Monday, February 24, 2020
Tesco Company Structure and Leadership Assignment
Tesco Company Structure and Leadership - Assignment Example All these executive staff reports to the Group CEO and the Board of Directors. TESCO has very many executive positions a fact that reflects the groupÃ¢â¬â¢s complex operations. Tesco is organized hierarchically with and its organizational structure takes the shape of a very tall pyramid. The Tesco could not have chosen a better leader that Philip Clarke to head the world second largest grocery chain in the competitive business environment. Clarke began his career at Tesco in 1974 and has developed his leadership skills in the Tesco management training programme (Tesco PLC 2014). His wide experience in Retail management is one of his greatest strengths as the CEO of Tesco. Since his appointment as the CEO in March 2011, Tesco revenue has grown substantially and the supermarket has overtaken Carrefour to occupy the position of world largest retail chain by revenue collection and profitability. Tesco offers its customers a range of products and services and has come with several new Store concepts in the UK and in other locations where it operates (Lowe and Wrigley 2009). Tesco today offers a cheap alternative and premium quality good in its own-label product range. TescoÃ¢â¬â¢s finest line of food labels offers the best quality products at the highest level (Humby, Hunt and Phillips 2008). TescoÃ¢â¬â¢s main revenue bases have been mainly food items but they have recently diversified into the non-food market. Recently, retail chains have realized that non-food items have higher profit margins than food items (Seth and Randall 2001). By 2004, Tesco was earning 20% of their sales revenue from non-food items (Humby, Hunt and Phillips 2008). Clothing is among the fastest growing Tesco revenue streams with Cherokee, Florence and Fred capturing more than 4 percent market shares in their first year of introduction (Ma, Ding and Hong 2010).