Macro Environment & Tesco

Macro Environment & Tesco

Macro Environment & Tesco

Introduction

According to the circumstances of whole supermarket industry, supermarkets retailers separately determine their competitive strategies, and improve their marketing performance and macro environment to be in line with strategies. The marketing performance and macro environment of supermarkets are guided by their strategies, on the other hand, the strategies are reinforced by them, in order to be more competitive and react quickly to the change of the whole industry (Martin, 2001: p54). This very paper critically evaluates the organisational structure and culture of Tesco, identifies the Tesco's aims and objectives and analyses the effect of these on the structure and culture of the organisation. Further to it interrelationships between the different processes and functions of the organisation are also highlighted.

Structure of the Organisation

As the macro environment, it has been considered within the context of corporate strategy and organisation structure (Mullins, 2002: p7). Tesco is one of Britain's leading food retailers and has 586 stores though out Great Britain. From 2002 Tesco has grown greatly and has increased its market share from 10.4% to 15.2%. This increase in customers has also given Tesco a large amount of profit. (Mullins, 2002: p7)

Tesco has 164,500 shareholders. Tesco's profit is about 505 million pounds after the tax has been deducted; about 50%of this is then distributed to the shareholders as dividends. The average shareholder holds between one and one thousand shares, but also a large amount of shares are held by banks, pension funds and building secretes. Tesco's share prices have risen since February 1997 when it was 349p to 586p on the 21st April 1998. The shares have peaked a high price of 603p. With this growth Tesco's is now the largest super market chain (Mullins, 2002: p7).

Macro environment

A good organisational relation can contribute to the organisational performance, so Tesco pursue to construct a good relationship inside and outside. Internal culture is not the only issue that Tesco should deal with, but also the external culture. External culture is playing a more and more important role in companies' overseas expansion. International supermarket should adapt the different local culture in the world. Tesco normally expand its overseas market by the way of acquisition or joint venture. So it can save the work of training staffs to adapt the local culture.

Tesco's continuous expansion of overseas operations has been of increasing importance, and this is borne out by the growing number of overseas staff over five years (1999-2003). The number of staff was increased by 149% (22,142 of year 1999 to 55,131 of year 2003). Staff levels overseas are set to continue in line with current expansion plans, and the stated aim of using local manpower (Schein, 2002: p54).

Tesco as a major food retailing chain, should continuously remain its quality policy, which based on its own brand fresh produce. Meanwhile, with the current global economic growth, concerned about its ongoing market share and growth, it is essential to widen its global market, which largely based ...