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Tesco is one of the largest wholesaler and retailer businesses with its roots in Britain. Tesco Public Limited Company came into existence in the year 1919 under the leadership of Jack Cohen, and it would appear as the Tesco brand in 1924. Additionally, Tesco would open the first supermarket in 1956. After the opening of the first supermarket Tesco decided to implement diversification strategies. Any organization has to consider the basic functions of management in order to succeed in setting and implementing strategic plans. The basic functions of management are planning, organizing, leading and controlling. Tesco management would utilize the functions of management at the first stage to come up with vision and mission statements. The current paper discusses the application of planning, organizing, leading and controlling as functions of management at Tesco Public Limited Company.


First, it is prudent to establish the missions and visions of TESCO because such visions did influence the manner in which the management of Tesco would manage the affairs of the organization to become a leading supermarket and excellent entity in doing business. For instance, Tesco did make it a vision that it did wish to become and remain the best retailer and domestic wholesaler in the domestic and global market. Additionally, Tesco envisioned becoming the best dealer in both food and nonfood items. Moreover, Tesco strategized to become the best option dealer in alternative business such as dealing with telecoms and electronic items and services. Furthermore, it is the vision of Tesco to be the best retailer and wholesaler in the British market and to use the British market as a model, and expand to other markets in the world. Evidently, it is the strategy and vision of Tesco to be the excellent organization in engaging in social responsibility activities in all areas that it sets its operations.

Following the above visions and mission statements, Tesco would utilize the function of management planning by setting the then current and future strategic plans that would help the organization to grow and become the leading company in retailer and wholesaler business. For instance, Tesco plans to use large sums of money in promotional strategies to attract new customers and to maintain the loyalty of the existing ones. According to Barness, the organizational plan of Tesco aims at spending more money to maintain the existing stores to make sure that the organization does not lose its reputation to the customers. Therefore, just like any other business plans to maintain its status while at the same time seeking growth in other areas, Tesco seeks to maintain its customer base, the asset base, and the reputation so as to make sure that the organization remains successful in the industry.

Notably, Tesco has embarked to expand to different geographical regions. In seeking to have a presence in various regions, Tesco has strategized to establish alliances with other organizations such as business organizations from Asia. Moreover, the plans of Tesco all aim at making the organization achieve its mission to becoming the leader in wholesale business in both the British and other markets of the world. Consequently, the global expansion plans of Tesco have seen the organization become the third largest retailer in the world. Moreover, Tesco has embarked on having many stakeholders so as to ensure that the organization expands within many areas in Britain. Furthermore, it is the strategic plan of Tesco to undertake product development and to diversify their products so as to make high profits that result from more sales. For instance, Tesco deals in food and nonfood goods as well as the electronics. Consequently, the organization makes high sales resulting from diversification of the products that the organization sells to the customers. Notably, the organization undertakes to increase the efforts of product development to make more sales. The product development aims at making products that are sold at Tesco to be different from the products that are sold in other supermarkets. As a result, the organization will become unique and therefore, attract more customers to its stores, thereby making more sales and eventually more profits.


Establishing the strengths and weaknesses of Tesco remains an effective strategy before the company embarks on planning. Therefore, the management of Tesco did establish their strengths and weaknesses that act as a guide before the company starts planning for the future. For instance, it is the weakness of the company that the food items that they sell continue to fall in prices. Understanding that the foods fall in prices enables the organization to plan for other avenues where it can get revenues other than depending on the sales of the food items.

Moreover, the management of Tesco did point out that their number of stores is less than the requirements of their customers. As a result, the organization may plan on how to expand their presence in various areas so as to meet the demand by their customers and make more sales. Additionally, the management of Tesco identifies their strengths that help in planning for the future and planning on how to counter the competition. The high capacity of customer base and the number of employees are the strengths of Tesco. Evidently, understanding the strength of high customer base has helped the wholesaler to establish the employee training program to equip the employees with the necessary skills to effectively serve the customers. Consequently, the employee training at Tesco has enabled the employees to understand the customer diversity that has helped them to serve the customers from various backgrounds.


Organizing is very important in every organization because it ensures consolidation of efforts to guarantee that the organization realizes the set goals and objectives. According to Frank, the organizational structure of Tesco is a tall structure in nature but the structure promotes decentralization. The company has 586 stores established and fully functional in the British market. Notably, every store has a manager who oversees the activities of the store on the daily basis. Consequently, the manager at every store provides the daily reports to the executives of Tesco. The executives are responsible for decision making of the organization. The manager at every store is responsible for directing the efforts of the employees to achieve the organization of the company. Additionally, the manager at every store gives directions to the supervisors who monitor the progress of the activities that they assign to the workers at every store.

The executive of Tesco performs the function of making the decisions and allocating resources for the company. For instance, the executive allocates the resources to be used in carrying out promotional activities of Tesco. However, in resources allocation, the executive has to consider the return that the resources would bring to the organization after the implementation of the plans. Therefore, it is the top management of Tesco that works to allocate resources and make decisions on the prudent use of the resources for Tesco to achieve the set goals and objectives.

Organizational Structure

To fully understand the function of organizing at Tesco, it is crucial to understand the features of the organizational structure of Tesco. The organizational structure of Tesco helps the company to coordinate the activities and achieve the set goals and objectives. For instance, at the top of the organization there is the executive who makes decisions for the organization. At the middle of the management of the Tesco are the middle-level managers whose task is to ensure that decisions are implemented. Below the middle-level managers are the supervisors whose responsibility is to monitor and report the activities of other employees. The employee’s work is to ensure that customer service at Tesco is sufficient and that customers remain loyal to the organization. Notably, the key features of the organizational structure of Tesco are as follows.


The geographically based organizational structure helps to standardize the services and activities of Tesco. Notably, the top management of Tesco receives information from all the stores across the globe. However, in every geographical region where Tesco operates, there is a management that oversees the activities at that region. Such organizing structure ensures that operations of Tesco are standardized and that the employees of Tesco can easily cope in any geographical area where they are transferred to by Tesco. Moreover, the organizational structure of Tesco ensures friendly culture to all the employees and customers. Thus, organization of the activities at Tesco appreciates the culture and diversity of all the employees and customers. According to Sekar, the shared friendly culture increases the loyalty of the employees to the organization and as a result, the workers put more efforts in their daily tasks. Therefore, the high performance by the employees of Tesco is as a result of friendly culture at the organization.

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Evidently, employee motivation at Tesco is a key element of organizing that has led the organization to success. Moreover, employee empowerment and motivation entail the managers giving the employees the necessary resources to enable them to perform their tasks to the maximum as Sekar, points out. For instance, the store managers at Tesco have the responsibility of ensuring that the employees can easily gain access to the necessary tools that enable them to serve the customers effectively. Moreover, Tesco has established a culture to reward its employees at the end of every year. Employee reward is important because it motivates the employees to serve the customers with zeal and thereby maintain the reputation of Tesco as a leader in customer service. Additionally, employee motivation influences the employee behavior and attitudes and ensures that they always have desire to work for the organization when called upon to perform certain tasks.

Although the executive of Tesco is responsible for decision making, the departments of the company take part in decision making in daily activities of every store under Tesco. The decentralization of decision-making at Tesco ensures inter-departmental coordination in the organization. Moreover, the decentralized structure of Tesco ensures quick decision-making at different stores to serve the customers adequately. Additionally, the decentralization of management ensures that employees in the organization are not confused on which department they can get orders from and, as a result, the employees are flexible in their daily tasks at the organization.


In any organization leading entails influencing the behaviors of employees to work towards the achievement of the set goals and objectives of the organization. On the other hand, management entails directing the group behavior towards the achievement of the set goals and objectives. Notably, leading involves promoting intrinsic motivation among the employees to work towards the realization of the set goals in an organization. For instance, at Tesco the management utilizes various leadership approaches to ensure that employees are motivated to achieve the objectives of the organization. For example, one of the leadership skills at Tesco is a relation-oriented style where the managers motivate the employees to relate well with the customers so as to maintain the customer loyalty to the organization. Moreover, the achievement-oriented style of leadership is applied at Tesco. The application of this style of leadership helps in motivating the employees to work towards achieving the objectives set by Tesco.

At Tesco, various leadership theories are practiced every day as the managers motivate the behaviors of the employees. For instance, the Herzberg's two-factor theory is applicable at Tesco because the internal factors of the organization such as corporate culture and hygienic work environment follow the international standards and as a result, the employees of Tesco remain motivated to serve the customers. Additionally, the managers at Tesco motivate the workers using the motivators such as recognition and rewarding of the employees whose performance is outstanding. Moreover, Tesco embarks on employee personal growth to ensure that they improve their performance, and thereby the organization makes profits.

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Another leadership theory applied at Tesco is Vroom's expectancy theory in that the organization provides the adequate resources to enable the workers to achieve the set goals of the organization. It is a concern for the management of Tesco to provide the employees with the necessary resources to enable them to perform their duties. Moreover, Tesco influences the employee behavior by assigning duties that are challenging but doable. According to Sekar, employees would perform well if the leader assigns them doable tasks and provide them with necessary resources.


Controlling refers to the establishment of measures to check the deviation from the set objectives and initiate corrective measures. Additionally, controlling may take place either in the course of the financial year or at the end of the year. At Tesco, both controls are applicable using the parameters of profits and customer satisfaction. If the company fails to make profits at the end of the year, it may initiate the corrective measures aimed at cutting the costs. Moreover, if customer satisfaction falls below the expectation, Tesco applies directive leadership style to help the employees know their duties and responsibilities. Additionally, as a way of controlling, Tesco has established performance appraisals that measure the level of employee performance and reward them accordingly. The performance appraisals at Tesco have led the employees to put more efforts to ensure customer satisfaction and eventually more profits.

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It is an undoubted truth that the current project has enabled me to gain various insights. For instance, the history of Tesco has enabled me to understand that the company started as a retail business. Moreover, the strategic plans of Tesco are clear enough and can be followed by any company that intends to become a multinational corporation. For instance, the plan to enter other markets, such as Asian market, using British as a model can be applied by a company that wants to go international. The organizational structure of diversification is a great insight for me. For instance, the diversity of cultures is applicable in the activities of Tesco. Learning that Tesco builds on the motivation of the employees to influence their behavior towards the set goals of the organization has helped me to appreciate the role of employee motivation in modern day business management.

In conclusion, the mission and vision statements of Tesco form the basis upon which the plans of Tesco would be anchored. Notably, Tesco has planned for future global expansion and more customer satisfaction. Additionally, the organizational structure of Tesco is tall but at the same time promotes decentralization of decisions making within the organization. Moreover, the leadership of Tesco is achievement-oriented in that the organization strives to achieve high profits and customer satisfaction. Finally, Tesco uses performance appraisals as the parameters for controlling employees’ performance so as to make the employees put more efforts for the company to maintain high profits and achieve customer satisfaction.

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