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1. Description of the structure of the company, its management and how it is governed.

As a leading retailer with over 440,000 staff and 6,800 shops in United Kingdom, Asia and Europe
and Americas, Tesco PLC serves millions of customers every week in stores and online.

The Tesco business started with one man, John Edward Cohen in 1919 in a small market in London
and grew steadily ever since innovating the grocery market at every step. The brand continued its
rise in the 1930s when Mr Cohen built a headquarters and warehouse in North London
(www.tescoplc.com), and in 1932 Tesco became a private limited company(PLC).

Today Tesco PLC is operating in the retail segment of the market as number 1 in the UK
(www.retaileconomics.co.uk) and is also involved in banking and market research with the motto
“Serving customers a little better every day”. The company’s headquarters are in Welwyn Garden
City.

The company is a PLC and a FTSE 100, listed on the London Stock Exchange and it is governed by a
board of directors and the executive committee, therefore it has a hierarchical structure. The board
of directors has twelve members and is formed of three executive directors and nine non-executive
directors. John Allan is the non-executive chairman of Tesco PLC and he was elected on 1st of March
2015 and the Group Chief Executive of the company, Dave Lewis was appointed on 1st of March
2014(www.tescoplc.com). The executive committee is formed of the members of the board that are
direct employees of the company, they are the hands on members of the board that keep the
business running communicating with the other employees such as low level managers and end
different employees.

“A stakeholder may be anyone, including individuals, groups and even society generally who exerts
influence on the company or whom the company is in the position to influence” (Freeman, 1984).

Customers

Shareholders
Employees
Foreign locations and other
Creditors workers

Home country

Company Consumers
Suppliers

Communities
Governments

Society
Ecological
enviroment “Stakeholders home and
abroad” (Morrison, 2016)
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The last annual general meeting(AGM) of Tesco PLC took place on the 15th of June 2018 and resulted
in all resolutions proposed being accepted by the shareholders. There were discussed issues such as
reports and accounts, re-election of the members of the board, remuneration policies,
authorisations and political donations(tesco.com).

According to Share.com (23/10/2018) the current share price for the company is 214.40p. and
predicted to increase in the future.

Tesco continues to be a successful company and make a considerable profit every year also
recovering from the 2015 losses.

Period £ (millions) £ (millions) £ (millions) £ (millions)

ending 24 Feb 2018 25 Feb 2017 27 Feb 2016 28 Feb 2015
Revenue 57,491 55,917 53,933 62,284
Operating 1,837 1,017 1,072 -5,792
profit / loss
Profit before 1,298 145 202 -6,376
tax
Profit after 992 58 256 -5,719
tax

Income statement(tescoplc.com)

The employees of Tesco PLC have rated the company with a 3.8 out of 5 score on the job site
www.indeed.com up to 23/10/2018. They are saying that the company is a good place to work and is
offering them a private pension, meals at work, discounts in store and other retailers, good
remuneration and many career development opportunities. However most of them are complaining
about long working hours, the team work and the quality of the low level managing team. In
addition to the employee’s review Tesco has been awarded with a Top Employers certificate from
the Corporate Research Foundation (CRF) Institute, after the company benefits and opportunities for
have been evaluated.

In addition to the job market contribution Tesco PLC is an active member of the society fulfilling
their Corporate Social Responsabilities.

From 2015 to 2017 the company joined Diabetes UK and British Heart Foundation to form The Tesco
National Charity Partnership and help improving the lives of people who are living with Type 2
diabetes, heart and circulatory diseases by raising more than £25 million.

A major global issue that affects Tesco PLC’s position in the society is food waste and the company is
implementing policies to help reach the UN Sustainable Development Goal (SDG) target, reducing
global food waste to half per capita by 2030.

Community Food Connection is a programme in all Tesco stores from UK and in some stores abroad
apportioning the food safe for human consumption. The food is donated to local charities,
community groups or offered to the employees. In 2017/18, 7,975 tonnes of food were donated to
almost 7,000 charities from stores and distribution centres.
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2016/17 2017/18
Total UK food sales 9,957,374 tonnes 10,023,559 tonnes
Total food waste 46,684 tonnes 53,126 tonnes
Waste as % of food sales 0.5% 0.5%
Donations 5,700 tonnes 7,975 tonnes

Food waste reports 107/18 for Tesco PLC

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Refernce list:

 https://www.tescoplc.com/
 https://www.retaileconomics.co.uk/top-10-retailers-uk-top-10-retailers
 Freeman, 1984, p46
 Morrison, J. (2016) The Global Business Environment: Challenges and Responsibilities.
Available at: https://app.kortext.com/read/211473
 https://www.share.com/investments/shares/180/tesco-share-price#highlights
 https://www.indeed.co.uk/cmp/Tesco/reviews?sort=date_asc