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Tesco is a British food retailer and general merchandiser operating across the UK, Central Europe and Asian markets such as Ireland, Hungary, Thailand and Malaysia. Started 100 years ago (1919) as a market stall by Sir Jack Cohen, the supermarket chain has been market leader since 1996 when it overtook Sainsburys, maintaining the biggest market share in the grocery market upto today (Winterman 2013). With operating profit of £2.5billion on sales of £63billion in the year ending 2019, Tesco has overcome a difficult last 4-5 years to maintain its dominance of the food retailing sector in the UK (Annual Report 2019). This essay looks at its structure and culture and their contribution to Tesco’s dominant performance in its industry.
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Analyse how the structure and culture (these two factors) of Tesco contribute to its (the organisation’s) performance.
Your essay should refer to relevant theories and models of organisational design and culture
1.0 INTRODUCTION
Tesco PLC is a company engaged in the business of retailing that started in 1919 at the East End of London. It sits its headquarters at Welwyn Garden City, United Kingdom with over 6,800 hypermarket/ supercenter/ superstores all around the world and an online presence (Tesco PLC, 2020). According to the Deloitte Global Powers of Retailing 2018, the company was ranked the eleventh largest retailer in the world with a revenue of $72,390 million revenue in the financial year 2016 (Deloitte, 2018). It is a market leader of groceries in the UK and its growth has been attributed to its organizational structure and culture.
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