Tesco is a multinational retailer dealing with grocery and general merchandise. Based in England it is the World’s second largest retailer in terms of revenues and third largest in terms of profits. With physical stores spread across 11 countries and an online portal covering almost all parts the world it seems to be one of the most diversified brands in the international retail market. Functioning at such a huge level requires a strong management support and like all other multinational corporations Tesco also follows a specific hierarchical management system that has ensured its smooth functioning and efficiency till the base root level.
Tesco follows a tall hierarchical structure where the functions are specifically divided in a long chain of commands and the majority of power rests with the apex level. Although traditional in nature, this type of structure helps in establishing defined roles for everyone thereby creating no chaos and confusion. It also follows a structure of functional establishment as opposed to a geographical one followed by most of the other multinational retail stores.
At the top of all power is the executive board headed by the President (CEO) of the company who is the head of all administrative staff and takes all major decisions. Other people on the board include the Chairman, the Chief Finance Officer, Chief Executive Officer and other Non Executive Directors. There is also an executive committee with 9 people each heading different departments. They members at this level only perform supervisory functions and take all other major decisions as to the functioning of the company. There work at the external front like the face of the company and represent the company as a whole in the international market.
There is also a mediate level functioning between the ground staff and the board of directors. These comprise of various vice presidents and other managers and assistants under them. They coordinate the functioning of other two levels and perform other functions like Funds, Personal Relations, Marketing and Advertising, Human Resource Management, etc.
At the base level the top most managerial position is held by a Regional manager (coach) who takes major decisions regarding the stores situated in the region under him and he directly reports to the executive at the mediatory level. Further there are store managers under him, each of whom responsible for his own store. Each store is subsequently divided into 3 different departments; food trading section, non food trading section and a personal section with assistants working in them under different team leads and assistant- managers. The people working at this level of management have a direct contact with common people on a day to day basis.
It is this level of vertical division of powers that has made possible for such a diversified company to be working so successfully in the market. This type of hierarchical management is not only responsible for its current position but has also been extremely efficient for its further development and expansion.