How has the structure and culture of Tesco contributed to its performance?
This essay looks at the organizational structure and culture of Tesco and how it’s contributed to its performance. The essay aims to especially answer two critical questions 1) how does Tesco's organisational structure make them successful? 2) what is the impact of organizational culture on the performance of Tesco?
Organizational structure plays a vital role in company performance primarily because it is the foundation of successful implementation of strategic objectives and goals. Since organizational structure is about the strategic relationship between physical factors and personnel factors in an organization, any impediment or friction in the structure of a company can easily render it ineffective, blocking successful implementation of strategic objectives and goals.
The right organizational structure is very essential for the success of an organization because it has the potential to shape people’s attitudes and behavior as much as the organizational groups they operate in. An inappropriate structure can block an organization’s achievements.
This essay thus examines Tesco's organizational structure and how the structure has helped it achieve its aims and objectives. Tesco has been the most successful food retailer in the UK, maintaining market leadership and market share since 2005. Tesco’s success is largely attributed to its competitive pricing strategy. Indeed, the everyday low pricing strategy has been the bedrock of its success. But strategies do not execute themselves. People working in efficient systems are at the heart of successful strategy implementation. A key cog of organizational structure is culture and the human resource factor and how both fit into a framework of organizational structure that can work seamlessly to bring about successful strategy implementation.
A fundamental insight into Tesco’s market dominance must thus incorporate a thorough examination of its organisational structure, Tesco’s organisational culture, the advantages, and disadvantages of Tesco’s organisational structure, and how the structure of Tesco helps it to achieve its aims and objectives.
Organizational Structure And Culture At Tesco 2023
Key Learning Outcomes
- Analyze the relationship between structure, culture, people, and organisational performance.
- Identify the essential nature of organisational structures and culture, communicate the role of structures, and furthermore, explain how the cultural variable plays a part in the effective implementation of strategy in organizations.
- Apply relevant theories, models and principles illustrated by practical examples from the Tesco organisational structure essay case study.
Founded in 1919 by Jack Cohen as a collection of market stalls, Tesco has grown to become the biggest UK supermarket chain, holding a market share of 25.6% as of 2022, with over 37,000 employees running its more than 3,700 Superstores, Metros, and Express convenience stores. It has also successfully expanded its operations to other countries in Europe and Asia and has continued to command the highest market share despite the growing competition from German discounters Aldi and Lidl.
Tesco’s success is traditionally attributed to its competitive pricing strategy. Indeed, the everyday low pricing strategy has been the bedrock of its success. But this essay is going to analyze how the structure and culture of Tesco have also contributed to its success.
This Tesco organisational structure essay looks to answer fundamental questions about organizational structure using a real-life case study. Key questions that will be answered include; how does Tesco's organizational structure make them successful? How does the structure of Tesco help it to achieve its aims and objectives? What is the impact of organizational culture on the performance of Tesco?
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