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Structure & Culture of Tesco & Cadburys

Organisational Structure &

Culture of
Cadbury and Tesco
Student: - Muhammad Tayyab Riaz
Student ID: - SC1165

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Structure & Culture of Tesco & Cadburys

Table of Contents
INTRODUCTION...................................................................................................................1.0
BACKGROUND INFORMATION OF TESCO & CADBURYS.....................................2.0
HOW DID TESCO START ITS BUSSINESS? ...................................................................3.0
WHERE ARE TESCO NOW? ..............................................................................................3.1
ORGANISATIONAL STRUCTURE OF TESCO...............................................................3.2
HOW DID CADBURYS START ITS BUSINES? .............................................................4.0
WHERE IS CADBURYS NOW? ........................................................................................4.1
CADBURY CURRENT ORGANISATIONAL STRUCTURE.........................................4.2
Tesco & Cadburys COMPANY STRUCTURE.................................................................5.0
TESCO ORGANISATIONAL STRUCTURE....................................................................5.1
CADBURYS ORGANISATIONAL STRUCTURE..........................................................5.2
TESCO H.R DEPARTMENT...............................................................................................6.0
CADBURYS H.R DEPARTMENT....................................................................................7.0
TESCO CULTURE...............................................................................................................8.0
CADBURYS CULTURE.....................................................................................................9.0
HOW ADVANCE TECHNOLOGY HAS AFFECTED TESCO & CADBURY? ........10.0
WHERE SHOULD TESCO & CADBURYS GO NOW? ...............................................11.0
REFERENCES.....................................................................................................................12.0

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Structure & Culture of Tesco & Cadburys

1. Introduction
This report will highlight on the organisational structure and culture of Tesco and Cadburys and
illustrate how they manage their organisations and what method and techniques they have adopted to
compete with the local and international market. This report also illustrate that how they started their
business and talk about their changed and new well organised structure and culture of their
organisations.

2. Background Information of Tesco & Cadburys

Tesco is a big private employer of Britain. Tesco has more than 490,000 employees from all over the
world. Tesco is running four types of;
Express(for fresh local food, convenience and values)
Metro(for convenience in town and city and large variety of food items)
Superstore(for wide range of electronic items)
Extra(for a wide range of food and non food items)
Whereas Cadburys is the oldest chocolate making industry and the first who make cocoa chocolate
and drinking chocolate, established in 1924 by John Cadbury.

3.0 How did TESCO start its business?

Tesco was founded in 1919 by Jack Cohen. The business started when he embark on to sell excess
edibles in the East end of London at Well Street Market, Hackney. Jack started his business from the
dividend he received from the army for his indulgence in World War 1.
The Tesco brand was first clocked in 1924 and the name TESCO was first appear when Cohen
bought a shipment of tea from T.E. Stockwell. The name Tesco; put together by using T.E.S. from T.E.
Stockwell; the tea supplier and C and O from his surname Cohen, then the name Tesco was born.
The first Tesco store was open in Burnt Oak, Edgware, and Middlesex. Sir Jacks idea was to buy in
quantity and sell in fewer prices. Therefore the stores opened at that time were small but contained
large variety of food items. Before 1948, customers were not allowed to shop for themselves and they
were unaware of self-services experience. In 1948, Tesco opened first self-services store at St. Albans.
(http://en.wikipedia.org/wiki/Tesco#20th_century)

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3.1 Where Is Tesco Now?

Tesco has now become the biggest supermarket chain in the U.K as well as in the E.U countries.
Tesco has put on the 30% of the U.K grocery market. In 2010, Tesco made a profit of 3.4bn, in 2010.
The accomplishment of Tesco is strongly based on its method of trading, i.e; By big and sell cheap.
Now Tesco is creating clone-towns and pushing the small shops to decrease its competitor.

3.2 Organisational Structure of Tesco

Tesco has made its organisational structure is such a way that they put their customers on the top
priority. Tesco has made six different types of working level within the organisational structure.
Work Level 1: Front line jobs, which include various types of in-store vocations or duties, such
as brimming over the shelves with commodities. This work level
depends upon the capability to do the work in right manner.
Work Level 2: In this level the employer direct his employees team
as how deal with the customers. It desires the capacity to
administrate the appliances in order to motivate the rest
Work level 3: It implore on addressing skills, setting targets,
planning and reporting to continually run the operating unit.
Work Level 4: It requires the workers who are skilled in analysing
reports, ability of decisions making and admirable knowledge of
business, so that they enable to direct their staff.
Work Level 5: It emphases upon the overall performance of the
Tesco and make the decisions which are beneficial and profitable for
the Tesco Plc.
Work Level 6: It focuses on the goals and values of the Tesco Plc. The employees working in
this level needs a good summery of retailing and the ability to make path for the whole
organisation.
The seven laired frame of Tesco describes the structure and culture of the whole organisation and this
framework helps Tescos employees to understand their roles in the organisation.

(http://www.thetimes100.co.uk/case-study--skills-and-behaviours--132-323-3.php)

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4.0 How did CADBURYS start its business?

John Cadbury started its business as a grocery shop selling tea, coffee and drinking chocolate, in
Birmingham 1824. John Cadbury soon established himself as the leading trader of cocoa and drinking
chocolate in Birmingham. In 1831 he rented a small factory, manufacturing drinking chocolate in a
large quantity, in Crooked Lane which was not very far from his shop. By 1842, John Cadbury has
been selling sixteen lines of drinking chocolate and cocoa in powder and cake form.
In 1947, he rented a large factory and at the same time he collaborates with his brother Benjamin and
the name of the business become Cadbury Brothers of Birmingham.
The year 1866 was the turning point for the company when the brothers introduced the process of
pressing the cocoa butter from the cocoa beans. It was also a great benefit for the Cadbury brothers
that they can use the butter for making different types of eating chocolate and the Cadbury Dairy Milk
was the first of them.
The brother then moved to the famous Bourneville site where the Cadbury is located today. They
moved to Bourneville in order to give their employees a healthy environment.
(http://en.wikipedia.org/wiki/Cadbury#1824-1900:_Early_history)

4.1 Where is CADBURYS today?

Cadburys is the leading brand of the UK today and is also the world largest chocolate producing
company of the world. Cadburys has spread its business all over the world including countries like
Pakistan, India, Sri Lanka and Bangladesh. Cadburys is the candy shop carving of Cadbury
Schweppes Plc, which has other commodious named brand within the soft drink such as Dr pepper.
As compared to the beginning of the Cadburys, the trade is very much known for the chocolate bars
and is now and then very a favourite in dispersion through children and adults.

4.2 CADBURYS current Organisational structure

Like other multinational companies, Cadburys has two different structures. They have redesigned
their structure for their board of directors in order to clear up the balls and chains and allow prompt
decision making.
The new organisational structure is very vivid and its easy to see that who is in charge of which
department of the organisation.

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5.0 Tesco & Cadburys Current Company Structure

5.1) Tesco Company Structure
Tesco has detained the amount of employees throughout the company, the reason for detaining the
employees are;
The organisation has found more sufficient way to replete the business activities.
The elevation in automation has enable the organisation to take away some of the demanding
task away from the employees to minimize the human error.
The company has given more responsibilities to interact with the customers and serve them.
The organisation has given their managers much broader span to control their work force. It
means that each manager has to interact with more employees and it helps the manager to
trust its workforce.

5.2) Cadburys Company Structure

If we look at the Cadburys, it is very clear to see that the organisation over time has detained the
amount of;

Employees and replaced them with machines.

Outsourcing areas of the company such as market research.
Cadburys is able to guarantee its product satisfactory.
Employees are multi skilled and work in different areas of the organisation.

6.0 Tesco H.R Department

Tesco not only have the HR department in the regional head office but also in its all store. Having the
HR department in each store helps allows the HR team not only to see that how the store was doing
but also look upon that where the staff is needed. HR department helps the company through;
Finding ways to measure and reduce labour turnover.
HR planner operates a workforce which is numerically, financially and functionally flexible.
They train their employees to be able to work within their department correctly and safely.
The major that the HR department faces from their staff is;
Having lake of skill in their team
The sudden increase in labour turnover

By completing their main tasks the HR department can be beneficial for the store for not only meeting
the customer demands but also help the stores to achieve their goals.
In order to abbreviate the staff turnover, the HR department allows each team member chance to
accrual their elasticity whining the organisation by training them.

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Tesco also has a reward system, which determines when an employee has behaved exceptional
customer service for the customer and then the store rewards the member of staff with a token.

7.0 Cadburys H.R Department

Each factory of Cadburys has its own HR department, which deals with the companies demands for;
New skilled staff with past factory experience.
To enable new and current staff to correctly and efficiently use the new machinery.

Assist the employees with any problem they are facing within their work;
Skill gaps in new and inexperienced employees
Antagonism with other factories.
High staff turnover that effect production.

The incentives and rewards that Cadburys offers to overcome this are;
Increase in pay
The internal promotion chance
Discounted companys shires.
The company also deliver a chance to their employees to go on pay holydays with family.

8.0 Tescos Organisational Culture

Since Tesco started its business it has a culture to sale cheep affordable products. Sir John Cohen
was the reason for this, as he always buy products in bulk and he has a motto, pile it high and sell it
cheep.
Tesco is still working on the motto given by Sir John Cohen as to pile it high and sell it cheep, but the
company has offered some changes into its products by dividing its affordable in to three different key
areas. The firs area consist of very high quality products, the middle group is consist of Tesco and
company branded products and the third group of products are Tescos value range which consist of
cheapest products like toilet rolls bin liners etc.
By offering their customer choices in the grocery, Tesco now offer their customer the probability to buy
clothes and electronic products.
Asda is now becoming a great threat for Tesco as it is over taking them in affordable and becoming a
new store that, pile it high and sell it cheep.

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9.0 Cadburys Organisational Culture

The organisational culture of Cadburys work on the policy or practice of treating or governing people
in a fatherly manner, especially by providing for their needs without giving them rights or
responsibilities, as the company has assign to arranging its workers or employees to feel that they are
being valued by the company. The company has reached this high status because it heavily believed
on its employees.
Today the Cadburys company is known as the company who keep is stockholders happy. Along with
this and the achievement in the technology, Cadburys has now replaced its employees with the
modern machines to minimise the work error.

10.0 How Advance Technology Has Affected Tesco & Cadburys

Tesco
The technology has affected Tesco greatly in a positive manner as it help to take away some of the
jobs from the employees which, which could affect the organisations profit strongly, such as product
availability and waste if not done properly.
The major areas that Tesco has handed over to the machines are;

The control of stock that each store holds.

The tills are now attached with the main computer, which allows the correct price to be charged.

Ahead with the technology a vast variety of products is also increasing considerably. These changes
are;

Ready meals.
Different taste from different countries.
The appeal of celebrity chefs with their endorsements.

Cadburys
As the time has passed Cadburys has owned different brands which have produced different products,
but today chocolates are the only products associated with the Cadburys.
Product changes of Cadburys are not as advanced as Tesco. Cadburys dairy milk has been around
for hundred years with a little or no change.

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11.0 Where Should Tesco & Cadburys go now?

11.1) Tesco
It seems that the Tesco has achieved the view of becoming a one stop shop and hit the peak. The
down side to some of electrical goods that Tesco offers is that are not of a brand that some customers
are usually associated with. When it comes to clothes customers like to be able to browse other shop
before they make their final purchase. This can be a problem for Tesco as most of its stores are away
from the shopping centres. To compete with the market Tesco has to open stores that only sell clothes
and electronic goods and these stores should have to be opened within the shopping centres. This
give the advantage to Tesco to compete with the main market and customers would have benefits with
a new type of price war.
11.2) Cadburys
One down side for Cadburys is that it is very difficult for customers to define which product is
produced by which company and with such a large variety in the market it is impossible for the
customer to stay loyal to a particular product. To overcome this Cadburys has started printing
their name on the front of their product like; Cadburys dairy milk.

12.0 References
http://en.wikipedia.org/wiki/Cadbury#1824-1900:_Early_history
http://www.thetimes100.co.uk/case-study--skills-and-behaviours--132-323-3.php
http://en.wikipedia.org/wiki/Tesco#20th_century
http://123helpme.com/view.asp?id=122755