Tesco PLC Customer Satisfaction



When it comes to the discussion of the leading grocery retailers in the United Kingdom, Tesco PLC is a name that one is guaranteed to hear. The company is among the oldest in the country as it was founded in the year 1919 with its headquarters located Hertfordshire, England. The company operates more than 6000 stores at the moment. Originally started as a grocery store, the company grew to become involved in different retail areas and services such as internet provider, software and petrol, electronics, toys, furniture, clothing and many more. According to its official website, in only a week, Tesco PLC tends to serve millions of consumers. These statistics is essential as it is a proof of how a considerable number of people rely on the products and services that the company provides. Therefore, this paper will further highlight on how Tesco PLC is set up as an organisation and the steps it has taken to set itself apart from its competitors regarding customer satisfaction (Tesco). 


Tesco PLC Customer Satisfaction and Financial Structure

In Europe and Asia, the company has its stores distributed in twelve countries. In all these countries, Tesco is the number one grocery provider in four of them, and they are; the United Kingdom, Thailand, Ireland, and Hungary. This outstanding success as earlier mentioned is an important indicator of how the company has been able to overcome enormous challenges and stiff competition to become the global retail giant that it is today. According to its company website, the company’s mission has always been to assist customers enjoy and lead quality and honest life. The dominant demography of its customers is from the United Kingdom which as earlier explained is its home country. The mission statement is an indicator that the corporation has been putting the needs of its customers first since its inception. 

From just being a regular grocery store, the company was able to grow into the multibillion-dollar franchise. The critical need that it was able to satisfy was the need for customers wanting quality products at lower prices. Tesco was, therefore, able to fulfil this requirement by making deals with suppliers who provided it with quality products in bulk which it was able to dispose of quickly regarding sales. There were, and there still are competition retailers that offer the same quality goods, but Tesco offers them at a lower price. To meet and be on the same path with technology, the retail giant was able to launch its online shopping wing as it had found out that most people loved to shop from home and have their goods delivered (Brandle, 2008). This is another important need that has acted in the company’s favour by it being able to satisfy it. 

In its start-up days, the store only dealt with grocery meaning it was targeting mothers and female members of the family that were mostly in charge of doing household grocery and foodstuff shopping. As of today, with the earlier named services and goods that it, later on, ventured into, Tesco PLC now serves people from all manner of life regarding ages, nationality, and gender. When it comes to the company’s financial structure, financial decisions are made by the financial director who is in charge of ensuring all financial responsibilities are handled.

Net Profit Margin= Net Profit/Revenue
Tesco Plc.2,655/60,455=4.39%2,806/63,916=4.39%124/64,826=0.01%

Diagram 1. Profit margins of Tesco PLC in past three consecutive years

In the available table of profit against revenue as illustrated above, one can depict that in 2011 and 2012 the company had a considerable profit margin but began to drop in 2013 (Tesco). According to records, as of 2015, the losses had closed down to almost $2billion but rose considerably in the following due to good managerial decisions (Wall Street Journal). 

Organization Structure

Just as it is with most organisations, the organisational structure of Tesco PLC is the hierarchical model. By stating hierarchical structure, this means that the store’s staff from the most junior member, reports to a superior team or manager above them. Two charts can be used to describe the organisational structure of the retail giant; first, there is the chart at managerial level and secondly, the chart at store level as shown below.

Diagram 2. Chart representing the Corporate Governance Structure of Tesco

Due to its wide business scope, as it has been illustrated in Diagram 2 above, one can depict that all available committees, five, answer to the Tesco PLC Board. This board or executive committee is made up of eleven members, and it is headed by the Chief Executive Officer (ORG CHART). 

Diagram 3. Chart representing the store level organisational structure at Tesco (ORG CHART) 

Diagram 3 shows hierarchy levels of managers at a Tesco PLC store starting from Clothing Section Manager going up to the Regional Manager. From these two charts, one can depict the easy flow of information at Tesco TLC which makes it efficient. The culture of Tesco as an organisation has always been to ensure that customer’ needs are met which has seen managers given power over their stores to ensure maximum operation (Triguero-Sanchez, 2017).   

Human Resource and L&D managers Roles

Human Resource Managers and Learning and Development professionals play significant roles when it comes to assisting and supporting the organisation, and line managers achieve their goals and objectives (Teena & Sanjay, 2014). When it comes to ways that HRM and L&D support an organisation to meet its objectives, there are three main points. These are; firstly, they help in advising or guiding of employees whenever they are faced with dilemmas or problems at their workstations. Secondly, recruitment activities carried out by the HRM and L&D staff ensures that the organisation gets the best and reliable staff (El-Ghalayini, 2017). Thirdly, they offer learning and development programs that ensure employees get to acquire more knowledge to ensure customer handling and satisfaction which is as per the mission and objectives of the organisation. When it comes to supporting line managers and their staff, there are some ways that HRM and L&D support them which are all evident when one looks it up on an HR Profession Map. First, they are there to assist in case there is a conflict between staff and line manager. Secondly, they ensure that team found misbehaving or out of order are punished or handled. Last but not least, engage the staff on the field when it comes to implementing learning and development programs (Giulioni, 2017). 

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From the information discussed above, it is evident that Tesco PLC has taken vital steps to ensure that it is successful. From its mission to the way that it is structured as an organisation, one can depict that commitment to customer satisfaction are what drives the organisation. Importance of Human Resource and Learning & Development teams in a company has also been well illustrated. Companies should ensure that they have a working organisation structure and culture that will assist them in achieving their goals and objectives just as Tesco PLC has been able to do.  

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  1. Brandle, L. (2008). “Tesco goes digital.” Billboard, Vol. 120 Issue 17, p22-22
  2. El-Ghalayini, Y. (2017). “Human Resource Management Practices and Organizational Performance in Public Sector,” Journal of Business Studies Quarterly, Vol. 8 Issue 3, p65-80
  3. Giulioni, J.W. (2017). “L&D for L&D.” TD: Talent Development, Vol. 71 Issue 8, p50-54
  4. Org Chart. “TESCO COMPANY ORGANISATIONAL STRUCTURE CHART EXAMPLE,” retrieved 19th January, 2017 from http://www.orgcharting.com/tesco-company-organisational-structure-chart-example/
  5. Teena, B. & Sanjay, S. (2014). “SHRM: alignment of HR function with business strategy,” Strategic HR Review, Vol. 13 Issue: 4/5, https://doi.org/10.1108/SHR-03-2014-0023
  6. Tesco PLC. “Core Purpose and Values,” retrieved 19th January, 2017 from https://www.tescoplc.com/about-us/core-purpose-and-values/
  7. Tesco PLC. “Five-year record.” Retrieved 19th January, 2017 from https://www.tescoplc.com/investors/reports-results-and-presentations/financial-performance/five-year-record/
  8. Triguero-Sanchez, R. (2013). “Hierarchical distance as a moderator of HRM practices on organizational performance,” International Journal of Manpower, 2013, Vol. 34 Issue 7, p794-812 
  9. Wall Street Journal. “Tesco PLC.” Retrieved 19th January, 2017 from http://quotes.wsj.com/UK/XLON/TSCO/financials
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