Impact of Regulatory and Professional Bodies on Tesco PLC Report

This report analyzes the impact of professional and regulatory bodies on Tesco PLC, a major British multinational retailer. It begins with an introduction to Tesco and its diverse operations, followed by an exploration of the roles of professional bodies, such as the Association of Independent Financial Advisors, and regulatory bodies, including the Department for Business, Energy and Industrial Strategy (BEIS), Groceries Code Adjudicator, and the Competition and Markets Authority (CMA). The report details how these bodies influence Tesco's financial structure, supplier relationships, market competition, and overall business strategies. It further examines the impact of these bodies on both internal stakeholders (employees, managers, owners) and external stakeholders (suppliers, customers), highlighting how they contribute to the company's financial stability, product innovation, and consumer relations. The conclusion summarizes the key findings, emphasizing the importance of these bodies in shaping Tesco's operations and market position.

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Table of Contents
INTRODUCTION...........................................................................................................................3
ESSAY.............................................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Tesco plc is a British multinational Corporation that deals in retailing of grocery and
general merchandise. Its headquartered in Welwyn Garden City, England. It's also the world's
third-largest retailer in the world when measured by gross revenue and ninth-largest when
measured by revenues (Nafa, 2020). It has outlets in 7 countries across Asia and Europe, and it's
a market leader of groceries in UK, Ireland, Hungary and Thailand.
Tesco was founded by jack Cohen in 1919 as a group of market stalls in Hackney,
London. Tesco diversified in areas such as retailing of books, petrol, clothing, furniture,
electronics, financial services, telecoms, internet services etc.
In this report the author will cover the impact of regulatory and professional bodies on
the business and stakeholders of Tesco plc.
ESSAY
Professional body is an organisation which consists of individuals with certain skills,
knowledge and practice. These individuals are professionals as they are members of a profession
of their respective field. These professionals work to provide public with exceptional services
within their respected department. Example of professional bodies are: Association of Charted
Certified Accountants, Charted Management Institute, Association of Computer Professional,
Royal Agricultural Society of England etc. (Allan, 2019). On the other hand regulatory body is
just like a professional body but governed by a specific law or legal mandate passed specifically
for the purpose of establishing the regulatory body. Regulatory bodies are formed for regulatory
functions,
which are; imposing requirements, restrictions and
conditions, setting standards in relation to any
activity, and securing compliance, or enforcement. Examples of regulatory bodies are: General
Medical Council, Food Standard Agency, Financial Conduct Authority, Civil Aviation Authority
etc.
The Association of Independent Financial Advisors is a professional body made up of
financial advisors across the UK (CIORANU, 2019). This professional organisation closely
works with Tesco plc to provide the company with financial advices related to Tesco's business
activities and operations. In exchange it charges some fee for the said services. Tesco bank is one

of the major segment which requires these services. Other than Tesco bank every segment
requires some financial advice related to their capital structure, financing and investing activities.
These services strengthen the business of Tesco plc by helping the organisation to focus on other
activities and follow the set structure and instructions provided by the financial advisors of The
Association of Independent Financial Advisors. The internal stakeholder which are: employees,
managers and owners are provided with efficient financial structure which ca hep the company to
earn more profit and get motivated from it. External stakeholders like suppliers, customer etc.
will get business from Tesco and good quality products as the company will have adequate
finance to spare and invest on the product innovation and quality.
Department for Business, Energy and Industrial Strategy (BEIS) is a government
department of the UK which is responsible in taking care of business, energy and growth,
science, research and innovation and industrial strategies within the entire country. This
department makes sure that the economy grows with a rapid pace in the country with the help of
efficient industrial strategy. Tesco plc gets a lot of help from this department of the UK
government. It is one of the regulatory body which enhances the economic growth in the country
by targeting and selecting certain industries and encouraging the company to make effective
business strategies. Tesco plc has a mission to provide consumers with best in quality products
and services, this mission further motivates the company to work with this department and
contribute towards economic growth of the country.
Groceries Code Adjudicator is a statutory regulatory body which regulates the
relationship between supermarkets and their suppliers, this body imposes and exercise effective
control over supermarkets and the suppliers by enlisting the Groceries Supply Code of Practice.
It is an independent statutory body under the Department for Business, Energy and Industrial
Strategy. The Groceries Supply Code of Practice is applicable on ten retailers with a minimum
annual turnover of £1 Billion, namely; Tesco, Asda, Sainsbury, Marks and Spencer, Waitrose,
Co-op, Lidl, Morrisons, Aldi, Iceland. This regulatory body facilitates Tesco to establish healthy
relationship with their suppliers. This provides stability to the business with less chance of
quarrel and more time to establish relationship with the consumers.
Competition and Markets Authority (CMA) is an independent department within the
Department for Business, Energy and Industrial Strategy, which functions to strengthen business
competition and forbid and bring down the use of non-competitive activities (Bhatti, Farooq and

Öztürk, 2019). It conducts market investigation and market studies to regulate the market and
establish consumer protection and prevent anticompetitive agreements which are prohibited
under the Competition Act 1998. Tesco is greatly benefited from this practice, as there are no
suppliers and who try to exercise such anti-competition practices which results in constant price
among every supplier which is further helpful as the cost will be same of buying the goods from
any supplier. Furthermore new suppliers will get the same opportunities as the existing suppliers
in the industry as they will be able to sell their products on the same rate as their competitors.
CONCLUSION
The above report concludes that Tesco plc has various professional and regulatory bodies
associated with it. Professional bodies contain individual professionals who are specialised in
their respective fields on the other hand regulatory bodies are bodies who work for the public
good and establishes code of conduct, ethics and morality in the market. Further the impact of
these professional and regulatory bodies on the business and stakeholder was also evaluated.

REFERENCES
Books and Journals
Allan, B., 2019. The No-nonsense Guide to Leadership, Management and Team Working. Facet
Publishing.
Bhatti, O. K., Farooq, W. and Öztürk, A. O., 2019. Reassessing leadership traits: An Islamic
perspective. Is Ahlakı Dergisi. 12(2). pp.177-201.
CIORANU, I., 2019. MILITARY LEADERSHIP IN THE PRESENT SECURITY
CONTEXT. TECHNOLOGIES–MILITARY APPLICATIONS, SIMULATION AND
RESOURCES, p.131.
Nafa, M. S., 2020. The Impacts of Leadership Styles on the Overall Performance of the
Educational Establishments. Psychology. 10(4). pp.151-162.