Running Head: TESCO’S FINANCIAL PERFORMANCE AND HEALTHFinancial Performance and Health of an organization ReportTesco PLCStudents' NameInstitutionCourseInstructorDate
2TESCO’S FINANCIAL PERFORMANCE AND HEALTHFinal Project Milestone One- Module ThreeFinancial Performance and HealthOrganizational ContextI.Key Goods, Services and FeaturesTesco PLC deals with wholesale and retail of grocery products which are main products of the company. in addition, the company also provides retail insurance and banking services. The company conducts its business through both the Brick & Mortar as well as online platforms. Tesco PLC operates in 13 countries: the UK, Poland, Malaysia, Hungary, Republic of Ireland, Czech Republic, Slovakia and Thailand. Over the years, Tesco PLC has grown to be one of the most respected grocery stores in Europe and the World with a leading market share of 27% as of December in Great Britain(Tesco PLC, 2020). Its close follower is J Sainsbury with 16% market share. Since people have distinct wants and needs, Tesco’s products and services cannot be equally attractive to all people hence its established target market is the cost-conscious people interested in value variety and bargains. A key strategy guiding decision making in Tesco PLC is the application of a customer-centric concept which is characterized by the low prices charged on
3TESCO’S FINANCIAL PERFORMANCE AND HEALTHits products. since its inception the company has used the low-price policy to gain competitive advantage over its competitors. In addition, the company uses loyalty cards to maintain customerloyalty at its stores and also gather information on the customers on how to improve its products and services. II.Company OrganizationTesco follows a hierarchical structure with functions specifically divided in its long command chain and more power resting with the top level(Johnson McPhail, 2016). This helps avoid confusion and chaos by ensuring that everyone has defined roles. The company also follows functional establishment structure rather than geographical one followed by most multinational retail stores. Tesco management hierarchy is divided into top, mediate and base levels. The top level is made up of an executive board with the company’s president (CEO) as the head. Other board members are the chairman, the Chief Finance Officer and non-executive directors. In addition, there are also executive committee made up of 9 heads of department. Thislevel performs supervisory functions as well as making major decisions in regard to the companyfunctioning. The other level is the mediate level which is between the ground staff and the executive board (Johnson McPhail, 2016). This level comprises of vice presidents, other managers and their assistants. The mediate level is responsible for the coordination of the other two levels functioning as well as other functions such as personal relations, funds, advertising and marketing and HR management.