Examining Corporate Strategy and Governance Impact on Tesco

This report examines the corporate strategy and governance of Tesco, a multinational retailer, and its impact on the company's financial performance. The research aims to explore the concepts of corporate strategy and governance, analyze how corporate strategy influences Tesco's financial outcomes, and assess the significance of effectively managing these aspects within the company. The report includes a literature review that defines corporate strategy and governance, discusses their influence on financial performance, and highlights the importance of good corporate governance practices. The research methodology is based on a case study approach, using data collection from secondary sources. The results section presents the findings related to Tesco's corporate strategy and governance. The report concludes with recommendations and an action plan to improve Tesco's financial performance and overall business strategy, emphasizing the importance of transparency, accountability, and stakeholder engagement. The report also discusses key principles of corporate governance and their impact on Tesco's market position.

Corporate Strategy and
Governance
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Contents
INTRODUCTION...........................................................................................................................1
Background of research...............................................................................................................1
Research aim...............................................................................................................................2
Research objectives.....................................................................................................................2
Research questions......................................................................................................................2
Rationale of research...................................................................................................................2
LITERATURE REVIEW................................................................................................................3
Concept of corporate strategy and governance...........................................................................3
Corporate strategy influences the financial performance of Tesco.............................................4
Significance of managing corporate strategy and governance in the context of Tesco..............5
RESEARCH METHODOLOGY.....................................................................................................6
DATA COLLECTION..................................................................................................................10
RESULTS......................................................................................................................................13
RECOMMENDATION AND ACTION PLAN............................................................................22
REFERENCES..............................................................................................................................25
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Title: To examine the potential impact of corporate strategy and governance over the
business finance. A case study on Tesco.
INTRODUCTION
Corporate strategy is referring to the effective direction in which business organisation
can easily attain all the long term success. Mainly, it is taking into consideration and anticipating
completion that assist in executing entire activities of business in an appropriate way. One of the
main purpose of corporate strategy is to ensure that company is doing right things. In addition to
this, corporate strategy is referring to the different number of aspects that provide direction to
how company can manage other individual properties including physical assets, money, human
capital, corporate reputations and many more (Platonova and et. Al., 2018). In this regards,
owners of business and the concept of corporate governance to develop a strategic plan for
business organisation as it consists systems and procedures that is designed towards the structure
authority and also balance responsibility that provide accountability to stakeholders at each and
every level of business organisation. Current research is based on Tesco, is British multinational
groceries and general merchandise retailer that operate their business in over the world with the
aim of generating larger profitability level. Company also have its own corporate strategy that
affect its entire activities of company and also influence its financial performance. Thus, it is also
important for company to analyse all the aspects and strategies that assist in developing overall
performance of company more competitive and famous.
Background of research
Every business organisation wants to sustain in market place for longer period of time of
fulfilling its entire corporative goals and objectives. As Tesco, is also a famous business
organisation that operate their business in over the world with the aim of generating larger
profitability level. Company also face issues at the time of operating their activities at global
level related with conforming to corporate laws, prudent financial policies, HR policies, prudent
financial policies and many more. All these are directly affect the organizational activities and at
the same time also reduce its financial growth. This is the reason that, it is significant for
company to effectively manage all the corporate issue and also develop strategies accordingly
(Ben-Amar, Chang and McIlkenny, 2017). In relation to this, corporate procedures are
considered as an important aspect that assist in making an effective and compelling actions in
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order to promote the organisational image at market place. In addition to this, the main reason
behind undertaking the research is to analyse the influence of corporate governance strategy over
the financial performance of company.
Research aim
“To examine the potential impact of corporate strategy and governance over the business
finance”. A case study on Tesco.
Research objectives
 To explore and understand the concept of corporate strategy and governance.
 To develop the knowledge regarding the influence of corporate strategy to improve the
financial performance of Tesco.
 To explore and examine the significance of effectively managing the corporate strategy
and governance in the context of Tesco.
Research questions
 What is the concept of corporate strategy and governance?
 How does corporate strategy influence the financial performance of Tesco?
 What is the significance of managing corporate strategy and governance in the context of
Tesco?
Rationale of research
The main purpose of undertaking this research is to explore the potential impact of
corporate strategy and governance over the financial performance of business organisation. This
research provides wider scope to investigator in improving the possibilities of attaining reliable
and authentic outcomes. By carry out current investigation research improve their skills and
knowledge towards the specified topic and research area. Current investigation is highly
important because it provide the impact of corporate governance that support company in
improving their overall performance and at the same time also enhance its financial growth
(Adams, 2017). In addition to this, it can be further stated that current investigation is also
beneficial for researcher to develop their personal and professional knowledge that allow the in
enhancing their core understanding towards the actual impact of corporate governance strategy
over the organisation financial performance at market place. With the assistance of this,
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researcher can easily improve the possibilities of attaining authentic results that make overall
study more effective and successful in nature.
LITERATURE REVIEW
This is one of the important section within the research as it provides theoretical
framework on the basis of research topic. With the help of this, investigator gather detailed
information towards the different research objectives. Literature review is also based on
summarised form that help in analysing prospective of different authors towards the determined
objectives. This can be beneficial in attaining positive and reliable outcomes that contributes in
drawing a valid conclusion at the end of the investigation.
Concept of corporate strategy and governance
According to Kim, Kim and Qian, (2018), corporate strategy and governance is related
with the plan and framework in which company formulate their operational activities. Mainly, it
is also used as a management tool that provide support to organization in running their business
activities smoothly. In addition to this, corporate governance is a system that includes effective
rules, policies and practices that define how a board of directors of company manage and also
oversees each and every operational activities of business. As, it includes some principles
including accountability, transparency and security as well. One of the main purpose of corporate
governance is to facilitate appropriate, entrepreneurial and prudent management that can
contributes in delivering long term success to the company in market place. In this, the boards of
directors of companies are responsible for the governance of their companies that assist in
improving the positive performance in wider area. Furthermore, major role of the board includes
setting the strategic aims and at the same time also provide the proper leadership to attain the
same. For this, supervising the management of company is effective as it contributes in executing
all the task and activities. With the help of this, organization can manage their financial
performance by eliminating all the unwanted expenses. As good corporate governance has wider
impact over the business as it is all about improving transparency and accountability within the
existing system of firm. With the implementation of good and appropriate corporate governance,
organisation can maintain healthy relation with all the stakeholders. Positive interaction with
stakeholders and investors enterprise can build their positive corporate image in market place.
Due to this, profitability can be increased and also eliminate the chances of arising complexities
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in managing financial performance of business organization. On the other side, poor or bad
corporate governance is also shows as poorly structured, noncompliant that could be damage the
overall image of financial health of company in competitive market place. In this context, there
are some important principles of corporate governance within the business organization are:
 Each and every stakeholder should be treated fairly and equally as management is also
ensure that all the stakeholders are aware about their rights.
 The board of directors must be maintaining a commitment towards the governance
principles including accountability, fairness, transparency and diversity within the
company so that entire activities can be done properly.
 Organisation needs to define a code of conduct for all the board of members and
executives so that they can easily meeting set standard and improve overall performance
of company as well.
Corporate strategy influences the financial performance of Tesco
According to Goel, (2018), Corporate strategy is used as an organizational activity that
formulate as well as implement with the aim of effectively running entire operational activities.
Along with this, it aims at helping in proper monitoring and efficient control over the business
activities. Its essence lies in fairness and transparency within the operations that contributes to
enhanced disclosures in order to protecting interest of different stakeholders who involve within
the company. Thus, it is important for business to follow a good corporate governance structures
that expected to assist firm to perform better through appropriate quality decision making
activities. Furthermore, Corporate governance also includes as a set of relationships among
management of business organization, its board of members, its shareholders and its stakeholders
as well. This can be assist in improving the possibilities of maintaining proper balance among all
these aspects so that firm can improve their positive financial performance at competitive market
place.
According to Aggarwal, (2013), Good corporate governance confirms that organization
take into account the interests of different constituencies, as well as of the communities in which
they function, and at the same time their board of members are also accountable to the company
and the shareholders in context to executing as well as performing operational activities in an
effective and smoother way. Apart from this, corporate governance is also determining the major
role of directors and accountants towards shareholders and stakeholders because they are
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contributing a lot within the business activities and its implementation of strategies as well. In
context to Tesco, corporate governance is important for all the shareholders because it directly
increases confidence in the company in order to get better return on investment. This will assist
in reducing the unwanted expenses and cost and at the same time also improve its financial
performance. In relation to other stakeholders such as employees, customers, suppliers,
community and environment, corporate governance needs to ensure that business organization
must behave in a responsible mode towards society and environment. This is because overall
image of company is depending over the market and its customers as well. Therefore, corporate
governance reforms are more significant for developing economies because it contributes in
making the corporate structures of company more effective and appropriate that help in opposing
with multi-national companies and increase investors’ assurance. This can be influence investors
to invest their money in the business that follow corporate governance. By this Tesco can
increase their market share and also maintain their effective financial image at market place.
Significance of managing corporate strategy and governance in the context of Tesco
According to Sharma, (2020), It is important for business organization to effectively manage
their corporate strategy and governance at the time of operating their operational activities.
Basically, corporate Governance also covers the process of monitoring and marketing,
developing the relationships among owners of a company and its management, board of
members and its stakeholders to enhance the overall productivity level at competitive market
place. With the help of this, there are some major significance of corporate strategy and
governance within the business organization. These can be understood by following points:
 Strengthen shareholder values: In business organization implementing corporate
governance is one of the significant activity that maintain positive and healthy
relationship between value of company in market and its corporate governance. This can
be assist in strengthen the shareholder’s contentment. Mainly, it also plays a significant
role in safeguarding the valuations of company as it increases the concern of the company
towards its shareholders.
 Improved organizational efficiency: Corporate governance is play an important
determinant of organizational competitiveness because it provides a framework in which
organizational activities can be executed. As per current scenario, various questions are
raised in the way a company is governed its management activities. As better and
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effective governance may ensure the improved corporate performance and better
economic benefits in market place. Corporate governance also includes the foundation
based over the behaviour of organization, proper utilization of available resources,
innovative products and overall corporate strategies that contributes in increasing the
chances of attaining all the set goals and objectives in a stipulated time frame.
 Compliance and risk mitigation: One of the main significance of implementing corporate
governance is that it may assist sin risk mitigation and also develop compliance that have
positive impact on relationship with stakeholders. For attaining the same, company is also
governance on effective principles that will contribute to ensure that it enhance the
positive performance. With the assistance of appropriate policies company remain well
prepared from any kind of issues and risk factors. This will directly contributes in
developing the competitive and famous brand image at wider market place by
maintaining strong financial performance.
RESEARCH METHODOLOGY
Research methodology is referring to the important procedure that used by investigator to
select or analyse data towards the selected research topic. Mainly, it also allows to researcher to
critically evaluate a study and its validity as well. It includes various type of techniques and
methods that used by researcher to gather detailed and authentic information in order to take
right and reliable decision at the end of the research (Kölbel, Busch and Jancso, 2017). Thus, it is
important for researcher to select a suitable and appropriate method to analyse as well as
evaluate the data by gathering information towards the research topic and area. This will directly
contribute in improving the possibilities of attaining authentic results.
Types of investigation: While undertaking investigation, there are different type of
methods that provide assistance to researcher in collecting authentic data on the basis of
specified research topic. It can be classified into two methods such as qualitative and quantitative
research. Both are effective for executing research activities that assist in taking right and
reliable results at the end of the investigation. In order to undertake current study, researcher will
select quantitative research as it help in gathering measurable and statistical data that assist in
drawing a valid conclusion within the research. Mainly, it is a strategy within the study that focus
on quantifying the collection of data. With the assistance of this, investigator can draw a valid
conclusion and make overall research more effective and reliable as well.
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Research philosophies: It is related with the beliefs, values and ways in which data
should be collected on the basis of particular research area. Along with this, it is an assumption
based on the development of knowledge that may assist in obtaining the particular objective. It is
classified on the basis of two philosophies i.e. interpretivism and positivism (Drover and et. Al.,
2017). In order to undertake current investigation, researcher will have applied positivism
research philosophy because it is based on the quantitative methods in which data would be
gathered through structured questionnaire. One of the main advantage of using this type of
method is that it includes good reliability and representativeness that may help in drawing a valid
and authentic results at the end of the investigation.
Research approach: In undertaking an investigation, approaches is referring to the
systematic plan and procedures in which data will be gathered, Basically, it includes different
steps related with collection of data, analysis and interpretation the same. This may provide
proper assistance in attainment of reliable results within the study. In context to this, research
approaches are essentially divided into two types such as inductive and deductive. As per current
investigation, deductive research approach will be applied by researcher because it helps in
testing the validity of assumption and make valid outcomes to draw a meaningful conclusion.
This will contribute in developing an effective and successful investigation along with true
conclusion.
Research design: It is referring to the overall strategy that researcher will select to
integrate the certain components of study in coherent and logical manner. One of the main
purpose of using research design is to effectively address the specific research problem. Mainly,
it provides a blueprint in which research is responsible for collection, measurement and at the
same time also analyse data. It can be classified in different categories such as descriptive,
exploratory and experimental research design (Li and et. Al., 2017). According to the current
investigation, investigator applied descriptive research design because it provides answers to the
questions of what, when, where and how it is related with the particular research problem. In
addition to this, descriptive research design is also effective for obtaining data that concerning
the current status of phenomena and at the same time also describe the reliable aspects related to
the variables in a specific situation.
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Data collection: It is considering as a systematic approach that used to gather and
measure information from different sources with the aim of attaining accurate outcomes towards
the specified area of research. Mainly, it is categorised into two methods such as primary and
secondary methods of data collection. Both are play a significant role in undertaking current
investigation by gathering detailed and authentic information towards the research topic. In this
context, primary method is referring to the technique that provide first-hand information which is
directly collected through selected respondents and this type of information never been used
before by anyone (Paniagua, Rivelles and Sapena, 2018). It includes various sources that could
be applied by researcher at the time of gathering information such as questionnaire, interview,
survey, observation and many more. On the other hand, secondary method of data collection
assists in providing data which is based over the existing studies and also used in different
studies. It also consists different sources including books, journals, articles, newspapers, online
publishing papers and many more. Under the current investigation both methods will be used to
acquire reliable information. By using primary method, investigator develop a structured
questionnaire that includes various close-ended questions asked from selected respondents,
secondary method also provide assistance in undertaking systematic literature review that
provide viewpoints of different authors as per research objectives to address the specific problem
in an effective manner. With the help of this, researcher can take right judgement and also draw a
valid conclusion.
Data strategy: It is important for investigator to select an appropriate strategy for carry
out an effective investigation. Mainly, it includes various strategies that can be used by
researcher to collect reliable and authentic information on the basis of particular research topic.
In this context, there are various data strategies such as questionnaire, interview, case study,
survey, observation, literature review and many more. All these are effective in undertaking
research but for current investigation, questionnaire is considered as an effective strategy by
which researcher gather quantitate information towards the particular topic and research area.
Along with this, it also includes different questions asked from selected participants towards the
particular topic (Jacobs and Singhal, 2017). This type of data strategy also support researcher in
taking right decision within the study and also draw a meaningful conclusion.
Data analysis: In undertaking research activities, it is related with the process of
inspecting, cleansing, transforming and at the same time also modelling data that help in
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discovering all the necessary information that support in decision making activities. In relation to
this, researcher also used by researcher to take right and valid judgement to make overall
research more successful. In this, investigator will use questionnaire for collecting quantitative
and primary information. In order to analysis quantitative information, frequency distribution
analysis as an analytical technique will used (Grayson and Hodges, 2017). Under this type of
analysis, researcher develop table along with frequency. With the help of this, researcher can
easily analysis quantitative information within the minimum time frame along with more
effectiveness.
Sampling: It is referring to the procedure of selecting right sample size from the larger
population with the aim of gathering relevant and valid information that assist investigator to
solve the particular research problem in an effective manner. In this, there are two type of
sampling methods such as probabilistic and non-probabilistic sampling technique. In order to
select sample size for the current investigation, probabilistic sampling technique is an effective
technique and used by researcher. In this, sample size will be selected as per random basis and
also provide equal chances to be selected to this research. With the help of this technique, 50
sample size will be selected and who are the employee of business organisation because they
have proper knowledge about the specified research topic and area.
Ethical consideration: At the time of undertaking research activities, it is significant for
investigator to execute each and every activity in ethical manner as it provides support in
improving the chances of attaining positive results. In this context, there are some important
principles of ethics including research consent, anonymity and confidentiality. By following all
these principles, research can complete entire research activities and at the same time also draw
meaningful decision at the end of the study.
Limitation: At the time of undertaking research, researcher face various issues and
limitation that put negative impact over the end results of the study. In relation to this, there are
various issues that faced by researcher at the time of undertaking study including lack of time
and insufficient fund (Palepu and et. Al., 2020). Thus, it is important for investigator to manage
proper time and fund by preparing proper plan. In this, researcher prepare Gantt chart that
includes all the important research activities along with specified time frame. This can be
reducing the chances of arising issues related with time. This will directly contribute in making
overall research more effective and reliable in nature.
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DATA COLLECTION
It is an important section that used to collect as well as measure data with the aim of taking
final decision (Andon and et. Al., 2018). For this, researcher prepare structured questionnaire
that consist various close-ended questions asked from selected sample size in order to gather
reliable and authentic information about the research topic.
Questionnaire
Q1) Do you have any idea about role of corporate strategy and governance?
a) Yes
b) No
Q2) According to you, what are the major roles played by corporate strategy and
governance within the Tesco?
a) Visibility of Errors
b) Efficient processes
c) Reduce costs
Q3) Does corporate strategy and governance affect the financial performance of business
organization at market place?
a) Yes
b) No
Q4) What are the impact of following corporate strategy and governance within the Tesco?
a) Positive
b) Negative
c) Neutral
Q5) As per your point of view, is managing corporate strategy and governance is important
for Tesco?
a) Yes
b) No
Q6) What is the major issues of corporate governance faced by Tesco?
a) Financial performance
b) Conflict of interest
c) Transparency
d) Ethics Violations
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