Principles Of Management, Organizational Structure, And Tesco’s Internal Analysis

The Aims of Tesco

1. Identify the principles of management and organisational structure in relation to size and purpose

2. Explain the nature of management culture and how this may vary from one company to another as well as the impact it has on corporate success

3. Identify the relationship between business planning and operations and the problems of ensuring consistency

4. Illustrate the importance of effective communication between managers with different responsibilities.

Clearly summarised key theories and principles; includes main factual material; only includes relevant material; content is supported with some evidence of relevant research from key texts, articles and web sites, as well as examples of management practice.

Well-structured report with appropriate use of headings, sub-headings and paragraphs; good visual presentation including line spacing, font size and margins; good spelling, grammar and punctuation; correct use of Harvard referencing

Basic evaluation of material and concepts; clearly developed arguments; arguments supported with examples, quotation, references; effective introduction and conclusion.

a) The aims of Tesco are provided below:

Expand the business in the UK

To be the outstanding international retailer in stores and online platform

To be the strong in every department of the business

To grow the retail services to the larger area of market

Enhance the brand value in the domestic and the international al market

To build better team for improving performance of the organization

The prime focus of Tesco is to increase the number of retailers in the UK market as well in others international market (Bendul 2014). Tesco has successfully expanded their business in the domestic market and they have been trying hard to enhance their brand value in the international supermarket chain.

Four functions of the management can facilitate the organization to achieve the desired goals or objective. Four functions of management are planning, organizing, leading and controlling (Cadle et al., 2014).

Four functions of the management

Planning is the process of setting objectives for achieving success in the market. The store manager of Tesco must include several process of planning such as strategic planning, tactical planning and the operational planning. In the strategic planning, the store managers must analyze the competitive opportunities and threats, strengths and weakness of the situation (Chen, Preston and Tarafdar 2015). On the other hand, the tactical planning suggests the solution to get rid of the difficult situation of the business. Operational planning provides short range planning to develop specific actions.

Four Functions of Management

The organizing functions of management facilitate the store managers to develop the organizational structure. The store managers can enhance the teamwork at the workplace. Leading is another process to enhance the workability in the organization (Emeka 2012). If the store managers can lead the team effectively, the outcome of the business will be more improved. The process of controlling includes three basic steps such as establishment of the performance, comparing the genuine recital against standards and taking proper action when needed. Therefore, the store managers of TESCO can achieve the desired goal of the organization through applying four functions of the management.

b) Tesco follows the divisional organizational structure. The figure of the structure is provided below:

Figure 1: Organizational Structure of Tesco

(Source: Foscarini 2012)

Tesco’s organizational structure shows the chain of authority in the organization. The chain starts from the owners to most junior employees. The organizational structure of Tesco suggests the way where a business can complete its activity.  It provides the actual line of communication inside the organization. In this chart, the prime stakeholders are the board of directors of the company who regulate the role of chief executives. Dave Lewis, the Ceo of Tesco controls the all activities of the organization (Khakhar and Rammal 2013). Under the chief executive, four departments have been working for Tesco such as marketing manager, human resource managers, sales mangers and finance managers. The core responsibility of the business lies within these departments of the organization. The core objective of the organization is to provide better facilities to their employees so that the business can grow in the large demographic area. Tesco follows the divisional organizational structure to accomplish the entire work in a systematic process.

The prime advantage of this divisional organizational structure is the development of the divisional heads (Kummerow and Kirby 2014). The head of the each division can enhance their workability through different learning and training sessions. The divisional results can be addresses in this organizational structure. Each division of Tesco is independent and they can make their own decisions for enhancing the business in the domestic and the international market. The higher management of the organization maintains the healthy relationship with all employees and staffs. It facilitates them to understand the internal issues and hence, business process remains transparent (Monsenego 2012). However, divisional structure of Tesco creates negative impact on the business. Sometimes, the conflicts among the divisional heads can be observed in the organization. Each division wants to perform better than other does and it creates selfish attitude among the business heads.

Tesco’s Organizational Structure

a) An internal analysis is one of the important factors of organization’s competency, cost position and the viability in the market (Obeidat 2012). The organization like Tesco always analysis their internal factors for the betterment of the business. Through the engagement of the internal analysis of the organization, Tesco can improve six steps of strategic management process. Tesco is a giant supermarket chain in the UK and it expands its market in the international places. Internal analysis of the organizational workflow makes them to establish the vision, mission and goals of the company. By analyzing the opportunities and threats, Tesco improves their business process in the market (Panarina 2015). It provides them better potion in the market. The internal strength and weakness of the organization provides them an overview about the area of improvement. Their biggest strength is their brand value that they have built in the domestic market through providing flawless services to the customers in the market. it includes the audit of each department of Tesco. It can be accomplished by the performance review of the employees. The next internal analysis involves the evaluation of strength, weakness, opportunity and threat (SWOT) of the organization. The organization can evaluate the actual issues by analyzing these factors. Proper implementation of strategy can facilitate Tesco to work effectively in the market (Piercy 2014). Tesco follow s several strategies during the difficult situation in the market. The strategy can be corporate strategy, business strategy, differentiation strategy, pricing strategy and the functional strategy. Tesco follows a timetable agenda to track the progress of the implemented plan in the business. After the implementation of the strategy, Tesco involves them in strategic follow-up process to ensure that the implemented strategy is working properly or not (Wrigley and Straker 2016). Therefore, the internal analysis of Tesco facilitates them in accomplishing the six strategic management processes in the business.

b) Creating structure for unstructured time:

Tesco always believe that the innovation needs time to develop in the business. However, the period is short for the organization. Tesco can give up the control when the pressure in greatest. Large organizations provide extra time to the employees to experiment new ideas for the development of the business (Yin 2014). Many companies provide the “unstructured” time as reward to their employees. Tesco can provide extra time to their staffs for the betterment of their performance at the workplace.

Collaborate:

Advantages and Disadvantages of Tesco’s Divisional Organizational Structure

Now days, many organization collaborate with others in order to expand in the market. However, Tesco is a supermarket giant in the domestic market. They can collaborate with other organization to expand business in the international market. The prime objective of the organization is to enhance the brand value in the international market (Wrigley and Straker 2016). Therefore, the collaboration with the foreign investors can facilitate them in achieving their goals. Tesco can develop their business position in the market by collaborating with other popular brand of the supermarket industry.

Open communication:

The communication is the most important factors of getting success in the business. The managers and higher authority of the organization can develop the productivity through communicating with the employees. Open communication channel can facilitate the organization to collect several ideas and feedback about the business (Piercy 2014). Moreover, the higher management of Tesco can aware of the issues of employees and others stakeholders of the business. Through the engagement of the open communication system, Tesco can be able to maintain transparency in the process.

c) Effective business communication has several benefits. Some of the key benefits are described below:

Financial savings:

Depending on the needs and size of the business, the organization should recruit their employees. Sometimes, educating the employees on particular subjects may be a costly venture. Therefore, the skilled performers can facilitate the organization to increase their productivity. Proper verbal and written communication can enhance the performance of the individual at the workplace (Obeidat 2012). Through the engagement of this process, the employee can devote more time in the productivity of the business.

Expand business appeal:

The business world has been expanding in the international market. If the organization wants to take advantages of the increasing market, they need to widen their market. The effective communication of the employees and the managers can analyze the current market status. Tesco always believe that the good communication increases company’s capacity to expand in the large demographic area (Monsenego 2012). 

Increased productivity:

The healthy communication between managers and the employees is always responsible for good productivity. Proper communication process reduces the confusion among employees. Therefore, the workers can provide more time in enhancing the productivity of the business. Employees also make fewer mistakes when the effective communication is implemented at the workplace (Bendul 2014).

Implementation of Innovative strategy

When the business faces difficulties, they need to implement innovative strategy to overcome for the situation. Through the process of effective communication, the managers can collect the ideas and feedback about the process. It facilitates them to evaluate new strategy for the business development. Open communication system in the business is very important to remain the transparency in the process. If the higher management of the organization ignores the feedbacks and ideas of employees and other secondary stakeholders, they may not be able to explore the innovative strategy for the enhancement of business in the market (Wrigley and Straker 2016).

References

Bendul, J., 2014. Integration of combined transport into supply chain concepts. Wiesbaden: Springer Gabler.

Cadle, J., Eva, M., Hindle, K., Paul, D., Rollason, C., Turner, P., Yeates, D. and Cadle, J., 2014. Business Analysis. Swindon: BCS Learning & Development Limited.

Chen, D., Preston, D. and Tarafdar, M., 2015. From Innovative I.S. Strategy to Customer Value. SIGMIS Database, 46(2), pp.8-29.

Emeka E. Okafor, 2012. Emerging nonstandard employment relations and implications for human resource management functions in Nigeria. Afr. J. Bus. Manage., 6(26).

Foscarini, F., 2012. Understanding functions: an organizational culture perspective. Records Management Journal, 22(1), pp.20-36.

Khakhar, P. and Rammal, H., 2013. Culture and business networks: International business negotiations with Arab managers. International Business Review, 22(3), pp.578-590.

Kummerow, E. and Kirby, N., 2014. Organisational culture. Singapore: World Scientific Pub. Co.

Monsenego, J., 2012. Taxation of foreign business income within the European internal market. Amsterdam: IBFD.

Obeidat, B., 2012. The Relationship between Human Resource Information System (HRIS) Functions and Human Resource Management (HRM) Functionalities. jmr, 4(4).

Panarina, E., 2015. University-industry Partnership as a Key Strategy for Innovative Sustainable Economic Growth. Journal of International Business Research and Marketing, 1(1), pp.25-28.

Piercy, N., 2014. Marketing Budgeting (RLE Marketing). Hoboken: Taylor and Francis.

Wrigley, C. and Straker, K., 2016. Designing innovative business models with a framework that promotes experimentation. Strategy & Leadership, 44(1), pp.11-19.

Yin, X., 2014. Externalities, Productivity and Sustained Growth. Review of Development Economics, 18(3), pp.543-563.