TESCO PLC

Current Issues of Tesco Plc and Solutions

Current Issues of Tesco PLC and Solutions

Introduction

The Retail sector sells products to both the public and other businesses, and includes selling food and drink in supermarkets and food stores, selling medical and pharmaceutical goods, cosmetic and toilet articles, second-hand goods, and specialised goods through mail order catalogues and/or websites. It also includes the repair of personal and household goods (Batt, Doellgast, 2005, pp. 138-164). Job roles across the Retail sector include customer service advisers, sales advisers, fashion/product designers, logistics and distribution coordinators, market researchers and marketers, retail managers, buyers, merchandisers, wholesalers and store manager/owners (Batt, Doellgast, 2005, pp. 138-164). The Retail sector has had mixed fortunes over recent months, and sales are currently lower than they were at the same time last year (Batt, Doellgast, 2005, pp. 138-164).

The recession means that people are being more careful with their spending, and are spending less in shops and retail businesses (Becker, Hustled, Ulrich, 2001, Pp. 117-143). Although a number of well known national stores such as Tesco, ASDA and others have shut down most of their franchises, many large supermarkets have created thousands of jobs nationally, which have contributed greatly in producing employment opportunities in the country. Tesco has already announced plans to create 2,500 jobs in the region. Another encouraging sign is that Eldon Square, one of the biggest shopping centres in the region, has witnessed a significant increase in shoppers this year and is planning a huge expansion (Becker, Hustled, Ulrich, 2001, Pp. 117-143). Other developments include the Oval in Darlington and major retail expansion in Durham City as part of the 2020 Vision for the city's regeneration. In this paper Tesco PLC has been selected to examine what are the current problems associated with this giant of retail sector, how the problem is affecting Tesco and what measure can be taken to solve this problem (Becker, Hustled, Ulrich, 2001, Pp. 117-143).

In this report human resource problems and practices at Tesco would be reviewed and discussed to understand, how human resource is affecting this giant and how it can be resolved. A model of commitment has been introduced by the organization that offers training and development to all employees. Tesco's model has been proven very effective and successful for the success of the organization (Beer, Specter, Lawrence, Mills, Walton, 1984).

HR has been implemented by the organizations not as the replacement for old-model personnel department but as a change agent. Though evidence collected within UK demonstrate that after the implementation of hr model, organizations replaced it with personnel department. Tesco has been chosen as the model for study as the strategic human resource policies implemented by Tesco had depicted positive results in terms of increase in business. Their approach to train employees has been proven very effective, and provides organization a chance to grow in other markets (Beer, Specter, Lawrence, Mills, Walton, 1984).

As Tesco operates in a market which is full of competition, where consumer has a lot of choices it is ...