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Factors Impacting Business And Its Growth Of Tesco

University: University of Greenwich

  • Unit No: 8
  • Level: Post Graduate/University
  • Pages: 11 / Words 2856
  • Paper Type: Assignment
  • Course Code: BUS105
  • Downloads: 411
Question :

This assessment will cover following questions:

  • Hoe business environment impacts the operations of Tesco.
  • Tesco is a UK based retail supermarket chain. State the tools which Tesco could use in analysing business environment.
Answer :
Organization Selected : TESCO


Businesses are impacted due to change in internal or external factors within which they operate. It is because they are directly related to these factors and dependent on them for growth and development. Therefore, it becomes very important for business to analyze macro factors so that strategies can be developed to minimize the impact (Bah and Fang, 2015). Moreover, stakeholders are involved in this so that precise data and information can be collected through them. The main aim of conducting this is to determine how fluctuation will impact growth. Likewise, how business is related to it and whether it will effect for long or short term. This assignment will describe the history and organizational structure of Tesco. It will show how company is governed, who are their stakeholder, employees, etc.


Question 1 A company overview

Tesco is British grocery company headquartered Welwyn garden city, Hertfordshire, UK. It is world third largest retailer in terms of revenue that operates in different countries. they are the market leader in grocery sector in UK having market share of around 28.4%. There are total 6553 stores of Tesco till 2017. There are variety of goods and services provided by company. It serves areas such as books, clothing, electronics, financial and internet services, etc.

The company is basically engaged in retail sector but also provided various other services. It targets middle class people and offer grocery items are the necessity of life (Botha, Kourie and Snyman, 2014). The mission and vision of Tesco is stated below :-

Mission- Creating value for customers, to earn their lifetime loyalty

Vision - We make what matters better together


  • To help customer to live better every day.
  • To provide high quality products at low prices.


The history of company is as follows :

Date/ year



Jack Cohen founded Tesco in Hackney.


Tesco first brand name was appeared.

September 1931

First shop was opened at 54 Watling street, Middlesex.


Company was listed on London stock Exchange as Tesco stores limited.


Largest Tesco shop was recorded in Guinness book of records in Europe.

22 April 2015

Tesco market capital was recorded as 18.1 billion Euros at LSE.

Organizational structure

Tesco is having hierarchical structure in which authority flows from top to bottom. There are three levels in this that are top, middle and bottom level. they follow hierarchical structure.

Organizational structure means that how activities will be supervised, allocated to attain goals and objectives of organization (Virglerová, Dobeš and Vojtovič, 2016 ). Also, it shows who will report to whom at a particular level. they are divided into two types:-

Tall - It is a long chain of commands in which there are many levels. This type of structure is followed in small and medium size companies. Here, levels are added with growth of organization.

Hierarchical - As name reflects, in this every single level will contain a single entity. In this people at top contains more power than at low level. it is commonly followed in large corporation, governments, etc.

Organizational chart - It shows the organization structure followed with help of diagram or chart. In displays the rank, position, relationship, etc. between different post or jobs.

Tesco manages their operation and structure in similar way in different country. they are having same number of people at every level (Moroni, Arruda and Araujo, 2015). each of them reports to top level in same way.

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Tesco is a public limited company so it is governed by government who appoints responsible person to regulate and control the company operations. the overall operations are controlled by Chairman. The executive directors are responsible for development of strategies and monitoring them.

Dave Lewis – Executive director (CEO) was elected and appointed in September 2014.

John Allan – Chairman of Tesco elected and appointed on 1 March 2015.

There are five executive and eight non executive directors in Tesco

3.1 Stakeholders

They are the group, individual, etc. who are directly or indirectly connected with organization. They are affected by organization goals, objectives, etc. They can also own share or invest in company. Tesco stakeholders include government, customers, directors, emplo

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