Tesco S Organizational Structure and SWOT Analysis Essay

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Management: Tesco Supermarket

Tesco's Goals and Targets

Functions of Management

Organizational Structure

Internal Analysis of Strengths and Weaknesses

Creating more Innovative Organizational Cultures

Benefits of Effective Communication

Understanding Management: Tesco Supermarket

Tesco supermarket is a British multinational grocery and general merchandise retailer. Tesco is headquartered in Welwyn Garden City, Hertfordshire, England in the United Kingdom. Tesco deals with a wide range of products, which has high demand in the market aiming at full customer satisfaction. Tesco was founded in the East End of London, London in 1919. The fist chief executive officer was Dave Lewis. Tesco was originally dealing only with grocery, but it later diversified to various products in various geographical regions.

Introduction

Tesco has opened many branches in different countries, and it is aiming to reach even people in rural areas. Tesco has stores in 12 countries all over Europe and Asia, and it is the leading grocery market in United Kingdom, Thailand, Malaysia, Hungary, and Ireland. Tesco has the largest market share in the United Kingdom equating to 28.4% of the available market. With the current transformation to the digital era, Tesco is not left behind as it has adopted and implemented online transactions where customers can order the products and pay them online, and they can be delivered to their locations on time. Originally, Tesco was a United Kingdom retailer since 1990s, but it has diversified into different areas in various geographical places retailing on petrol, electronics, books, toys, clothing, and software.

Tesco's Goals and Targets

Tesco's target is to expand the number of stores in the United Kingdom and a range of services it provides to the customers in the stores. Expansion of the stores will enable Tesco to have a wide market reaching many customers in different countries leading an increase in sales and automatic increase in profits. While Tesco is targeting to increase the number of stores in other countries, it is targeting to increase online services, as it is the most preferred mode of the transaction by many customers in the current technological era (Stankevi ien et al., 2015). The mode of the transaction will save time and money for the customers as they will not incur any expense concerning traveling to different locations to acquire the products and services.

Tesco is targeting to provide a vast range of products other than the groceries to electrical goods, which is in high demand in the market, as per the survey conducted by Tesco. Another service Tesco is targeting includes insurance, banking, and mobile networks. The services are on demand in the current markets that Tesco is providing its products and services. Tesco is targeting to create brands, which the customers value such as Tesco finest and Tesco value. Building the best teams possible is the main target of the company. If Tesco fails to build the best team to work on all the other targets, it will not succeed in meeting its targets. The teams consisting of staff in various departments are the face of the shop as they are the immediate people to interact with the customers. Building the best team will be easier for Tesco to improve the services and expand its market.

Functions of Management

Management consists of the interrelated functions of creating policy, organizing, planning, controlling, and directing resources in an organization such that it can achieve the objectives of the policy. Tesco need to have qualified staff in the management positions, as they are responsible for controlling all the operations of the business both within and outside the business. The management needs to plan how to implement all the targets such that they can achieve the best results. Before venturing on any activity, planning is an important factor as it guide on how to roll any activities in chronological order. Planning includes mobilization of resources needed to support the implemented of the targets set (Schmitt, 2014). The management needs to organize the staff and equip them with any knowledge or skills required to achieve the goals set by the company. Such organizations involve training of staff on how to approach and achieve the targets set by Tesco. The management team is responsible in leading by example in working on the targets and goals set by the company. It will help in motivating the other staff to emulate the management in working on the goals of the company. It is the role of the management to control all the operations of an organization. In the case of Tesco, the management should control all the operations aiming at achieving goals and targets set by the company.

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The management must be aware of any activity happening in all the branches and should be available to correct any problem that might arise in the company and its branches.

Organizational Structure

Organizational structure defines how various activities such as supervision, coordination, and task allocation are directed in an organization. In the case of Tesco, the organizational structure is divisional concerning the range of services offered and the number of employees. The company utilizes divisional organization structure because it functions in a wide geographical area with distinct smaller organizations in different countries within the umbrella organization to cover up various markets regions and different varieties of products. The structure is hierarchical because Tesco many people are accountable to more than one person before the information reaches the boss and a large number of levels is involved. One person manages each of the levels (Egeberg et al., 2015). The structure has a sequence of commands with a large number of workers in a straight-line supervision from the lower level to the apex of a ranking officer. The structure allows the workers in Tesco Supermarket to be aware of their responsibilities and not to wait for instructions from the supervisors. The structure enables Tesco to portray clear responsibility and authority within the organizations and the consequences if the tasks are not done on time.

Tesco Supermarket has to support and welcoming support in regular ways that employees performs towards one another and towards the external companies influencing the ways that people do things. The management to monitor managers' conclusions and the competence of the staff continuously checks the control measurements and arrangements (da Fonseca et al., 2015). Communications and meetings at each level of company's hierarchy indicate strong atmosphere that all activities in Tesco are properly controlled and always streamlined.

Internal Analysis of Strengths and Weaknesses

In most cases, internal analysis of strengths and weaknesses focuses on the internal factors, which gives a company certain advantages and disadvantages to meet the needs of its customers in the market. Strengths refer to any crucial competencies that give the organization an advantage while working to meet the needs of its customers in the target market. The analysis of the strengths in a company must be customer focused or market oriented. It is because the strengths are only meaningful and important when they help the company in meeting customer needs in the market (Zwijze-Koning and de Jong, 2015). Some of the strengths that any company should utilize include quality of products, prices of products, and demand for the products. Before the company concentrates on the production of a certain product, it has to consider the quality of the product that the customers will enjoy in the market. In this case, the company will analyze the quality of the current products on the market and put slight improvement on its products to meet the needs of the customer and influence the customer to buy.

Price is another crucial strength that the company needs to analyze in the market. Price is the major factor of competition in the market utilized by various companies offering the same products in the market. The companies compete by lowering the prices of the products as a method of competition. It is risky, and the company has to consider the cost of production such that the prices will not be set at a level that the company will incur losses concerning the costs of production (Sarooghi et al., 2015). The company has to consider the demand for the product in the market before concentrating on the production of the product. For example, a company can incur losses if it will produce a product in large quantities without considering the demand for the product in the market. Such incident will lead to losses because the sales will be lower or even zero.

Creating more Innovative Organizational Cultures

Creation of innovative organizational cultures is a collective responsibility in the organization. Both the management and the employees should participate in the process of creating innovative organizational cultures. It is necessary for the management to lead by planning how to create the innovations and supervise while employees are tasked with implementing the created plan and good results will be achieved through collective responsibility (Vick et al., 2015). The management should be intentional with their innovation intent. In most cases, the management instructs the staff to perform certain innovation….....

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