The Business Structure Of Tesco

Tesco’s is a private company which is owned by directors and shareholders who fund the business and the sole purpose is to make money. Tesco’s main purpose is to sell and make profit on products they sell such as food and online service. Tesco’s will provide excellent customer service and make sure all customers come back which

The organisational structure that Tesco PLC has is a hierarchical structure which consists of multiple layers. This type of business structure means that it looks a pyramid from the chain of command. It’s broken down into levels where the higher the level the higher rank and authority. For example, the workers of Tesco PLC are the large base at the bottom of the hierarchical structure. Then continues further up the pyramid to a higher ranked level. The employees at Tesco PLC are ranked at different levels, the levels are above each other. Of which less people there are as the levels go higher; the highest level is where the chief executive is at top.

Corporate governance is a set of actions used to handle the relationship between stakeholders by determining and controlling the strategic direction and performance of the organization. Corporate governance major concern is making sure that the strategic decisions are effective and that it paves the way towards strategic competitiveness. (Hitt, Ireland, Hoskisson, 2017, p. 310). In today’s corporation, the primary objective of corporate governance is to align top-level manager’s and stakeholders interest. That is why corporate governance is involved when there is a conflict of interest between with the owners, managers, and members of the board of directors (Hitt, Ireland, Hoskisson, 2017, p. 310-311).

Corporate governance in itself has no single definition but common principles which it should follow. For example in 1994 the most agreed term for corporate governance was “the process of supervision and control intended to ensure that the company’s management acts in accordance with the interest of shareholders” (Parkinson, 1994)1. Corporate governance code is not a direct set of rules but a self-regulated framework which businesses choose to follow. This code has continued to change in the past 20 years in accordance with what is happening in the business world. For example the Enron scandal caused reform in corporate governance with the Higgs Report which corrected the issues which were necessary. Although it does not quickly fix problems, it gives a better framework to

The previous arrangement followed by Marks and Spencer demonstrates the concept of hierarchical structure, however in the last five years, due to a rise in their competitors within in the retail industry in the UK, their strategies have now become more focused on innovation and customer service’s quality. Therefore, their tall structure was redefined to adapt to these changes.

Corporate governance is a commonly used phrase to describe a company’s control mechanisms to ensure management is operating according to

Tesco is a multinational organisation in the private sector. It’s a large organisation with over 500,000 members of staff in over 12 countries. Tesco has a hierarchical structure because it has a

For this assignment my task is to choose two contrasting businesses within the Borough of Newham and describe the type of businesses, purpose and ownership. One has to be a large profit making business, like PLC or Ltd, and the other a small business, profit, not-for-profit, sole trader, partnership or small ltd. For the first business, I have chosen one of the largest retail in the world, Tesco PLC, and for the second I have chosen the charitable organization, Cancer Research UK, that is a not-for-profit business.

Tesco is a British retail magnate trading at the London Securities Exchange. The company had several capital and quasi-capital transactions with providers of finance during the fiscal year 2008; had the effect of altering their capital structure and changing their Weighted Average Cost of Capital. During this financial year, Tesco was financed by retained profits, long and medium-term debts, capital market issues, commercial papers, bank borrowings and leases (Tesco PLC, 2012). The company generated £2611m cash from operating activities which helped finance their £3bn in capital expenditure, including £1899m profit which contributed towards retained earnings. The firm issued Medium-Term Notes (MTNs) worth £1213m which helped decrease the current MTNs, overdrafts and loans by £108m. Additionally, ordinary shares totaling £156m were released by the firm and entered into the sale-and-lease back leasing arrangements that released £454m from property, along with £650m after the balance sheet date. In addition, the firm returned value to shareholders by paying dividends of £467m and purchasing £490m of their own shares back.

Tesco PLC, the top three retailer in the world, which was establish by Jack Cohen in 1919 year, which has near 100-Year history. In these days, it has been thrived to 12 country all over the world, including United Kingdom, Malaysia, India, Hungary, Ireland, Kipa, Slovakia, Poland, Czech, Thailand, even South Korea, and China (Tescoplc.com, 2012). Tesco is a public limited company. According to Marcouse (2011:92), “Public limited company (Plc) is a larger type of company that must have at least £50,000 of share capital and has its shares traded on the stock market”, therefore Tesco can have greater capital source and shareholders in their business.

In this report I will be providing the UK’s largest supermarket, Tesco with advice on their performance. I have chosen to use two types of analytical models to review the company; I will be looking at the organisational structure of Tesco, as well as analysing their business and competitive strategy.

Starbucks uses a matrix organization structure similar to most big corporations. The functional feature of Starbucks’ departmentalization is having an HR department, finance department and a marketing department. These departments are only utilized at the top levels of Starbucks’ organizational structure, mainly its headquarters. For example, the HR department would typically implement a new policy and that policy would apply to all Starbucks cafés. This facilitates top-down monitoring and control with the CEO at the top. Doing this helps the company maintain consistency throughout its stores and allows for employees to know what is expected of them. Starbucks also involves geographic divisions, which are mainly in the Chinese, American and European markets with each division having a vice president. This allows for each manager to only have to report to two superiors, the geographic CEO and the functional CEO. This helps for closer geographical needs and each division is given a high degree of flexibility in strategy and policy. Next, Starbucks uses product-based divisions that address product lines such as coffee, baked goods, merchandise, etc. Starbucks is a brand and they market their own merchandise with supports from its organizational structure. Finally, teams are also used with its most notable team structure being the baristas. They work together to make the product which are given to the customer that can watch it being made. It takes a team to provide top notch

The organization I have selected for this assignment is Donut king which is in palms mall Shirley, Canterbury. The main rezone of choosing this retail store is that is very familiar with this store because am working here. An organization is a formal structure of roles and positions put in place to achieve some specific goals. The structure of a retail organization defines the role of employees and the way in which the organization functions. To design an effective retail organization structure, managers/ owners must define store objectives, identify the tasks, classify the tasks and jobs, and assign responsibilities and authority to various positions, and define the relation between them.

Corporate governance can be defined as the process, customs, laws by which the affairs of a company are managed and controlled it also

Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals. Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the