Business Functions and Interrelation: Sainsbury's, Morrisons, Tesco plc.

This article discusses the business functions and interrelation of Sainsbury's, Morrisons, and Tesco plc. It covers their background, product-service, size and scope, vision, mission, and stakeholders. The article also explains the advantages and disadvantages of business functions.

BUSINESS AND BUSINESS
Overview:
Sainsbury's: The Sainsbury's or also known J Sainsbury's plc. Is one of the
second largest chain under the supermarket sector in the United Kingdom. The
firm have the share of the around 15% in the share of the super market sector.
Business Functions and their Interrelation:
Production - The most dominant function of any business is the
production function.
Sales & Marketing – This function involves promotion of the business
and reaching out to the potential and existing customers, partners and
investors for communication about the products and services being dealt
in.
Human Resources – It is one of the most important business function
which involves management and handling of human resources i.e.,
employees.
Accounting & Finance – This department is concerned with tasks like
record – keeping of financial information, preparation of financial
statements.
It shall be noted that all the above functions of a business are interrelated
to one another. Production department is dependent on sales &
marketing department for selling of products and services manufactured
and produced. Sales & marketing department is dependent upon HR and
finance department. Accounting & finance department will also be
dependent upon HR department for appointment of employees to work.
Explanation of the chosen organizations on the
basis of the different aspects:
Sainsbury's:
Background of the organization:
Organization was established in the 1869.
Product-service:
the hypermarkets and supermarkets
Size and scope:
operates with the 600 supermarkets and 800 convenience stores
Vision: to be the most trusted retailer,
Objective: provide with the great food at fair price.
Organizational and legal structure:
is hierarchical
Stakeholders:
Shareholders, managers and the employees
Morrison’s: WM Morrison’s is operating as the fourth largest
supermarket chain in the United Kingdom. The company was founded
by the William Morrisons in 1899 and headquartered in the Bradford,
West Yorkshire, England.
Tesco plc.:
Background:
founded in the 1919 by Jack Cohen
Product-service:
convenience shops, and supermarket
Size and scope:
operates with the 367321 numbers of employees with in its 4673 numbers of
shops
Mission:
“we make what matters better, together”.
Organizational and legal structure:
hierarchical structure
Stakeholders:
customer, suppliers, creditors, competitors, pressure groups, local communities
and the government
Morrison’s:
Background
founded in 1899
Product-service
food and drink, clothing, etc.
Size and scope
operates with the 497 supermarkets
Mission
To make healthy food available to everyone in affordable prices
Organizational and legal structure
follows the hierarchical structure
Stakeholders
their customers
Tesco plc.: the organization Tesco plc. Operates as one of the largest British
Multi-national grocery and general merchandize retailer. The firm is the market
leader in the groceries in the UK. The organization was founded in the 1919 by
the Jack Cohen. The company have its headquarter in the Welwyn Garden City,
England.
References:
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competitive advantage: Case study on Irish food retail company (Tesco) (Doctoral
dissertation, Dublin, National College of Ireland).
Fengyi, Z., 2021. The Analysis of Asda-Sainsbury’s Merger/Acquisition. Journal of Finance
Research, 5(1), pp.1-6.
Guo, L. and Wang, Z., 2019. Ratio analysis of J Sainsbury plc financial performance between
2015 and 2018 in comparison with Tesco and Morrisons. American Journal of Industrial and
Business Management, 9(2), pp.325-341.
Hordern, V., 2020. The vicarious liability of employers for employees in the context of UK
data protection law–WM Morrison Supermarkets plc v Various Claimants, 1st April, 2020.
Journal of Data Protection & Privacy, 3(4), pp.455-459.
Moura, M.B.L.D., 2021. Equity Research in Food & Retail Industry-TESCO PLC (Doctoral
dissertation, Instituto Superior de Economia e Gestão).
Sparks, L., 2019. Tesco: how supply chain strategy supports retail success. The Business &
Management Collection.
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test for vicarious liability after Various Claimants v Wm Morrison Supermarkets plc. Oxford
University Commonwealth Law Journal, 21(1), pp.169-180.
Yusof, A., 2019. Tesco Plc likely to exit Asia business, focus on home country, EU. New
Straits Times, pp.1-1.

Notes:
Overview to the different types of organization and the growth of the international business environment:
Sainsbury's: the Sainsbury's or also known J Sainsbury's plc. Is one of the second largest chain under the supermarket sector in the United Kingdom. The firm have the share of the around 15% in the share of the super market sector. The organization was founded in the 1869 by the
John James Sainsbury with in the shop in the Drury lane in the London. The company operates as the largest UK retailer of the groceries in the 20 th century. The head quarter of the company is in the London, England, United Kingdom. In the 1995, the Tesco becomes the market leader
by overtaking the Sainsbury's by ranking it on number second or third in the business run. The company operates with around the 180000 number of employees in recent. The firm generates with over the 29.048 billion revenue. The firm operates in mainly three sectors that are
Sainsbury's bank, Sainsbury's supermarket and Sainsbury's Argos. In 2021 the largest of the share holder of the organization was the sovereign wealth fund of Qatar, which hold around the 14.99% of the company.
Morrisons's: WM Morrisons's is operating as the fourth largest supermarket chain in the United Kingdom. The company was founded by the William Morrisons in 1899 and headquartered in the Bradford, West Yorkshire, England. The company serves around at the 497 stores in the
whole and the products that the organization serves is the food and drinks, clothing, florist, books and magazines, and homeware. The firm generates over the 17536 millions in the revenue. Firm operates with the 110000 of the number of the employees and serves around 11 million of
the customers each of the week. The organization began its operations as the egg and butter stall in the Rawson market, Bradford, England. The organization primarily was focused on the north of the England and then the company significantly grows out its significance in southern side
of the England, Wales and Scotland. The company serves with the market share of the 10.14% in the 2017. The company is listed on the London Stock Exchange till the time it was acquired by the Clayton, dubilier and rice in the October 2021.
Tesco plc.: the organization Tesco plc. Operates as one of the largest British Multi-national grocery and general merchandize retailer. The company have its headquarter in the Welwyn Garden City, England. It operated as the third largest retailer in 2011 and the ninth largest with in the
globe as measured by the revenues. The organization have its shops in the Ireland, United Kingdom, Czech republic, Hungary and Slovakia. The firm is the market leader in the groceries in the UK. The organization was founded in the 1919 by the Jack Cohen. The firm was expanded
globally since 1990s with in the 11 other countries. The firm is diversified in the different sectors like retailing of the electronics, books, clothing, furniture, toys, petrol, financials services and internet services, etc. Tesco is listed on the London Stock Market and have the FTSE 100
index.
Explanation of the chosen organizations on the basis of the different aspects like Background of the organization, Product-service of the company, Size and scope of the company, Vision, Mission, and Objective, Organizational and legal structure, and Stakeholders:
Sainsbury's:
Background of the organization:
Organization was established in the 1869 as the partnership of the John James Sainsbury and his wife opened the shop in the Drury Lane in Covent Garden, london.
Product-service of the company:
The company operates with the hypermarkets and supermarkets. Convenience shops, forecourt shops, etc.
Size and scope of the company:
The company operates with the 600 supermarkets and 800 convenience stores and as the largest food retailer of the UK serving the area worldwide with the around 180000 number of employees and generates over the 29, 048 billion revenue.
Vision:to be the most trusted retailer, where in the people love to work & shop.
Mission and Objective: provide with the great food at fair price.
Organizational and legal structure:
The structure of the organization is hierarchical.
Stakeholders:
Shareholders, managers and the employees of the organization.
Morrisons's:
Background of the organization:
The firm was founded in 1899, by the William Morrison. This was started as the egg and butter business in Rawson Market, Bradford, England.
Product-service of the company:
The company operates with the product range specifying including food and drink, clothing, florist, petrol, books, magazines and homeware.
Size and scope of the company:
The company operates with the 497 supermarkets in across England, Wales and Scotland and with around 110000 numbers of employees generating around the 17, 536 million revenue.
Vision, Mission and Objective:
To make healthy food available to everyone in affordable prices.
Organizational and legal structure:
The company also follows the hierarchical structure for the business operations of the firm.
Stakeholders:
The firm takes up their customers as the biggest stakeholders of the Morrisons's, and they play a vital role in the company's business operations.
Tesco plc.:
Background of the organization:
The company was founded in the 1919 by Jack Cohen, and operated with the first shop in Burnt, Oak, Barnet.
Product-service of the company:
The firm operates with the superstores, hypermarkets, convenience shops, and supermarket.
Size and scope of the company:
The organization operates with the 367321 numbers of employees with in its 4673 numbers of shops. The firm generates around the 57.887 billion revenue.
Vision, Mission and Objective:
Firm operates with the clear statement saying “we make what matters better, together”.
Organizational and legal structure:
Organization operates under the hierarchical structure. This shows that the company have huge management which shows narrow span and control management in the company.
Stakeholders:
The main stakeholders of the firm are customer, suppliers, creditors, competitors, pressure groups, local communities and the government.
Business Functions and their Interrelation
The type of work and operations that are conducted in the business and the roles related to such operations are called Business Functions. The entirety of the organisational structure depends upon the intended functions of a business. The various business functions are explained as
follows:
Production - The most dominant function of any business is the production function. It is continuous process which is mainly dependent upon the marketing function because whatever is produced is to be justified and sold through marketing function to earn revenues and profits. In
involves a firm control over investments in assets by the finance manager.
Sales & Marketing – This function involves promotion of the business and reaching out to the potential and existing customers, partners and investors for communication about the products and services being dealt in. Generation of sales and increase of the brand awareness is the end
motive of the sales and marketing department.
Human Resources – It is one of the most important business function which involves management and handling of human resources i.e., employees. This department is responsible for attraction of talents in the organisation, screening the potential candidates, management of employee
relations and maintenance of optimum working environment.
Accounting & Finance – This department is concerned with tasks like record – keeping of financial information, preparation of financial statements for reporting to the stakeholders, managing payroll & related data and most importantly, arranging and managing finance requirements for
the organisation from appropriate sources.
It shall be noted that all the above functions of a business are interrelated to one another. Production department is dependent on sales & marketing department for selling of products and services manufactured and produced. Sales & marketing department is dependent upon HR and
finance department. Accounting & finance department will also be dependent upon HR department for appointment of employees. Now, there are certain advantages and disadvantages of these business functions which are explained as follows:
Advantages:
Specialization – Grouping of employees based on their specialization will ensure that the competence of each department is dependable and reliable.
Operational Speed – The speed of operating and managing a complicacy will be much faster of some who is senior and more experienced as compared to a newer staff member.
Operational Clarity – Clarification of responsibilities in the organization and allocating the tasks becomes easy when the workforce is segregated on the basis of functions.
Disadvantages:
Segregation – The teams becomes isolated when they are based on the individual specialization in the departments of the organization. Meeting and sharing of perspectives of different teams becomes difficult which hinders the success of a business in the long run.
Weakening of Common Bonds – A unified organizational purpose lead to improvement of the employee morale and their performance which are the important indicator of the success of any organization. When each team is isolated having a common goal and bond becomes difficult.
Lack of Coordination – Coordination and communication among the various departments of the business are often not very systematic and institutionalized. But such communication is very crucial and thus, this results into under performance of these isolated groups and even failure on
their part and on the part of the whole business.