QUESTION

CASE STUDY

Tesco began in 1919 with one man, Jack Cohen, a market stallholder selling groceries in London. TESCO was formed out of a merger with T.E. Stockwell from whom he purchased tea for sale on the stall. The first store opened in 1929. Since then Tesco has expanded across the world. It now has over 2,200 stores inclusive of hypermarkets and Tesco Express outlets to meet different customer needs. As a conglomerate Tesco as well offers alternative goods and services such as insurance, banking and online shopping. With net profits of around £3.4 billion Tesco has become the largest British retailer and one of the world's leading retail outlets on three continents. Tesco's growth has resulted in a worldwide workforce of over 468,000 employees. To support its growth Tesco requires staff that are flexible, motivated  and well-trained and who recognise customer needs. In turn Tesco's employees are supported by the company in their various roles and at different levels - from customer assistants in stores to department managers; from warehouse employees to office and logistics staff. Tesco recognises that employee motivation is important for the continued growth of the company.

Tesco considers that the business depends on two groups of people customers and staff. It appreciates that staff are unique and have diverse lifestyles outside of work. To this end Tesco supports staff with a work/life balance and offers reward through-

• flexible working
• free or reduced rate health benefits
• discount gym membership
• competitive salaries
• staff discount
• company share options

Required-

(a) Comment on the strategies used by Tesco to motivate staff

(b) Suggest the type of organisation structure which Tesco should adopt based on the above information. Provide reasons for suggesting that structure

(c) Explain the different functions of a manager in charge of a Supermarket