P4 - Explain How Their Style of Organisation Helps Them to Fulfil Their Purposes- Unit 1

Tesco's has recently had to make many changes in their staff and have had to change the management structure to be able to pay every manager fairly and pay the wages for their general employees. These effects were taken place due to a major profit change and an unstable financial system. Another effect that has been changed is the Tesco pension scheme back in 2012. The Tesco pension scheme had changed due to financial problems however this would mean employees who have a pension scheme with Tesco will have to work longer if they were in their early 60's . This became a challenge for Tesco's as they couldn't afford to pay out on pension schemes at that precise moment.

Tesco is the Public Limited Company I will explore. To understand the size of Tesco, it has stores in 12 countries across Asia and Europe. There is a sum of 3739 Tesco stores within the UK (as of 2017). They also have 460,000 Colleagues at the end of 2016. This shows the size of Tesco and gets us to understand the effect that Tesco has on the UK’s economy and needs and goods of UK’s communities.

Tesco operates in 14 different countries. Therefore its performance may be influenced by the local legislation and political factors. There are

Tesco also have social factors that affect them, as the business have charity centre in helping the less privilege people and the more these people gets poor, the more they will have to stretch to help out which also spending money.

Workers Both Tesco and their representatives impact each other. The standard of work, wellbeing and security concerns and perfection are the need components of Tesco. This has a positive impact over their workers which encourages them to manage advertise administration.

Profits for Tesco’s operations in Europe, Asia and Ireland increased by 78% during the last fiscal year. The company has a strong brand image, and is associated with good quality, trustworthy goods that represent excellent value. Tesco’s innovative ways of improving the customer shopping experience, as well as its efforts to branch out into finance and insurance have also capitalized on this.

Tesco is a leading multinational grocery and general retail company based in the United Kingdom (2015). Founded in 1919 by Jack Cohen it has grown to have 6,784 stores in 12 countries with a total revenue of £63.557 billion in 2014. Statista shows that Tesco currently holds the highest market share in the UK with with 28.7% followed by Asda at 17% (2015).

Currently, as a global retailer, Tesco is operating in 12 markets across Europe and Asia. Over 500,000 employees are employed under Tesco and it works with suppliers in over 70 countries. Each week Tesco enable to hit over 85 million shopping trips.

Tesco have been closely working with the Government to try and combat the UK 's ever increasing unemployment. They are doing this by opening vast stores capable of generating 200 new jobs in renowned low employment areas. This is beneficial for everyone.

It’s marketing philosophy of every little help attracts communities, consumers as well as employees whatever they perform. Tesco takes great honour in delivering an exceptional shopping experience

Tesco is still considered one of the largest supermarkets and retailers in the world which many competitors try to imitate, and hence compete

The company was initially founded by Jack Cohen in 1919 as a small retailer in Britain and is now recognized as one of the leading grocery vendor in Britain. According to Smith and Sparks (2004) the company progressed noticeably over the years with a current annual sales of over 3 Billion. The main strategy that was used by the company was “pile it high and sell it cheap” indicating, introducing a tremendous amount of products and many services at a minimum

However, according to ICMR (2005), Tesco’s ‘Steering Wheel’ was so successful in fulfilling the company’s strategic objectives that the company forgot about HR policies and procurement policies when the company began to grow rapidly. This resulted in Tesco paying unduly low wages and having a high absenteeism rate. The balanced scorecard does appear to have been a great success for Tesco as it is the largest British retailer.

From the table of Tesco’s Sales and profit changes in the past five years, we can see that it’s doing worse. Even its sales revenue is not change much, but the changes of profit are horrible, and according to it’s income statement, we found that the reason of it change so much is because the cost of sales are to high, even more than sales revenue, therefore Tesco may need to find a new supplier and try to increase its sales. Furthermore, from the five year summary of Tesco, we can see that they have stores in UK, Europe, Asia and US. The main part of its revenue are

The Tesco singularity’s is that it hires people from a wide range of backgrounds and Tesco also gives opportunity to all employees to develop themselves and grow. In order to foresee any possible skills shortage, Tesco regularly evaluates performance of its workers, which helps managers find out, whether its employees have true knowledge and skills, resources and understanding about their job in order to perform effectively. Also, if Tesco staffs feel that they need trainings then they can apply for training suited to their needs. For instance, Tesco Distribution Centers and Head Office in order to learn about each other’s work sometimes can spend a week’s in a store, and this makes both part of the Tesco operation more strong (The Times 100, 2010).