History of the CompanyTesco PLC is one of the largest British grocery and general merchandise retailer within the United Kingdom. The popular shopping centre was founded in 1919 by Jack Cohen (1898-1979), who started out by selling extra groceries, followed by the launch of the first Tesco own brand product in 1924, which was Tesco-Tea. Five years later he opened first Tesco store in Edgware (where of course Tesco-Tea was the featured product within the store), which has now grown to be one of the largest retailers in the world. The retailer offers a range of items including groceries, wines and spirits, home electronics and white goods, clothes, furnishing (both indoor and out), banking (Tesco Bank), telecommunications (Tesco Mobile) and DVD rentals (Tesco Entertainment).
From 1995 Tesco began to expand internationally, starting in Hungary and with every consecutive year of business thereafter, was opening stores in more countries across the European Union. In 1998, Tesco expanded into Asia, and in 2007 the company opened its first store in the United States of America under the name Fresh & Easy. Today Tesco PLC operates in 13 countries, runs more than 7000 thousand stores around the world and employs over 440,000 people worldwide.2.1 How company managed nationallyTesco in the UK is managed in the same way as worldwide, trying to keep it equal for their consumers. Regarding their development, the Statistics Portal demonstrates a substantial increase since 2011 with 2 715 stores and by today (2018) Tesco’s Plc owns 3 754 stores in the UK. Or in other words Tesco’s in seven years opened more than a thousand stores (The Statistics Portal, 2018).3.
How company is governed Tesco follows a hierarchical organization structure (fig1). This means that ones who are at the top of the “business pyramid” i.e.
CEO of the company as well as Board Members, have the maximum responsibilities and authority. ”Hierarchy is a way to structure an organization using different levels of authority and a vertical link, or chain of command, between superior and subordinate levels of the organization. Higher levels control lower levels of the hierarchy” (Grimsley, n/a). Figure 1: Tesco PLC Board3.1 Board of Directors The Tesco Board of directors who runs the company includes non- executive Chairman – John Allan who joined the company in 2015 from the unanimously election vote from the same Board members, CEO – Dave Lewis was appointed to the company in 2014 after the crises that Tesco’s was under. Chief Financial officer – Alan Steward (also joined in 2014), Senior Independent Director – Deanna Oppenheimer (joined in 2012).
Moreover 10 of non-executive directors which are Mark Armour (joined in 2013), Steve Golsby (joined in 2016), Byron Grote ( joined in 2015), Mikael Olsson (joined in 2014), Simon Patterson (joined in 2016), Alison Platt (joined in 2016), Lindsey Pownall (joined in 2016), Stewart Gilliland (joined in 2018), Robert Welch (joined in 2016) and Melissa Bethell (Joined in 2018). All the above still present in the committee.3.2 Executive Committee Tesco PLC has also an Executive Committee of 13 people.
Everyone has a very important role within the company. Starting from Group Chief Executive – Dave Lewis (joined in 2014), CEO, UK ; ROI – Jason Tarry (undertook his current role in 2018); Chief Financial Officer – Alan Stewart (joined in 2014), CEO, Booker – Charles Wilson (joined in 2018), Chief Costumer Officer – Alessandra Bellini (joined in 2017), Chief Operation Officer Tony Hoggett (joined in 2017), CEO, Asia – Alison Horner (current role 2018), Group Communications Director – Jane Lawrie (joined in 2016), Group General Counsel – Adrian Morris ( joined in 2016), CEO, Central Europe – Matt Simister (joined in 2017), Chief Product Officer – Andrew Yaxley (joined in 2018), Chief People Officer – Natasha Adams (joined in 2018) and Chief Executive of Tesco Bank – Gerry Mallon (joined in 2018).3.3 Define stakeholdersFreeman defines Stakeholder can be anyone such as individuals, groups or society, who apply the influence on the company (Morrison, 2017). For example, Tesco PLC stakeholders are: suppliers, costumers, government, owners/ shareholders.All the above has their own interests on the business, the suppliers try to make regular profit by trading constantly with the company. Costumers purchase products and expect to have a reasonable price for the goods. Government is interested in the business because of job positions and get bigger taxes from the company.
Also, the owners and shareholders are engaged in the business to make profit from the money they invested.Tesco approach for all stakeholders is Wherever we work, we want to help make life a little easier for our customers, colleagues and communities.3.4 Relationship between the Board of Directors and the stakeholders with shareholdersAccording to their official website, Tesco PLC has three major shareholders which are: BlackRock, Inc., Norges Bank and Schroders PLC.Every year Tesco helds Annual General Meeting (AGM), where all Shareholders and Board of Directors meets and discuss business present and future.
This year the meeting was organised on Friday June 2018 in London.