesco are known as the big four in
UK.
Product and services offered by Tesco Plc.
Tesco Hypermarkets
Extra outlets of Tesco other than their supermarkets which are mostly located in the
outskirts of the cities which contains every segment of product and services provided by Tesco.
These supermarkets also acts as warehouse of supermarkets.
Tesco Supermarkets
These supermarkets are mainly located in the heart of the cities providing their customer
with large variety of grocery items and smaller variety of non-food items like merchandise toys
etc. They have introduced in store cafes and small restaurants in some of their superstores.
Tesco express
Small neighbourhood stores with the availability of the basic necessity goods are named
as Tesco express. They are located in small but busy markets where superstore outlet cannot be
opened (Baptista and et.al., 2020). They provide customers with high margin products and
grocery such as sweet, chocolates, biscuits etc. These stores are introduced to reach higher
customer base and to make their product widely available in the region. This helps in eliminating
the distance barrier.
Tesco Fuel Stations
Tesco fuel stations were established in 1974 with selling a fuel produced by Greenergy.
Sites where filling stations are established are some superstores, hyper marts and in some extra
places. The organization deals in petrol-bioethanol and diesel-biodiesel blends in place of pure

petroleum and diesel. Recently they are providing their customers with 100% biodiesel
developed by Greenergy, at their filling stations.
In late 90's, the company formed alliance with Esso to take filling station on lease for
running its express shop under petrol pumps and Esso operated filling station under superstores
of Tesco. There are more than 200 merged Tesco/ Esso sites in UK.
Online mart
Tesco is mainly a supermarket chain that provides their customer with grocery and other
household products. They launched an online portal, Tesco.com for their customers to purchase
product from the comfort of their homes. Tesco introduced this facility in 1984 and since then
they were the sole supermarket retailer who provided this service to their customer till 2006.
They established number of dark store to provide online services to their customer.
Evaluation of Tesco clothing and its life cycle
Tesco Home N Wear which was led by Leslie Porter, was a non-food division which
operated in the cloth retailing sector through stand-alone shops. With the matter of time Tesco
started stocking these merchandise in its hypermarkets and closed all the stand-alone shops.
Life cycle of clothing product line
Introduction stage
The time when the product is being launched is called introduction stage. Tesco
introduced recycled merchandise in the market but during this period they were not able to make
high sales due to the lack of awareness among their customers. Instead of using powerful
marketing methods the company only did advertising and branding thinking that their reputation
in the world is enough to sell their product.
Growth Stage
In this stage, the company got the recognition in the market but still there was slow
growth in the sales. Company wanted to penetrate the market by providing a large variety of
clothing styles but it led to over exploitation (Grainger-Brown and Malekpour, 2019). In the
period of time they increased their sales with effective marketing and established a good position
in the sector.
Maturity stage
The maturity stage is the time when the product has reached its highest scale in the sales
and profit graph. Although it was growing gradually but it was at the peak in its life cycle. The
company benefited during this period by gaining more customer towards their product. This
resulted in less marketing investment and higher profits. As a result the company worked on its
price policies and provided the customers with high quality clothes in lower prices.
Decline stage
As the company reached higher awareness in the market the customers started loosing
interest in the styles and varieties provided by the brand. The company was not able to meet the
styles and design that were in the trend (Al-Sarawi and et.al., 2020). They were not able to keep

up with the regular change in trend and innovation was not up to the expectations. Less
investment in marketing was also a reason for the decreasing demand of the brand. These factors
forced Tesco to shut its clothing stand alone stores and shifted the stock in its hypermarkets.
Product life cycle management (PLM)
Product life management cycle is a necessary activity that should be monitored and
evaluated with the performance and stages of the product. It is a necessary aspect for any
organization to cope up with trend and preference of the customer (Singh, 2019). It helps an
organization to maintain their sustainability and edge over their competitors.
Managing the life cycle involves modification in different stages of the life cycle of the product
to make it more profitable and long-lasting in accordance with the preferences of the customer.
PLM. Of recycled clothing line of Tesco
Different life cycle of a product needs a basic focus on which the company works such as the
renovation technique. The clothing line of Tesco which was established with a great concept of
recycled clothing could have been managed to sustain and survive more if the renovation
technique had applied properly (He and et.al., 2019). Changing trend and the mix of different
culture has forced the clothing industry to keep renovating in their product. To gain relevance
with the trend the company can keep renovating in the styles and designs of the products. This
could have helped the organization to cope up with the changing preferences of the customer.
With renovation and the innovative idea of recycled clothing the company could have seen an
extension in the life cycle of the product. Proper and effective measure should have been taken
by the company to meet the need of the customers and be in trend.
Product development process
To enter the vegan meat sector the company has to deeply analyse the market in terms of
their product. Competitors, trend and customers should be the centre point to acquire effective
product development strategy.
Idea generation and screening
First and the foremost step towards developing or introducing a new concept to the
market is generation of idea. This idea of vegan meat should be based on the preferences of the
customer and it should be a solution for the problem. Screening and testing the feasibility of idea
is also an important aspect that should be done before proceeding further (Hosseini and et.al.,
2018). For screening or evaluating the idea Tesco can use tools like S.W.O.T. to determine
internal and external factors that will be effecting the performance of the product in the market.
Concept development and testing
This idea should be examined with the customer's point of view whether it will be
preferable by the customer or not. Competitive products that a customer may prefer over their

product should be recognized. Proper testing of survival and expected journey should be
determined by surveying of the need of plant based meat.
Market analysis
The way which will be followed by the brand to operate in the market to achieve
profitability is obtained through market strategies (Chi-Hsien and Nagasawa, 2019). It mainly
includes 4 P's.
 Product- a thorough analysis of product and its substitute goods.
 Price- estimating the licensing cost, production cost, transportation cost, marketing cost
and profit margins of the product and then deciding the price per unit.
 Promotion- key features of the product i.e. it contains no animal part and it is purely plant
based has to be highlighted that is unique from its competitive commodities.
 Placement- distributing the product in order to provide customer with easy access of the
product. Places where they can purchase easily has to be determined.
Product development and deployment
Specifications of the product that will be needed to meet the customer needs should be
clear and the product should be perfect in terms of quality and authenticity. Initial target of
product deployment should be limited so the company can monitor its performance and it will
help in increasing demand. Plant based meat is the idea that can flourish and capture the market
for Tesco with the help of proper product development strategies. Importance of these strategies
in terms of the product is discussed below.
Importance of product development strategies
A strategic path can help the company to tackle barriers coming in their way of success.
Analysing market is an important aspect that can help to determine the pros and cons of the
product. This will help the management to eliminate as many flaws as possible. Strategic
planning of the product can help to determine the feasibility of the product by effectively
addressing customer problem (Duda, 2018.). It will help the organization to give a tough
competition to its rival products. A planned strategy for every phase of the product may help in
seeing the survival of the product and its direction in the market. One cannot exactly predict the
future of the product but may get a tentative perspective towards future.
Tesco wanting to introduce a product in the food industry sector has to be aware of its
functioning. The awareness of competitors and their operating methods has to be examined and
the strategies are to be prepared accordingly. Current market situation should be kept in mind
during product development and future situation should also be predicted. The brand should have
uniqueness in the product to overshadow other products. These all features can be determined
with the product development strategy.
CONCLUSION
The above report concludes that how Tesco a UK based firm is operating and what kind
of product and services are provided by the firm to its customers. The clothing segment of the
company has been highlighted in the report. Its life cycle has been analysed and the outcomes
shows the mistakes that organization had made in the marketing of its recyclable clothing
segment. Some of the techniques has been discussed to manage the life cycle of the product line.

Moving further the report has mentioned the product development strategy and its importance in
terms of clothing industry sector. The strategies may help organization to sustain in long run.

REFERENCES
Books and journals
Al-Sarawi, S. and et.al., 2020, July. Internet of things market analysis forecasts, 2020–2030. In
2020 Fourth World Conference on smart trends in systems, security and sustainability
(WorldS4) (pp. 449-453). IEEE.
Baptista, J. and et.al., 2020. Digital work and organisational transformation: Emergent
Digital/Human work configurations in modern organisations. The Journal of Strategic
Information Systems. 29(2). p.101618.
Chi-Hsien, K. and Nagasawa, S., 2019. Applying machine learning to market analysis: Knowing
your luxury consumer. Journal of Management Analytics. 6(4). pp.404-419.
Duda, J. A., 2018. Modelling and implementation of product development strategy. Concurrent
Engineering. 26(2). pp.187-197.
Grainger-Brown, J. and Malekpour, S., 2019. Implementing the sustainable development goals:
A review of strategic tools and frameworks available to organisations. Sustainability.
11(5). p.1381.
He, B. and et.al., 2019. Product sustainability assessment for product life cycle. Journal of
cleaner production. 206. pp.238-250.
Hosseini, A. S. and et.al., 2018. Competitive advantage and its impact on new product
development strategy (Case study: Toos Nirro technical firm). Journal of Open
Innovation: Technology, Market, and Complexity. 4(2). p.17.
Singh, M. L., 2019. Product life cycle Management.
Evans, B. and Mason, R., 2018. The lean supply chain: managing the challenge at Tesco. Kogan
Page Publishers.

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• Due to the increasing health consciousness of the people nowadays they prefer more protein to
keep themselves healthy and fit. This plant based meat help them to keep them fine
• Thus, the consumer behaviour drives the innovation and which becomes the dominant reason
for this product. As the market competition is increasing rapidly and many of the firms cannot
survive in this competition but this new product will help the company to survive in this
market condition.
• Customers can be satisfied by this product because it will have a production in every season
so customer need not to worry about their health.
• Organization will satisfy the need of the customers which help them find the effective product
for their diet.