Tesco Organizational Structure

Tesco Board of Directors comprises 10 members and there were significant changes in the Board during the financial year 2014/15. These changes include the appointment of John Allan as the Chairman of the Board, the appointment of a new CEO Dave Lewis and new Chief Financial Officer Alan Steward, the retirement of four Non-Executive Directors and the appointment of three new Non-Executive Directors. In 2015, Mr. Lewis announced the reduction of costs across head office functions by 30 per cent with direct implications on the management structure.

As it is illustrated in Figure 1 below, Tesco governance structure comprises five committees reporting to Tesco PLC board. There are 11 members in Tesco Executive Committee led by Group Chief Executive Dave Lewis.

Figure 1 Tesco Corporate Governance Structure

Tesco organizational structure is highly hierarchical reflecting the large size of the business.  Even in store level, there are as many as four layers of management in some large stores. The Figure 2 below illustrates a typical organizational structure within Metro, Superstore and Extra formats. It is important to note that the structure below is not rigid for all Tesco stores and some stores operate with a slightly different structure reflecting their location, size and a range of other store-specific factors.

Figure 2 Tesco organizational structure at store level

It can be argued that three or four management layers within a single store may create unnecessary bureaucracy with a negative implications on the flow of information across the management layers. Therefore, the senior level management needs to consider delayering opportunities i.e. increasing the flexibility of operations and changes within store and accelerating the flow of information via reducing the layers of management.

Tesco PLC Report comprises a comprehensive analysis of Tesco. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Tesco. Moreover, the report contains analyses of Tesco’s marketing strategy and discusses the issues of corporate social responsibility.