Departmentalization and Organizational Structures

This assignment discusses various aspects of business management, including departmentalization, project management, and strategic planning. It highlights different challenges faced by project managers when working within alternative organizational structures used to implement projects. Additionally, it provides a Tesco SWOT analysis, which is a strategic planning tool that helps organizations identify their strengths, weaknesses, opportunities, and threats. The assignment also references various business-related sources and studies for further research and knowledge.

Business and Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Covered in PPT.................................................................................................................1
P2 Covered in PPT................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship of different organisational functions and its link to objectives....................1
TASK 3............................................................................................................................................4
P4 Positive and negative impacts of macro environment of business operations..................4
TASK 4............................................................................................................................................6
P5 Internal and external analysis of Tesco Plc to identify strengths and weaknesses...........6
P6 Interrelation of strengths and weakness with external macro factors...............................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
A business is an enterprise or organisation which deal with products and services in
market aiming some target consumer to achieve specific for which they perform some
commercial or industrial activities. Such companies exchange their products on the basis of
monetary and non -monetary concepts. Those who offer services in respect of on- monetary
profit is called as non- profit oriented organisation (De Jonge, 2011). Business firms can be
functioned by government agencies or private owners. Those who manage government
enterprises are called government officials.
In the surrounding of business, some external and internal factors involving customers,
employees, framework, demand, supply or others exists in market which directly and indirectly
affect major profits or productivity of organisation in positive or negative way. For analysing the
influence of such element over the business, organisations perform macro and micro
environment study for understanding then strength and weakness of company.
This report will, study the various types of organisation including their sizes,s cope and
structure. Tesco is UK based multinational retailing organisation which deal with wide variety of
products owning their stores in more than 14 countries. Main purpose of this assignment is to
identify the interrelation of functions of organisation with different environment and its impact
on internal as well as external environment study (Zott, Amit and Massa, 2011).
TASK 1
P1 Covered in PPT
P2 Covered in PPT
TASK 2
P3 Relationship of different organisational functions and its link to objectives
Introduction
Tesco Plc is MNC which is a UK based organisation that merchandise the grocery goods
in all over Europe. This is the one of most 10 largest companies which retails products and
services who render value added commodities in cost effective cost (Williams and Naumann,
2011).
Major body
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This organisation focus over rendering effective cost and better quality of product to its
consumers in order to increase their standard of living by targetting customers providing them
satisfaction with company's services. Despite from customer satisfaction, company aims over
increasing the product quality as well as profitability of organisation through portraying a
positive brand image in market (Wild, Wild and Han, 2014). This following pictures present the
internal infrastructure of corporations in order to explains the major structure of the company
which is briefed below:
Source 1: Different challenges faced by the Project Manager when working within the
alternative organisational structures used to implement projects, 2014
Finance
The element of finance is based on the funds management that are being utilized in
various function of organisation. It includes individual who conation knowledge of this field i.e.
accountants and managers. The finance planning of a cited company is designed by manager of
finance in which determination of resources for gathering investment and funds and the
utilization is done. Whereas, accountant keep the record of entire transition of monetary ad data
related to finance is attained in context of Tesco. Plc Also they plan the budget of various
campaigns or activities.
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Operation requires funds for functioning. Hence, this function helps in gathering funds
and design of allocation of those monetary in balanced way to optimize maximum result out of
all practices (Welford, 2013). They increase the efficiency by spending their finance in the place
through which they can maximize net profits. Thus how company attain goals and objectives and
expand its business.
Human Resource
This is very important function of cited organization which include many individuals
including manager, director and recruitment procedures. This elements helps organization in
recruiting of smart employees in the company which suit organisation increasing its profitability
and productivity of it. The manager of HRM create the plans and strategies and design the
policies of enterprise to lead the employee as well as direct them by solving their issues.
It is straightly related with the objectives and aims of cited organisation which helps in
achieving them within a period of time (Wheelen and Hunger, 201). Proper recruitments and
selection procedures support in hiring skilled workers for the specific jobs which aids in attaining
the aim of company within a span of time through providing the employee target to meet which
reduce waste of time an efforts of enterprise. This aid in increment of productivity of
organisation as well as gain the profits in market by satisfying consumer with the services.
Hence, it will assist in use of human resource more efficiently.
Administration
This is based on the work of clerical that consist of management of documents,
information, data, as well as deal with the conflicts of worker of cited organisation. Respected
Dept. is related with administration, maintenances end enterprise's security system.
It also aid in decoding solution for the conflicts of consumes and render help in case of
complexity of clients by reducing miscommunication problems (Sena Ferreira and et. al. 2012).
By this function, Tesco. Plc support their sales and increase them which directly helps in
attaining the objectives of organisation.
Customer Service
It is straightly linked with the services which is rendered by company to their clients. It
support consume by supplying desired information to consumers which includes advising,
suggesting in complex situation, resaving issues emerged from products in order to satisfy
customers with company's facilities.
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These entire function is managed by the board of director of company which is the higher
authority of cited organisation. It include the chair person and other members of BOD which is
responsible for entire decisions making process and commend the major director of organisation
over that all operations is being managed (The process of departmentalization, 2015). Recently 7
new members for the organisation is hired on the place of retired crew of it. It is important to
manage or design effective policies and terms in sake of cited enterprise for development of its
macro and micro environment.
Marketing and Sales
It is straightly linked with the amount of sold products and promotional activities
occurred for specific services. This is the role of marketing to build effective marketing
strategies or use effective tools of promotion for creating a positive impact for the commodities
advertising. To meet the desired results set by organisation, they have to follow entire process
or policies of cited company.
This helps Tesco. Plc in increasing its sales of goods and products that is the major aims
of company. Which also helps company in creating a better brand image by gaining more users f
services of enterprise through using the advertising to create influence on public.
Conclusion
These functions thus helps the cited organisation in attaining the set goals and objectives.
These department together helps inn satisfying consumers of company and create new potential
customers. This aid enterprise to exclusive grievances of clients that assist in improving value of
corporation. It also raise the funds and revenues.
TASK 3
P4 Positive and negative impacts of macro environment of business operations
The factors which exits in the outer environment of organisation but affect the major part
of its internal bodies as well s benefits known as macro environment. These component are
political, social, economical, legal or environmental factors which directly or indirectly influence
the growth of cited company. It can strengthen the enterprise among competitors or create more
threats or weakness of Tesco. Plc. Also, it helps in subsiding firm in market help them in
deploying business.
Here are the external environment study of Tesco. Plc which is explained as below:
Economical
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United Kingdom was recently facing some economical issues in their country which have
affected major policies of company which is affecting cited organisation's development. In
comparison to pre crisis peak, the GDP of Tesco. Plc has estimated approx. 2.7%
more(Osterwalder and Pigneur, 2010). Customer's purchasing power have been impacted as they
are facing unemployment issues. The sales of products have been decreased more negatively
reducing overall revenues.
Political
Macro environment influence the internal environment of organisation as it affect major
functions or objectives. Political factors of United Kingdom have changed in presently which
have catered both good or bad impact on the organization growth (Rose, Hair and Clark, 2011).
Government have introduced new taxation terms in country for arranging more revenues which
is influencing business negativity. In case of managing cited organisation operations, they should
maintain a better connection with political parties including leading as well as competitor group.
For getting some financial support in UK's financial situation, the country have increased
the rates of taxes which have decreased the company's sales and customer 's purchasing habits.
Hence, there are lesser sales which means lower benefits that is referring no actual development
of organization.
Technological
In the era if digitization, it is required for cited organisation to use more digitized
technologies in their production, distribution or other procedures. Tesco retailer are modifying
then chain of supply for meeting the competitive benefits. Company are using more alternative
gadgets, smart phones, laptops, check- in system in their stores for more conveniences of
consumers for quick services. Also, they required to utilize more disruptive technologies that is
needed to manage for development.
Instead of using advanced techniques, the rivals of Tesco. Plc are providing consumer
substitute of products and services in good quality and better prices. So company need to cater or
innovate new ideas or concepts related to their commodities for sustaining in industry among
competitors.
Social
The factors which is related to the society influence the company development and
revenues in industry which impact over the clients of company. United kingdom citizen have
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high living standard which indicate the differences in choices and preferences of their citizens.
Cited organization require to understand the expectation of their target organisation and create
effective strategies according to that (Laumer, Eckhardt and Weitzel, 2010).
Legal
The cited organisation is impacted by the legislation and laws of United Kingdom. This
enterprise also facilitates some assets cares, offers, savings and other facilities to their
consumers. UK government also have enacted some acts which is related to the area of finance
of company including Financial Services Law formed in 2012 which have greatly influenced the
company and its terms. The tightness emphasis the dealings of cite enterprise (Becker, Kugeler
and Rosemann, eds., 2013).
Environmental
The factors related to the environment in this aspects are wastage, pollution and other
garbage which can be recycled in matter of production of business. In order to monitor the
pollution and harms from the operation of company, they should adopt more advanced
technologies for their production process. For controlling issues related to this, company are
undertaking some more eco-friendly techniques of manufacture of commodities. Company is
using more ecological transportation system as well as performing some CSR activities in
society for reducing environment pollution. Also, they are using more recyclable packaging bags
for packaging process of products (Holliman and Rowley, 2014).
TASK 4
P5 Internal and external analysis of Tesco Plc to identify strengths and weaknesses
External elements affect the internal strengths and limitations of a company. Positive
effects will help cited organisation in developing and expanding their business whereas negative
impact will restrict the growth of company. It significant to analyse the micro environment for
understanding the threat and opportunities for constant expansions and benefits.
Here is strength and weakness of company influenced with factors of PEST.
Weaknesses
Tesco. Plc provide wide variety of products and services to consumers involving apparel,
grocery, telecommunication, insurance and many other. Hence, it increases the duties or burden
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of management of all sectors which make the work more fussy. Tesco's finance services in which
they offer loans and insurance services to their consumers have build big debts in account of
company which is leading ton more loss than profits.
New taxation policies which have been executed by Uk government is affecting their
sales quantity heavily as well as technologies are new or advanced but not more digitized
according to present years which is creating obstruction for customer.
Strength
It is a very large brand which have a global recognition as third most largest retailing
company of United Kingdom. Commodities that company facilities is major strengths because of
its value added quality and cots effective prices. Cited organization condition is more powerful
in regard of finance situation than their core competitors like Sainsburry and Asda. The
technologies is more ecological (Tesco SWOT Analysis - 2015 – 2017, 2017).
Opportunities
Open market offers a platform to enter in industry which is most adopted approaches by
the developing countries like India, S. Africa etc. that is one of the major opportunities for the
Tesco. Plc which can assist company to expand their business in other countries.
Moreover, e-commerce have allowed and expanded the market of organisation for
opening it more country without physically deploying it (Drucker, 2017). It can helps in creating
new buyers as well as facilities different method for promotion or marketing their products.
Threats
The UK market is full of powerful competitors in the present era of business. Sainsburry,
Asda and many other companies who are manufacturing substitutes of products which Tesco. Plc
produce is major rivals of it. The main competitors of cited organisation is Wal-Mart with strong
positioning in customers as well as good resources greatly influencing cited firm's sales and
growth which can emerge barriers in development or expansions of it.
The macro factors which often exists outside surrounding of business affect the internal
factors of a company. Here how PEST contour their SWOT briefed below:
Environmental
To control the Green House Gas emission from the society, the environment of UK have
come up with new legislation and laws in order to protect the nature. It depends on the acts or
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laws either they will be in favour of cite enterprise organisation the operational system of it (Bar-
Isaac and Shapiro, 2013).
Political
After the economical crisis in UK, the raise in taxation policies can decrease the
purchasing power of their citizens which created a weakness or threat in context of cited
organisation indicating major loss in sales in upcoming time. Tesco. Plc have to come up with
new creative strategy for overcoming this situation to maintain their business growth (Cavusgil
and et. al. 2014).
Technological
Tesco. Plc make use of advance technology consisting laptops, mobiles phones, smart
apps, payment services that crate more availability and ease in services of cited organisation and
provide that satisfaction with company offers. This helps in gaining more potential buyers
through assisting consumers in rendering quick services which helps in attaining company
mission or objectives.
Social
According to the demographic or geographic elements, expectations and preferences of
consumers changes which is required for cited organisation identify on time for developing in a
specific market. This decide the purchase amount and sales quantity of organisation. In order to
have more senior citizens in country, the preferences of services would be preferred in more
traditional styles. This will create the weakness for cited organization as the company
manufacture more advance technologies or services. But according to the census of under 18
people, they are also good in quantity which is helpful because new generation like more creative
and digitized products (Boons and Lüdeke-Freund, 2013).
P6 Interrelation of strengths and weakness with external macro factors
Environment including external as well internal influences the development or sales of
company's products and services in market which is very significant to undertake. These factors
decide the major weakens and strengths of cited organisation in market. Macro environments
include political, legal, technological, economical, social and environmental components which
are linked with the properties of developments and limitations of Tesco. Plc (Bocken and et. al.,
2014). They create the positioning of firm as well as portray a brand image among public.
Here is explained how external factors of organisation shapes strengths and weaknesses:
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Economical Factors
Tesco. Plc have a grate appearances in industry of UK which differentiate the company
from competitors that add one more strength of cited organisation in their favour. Incraese in
debts will create weakness or threats.
Political Factors
The taxation policies create weakness through decreasing the sales of company products
and services. In case of opposite conditions tax policies, opportunities for development will build
in context of cited organization.
Technological Factors
Technologies in regard of manufacture of products an services or serving consumers the
facilities determines the strengths and weakness. In lack of advancement, customer will shift
their brand to another business. And containing more modifies or digitalised technologies can
increase the potential buyers of cited enterprise (Björklund, 2011).
Social Factors
Tesco. Plc aims to expand their business in other cultures of regions in different
countries. To sustain in their market, it is require to analyse their preferences, expectations, test,
interests of their local public. In case of production of violating products it will lead to doom
whereas manufacture of services according their expectation will increase their strengthens as
well as sustainability.
Legal Factor
The factors which is amended by the government of United Kingdom can affect the
growth of company in various ways. The favourable policies can increase the strength of
company as well as non-favourable will reduce the chances of developments by raising
limitation factors of company (Adeoye and Elegunde, 2012).
Environmental Factor
The factors which is related to nations' environment are directly linked with expansion or
growth of cited organization which can affect the elements and management of organisation
more positively as well as negatively. For overcoming the fear, one company requires to modify
their productions process in more eco-friendly.
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CONCLUSION
In the above report, it has been concluded that there are various types of organisation
which include private, public and voluntary sector with different purpose, size, scopes according
to their nature. Also it clears the major requirements of evaluation of macro and micro
environment and its significant role in the development of organization. It is very significant to
examine the external and internal environment as well as its factors for identifying the strengths
and weakness of organisation as well as understanding the future opportunities to develop and
threats that can subside company's development. These elements not only affect the productivity
of company but also decide major decision related top various operations. To proper functioning
of organisations management, a firm requires to administrate their entity through analysing
various micro and macro factors.
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REFERENCES
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Online -
The process of departmentalization. 2015. [Online]. Available
through:<https://www.ukessays.com/essays/business/the-process-of-
departmentalization-economics-essay.php>. [Accessed On 21th September 2017].
Tesco SWOT Analysis - 2015 - 2017. 2017. [Online]. Available
through:<https://www.ukessays.com/essays/retail/tesco-swot-analysis.php>. [Accessed
On 21th September 2017].
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