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Tesco Organizational Structure Diagram or Tesco Hierarchical Structure

Home Articles Tesco Organizational Structure Diagram or Tesco Hierarchical Structure

Every company follows a hierarchical structure to follow. The organizational structure of every company usually compromises of three levels – top management level, middle management level, and low management level. But for some companies the hierarchical structure may differ, it depends on the size of the company. Management students’ needs to study the organizational structure of the organization. They are also assigned assignments related to the same. Students can take assistance from Assignment Help USA if they require any kind of help while writing the assignment.

Introduction of Tesco

Tesco was founded by Jack Cohen in 1919 with its headquarters in Welwyn Garden City, Hertfordshire, England. Tesco is a multinational British groceries and a general merchandise seller company that is listed on the London Stock Exchange. There are different shops of Tesco in seven countries in Asia and Europe. Tesco is the market leader of groceries in the United Kingdom, Thailand, and Ireland. In terms of gross revenue, Tesco is the world’s third-largest retailer and in terms of Revenue, Tesco is the world’s ninth-largest retailer.  

The organizational structure of Tesco

As Tesco is the large size company, its organizational structure is highly hierarchical. The same structure is not followed in every Tesco store, because some stores use different organization structure based on their size, location, and range of the store-specific factors. It has been observed that three or four management layers in a single store make unnecessary bureaucracy along with negative implications. Thus, the senior management needs to delay the opportunities and reduces the layer of management in order to accelerate the flow of information.    

Hierarchical Structure of Tesco

Tesco follows a Hierarchical management system that ensures the smooth functioning and efficiency of the business. The company follows a high hierarchical structure in which all the functions of the business are divided into a long chain of commands and the power of the members is placed in the apex level. The hierarchical structure of Tesco helps the business to define the roles of every member without any confusion and chaos. The organization also follows a functional structure in its multinational retail stores.

The hierarchical structure of Tesco involves the three levels named – Top-level, Middle Level, and Lower Level.

1. Top Level – At the Top-level, all the powers are provided to the Chief Executive Officer (CEO) who takes all the major decisions. A CEO is the head of the administrative staff. Apart from CEO, the executive board of the company includes many other persons designated as Chairman, Chief Finance Officer and Non - Executive Officer. The executive committee comprises of nine people with different departments. These persons perform supervisory functions and also take decisions for the effective functioning of the company. These people are the external front and face of the company and also represent the overall company in the International market.

2. Middle Level – The Board of Directors and Ground Staff are involved in the Middle level of the hierarchical structure of Tesco. These members comprise a number of vice presidents, assistants, and managers under them. The board coordinate the functions of their members and also manages other functions such as – Personal relations, Human Resource Management, Funds, Marketing, and Advertising, etc.  These managers implement the decisions taken by the top management. They make plans so that the decision made by the top management are followed.

3. Lower Level – The people who are working at this level have direct contact with common people on a daily basis. The topmost managerial position is of the regional manager at the base level. The regional manager takes all the major decisions related to stores situated in the region. The regional manager directly reports to the executive for the effective functioning of the business. The stores that are situated in different regions are divided into 3 different departments named Personal department, Food trading department, Non - Food trading department. This hierarchical level is not only responsible for the current position of the company but it is also important for the further expansion and development of the company.

In addition to the above three levels, the business hierarchy of Tesco is defined as –

Chief Executive Officer – At the top of the hierarchy, the company consists of President and CEO. The current CEO of the company is Julio Manuel Quintana. The position of CEO is held at the top among all the hierarchical levels.

•Chairman – Chairman plays an important role in the decision-making process of Tesco and is considered as the head of the Board of Directors. The Chairman of Tesco is Michael Sutherlin.

•CFO and Senior Vice President – Currently, Chief Finance Officer of the company is Christopher L Boone who reports to the President and handles the important duties. CFO and senior vice presidents are also the head of the Finance department and the cash matters of the business.

•Executive Vice president – It is a senior-level position with high responsibility. The Chief operating officer or Executive Vice president of Tesco is Fernando Rafael Assin. In this position, the person handles the operational duties in the workplace on a daily basis.  

•Senior Vice President at the Top drive and Surface produce level - Jeffrey L Foster is Top-level executive of surface produce departments. It is the senior position level of the company.

•Vice President of Manufacture and General Manager – General manager is the person who supervises the duties of all the managers of the company. The current vice president of Manufacturing of Tesco is Darko Ulakovic.

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References
Hammett, S., & McMeikan, K. (1994). Tesco – Competitive Management Development. Executive Development, 7(6), 4-6. doi: 10.1108/09533239410071841
Lowe, M., George, G., & Alexy, O. (2012). Organizational identity and capability development in internationalization: transference, splicing and enhanced imitation in Tesco's US market entry. Journal of Economic Geography, 12(5), 1021-1054. doi: 10.1093/jeg/lbs016
Tesco. (2019). Tesco:: Online Groceries, Banking & Mobile Phones. Retrieved from https://www.tesco.com/

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