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Topics: Human resource management, Human resources, Management Pages: 8 (5762 words) Published: October 28, 2014

HRM Human Resource Management in TESCO Organization

HRM Human Resource Management in TESCO Organization
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1- Identifying the organization's business strategy,
mission and goals:
Tesco, the largest retailer in UK as well as the third biggest in the world in terms of revenue, was founded in 1919 by Jack Cohen. In 1924 the brand Tesco was first started its journey and in 1932 it became a private limited company. Now Tesco is operating in 14 countries all over the world. There are 4,331 Tesco stores and almost 470,000 people working in the company across the world. According to the recent annual report published by the company, its group sales in 2009 are found to be 59.4 billion euro (Tesco, n.d.).

Business Strategy
Tesco’s well established and consistent business strategy has enabled it to strengthen the core UK business and expand into new markets successfully. Tesco’s business strategies are mainly focusing on huge domestic market of financial services, telecoms and non-food. One of the main objectives of Tesco’s business strategy is to create sustainable long term growth and according to the company this could be achieved by expanding into global market. The company initially focused on Asia and central Europe. Most recently it has made its entry into the US market. In 1997 Tesco first decided to diversify and according to the company itself this was the basis of its recent success. As a result of this strategy several new businesses have been created by Tesco for the last 12 years and most of these businesses are profitable and competitive (Tesco plc, n.d.).

Tesco has developed its strategies which are primarily focusing on five important factors, 1) its core UK business, 2) community, 3) nonfood, 4) retailing services and 5) international market. The company has separate strategies on each of these aspects. Major objectives of Tesco’s business strategy include being a successful retailer internationally, growth of the core UK business, being strong in non-food market, development of various retailing services like telecoms, Tesco personal finance and and finally giving enough importance to community.

Tesco’s core UK business is a major part of its entire business as 70% of the group sales and profits of the company are coming from its core UK business. There are almost 2,200 Tesco stores employing around 285,000 people in UK only. There are four different types of Tesco stores in the country. These are 1) express, 2) metro, 3) superstore and 4) extra. In UK there are almost 960 express stores, 170 metro stores, 450 superstores and over 175 extra stores. Apart from these four there are ‘Homeplus’ where non food products, including clothing, are available. Tesco has learned an important lesson from current global recession as it has found out that although in tough time people want more value for their money but they do not want to make any compromise with product quality. Based on its past experiences Tesco has designed its future strategies. Tesco has a world leading customer loyalty program called ‘Clubcard’ which actually has helped the company to understand its customer in a better way (Tesco plc, n.d.). According to Tesco, fulfilling corporate responsibility and creating values for community are crucial for achieving growth. Tesco believes that each and every strategy that they design has impact on the community. Tesco’s strategies regarding corporate responsibility or community include providing active support to local community, providing good jobs to the locals, taking care of the environment etc (Tesco plc, n.d.). Tesco take special care for environment and as a part of this they have launched an environmental store in Manchester on January 12, 2009. The company is aiming to create zero carbon stores in future (Tesco, 2009) Main objective of Tesco’s non food strategy...

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