TESCO

Organization Structure, Culture & Marketing Strategies

First Paper-Tesco Organizational Structure and Culture

Introduction

Soon after the Second World War, the concept of self service stores came into existence. It was Jack Cohen who opened the first self service store in the year 1948 by the name, Tesco. Tesco since its inception has grown steadily through competitive customer focus strategy that include discounted prices, better value and variety of choices and convenience for the customer. Today Tesco stands as the world leading Britain retailer and is listed among the top three retailer of the world. It has grown its stall shop to over 2,711 stores globally with more than 366,000peopel employed. The Tesco stores are operating in more than 11 countries outside the UK such as Slovakia, China, Thailand and Turkey. The key factor for Tesco immense out-growth is the customer focus strategy which forces them to go an extra mile to fulfill customer satisfaction and expectation. The motive of Tesco is to make the lives of their customer better and easier.

Organizational Structure of Tesco

Organization Structure for any organization refers to the arrangement that has been established in which the people and the jobs are organized within an organization. The main objective of setting an organization structure is to meet the goals and assist the organization in performing its tasks. Typically in the work environment three types of organization structure exist such as the matrix structure, tall hierarchy structure and a flat hierarchy structure. The organization decides the type of organization structure depending upon its size, basis of authority, the situation and power (Jainusms, 2010, p.1).

The organization structure of Tesco is a hierarchy structure where the structure has many layers and a lot of people are assigned with the reporting responsibility before the information gets to the senior management and the boss. Usually a hierarchy structure is made for big organization such as Tesco. Tall Hierarchy structure is discerned is large firms likes Tesco. A tall hierarchy structure allows large amount of command chains and effective communication to occur for each work sector of the firm. This structure is adopted by Tesco to make the work processing much easier and organized (Jainusms, 2010, p.1).The tall hierarchy structure of Tesco allows multiple operations to take place specifying each department about their responsibility and the relationship of their work with other department.

In addition to the tall and flat hierarchy structure, large organizations nowadays are moving towards another category of structuring such as Centralization and Decentralization. Centralization lays the authority and decision making power rest with the higher management and central level of the hierarchy. While the decentralized structure layer down the decision making authority to the lower management. Due to immense competition in the global work environment, Tesco has recently delayer its organization layers and is moving towards decentralization to improve the employee performance and take effective and immediate decisions in case of any problem and uncertainty (Jainusms, 2010, p.1).The authority to take decision is a form of ...