Tesco- Background Information
Tesco PLC is an international grocery and merchandise retailer with headquarters in Welwyn Garden City, United Kingdom. It is the third major retailer in the world measured by profits. Tesco is a world-wide scale organization as today it operates 14 markets across Europe, Asia, and North America. Tesco has over 3,500+ stores and its exponential growth has made it a successful business.
Tesco- Main Purpose
The main purpose of Tesco is to gain customers lifetime loyalty which can be seen by Tesco Clubcard Value. A store like Tesco advances heavily around their customers and stakeholders which is what keeps the business going because Tesco is a business which had a primary goal to achieve profit. They do this by offering a wide range of products and services, which can go from online to physical goods and have a chain of stores across nations which including products like groceries, clothing, everyday household products all the way to different types of insurance, broadband, mobile etc. However, some of the purposes for Tesco are to provide goods and services that are cheap and affordable to the public, to maximize sales, to grow and maintain the number on marketing in the UK and to outshine competitors and remain the market leader. They have many universal values, which have helped guide people as Tesco had grown into new markets and new countries. There many business strategies which come directly from themselves say ‘To be the most highly valued business by the customers we serve, the communities in which we operate, our loyal and committed colleagues and of course, our shareholders.’. Tesco’s management is the key role in this vision by using strategies for their success. Tesco organization structure is a hierarchical structure. A hierarchical organization is when employees are ranked at various levels within the organization; each level is one above the other. At each stage in the chain, one person has many workers directly under them, within their span of control.
Tesco- Ownership, and liability
Tesco is a public limited company (plc) which means it shares may be freely sold and traded to the public (although a plc may also be privately held, often by another plc), with a minimum share capital of £50,000 and usually with the letters PLC after its name. That’s why it is owned by thousands of business owners who contribute to the shares of the business. Furthermore, Tesco Plc has limited liability meaning this a type of liability that does not exceed the amount invested in a partnership or limited liability company which makes it ideal even if it subsequently goes bankrupt and has remaining debt obligations. The advantages that Tesco have of being a PLC are; there is a limited liability for Tesco and all shareholders and it is much easier for Tesco to raise funds. The disadvantages are; Tesco cannot make business decisions instantly because they need to confront company directors and major shareholders and the business can be taken over if somebody buys 51% of shares.
Tesco- Size of Business
Tesco Plc consists of a chain of 6,553 supermarket stores as of 2017 which many different Subsidiaries including Tesco Stores Ltd, Tesco Bank, Tesco Mobile, Tesco Ireland, Tesco Kipa (in Turkey), Tesco Family Dining Ltd. They also have different superstores and hypermarkets dotted all over Europe generating a total revenue of £55,917 million (2017). It currently employees 472,000 people, flogs the UK’s cheapest engagement ring and makes £6,000 a minute. Therefore, Tesco is a large sized business.