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Tesco UK

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Tesco UK, a global grocery and general merchandise retailer is the third-largest retailer in the world and found in Cheshunt, United Kingdom with its stores across 14 countries. The company deals with the retailing of books, clothing, electronics, furniture, petrol and software. Since its inception, Tesco UK has managed to succeed through its financial services, telecommunication and internet services, DVD rental and music downloads (English, 2011). The Tesco UK is among the London Stock Exchange constituent with approximately 165,000 shareholders.

Its secret of success since its inception was to cater for all the segments in the market, which is, by the use of its own brand products not leaving the up-market products such as food, beverages, home and clothing, Tesco mobile and financial services (Tidd, & Bessant, 2009). Its innovative way in technology also contributed greatly towards its success by being the first to build self-service and by the use of cameras to avoid queues experienced before. Their corporate social commitments towards the contributions to the charities through local community organization have enabled the company to market itself very well. Being an ambitious company with lots of achievements, Tesco UK has come up with plans to open new stores in the United Kingdom and the European countries.

Other ways Tesco has managed to progress in its business is through the cash-in recession whereby customers have been wooed to at least cash in some of the cash they owned at their supermarkets in a one catch-all shop. Nevertheless, here most of the consumers become addicted to the club card available in the supermarket and the free parking advantages provided along the way (MacLaurin, 1999). The reduction of the food price has also helped greatly in achieving the Tesco objectives.

All this achievements in have been brought by the Tesco UK management through some of the structures listed below:

  1. The Finance Function- Whose work was write records in the logbook concerning all the business transactions performed or done by the Tesco. It also observes the progress of the business financially and ensures that there is enough cash in the business in order to clear all the debts the company owns and to maintain its long time stability.
  2. The Administration Function- Which is responsible for the organization set purposes to achieve Tesco’s objectives, missions and visions they have put in place. They create order, organize on how work needs to be and accomplished.
  3. The Human Resources Function – was responsible for the recruitment purposes, selection and training of the employees of the organization.
  4. The Marketing Function- It deals with the marketing of the research data and customer complaints. They also market their products through advertisement. This department work closely with the finance, purchasing, production and transport departments in order to boost each other in case there is a breakdown of materials.
  5. The Research and Development Function – Its main objective was to make sure that the organization can be completed successfully and achieve an intact sustainable competitive edge when it come to their competitors by becoming more efficient and offering some good values to customers. The department deals with innovation of Tesco and changes in trend of the market.

To achieve success in Tesco UK, this management and leadership styles does matter a lot in Tesco UK.

  1. Autocratic style of leadership method is what has been used in Tesco UK because here, since the leader has the control of all the workers in decision making which needs to be done so quickly by the leader especially when the situation happens to be that urgent. In Tesco, lack of the autocratic leadership may end up running down or even making the business fail or go at a loss.
  2. Management by objective is also used in Tesco UK because whenever an employee who has applied for a job in the organization is employed, he or she is stated the appraisal and there objectives to be followed for a given period when working in that organization.

With the Tesco achievements, better leadership, and organizational structure, there are a few business concerns or factors that tend to affect the management of the business. For instance:

Political Factors

Since Tesco UK operates globally, its performance is highly affected by the political and legislative conditions of the countries they operate in.

Economic Factors

The economic factors becomes of the concern because there is the likelihood of it influencing the demand pattern, cost, prices and profits. High unemployment levels are known to be one of the most influential factors of the economy that in return it decreases the effective demand for many goods hence leading to lower of goods production demand (Currah, and Neil, 2004).

Social/ Cultural Factors

The UK retailers are focusing on the added-value products and services due to the demographic changes like the aging population, an increase in female workers and some decline in home meal preparation

Technological Factors

The developments of many of the Tesco products have influenced greatly by the innovations of technologies. This innovation in technologies does benefit both the customer’s needs and the company. Some of the technologies utilised by Tesco store are such as wireless device, intelligent scale, Electronic shelf labeling, self-checkout machine, Radio Frequency Identification (RFID).

Environmental Factors

The main concern for the Tesco’s corporate social responsibility is the way in which the organization has been exceeding the minimum obligations meant for the stakeholder. This has led to the government wanting to launch a new strategy or sustainable consumption and production to cut waste, reduce consumption of resources and minimize environmental damage.

Legislative Factors

Having invested in some countries, the Tesco UK has been affected by the various government legislations and policies.

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