RECRUITMENT AND
DEVELOPMENT REPORT
BY NIKKI SMITH
1
Contents
Company profile and overview –
Strategic Management Model
4
5
6
7
8
9
10
11
12
Company overview – Philosophy and Values
Tesco and the grocery Industry
Competitors
Swot Analysis
Environmental Analysis - Pestel
5 P’s of Human Resource Management
Strategic Formulation – Porter’s 5 forces
Business Level Strategies – 7 Part Strategy – The marketing Mix
Strategy Implementation – Leadership styles - Strategy Evaluation
Tesco and the Fashion Industry
13
14
15
16
17
SWOT Analysis
Environmental Analysis – Pestel
F&F – Ansoff Matrix
F&F – Visual Merchandising – Career progression through VM
CV Development
Work and Work Systems
19
20
SHIRM Reconciling demand & supply model
Forecast - Asian grocery retail market – SWOT ANALYSIS
21
Asia Pacific Market Shares
Workforce planning and Talent
Management
22 Recruitment and Selection
23 Environmental Analysis – Tesco’s Graduate
Recruitment website
Development and work place learning –
Leadership and management development
24
25
Systematic Training Model
Leadership Styles
Industrial relations and communication
techniques
26 Strategic Advantage Model - The 5 D’s of Success
Stakeholder Communications – A communications Model
27 Porters Diamond Model – Diamond of Nations Competitors
28 Appendices
30 References
36 Bibliography
Synopsis
This report will aim to explore Tesco PLC, by researching into various areas of company policies,
strategies and strategic objectives for the future. The areas covered in this report will include a
brief history of Tesco, which will includes an overview of the brand and brand culture. The fashion
Industry will be explored, looking at Tesco within the Fashion Industry, taking a deeper look into
their fashion Brand F&F. Tesco’s recruitment practises will be identified whilst looking at Work
and work systems, workforce planning and talent management, recruitment and development, 2
leadership and management development. Finally the report will cover the strategic advantage
model, incorporating industrial relations and communication techniques within Tesco PLC.
Topic 1
Company strategy and strategic
HRM
STRATEGIC MANAGEMENT MODEL
COMPANY OVERVIEW
Tesco was founded in 1919 by Jack Cohen. Cohen left the
Royal Flying Corp at the end of the Great War and used his
demob money to buy the first day's stock. He then began
selling surplus groceries from various market stalls across
London’s East end. (Tesco plc, 2014) Cohen sold different
food and beverage products including the company’s first
own-brand product, Tesco tea.
Mission, goals, company philosophy and values
PHILOSOPHY
AND VALUES
Tesco’s core purpose and
philosophy - “We make
what matters better,
together.” (Tesco plc,
2014)
Since the very beginning,
Tesco has had a strong
commitment to their
customer. This began with
providing good value and
good service. This has
been extended in recent
years to take in to
consideration the
changing attitudes of
consumers relating to
sustainability and
charitable causes. The
company’s changing
behaviour is reflected in
their many corporate
social responsibility
endeavours. These include
the opening of 0 carbon
stores in the UK and
abroad, food waste
programme which aims to
tackle the amount of food
consumers waste and the
Tesco Eat Happy
programme which helps
promote healthy living for
future generations. (Tesco
plc, 2014)
STRATEGIC MANAGEMENT MODEL
In 1929 the first ever Tesco store was opened, in Burnt
Oak, Edgware, north London. In 1934 a new Tesco
headquarters was opened in Edmonton, North London. In
addition to the headquarters, the very first modern food
warehouse in the country was opened. (Tesco plc, 2014)
Throughout the coming years the company expanded by
opening new stores across the UK and in 1948 Tesco was
floated on the London Stock Exchange with a share price of
25p. (Tesco plc, 2014)
In 2014, Tesco operate in 12 countries around the world,
employ over 530,000 people and serve tens of millions of
customers every week. (Tesco plc, 2014)
3
Tesco plc, (2014)
And the food retailing Industry
In 2011, Tesco held 30.2% of
the total Supermarket Market
Share, followed by Asda with
18%, closely followed by
Sainsbury’s with 17%.
(prezi.com, 2015)
Consumer perception
4
And the food retailing Industry
J.Sainsbury, (2015).
(Cricket Scotland, 2015)
Main competitors
Wikipedia, (2015).
Wikipedia, (2015).
Good logo, (2015)
Logopedia, (2015).
“Aldi and Lidl have changed the “conversation” around grocery – in
particular, they have pushed the price/quality balance to greater
prominence. And, in a volume-sensitive business, they have put major
pressure on some major grocers – most notably Morrison's and Tesco.” –
John Mercer, European Retail Analyst.
It is clear to see that with
47% of people doing more of
their shopping at discount
supermarkets, the popularity
of discount supermarkets
Aldi and Lidl is increasing.
But, in addition to this, 62%
Market
sharesay
– Online
grocery
of people
they “can’t
buy retailing
all the groceries they need at
discount supermarkets.”
This means they must still
travel to supermarkets who
offer a bigger range of
products, such as Tesco.
(Mintel, 2014)
The chart reiterates the above
point, showing that one-in-three
consumers are now using Aldi or
Lidl for some of their shopping.
(Mintel, 2014)
SWOT analysis
Top 100 of the worlds most valuable brands.
The scale of the company means they have good
bargaining power over suppliers. This means
Tesco are able to obtain cheaper prices and pass
on the discount to their customers, making it
even harder for competitors to compete.
Diverse product range means it is difficult for
customers to know where the brands roots lie.
Negative publicity affecting reputation and
therefore customer loyalty.
Loyalty packages for customers (Club card).
Diverse product range.
International brand.
Ukessays.com, (2015)
The opportunity to rebuild their reputation and
retain customer loyalty.
Customer demand for efficient Omni-channelling.
Conquering the US market with a more successful
overseas strategy.
Consumer behaviour is changing, consumers are
beginning to shop in smaller discount stores. This
creates less of a need for large “superstores”
because of this there is a need to create more
footfall to Tesco larger stores. This also creates
new entrants to the market.
The expansion of F&F as a stand alone brand.
As market leader there is consistently a threat of
competition from other supermarkets.
Walmart is Tesco’s global competitor and as 8th
most valued brand in the world they have the
resources to ensure Tesco do not attain any of
their International market share in the grocery
sector. (Ukessays.com, 2015)
6
Mintel (2010)
Tesco PLC (2014)
ENVIRONMENTAL ANALYSIS
PESTEL
Tesco PLC, (2014)
7
THE 5 P’S OF HUMAN
RESOURCE MANAGEMENT
“Attracting and retaining people with
the right skills is important for developing
a pipeline of future talent – young people are our
customers and colleagues of the future.”
Tesco plc, (2014)
HR PROGRAMMES
HR PHILOSOPHY
“We treat people how
they want to be
treated”
● Work as a team
● Trust and respect
each other
● Listen, support and
say thank you
● Share knowledge
and experience
Tesco plc, (2014)
HR policies
Tesco support the UN
universal declaration
of human rights and
the international
labour organization
core conventions.
Tesco were founding
members and are part
of the Ethical trading
initiative.
Equal opportunities in
the workplace
(Women in leadership
programme)
Tesco plc, (2014)
In Ireland, Tesco
have launched
Positive2Work; a sixweek employability
programme in
partnership with the
Irish government,
giving young people
the opportunity to
work towards a
national
qualification.
Tesco youth
academy and
graduate training
schemes aim to
attract and retain
young talent.
Women in
leadership
programme creates
equal opportunities
in the workplace and
helps women
progress their
careers within the
company
HR PRACTISES
Tesco aim for
diversity in the
workplace.
The Tesco colleague
“What matters to
you” survey takes
employee opinions
into consideration.
Employee incentives
including pensions
and shared
ownership schemes.
Tesco plc, (2014)
HR PROCESSES
Tesco operate a
carefully
monitored
employee training
scheme. The
scheme allows the
employee to keep
track of their own
personal progress
whilst working
towards a more
senior role.
The Tesco
academy gives
employees access
to group training
programmes and
online resources
relating to
leadership,
management and
the worlds largest
library of business
book summaries.
Tesco plc, (2014)
8
STRATEGIC
FORMULATION
PORTER’S FIVE FORCES
BARGAINING POWER OF
SUPPLIERS
The scale of a company such as
Tesco means a greater advantage in
negotiating prices with suppliers.
Suppliers are more likely to
negotiate a lower rate with a large
company offering a significant
amount of business than a small
company with little to offer.
THREAT OF NEW ENTRANTS
Large supermarkets such as Tesco have
considerable advantage over the market.
The scale of the company means they are
able to buy large quantities of wholesale
goods cheaply. This would not be the
case for smaller companies trying to
enter the market, therefore they would
be less able to offer competitive prices to
their consumers.
BARGAINING POWER OF
CUSTOMERS
THREAT OF SUBSTITUTES
The threat of substitutes from
rival companies can impact on
company profits. If a rival
company such as Asda offers a
substitute product for a lower
price than Tesco it will impact on
both companies profits. This will
often result in zero profit or a loss
for both companies.
Customer buying power can lower
prices in supermarkets. If a
product is too expensive in Tesco
customers will move elsewhere. .
BARGAINING POWER OF COMPETITORS
Price setting disciplines are used within
supermarkets with the aim of ensuring
rival companies do not destroy each
others profits
(Ukessays.com, 2014)
STRATEGIC FORMULATION PLANS - CORPORATE/BUSINESS/FUNCTIONAL
BUSINESS
Continuing to invest in strong UK business – By investing £1 billion the company aim to
improve operations in key areas such as; Service & Staff, Stores & Formats, Range &
Quality, Price & Value, Brand & Marketing and Clicks & Bricks. (Tesco plc, 2014)
FUNCTIONAL
Establishing multi-channel leadership –Creating a seamless experience with ease of
access for the customer across many different platforms. (Tesco plc, 2014)
CORPORATE
Pursuing disciplined international growth – Using the same formula for success across
the board to ensure the success of international stores after the failure of Fresh and Easy
in the US. (Cbsnews.com, 2014)
9
BUSINESS LEVEL STRATEGIES
Seven part strategy
Tesco business model
To grow the UK core
To be a creator of highly valued
brand
To be an outstanding international
retailer in stores and online
To grow retail services in all our
markets
To put our responsibilities to the
communities we serve at the
heart of what we d
To build our team so that we
create more value
To be as strong in everything we
sell as we are in food
(Businesscasestudies.co.uk, 2014)
Functional level strategies - The Marketing Mix
Product – Tesco have expanded their product base over the years, consistently focusing on
offering a balance of price and quality.
Price – Tesco buy products on a large scale so they are able to achieve a greater discount for
the customers.
Place – Tesco have a mix of online and offline channels, their website and Tesco direct for
online and a Tesco metro, extra, F&F and express amongst others for offline.
People – Tesco aim to attract and retain high quality employees using staff incentives, this
ensures customers receive the best service possible.
Process – Tesco have employed an additional 8,000 employees in 2014 to ensure customer
standards for quality customer service are met.
Physical evidence – The store model is repeated across all stores creating important branding
10
within the marketing mix. (Dudovskiy, 2014)
Strategy implementation
Recruitment and leadership style
Tesco operate a democratic leadership
style which means employees participate
in decision making processes and their
feedback is valued. This results in
committed employees who fully
embrace and engage with brands
culture.
This is Money, (2014).
Strategy evaluation
Tesco PLC (2014)
11
Topic 2 – Tesco and the Fashion Industry
Not only does the fashion industry provide a substantial revenue and
employment to the economy but it is also has profits benefits for
companies. With the UK fashion industry worth over £11.5 billion, it is
also a lucrative market to enter.
12
ENVIRONMENTAL ANALYSIS
Conclusion
The fashion industry is hugely important to the UK economy, it is an
industry that supports over 816,000 jobs, more than real estate
(419,000), telecommunications (215,000), car manufacturing (174,000)
and publishing (172,000) put together.
The value of the UK fashion industry (BFC, 2009)
In addition to creating valuable employment opportunities, the fashion
industry contributed 20.9 billion to the UK economy in 2009. No matter
how high this figure, the industry still faces struggles for
acknowledgement from the UK government who are yet to realise the
true value of the industry and therefore refuse to acknowledge the
difficulties it is facing. The UK Fashion Industry is ever fickle and at the
current time with a lack of skilled professionals on offer, the industry as
a whole is in dire need of a government intervention to create offers of
better training for future generations.
Mintel reported that In 2013, women's wear alone is worth a
staggering 24.1 billion, making it the largest sector in the fashion
market. This figure is likely to increase to 30.4 billion by 2018. This
figure makes it all the more relevant for retail companies to notice that
consumer buying habits within the industry are rapidly changing.
With an increasing presence of online shopping it is becoming ever
more important to note these changes to ensure the future success of
fashion retail. Mintel states that In January 2014 there has been a huge
increase in the amount of people opting to purchase products online
via the use of Tablets. This fact puts retail stores in real trouble and
clearly emphasises point 1 in the technological factors of the Pestle
chart above that companies who are falling behind with technological
advances need to make new opportunities for innovative online growth
with in the industry or risk failure.
The above points provide strong evidence to suggest that the women's
wear market is one of the largest sectors in fashion retail. The fashion
Industry has changed dramatically from 2011 until the present time
and is undergoing a period of expansion. With consumer demands
changing rapidly with the introduction of new technology such as
mobile shopping see figure 1 – the industry is under additional
pressure to meet these new demands and because of this the industry
has been forced to expand.
13
Florence and Fred, now known as F&F was launched by Tesco PLC in
2001. It was developed in response to customer need and was
created with the intention of providing affordable, wearable clothes
to the Tesco consumer. (Just-style.com, 2001)
In addition to F&F, other supermarkets who also have their
own fashion lines in store are, Sainsbury’s (Tu) Asda (George)
and M&S. (Various ranges)
Using the Ansoff matrix as an example, various marketing strategies
have been implemented to ensure Tesco’s clothing ranges are a
success. These include Segmented marketing, product
diversification, expansion in international markets. With these and
Tesco’s increasing online presence success has been achieved. This
has created a strong customer base.
Ansoff Matrix
Tesco has developed products in new markets by
exporting products into new geographical markets.
(profile, 2011)
A competitive pricing strategy
ensures Tesco maintains and
increases its market share. Tesco
invest millions into “Price promise”
to ensure prices stay low for
customers even when supplier
demand is high. (profile, 2011)
Tesco are constantly developing products
within their market. For example the
Hudl tablet (2014) which is a Tesco
exclusive product. The tablet is sold in
stores aimed at the Tesco demographic.
Tesco have diversified by branching away from
the food industry into fashion (F&F), finance,
(Tesco Bank), and mobile phone sector (Tesco
14
mobile.)
Visual merchandising
Having had previous experience as a visual
merchandiser with Laura Ashley, it feels like a career I
would like to pursue at F&F for Tesco.
I recently attended a talk from Robert Salt, a regional
VM for F&F. Salt explained that the brand is quite
behind in VM terms and that as a brand, F&F are still
in their infancy. Tesco stores have large numbers of
footfall, and because of this it is difficult for the staff
to maintain intricate displays. Salt said the displays
have to be functional and display high stock levels
unlike the high end retail displays. This can of course
affect the overall look of the visual displays. Salt also
explained how It is more important for the store to
have enough items on the floor as the departments
do not have designated staff for the fashion area,
than for the displays to look innovative. This was a
concept he struggled with as a VM. The introduction
of mannequins in store at Tesco is also a new thing
for F&F at Tesco. (Salt, 2015)
In spite of a lack of visual creativity at F&F it is still an
interesting brand to me as it is slowly making
progress in the fashion industry, despite being very
different to the mid-market I am used to working
within. I find the idea of working with a company like
this appealing as it would be a challenge to help F&F
develop as a brand it itself within the fashion
industry.
Career progression throughout VM
In store VM
Junior VM
Points I noticed:
I think it would be of great benefit to F&F to follow
the lead of M&S who have created beautiful
concessions within their stores, for their different
collections. I also think it would help to introduce
designated staff members to the F&F concessions in
order to not only provide a good level of service to
the customers but to ensure standards are
maintained.
VM VM
Manager
Regional VM Head of
manager
VM
15
CV Development
16
@ Nikkismithbaby
Tesco HR the
LinkedIn
I have listed my hobbies which paint a better picture
of my personality, this could help HR decide if I am a
brand fit.
17
Topic 3 –
Workforce planning and talent
management –
Work and work systems
SHIRM Reconciling demand & supply model
Organisation strategy and targets
Tesco’s international strategy is to pursue disciplined international growth – Using the same formula
for success across the board to ensure the success of international stores after the failure of Fresh
and Easy in the US. (Cbsnews.com, 2014)
Organisational practises and methods
To grow retail services in all markets and to establish multi-channel leadership. Tesco also aims to
accelerate its global expansion in digital technology with online groceries in all its 14 countries of
operation. (Scribd.com, 2015) These strategies will be carried out by entering new markets with
caution and care. (Tesco PLC, 2014)
Manpower review and analysis
Foreign market strategies - Tesco aim to continue growth in the Asian market by continuing to
merge with established food companies in Asia in order to create a presence in the new market.
This can be evidenced by their acquisition with Greenfield investment. (Scribd.com, 2015)
Manpower – Recruitment & selection adjustment
By adopting a partnership approach with mergers overseas it is likely to have many advantages in
HR by ensuring employee recruitment and retention. This will also help ensure competitive
advantage and secure market positioning. (Sage pub, 2014)
Buying products in bulk means the company are able to
achieve a greater discount for the customers.
Price
Using overseas
mergers Tesco aim to
attract and retain
high quality
employees using
staff incentives.
People
Place
TESCO
Physical
evidence
Tesco have a range
of store formats
such as Lotus
(overseas) Metro,
Extra and Express
to ensure
customer needs
are met
geographically.
Tesco also have a
strong online
presence.
Process
Store models are repeated overseas
to ensure company branding.
Product
Increasing the workforce
to ensure customer
service improvements are
made.
Expanding product base - Balance
of price and quality.
18
SHIRM Reconciling demand &
supply model - Forecast
Asian grocery retail market – SWOT ANALYSIS
The Chinese grocery market is worth
£646bn today and it is predicted to rise
to £968bn by 2016.
China has a growing economy and it is
estimated that by 2020, China will
overtake the US as the second largest
global economy.
Asian convenience stores are flexible in
their product offering, for example they
often include additional services such
as dry cleaning and travel agency
bookings.
Competition in the market is strong.
Not all areas of Asia have a strong
economy, for instance Japan has a
weak economy. (Nakamichi, 2014)
The Chinese market is very large and
complex so it presents difficulty in
finding a niche for Western businesses
to fit into. (B2B International, 2015)
The stores cater well for the needs of
most shoppers.
There are many different store formats
and different store sizes in different
locations.
Stores often offer exclusive products in
store such as “Slurpee's drinks” which
are similar to Slush puppies in the UK.
Developing strong own-brand products
in store.
Offering a unique checkout “food to go
service” as hurried office workers pay
for their groceries.
(Thomson, 2013)
Finding the right geographical location
can offer the best vantage point for a
business. (B2B International, 2015)
The threat of new entrants to the
market such as Tesco Lotus in Asia, who
are also offering different store formats
in different locations to suit the
customer base. US and BRIC countries
accounted for 60% of the grocery
market share in 2012. This is estimated
to rise to 65% by 2016.
Franchising has become increasingly
popular in Asia. This takes an element of
control away from a company, the
company are then unable to fully
maintain the brands image.
(Thomson, 2013)
19
Entering into a new market
Asia Pacific
In 2012, an Foreign Direct
Investment in retail was approved.
This enabled Tesco and many global
retailers, to enter into new global
markets. In order for this investment
to be approved a number of local
sourcing restrictions were put in
place. (Mintel, 2014)
In July 2011, Samsung sold all
of its shares in Homeplus, so
Tesco is separated from
Samsung. Lotte took over Hi
Mart in 2012 and their
market shares are added
together. (Mintel, 2014)
After a failed attempt at entering a
new market in the US with Fresh and
easy, Tesco have adopted to take a
more strategic approach to growing
their international business. One of
their strategic objectives is to pursuing
disciplined international growth –
Using the same formula used in all
stores, to ensure the success of
international stores after the failure of
Fresh and Easy in the US.
(Cbsnews.com, 2014)
20
Topic 4 –
Workforce planning and Talent
management
Recruiting and selection
Workforce planning
Vacancies arise as a result of a company
expanding, employees resign or retire or
as they receive a promotion within the
organisation. The growth or
diversification within a company can
also create new job opportunities.
Business case studies, 2014
Selection processes
CVs for new applicants are screened,
they are then sent to an assessment
centre for the second stage. This
ensures the competency level of
applicant is met along with company
guidelines.
It is always preferable to promote and
recruit from within the company. This
process is carried out through an
annual appraisal scheme which allows
employees to train and develop their
technical skills in order to move up
the ladder in their career.
Staffing reviews are carried out
quarterly in May, August and
November.
Applicant pool
Job descriptions are used to state clearly
what is to be expected from an
employee within a specific job role.
Requirements in relation to desired
qualifications and experience are clearly
stated.
Tesco, 2014
Recruitment
Tesco will firstly look at their internal
talent plan within the company. Jobs
will be advertised through the intranet.
They will next advertise externally using
their own careers websites.
Different types of applicant are
attracted in different ways such as
Graduates and young people have a
separate website which is visually
appealing, with movie GIFs and images
set out in a way which would appeal to
a younger audience. In comparison to
this the Tesco careers website is set out
In a very corporate manner in line with
the companies corporate layout and
values. Social media links on site.
Following this vacancies will be
advertised through radio, magazines
and television.
Job performance
Tesco has specific key-skills for each job
role, a candidates suitability for the
role is measured by the Tesco sevenpart framework.
Business case studies, 2014
21
SWOT analysis – Graduate recruitment website
Strengths
Weaknesses
Careers page: Easy to use, clear tabs at the top
of the page make it easy to find what you are
looking for .
Uninspiring corporate layout.
Clearly lists Company benefits,
Explains companies culture
Gives a list of attributes the company are looking
for in an employee.
Graduate and young leavers recruitment page:
Appears very colourful, friendly and welcoming
possibly aiming to offset the wider aspect of the
Tesco Company and corporate nature the
company are facing in the press.
Inspiring use of images and videos to portray a
certain image of the brand and appeal to a
younger audience.
The website has an online application form for
people to submit directly.
Unexciting website but in keeping with the
Tesco culture.
States the level of degree required which means
not every graduate will be eligible to apply for
the graduate scheme.
It is difficult to change between the career and
graduate/young leaver websites, no obvious link
on either for the other.
Limited choice of career paths within the
graduate training scheme.
F&F careers website is poor, the applicant
must register their interest there is little
information in relation to what the company
are looking for etc. This only highlights the
point I made earlier about F&F still being in
their infancy stages.
Tesco advertises vacancies via the Tesco careers
website.
Gives the potential applicant the opportunity to
practise psychometric tests online before an
interview. Also gives links to the corporate
website to help the applicant do the necessary
research to progress onto the next stage of
interview.
Opportunities
Threats
Revamp of the website to make it more
appealing to the right applicants. Complete
revamp of F&F making it more appealing to
fashion interns.
The uninspiring layout means it may not attract
the types of applicants they are aiming for.
Many other graduate training schemes to offer
more exciting opportunities for young people.
To advertise the careers websites elsewhere
such as in store to create better awareness.
Conclusion:
The Tesco careers websites were really easy to navigate, I found the use of images
appealing it was very bright and it enjoyable to explore. A few messages are clear from the
Tesco website and they are “We care about our customers and our staff” and “We want to
care for, retain and help our staff progress successfully.” Whether the statements are true
or not Tesco have gone to significant lengths to make it appear this way.
By using the attraction – selection – attrition framework by Schneider (1987) I am able to
see that there are many more career opportunities within Tesco the graduate rate of pay is
significantly higher than many others on offer. These facts make Tesco a very appealing
company to work for. I personally feel I could achieve better career progression through
the Tesco graduate training scheme knowing that as a company they value internal career
progression over external applicants giving the feeling of job security. Because of these
facts I would consider applying to Tesco even in light of the recent events in the media.
22
Topic 5 –
Development and work place learning –
Leadership and management development
Employee retention begins as early as the
initial recruitment stage which is why the
recruitment and selection process (see
previous topic) is vital in future HR for the
company. The selection process will take
into consideration the potential
candidates abilities, interests, aspirations
and values. By reviewing this criteria it is
easy for a company to identify a potential
cultural fit. The most successful of
companies have been practising this
system for many years. (Paauwe, J &
Boselie, P. 2003). In most cases, the
companies who have the best people
systems are the companies better likely to
succeed in the future. (Delany, 2001)
Over the years, businesses have realised
that in order to get the best performance
out of their employees, they must value
them and listen to their opinions. (Delany,
2001) The ‘Engaging for success’ report
highlights this notion. One point made in
the report is that a company should
involve employees in decision making
processes, (EMPLOYEE ENGAGEMENT)
In 2009 a report was published which would prove
extremely influential in the HRM process of many
companies.
The report ‘Engaging for success’ by MacLeod,
would prove to be a significant turning point for
British retail companies in relation to the employee
engagement process.
How Tesco have adapted to this ideal…
Systematic training model
1 – IDENTIFY TRAINING NEEDS
Once successfully recruited as part of the Tesco
culture, all employees are given the opportunity to
develop their careers within the company. In order to
do this and with guidance from line managers, they
must first identify any gaps in their current skills and
expertise.
2 - DESIGN TRAINING REQUIREMENTS
Any gaps that have been identified will be noted in
the employees personal development plan. Tesco’s
personal development plan for employees is the
initial process undertaken to ensure employees are
equipped with the necessary skills needed to make
the next step into career progression.
3 – CONDUCT TRAINING ACTIVITIES
Training activities can include many different
approaches, employee shadowing or coaching can
help show a trainee how a job role should be
approached. Using a different approach to training
is the job rotation method. This method gives the
employee the opportunity to take full responsibility
in their job role for a limited time.
4 – EVALUATE THE TRAINING SUCCESS
Employee performance is regularly evaluated in line
with the performance and development policy.
Employees are able to participate through various
discussions and reviews annually.
(Businesscasestudies.co.uk, 2015)
23
(Tesco PLC, 2014)
Leadership style
Staff training and inductions are extremely
important to brands such as Tesco, as the
business relies on quality of training to ensure
employee engagement and therefore customer
experience.
Failing to motivate employees means a company
can face a high labour turn over. This will impact
negatively on the business as it means a higher
number of inexperienced staff. This directly
affects customer relations within store. This will
have had an impact on company profits during
this period.
Workplace learning style
Tesco operate a double-loop learning system to
enable them to challenge and respond to changing
environments within the workplace and understand
why changes may be taking place.
My preferred leadership style
Conclusion
Having previously worked for a company
who operated an autocratic management
style I am able to see the problems it can
cause for manager - employee relations.
Autocratic management style results in a lack
of employee value and motivation. If
employees aren’t praised and motivated
they are put in a position where they do not
feel valued therefore resent the company
and reject the company culture entirely. This
is then portrayed in their working behaviour.
This impacts negatively on other members of
staff and the brand experience as a whole.
Having experienced this management style
and feeling like my skills and creativity were
not being fully utilised I feel I would benefit
from a Laissez-faire management style.
Key points to avoid an increase in labour turnover
Clear and concise job descriptions.
Regular staff training and monitoring, engaging with
staff members and listening to their opinions.
Praise staff and constructively and correctly criticise
when necessary.
Offer career development opportunities to maintain
staff interest, this includes discussing development
opportunities and supporting the employee with
their career aspirations.
Delegating senior tasks to allow employees to feel
valued and work on their own initiative.
Staff incentive programmes.
Openness
After taking the personality questionnaire
(see appendix C) I can see I have an active
imagination which needs to be challenged, a
laissez-faire management style would allow
me to embrace this quality.
Extroversion
I am an extrovert, I am assertive and good in
social situations involving groups of people
there fore am naturally good at leading a
team on my own initiative.
Agreeableness
I am able to empathise and understand the
feelings of others which makes me easy to
get along with. This skill means I am an
excellent team player.
Neuroticism
I am naturally more inclined to be affected
by negative emotion, therefore an autocratic
leadership style would not have been the
ideal style within my working environment as
24
it promotes negative feelings which can
worsen and lead to demotivation.
Topic 6 –
Industrial Relations and communications
techniques.
Stakeholder communications
A communications model
In light of recent events which had created bad
publicity for Tesco, it has been extremely important
that as a company their reputation is managed
effectively through Crisis Management style Public
Relations. Key messages are derived in order to
control the damage many different media
stakeholders needs have to be met.
Key messages: Reputation management
Vehicles of communication
Press releases
Statements
Interviews
Articles
Blog posts
Letters
Financial statements
Financial reviews
“We are a profitable company and a worthwhile
investment.”
“We are a trust-worthy company and aim to earn
trust and loyalty back from our customers,
colleagues and communities.”
“We treat people how they want to be treated”
Below is an example of a stakeholder map for one particular PR sector – Media Relations
Communication methods
Staff - Formal and Informal methods of staff communications such as weekly meetings,
reports, forms etc.
Staff feedback, training development involves meetings, shadowing and training.
Customer - Customer data collection through Club card, online shopping accounts.
Advertisements, social media for example Tesco use their Twitter to creating a rapport with
customers by posting light-hearting tweets intended to humour the followers.
Websites – Tesco offer a variety of informative different websites which contain information
on schemes, policies, financial information, training and staff recruitment, charity work. In 25
addition to these there are transactional websites such as Tesco.com, Tesco direct, Tesco
mobile and Tesco Bank also offering products, services and information.
Topic 6 –
Industrial relations and
communication techniques
Strategic Advantage Model
Differentiation - Industry wide
Determination
Market position – Number 1 supermarket
in the UK.
Desire
Discipline
Supply channels
Distribution channels
The 5 D’s of success
Ownership of assets
Knowledge and competence
Decision
Do it now
Differentiation - Uniqueness
perceived by the customer
Price – Price promise
Innovation – Loyalty cards, customer
benefits. Website
(Ma, 1999)
Focus
Customer focused – The
customer is always at the heart of
every operation.
Tesco have been able to
retain competitor
advantage as they
recognised that consumers
were shopping in smaller
stores, they responded to
this demand by creating
different store formats for
their own stores. They also
decided to then create a
strategy to attract
customers to their larger
stores.
Porter states that a company can
achieve competitor advantage in a
market sector if they are able to
earlier signals of consumer
demand trends than a foreign
competitor. (UK essays, 2014)
(prezi.com, 2015)
Factor Conditions
Factor conditions can be many different things, such as
labour, cost of skilled labour, materials, resources etc.
The cost of human resources can often be very
expensive, this especially applies in the instance of
replacing and retraining staff. This is why the recruitment
and retention of employees is particularly significant. The
recruitment of the right applicants is successful to the
business. (UK essays, 2014)
Porter’s Diamond
Model of Nation’s
Competitors
Demand Conditions
Clear cost
leadership
strategy
Firm Strategy, Structure, and Rivalry
Porter (1990)
Diversification,
Tesco Bank/Tesco
mobile
The introduction various store formats to fit
geographical locations. For example Tesco
metro, to target high street consumers, giving
them all the benefits of a large store.
Creating a good relationship with
local suppliers is essential in the
success of a business in relation to
their competitors. Tesco have a
good relationship with suppliers
and because of the scale of the
company they are able to buy in
bulk which makes them an
attractive business option to
suppliers, thus giving Tesco
competitive prices they can then
pass on to their customers.
Related and
Supporting
Industries
26
APPENDICES
APPENDICES
27
28
29
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30
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