An Analysis Report on Tesco - Corporate Culture and Environment

Contents Page

Part 1: Critical Evaluation of the models and justification of the choice of model.........................................................................................................Page 3-5

Part 2: Critical analysis with application of the chosen model....................Page 6-7

Part 3: Conclusion..................................................................................... Page 8

References.................................................................................................Page 9

Bibliography................................................................................................Page 10

Company Analysis Report

Part 1: Critical Evaluation of the models and justification of the choice of model

Corporate culture can be defined as certain attributes which can be defined as employee's behaviour and surroundings in an organisation and has an overall effect of how a company will operate. Tatum (2003) specifically explains that corporate culture "is a term used to describe the collective beliefs, value systems, and processes that provide a company with its own unique flavour and attitude" (Tatum, 2003). Therefore stating that each organisation have their own individual type of culture and is something that cannot be replicated by another organisation as some corporate cultures may said to be bad, good, productive or destructive (Goltz, 2009).

To explain corporate culture further, corporate culture can be best defined by using a model such as the cultural frames of reference.

Figure 1- Cultural Frames of Reference (Source: Johnson et al 2008)

The model above explains in detail the different attributes that make up a corporate culture and shows the impact of how individuals are the key of creating a successful corporate culture.

The reason why corporate culture was chosen is because corporate culture in any organisation is important for the running and determination required for a successful business. Also, corporate culture has many layers which can be investigated and researched as it has many fascinating areas as corporate culture is the means that can either establish an organisation or determine its longevity, or it can be the means of an unsuccessful establishment in the industry.

Environmental analysis can be defined as an environment that allows organisations to gain an in-depth analysis as to their current position in their industry market, which is key to their survival or downfall. Johnson et al (2008) states that in business, "the environment is what gives organisations their means of survival and it is also the source of threats" (Johnson et al 2008).

To initiate a better understand of why the environment plays an important role in any organisation, Porters 5 forces is a perfect example that explains certain situations that may affect an organisations environment.

Figure 2- Porters 5 Forces (Source: Thieme, no date)

Porters 5 forces is one example of an environments in an organisation can be shifted dramatically due to for example, 'new entrants' which can be classified as new competitors or 'substitutes' which can be defined as a competitor releasing a similar product to the market but appealing to the consumer by selling the product at a reduced price.

The Environmental analysis was chosen as it is an important aspect to any business as keeping a close eye on the environment allows organisations to plan and prepare for example, any change that may appear to the organisation such as new competitors emerging into the market with a viable and demandable product that may undermine a product that has been on the market for years. Therefore by organisations understanding and managing their environment, it will ensure that organisations will be able to manage any external or internal change that may come their way. Thus, making the analysis of the environment an important asset to any organisation wanting to be prepare, anticipate or even influence environmental change.

Part 2: Critical analysis with application of the chosen model

Tesco is a well know grocery and global brand retailer which its headquarters is located within the UK in Cheshunt. The store founder is Jack Cohen, which the brand was established in 1919. Since then, Tesco's is said to be the one of the largest retailers in the world, diversifying into a range of different products such as electrical products to financial services. Tesco's have opened up stores in fourteen different countries across the world. It is also the market leader in the grocery market sector, where it has 30% market share.

As Tesco's is a well know brand, its corporate culture is an interesting aspect for any organisation to understand if emerging in the same market. The reason for this is that I believe that because Tesco's are the market leader, their corporate culture is a culture worth noting.

Tesco's corporate culture is famous as their brand as it is well known that Tesco's are known for the generosity within the company for making their employees feels welcome, relaxed and valued within Tesco's, for whichever department they work for.

When Tesco however first began to establish as a business, Tesco was a company known to have a culture of selling cheap and affordable products to the consumers. However even though Tesco's today do still establish the brand as an affordable outlet to shop for groceries; it has recognised a variety of products in demand by consumers that come in a variety of different prices. The products can range from a variety of organic products which are usually deemed very expensive in comparison to Tesco's 'Value range' products, known for its affordability of foods from ready meals to domestic products such as toilet rolls. These products are said