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Assignment 2(P3-P4-P5-M2)
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This assignment includes information about how different businesses are organised, including organisational structure and functional areas.
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Fahad Khan Business Environment- Assignment 2In my previous assignment I chose two organisations; Tesco, from the
private sector and Oxfam, from the public sector. In this assignment I will
be explaining the different organisational structures, their functional areas
and the use of strategic plan by organisations to achieve their purpose
and aims. I will also be comparing the UK economy with another country,
including the impact this has on the chosen organisations.
P3
In this section I will be describing the organisational structure with the
functional groups and also how the organisations make strategic plans.
Tesco
Tesco is a huge international organisation. Because of this, it has a tall
structure due to the fact that it is a very large company with multiple
levels within the hierarchy. from this diagram we can see that the span of
control is very large as this is the structure for only one area within the uk.
Therefore the amount of superiors is vast in numbers. (1)
The style of structure that Tesco have is known as a Functional structure.
There are also many functional areas within tesco’s hierarchy, which all have
their own section in the main organisational structure. Functional structure is
when employees of an organisation are grouped according to a specialised set of
roles or tasks. In terms of tesco’s, the diagram shows the different types of
functional areas. These functional areas are placed to individually benefit the
company.
Customer service handles the identification and the satisfaction of the customers
of Tesco. By doing so, they handle all of the complaints or questions that the
company is faced by their customers about their products.
Research & Development is responsible for creating new and innovative products
to keep the company one step ahead of any competitors. This is a huge help for
Tesco as the R&D department help the company remain the market leader in
, Fahad Khan Business Environment- Assignment 2
retail, due to the fact that they create fresh new varieties of currently existing
products.
Administration is responsible for the free flow of information between the various
departments within Tesco. This is very useful to tesco as they require a central
system in which they can trust to deliver all of their communications which occur
in between the various departments.
Human resources is responsible for the people related issues within a business.
This can include the process of recruiting suitable candidates for the
organisation. This is very useful to Tesco as this department can handle the
recruitment process for the company along with other tasks such as employee
welfare and employee relations are positive.
Production in a company is responsible for turning inputs into finished products
through a series of production processes. This is useful to Tesco’s own products
called ‘Everyday Products’ as Tesco are ones who produce this and sell it.
Therefore to have a department which handles with the production of these
products is very useful.
Finance in a company is responsible for the management of the whole companies
accounts. This department handles all of the companies financial records and it
pays employees wages. This is extremely useful for Tesco as they have a lot of
employees which need to be paid, this cannot be handled by everyone, it
requires a separate department to handle it.
Sales is an important department for companies which deliver a product
or products. Tesco will need to have a dedicated sales team which sell
their product on the sales floor. These employees can have the jobs of
working the tills or helping customers with the self-checkout service.
These functional areas make business much easier for the company. This
is due to the fact that functional skills make a business much more
organised. By this I mean that Tesco’s business is made a little easier by
splitting the work load throughout various functional areas which makes
the work that the business have to do much less. Due to this Tesco strives
as they allow the different functional areas to deal with their department
of work, while still being able to integrate with the different functional
areas due to administration.
Strategic planning has helped Tesco with completing their aims and
objectives. Strategic planning means ‘to define the organisation’s process
of defining its strategy or direction and making decisions on allocating its
resources to pursue this strategy’. - (3)
From this we can determine that Tesco use strategic planning to make
clear cut decisions on how to achieve their objectives for the period of
time in which they wish to do so. Tesco have a main objective to give their
customers the best shopping experience possible. They do so by trying to
make the customer shopping trips as easy as possible, this is done by
categorising each product into selves with similar products. Also they try
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