A Report Looking at the Organisational Structure and Culture of Cadburys and Tesco,

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James Pitcher                04/05/2007

A Report Looking at the Organisational Structure and

Culture of Cadburys and Tesco,

  1. Introduction

This report will look at the organisational structure and culture that Cadburys and Tesco have adopted over their companies history.  The report will show how Cadburys and Tesco started and how they have changed or improved the overall structure and culture of their companies.

  1. Background information

  1. Tesco

  1. How did Tesco get started?

Tesco was formed by Sir Jack Cohen where he set up a grocery stool in the West end of London.  The stool was set up by Jack using the gratuity he received from the army for his services in world war one.

The Tesco name was first used on packets of tea. The name Tesco was put together by using T.E.S from T.E.Stockwell who was a partner in the tea suppliers. C and O were taken from Jacks surname Cohen, thus the name Tesco was born.

The first store opened in 1929 in a place called Burnt Oak, Edgware. The first stores to open were all small stores which had large quantities of products as Sir Jacks vision was to buy big and sell cheap.  At this time all the stores were a place where the shopping was done for the customer, where as in America the shopping experience was one of self service for the customer.  Sir Jack was not into the idea of making customer’s shop for themselves, but with Sainsbury’s now offering the customer’s self service Jack had little option.  The first Tesco store to be changed into a self service was in St Albans 1948.

  1. Where are Tesco now?

Today Tesco are now the biggest supermarket chain in Brittan and have also expanded into other foreign markets in the E.U.  Also Tesco, having almost saturated the market with superstores, have now gone back to there routes by buying the small corner shop chain ‘One stop’ and turning them into little Tesco expresses.  The reason for this is to get the Tesco name into small Towns and Village’s where ‘One stop’ was and will stop Tesco customers from picking up their essentials from a competitor.

  1. Tesco’s current organisational structure

To day Tesco have two organisational structures.  One for the company as a whole, which includes the board of directors and the other one is the structure used within each of their stores.

(The store structure can be found under appendix 1.0) 

The store structure that Tesco uses is very easy to understand with each level of control shown clearly. By having a simple store structure it allows employees to see easily who is in charge of each department or who their department manager is.

  1. Cadburys
  1. How did Cadburys get started?

Cadbury limited was set up by one man in 1824 called John Cadbury from Birmingham. In 1824 Cadbury was set up to be a grocery shop.  This changed in 1831 when John Cadbury went into manufacturing drinking chocolate and cocoa. In 1847 a large factory was rented in Bridge Street Birmingham.  Around the same time John Cadbury was joined by his brother Benjamin and the name of the business became Cadbury Brothers of Birmingham.  

The turning point of the business was in 1866 when the brothers introduced the process of pressing the cocoa butter out of the cocoa beans.  The benefits for the Cadbury brothers was that they could use the butter to make different types of eating chocolate the first of which was the Cadburys dairy milk.  

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After this time the brothers moved to the now famous Bournville site where Cadbury world is situated today.  The Cadbury brothers changed the employer to employee relations for the better by having the Bournville site as a ‘factory in a garden’.  Also the brothers introduced better employee welfare with joint consultation and other innovations in this area.  

  1. Where are Cadburys today?

Today Cadburys are the UK’s market leader and are one of the largest chocolate producers in the world and have opened new business opportunities by producing chocolate within other countries like Ireland, India and Pakistan. ...

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