The company changed to a divisional organizational structure to better manage its vast number of employees and its international operations. The divisional organizational structure divides separate departments and storefronts into independent units that can react to environmental cues on their own. The company was compelled to develop an organizational structure that could promote cost-effectiveness, organizational efficiency, and employee commitment due to the dynamic nature of the global economy.

1. Managing People in an Organisation - Tesco Report:
The arrangement of people and duties within a company is referred to as its
organizational structure, which aids the firm in achieving its core goals.
Tesco supermarket, according to industry experts, uses a strategic business
unit (SBU) style of organizational structure to increase its degree of
competitiveness both within and across geographic regions (Hutchings, 2005
p. 354).
The retail chain employs a four-pronged growth strategy, including its primary
UK business, global services, non-food services, and retailing services.
One may think of these growth techniques as systems for managing people.
Tesco used the functional organizational structure in its early years.
Since it had not engaged in extensive regional and product diversification, its
stores in the UK were separated into very simple sections. Because employees
can easily comprehend the corporation's operations, command structures, and
tasks and responsibilities, this structure is excellent in terms of people
management.
The company changed to a divisional organizational structure to better manage
its vast number of employees and its international operations. The divisional
organizational structure divides separate departments and storefronts into
independent units that can react to environmental cues on their own.
The company was compelled to develop an organizational structure that could
promote cost-effectiveness, organizational efficiency, and employee
commitment due to the dynamic nature of the global economy.
The firm has notably benefited from the divisional organizational structure in
managing the human resources at its disposal, as well as controlling its market
entry and product offerings to match distinct market segments in various
nations.
Tesco's staff have been able to develop a sense of teamwork because of the
divisional structure, and customers can now more easily relate to the company's
goods and services based on the regions in which it operates. Additionally, this
arrangement offers managers the chance to gain a broad range of skills
necessary to advance the goals of the firm.
At both the corporate and business unit levels, the retail chain has successfully
employed the divisional structure to coordinate and harmonize its operations,
decisions, and plans.

2. Tesco has effectively entered worldwide markets through a divisional structure
by adapting to the local culture rather than seeking to push its goods and
services on the local populace.
Due to the way the organization's organizational culture, structure, decision-
making processes, and leadership have assisted the supermarket in managing
people - both employees and customers - while the company's financial clout
and customer base appear stable for the time being, there are enormous
opportunities for growth in the future for Tesco.