Tesco plc is a Public Limited Company that was founded in the UK in 1919 and is considered to be one of the leading grocers in the world
Tesco plc is a Public Limited Company that was founded in the UK in 1919 and is considered to be one of the leading grocers in the world. As Tesco is a Public Limited Company, it means that the business has limited liability, therefore the shareholders that invest in Tesco will only be held accountable for the value they have invested in; no more, no less. Also, as Tesco is a PLC, the company sells and trades shares publicly so anyone can invest in Tesco. This suggests that Tesco is owned by several individuals and groups; its shareholders, and not by just one owner.
The purpose of Tesco is to provide the customers with a satisfactory service that are high quality and affordable, either through their products, ranging from groceries to homeware to petrol, or their services, like banking facilities and deliveries, thus making Tesco PLC a business in the tertiary sector due to the services they provide. Alongside providing the customers, Tesco will also prioritise sales in order to make a profit as this is provides an inflow of money. This could be achieved by maintaining customer loyalty to ensure a regular cash flow.
Around the globe, there are several Tesco stores including the main store and express stores like Tesco Extra; due to the availability of Tesco globally, it shows that the business has an international scope level. Across these stores, Tesco has employed over 400,000 employees (exceeding the ?250 employees needed for the business to be considered large) and has a high turnover of £55,900 million, therefore Tesco PLC is a large business.
The organisational structure which Tesco follows is the hierarchical structure where there are different levels of authority and responsibilities. This type of structure assigns roles in an effective way to ensure maximum productivity; those who have most authority are situated at higher levels whereas those who do not have a span of control are located towards the bottom. By having this structure, it allows the employees to easily identify the positions of authority which can benefit them if they ever needed to communicate with those further up than them; for example, a checkout operator may have some issues and would like them to be solved, they can go to the manager (who has a considerate span of control) and then the manager can help solve it or pass it along to those above them to help fix the problem. Although communication may be slow, it allows those at lower levels to indirectly communicate to those at higher levels.
Within the hierarchical structure, there are divided sections depending on the functional areas. The functional areas at Tesco will include finance, administration, PR (public relations), HR (human resources), production, marketing, IT and sales. Those in the finance department are responsible for recording