SYEDA HUDAIBIYA SHAH

STRATEGIC MANAGEMENT
SPRING-2022
10-04-2022
Introduction
Tesco PLC. Is identified to be a British multinational groceries and general merchandise
retailer headquartered in Welwyn Garden city. Tesco PLC. consisting of over 360,000
employees. The aim of this organization is to serve their customers every day with affordable,
healthy and sustainable food in order to assist them in enjoying a better and quality life in easier
way. Moreover, Tesco comprises of diverse board in order to have a number of different
perspectives, insights and viewpoints in order to perform better in the competitive market. In
addition to this, Tesco is a well-known largest food retailer across the world, which operates
around 2,318 stores.

Tesco’s Strategic Plan

Tesco aims to be a zero-carbon business by 2050. Tesco’s continuing success depends on
it reassessing and formulating clear business strategies. Tesco aims to enhance customer loyalty
and its core UK business in order to assist in developing the shopping experience for its
customers. It committed £1 billion to an investment program to achieve these strategies to
enhance competitiveness were then developed. The driving force behind these strategies is price,
quality range, and innovation as well as delivering, great multinational customer service, for
example through its ‘click & Collect’ service. Tesco committed £1 billion capital and revenue
investment to enhance the shopping trip for customers. It set out a seven part strategy designed to
achieve its goals of being highly valued by customers and enjoying strong long term growth. The
strategic plans incudes the increase in the staff numbers by 20,000 over two years, renovating
existing stored and introducing more promotions. Moreover, in order to become a creator of
highly valued brands, Tesco developed its own label brands such as F&F clothing and Tesco
Finest to provide customers with quality products at competitive prices. In order to become an
outstanding international retailor in stores and online, it opened up fifty new F&F franchise
stores over the next five years in the Middle East, Saudi Arabia, Kazakhstan, Georgia, Armenia
and Azerbaijan.

How HRM Supports Strategic Management of Tesco PLC.

Human resource management is the key asset of any organization; therefore, it also plays
pivotal role in supporting the strategic management of Tesco PLC. The key elements of Tesco’s
HR strategy involve employee training, performance management, work simplification and
efficient utilizing the core competencies of all the employees. This HR strategy of Tesco shows
that the business measures are linked with performance management. Employee training is one
of the major components of HR strategy of Tesco, which assist the organization in effective
strategic management. Employees are offered different training programs which can be on job or
off job. Training is must for the employees at front end dealing with the customer however; the
other employees working at back offices are also given trainings throughout the year to enhance
their capabilities. That is the reason that Tesco’s customer services are one of the best in the
country. Moreover, Tesco has an efficient performance management system. The HR strategy
involves compensation and reward systems linked with performance management. Each
employee is assigned with certain targets and on the completion of those rewards and benefits is
associated. In this way the employees are motivated and the strategic management of the
organization is supported effectively.

Conclusion
Tesco is a well-known largest food retailer across the world, which operates around 2,318
stores. It is identified to be a British multinational groceries and general merchandise retailer
headquartered in Welwyn Garden city. Tesco PLC. consisting of over 360,000 employees. For
the growth of the business, Tesco has planned a number of strategies, which have been proven to
be extremely helpful for the organization. It committed £1 billion to an investment program to
achieve these strategies to enhance competitiveness were then developed. Tesco committed £1
billion capital and revenue investment to enhance the shopping trip for customers. It set out a
seven part strategy designed to achieve its goals of being highly valued by customers and
enjoying strong long term growth. The strategic plans incudes the increase in the staff numbers
by 20,000 over two years, renovating existing stored and introducing more promotions. In
addition to this, Human resource management is the key asset of any organization; therefore, it
also plays pivotal role in supporting the strategic management of Tesco PLC. The key elements
of Tesco’s HR strategy involve employee training, performance management, work
simplification and efficient utilizing the core competencies of all the employees. Therefore,
Tesco’s HRM has proven itself to be beneficial in supporting the strategic management of the
company.