Tesco indication of how large the organization is. The


Tesco is a multinational company. It specializes in grocery and general merchandise. Some of the products of general retailing include books, clothes, toys, furniture, telecoms and internet services and petrol. The headquarters of Tesco is located in Welwyn Garden City, Hertfordshire, England. It has branches in Asia, Europe, Thailand, UK, and Hungary. The founder of the company is Jack Cohen. 

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Organisational Structure

The organizational structure for Tesco is hierarchical. This is an indication of how large the organization is. The structure is followed even to the small stores. The structure consists of a board of directors. There are ten board members including the chair, the CEO and the chief of the financial officer. Five committees are below them. The audit, corporate responsibility, nominations, remuneration, and disclosure committee. In each of the stores, the management follows a different hierarchical system. This varies according to the size and location of the store and other store-specific factors.  The regional manager is at the top of the hierarchy. The store manager follows this. There are three groups below the store manager; the food-trading manager, non-food trading manager, and personnel manager. The food-trading manager is superior to the fresh food section manager and the ambient food section manager. The non-food-trading manager is superior to the electrical section manager and the clothing section manager. The personnel manager has a personal assistant.

Economy Contribution

Tesco has had a huge impact on the economy. In North Ireland, Tesco has been donating food to the people. A total of £3.6million has been donated to the economy. This is equivalent to 2.1million meals. In return, North Ireland has been the guinea pig for most of Tesco’s projects. For example, it was here that the first regional buying team was set up here. A study report conducted has shown that since being developed more than twenty years ago, Tesco has contributed £5.7 billion to the economy of the region. It has also created £1.5billion in the form of wages. Without forgetting, the company has also made capital investments worth £650 million through the building of new stores. However, the largest contribution is by local purchases. Tesco has bought local food and drink worth £5.5 billion in the past twenty years. The company has collaborated with 6,000 farmer and 90 suppliers to provide some of the products found in the stores


In other countries such as the United Kingdom, Tesco has boosted their economy greatly. It has provided jobs in the various stores. People can work as cashiers and shop attendants and as part of the management system. There is a plan to hire over 20,000 staff to fill the new positions created by Tesco. This will help to improve the economy of the country significantly. The jobs will mostly go to the youth who are unemployed. The new staff will be distributed in both the new and the already existing stores. Tesco also offers apprenticeships for their staff. This is to encourage diversity among the staff.


Tesco has several stakeholders. They include government, local community, financers, suppliers, shareholders, employees, and pressure groups. Each of these stakeholders plays a significant role in the organization. They are essential to Tesco. The local community is the primary customers of Tesco. They are the backbone of the company, and without them, the organization will surely close. The financers provide Tesco with money to run the business and to make necessary adjustments to the stores. They also offer money to pay the employees. The suppliers ensure that the shelves are not empty and that there is a constant supply of products. The shareholders own shares in the company. These help to create a sense of belonging among the people in the local area. The employees manage Tesco. They are there to ensure that the customer is satisfied with the experience at Tesco. They run the organization and ensure that everything is functioning accordingly.





Mission & Vision Statement

The mission and vision of the company remain constant. Although the business structure and strategies may change, they do not change. Without a clear mission and vision, the company is destined to fail due to lack of direction. The vision is where a company expects to be in the end. It is what it hopes to achieve. Tesco vision is ‘to be the most highly valued business by the customers we serve, the communities we operate, our loyal and committed colleagues and of course our shareholders.’ There are five key elements, which help to describe where the company hopes to achieve and to be in the end. The first is to be wanted and needed by consumers globally, to be a business that is constantly growing and is full of opportunities, apply their techniques and knowledge all around the world, to be innovative, to inspire and earn loyalty from customers. (Clark and Chan, 2014)

Tesco has a simple mission statement, ‘we make what matters better together.’ The mission tells us the general approach of the organization to the communities and the environment in general. The mission is written under the first person to show how the organization has made a personal commitment to the customers. Tesco is trying to create a relationship with the customers and the public as it carries on with its general businesses. This helps to instill in an employee or a customer a sense of belonging to the company. They can view the company as an individual and not just as a building or a store. Doing this also helps to encourage loyalty among the customers and the employees.


The business adds value to key stakeholders and the wider society. In most organizations, the stakeholders are affected by all major changes and decisions made by the company. The company, in turn, depends on the stakeholders. They can influence the working environment, the profits and revenues made, the growth of the business and even the efficacy of the business or organization. To the customers, Tesco has developed customer question time meetings. This is a platform where the employees and customers interact and can air out their views and concerns about various issues regarding the running of Tesco. They discuss how the customer experience is to what role Tesco is playing in the society. This helps the business to serve the people much better as their needs, and wants are aired on this platform. The employees air their concerns through viewpoint college survey and college question time proceeds (Clark and Chan, 2014). The business is then able to improve their working conditions accordingly. Solve some of the issues involving wages. If the employees are happy with the business, it is likely that they will treat the customers well. The company treats the supplier with the same respect they would also like to be treated with. This makes the supplier feel valuable and worthy, and the products are delivered on time. They also ensure that Tesco gets the best quality form the products.


Embedding a wider social purpose from the onset ideas is important. It is essential for all business to consider this possibility. Tesco should try to experiment with new ideas other than the outset. This will increase the customer audience. It will attract a much larger group of customers and thus increase the profits obtained. It will also make the customers hooked to Tesco, as they would be curious to know which the next idea that the company will develop is.


Winding up companies refers to when a company is forced by a court of law to sell its assets to pay off its creditors. (Clark and Chan, 2014) It occurred when the creditors decided to go to a court of law after they are not paid, and they discover that the company is not able to pay them. It is also known liquidation. There are two types of winding up, compulsory and voluntary. The compulsory is when a company is forced by a court of law. Voluntary is when the key shareholders sit down in a meeting to discuss resolution of the company. They agree that it is time to dissolve the company probably because the company is not achieving its key objectives. The assists are then distributed among the shareholders depending on the signed contract. Winding up is done to avoid bankruptcy or to pay off debts. After winding up, the company no longer exists, and it is unable to conduct business as usual. The company will only function to distribute the assets and then face ultimate closure. The process of winding up applies to public organizations and private organizations. Partnerships are also affected by winding up.





Economic & Market Environment

Tesco operates in a real macro environment. According to the pestle framework, the political condition of a country largely influences the performance of Tesco stores in that country. Economic factors influence the demand and cost of goods. It affects the profits earned by Tesco. High unemployment decreases the demand for goods. Cultural factors have strongly shown that individuals now prefer to do bulk shopping. Development of new technologies has helped to improve the sales. Customers are satisfied with the availability and quick access to goods. Shopping has now been made personal. Tesco is under a lot of pressure to act and fulfill their role in a way, which benefits the environment in general. The government legislation ha had a large impact on the growth and development of Tesco.


The visible hand refers to incentives and the mutual interest that run markets. The invisible hand refers to the mystical force that is believed to bring order among people when in markets and self-regulate markets especially those that are spontaneously ordered. The invisible hand does not affect the Tesco as much as the visible hand. Offering incentives to suppliers will encourage them to produce and supply more products to Tesco that is quality and in large amounts. It will encourage the farmers to work hard on their farms to produce more yields thus improving the stock of Tesco Company. This affects the company positively. It is also important to note that ethics also affect the company both positively and negatively. (Clark and Chan, 2014)


In my opinion, there are two relevant regulations that will affect the organization. There are a few government laws, which affect all businesses. A rule that may affect Tesco is payment of tax. The company is required by law to report their financial status. This is done through different methods. This will affect the company negatively as a certain percentage of the revenue earned will have to be paid to the government as tax. This will reduce the profit that is earned by Tesco.


Another regulation that will affect Tesco is the building code laws. The law, for example, could state that a building should not be beyond a certain length. This affects the organization negatively as it limits the expansion of Tesco’s building. In the event of a renovation to expand, new buildings will have to be created instead of adding an extra floor to the old ones. This is very costly and required a lot of labor and capital.