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11 views

Presentation Slides 3 - Tutorial 4.2

Uploaded by

nhiuyenlenguyen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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TEAM 9

Tesco: Time to Refocus


Case 1 Chapter 7
Team Members

01 02 03
Lê Nguyễn Nguyễn Trần Võ Ngọc
Uyên Nhi Khánh Linh Đoan Trang

04 05
Lê Hùng Chu Gia
Khánh Linh
Case Summary
Tesco - a British retail giant - faced a major
crisis in 2014, in which they had inflated their
profits by £263 million to meet targets.
Previously, Tesco emphasized stakeholder
trust and ethical practices. However, a focus
on short-term gains led to these violations.
This highlights the dangers of prioritizing
short-term gains over ethical practices.
7-14

Which stakeholder groups are affected by the


financial scandal discussed in the case?
The following stakeholders are affected:
Suppliers

Shareholders

Employees

Managers

Customers
7-15
How could the
omnipotent and
symbolic management
perspective explain
Tesco’s financial
scandal?
The omnipotent
perspective
● According to the omnipotent
perspective, important decision-makers
and upper management have a big say
in whether an organization succeeds or
fails
● This viewpoint emphasizes the
significance of moral decision-making
at the highest levels of management.
The symbolic perspective
● This perspective emphasizes the impact of
outside variables and the symbolic
elements of corporate culture.
● This viewpoint would take into account how
Tesco’s internal culture norms, values, and
symbols led to the controversy.
● The behavior of individuals within the firm
may have been further perpetuated by
external causes, such as the fierce
competition or regulatory demands.
7-16
How is the email sent to staff members linked to Dave Lewis’
view that the organization’s culture needs to change?
The timing of the email reflects a
culture that values short-term
advantages over moral behavior

Lewis’ emphasis on customer focus,


honesty, and transparency directly
contradicts the previous culture

Sending the email within weeks of


becoming CEO highlights the urgency
Lewis felt to address these issues and
rebuild trust damaged by the scandal.

The email contradicts past claims about


valuing stakeholders, further reinforcing
the need for a significant cultural shift.
7-17

Imagine you are looking to join Tesco. How would the


organizational story of this scandal affect your decision?
Consider both the scandal and how it managed.
The financial scandal
The scandal of Tesco revealed valuable
insights into the company’s culture, which
showed that the company prioritized financial
objectives over ethical behaviour and
stakeholder trust.
Establishing an ethical brand is essential for
companies to maintain their reputation.
How Tesco managed
Considering how Tesco managed the
scandal will indicate a positive shift in the
company’s culture.
The company seems to have
acknowledged its mistakes and made
every effort to improve communication
and enhance relationships with suppliers.
CONCLUSION
THANK YOU
FOR
LISTENING!
TEAM 9

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