Business Practices and Organizational Structures: A Study on Tesco

This report explores the definition, characteristics, and examples of different types of businesses and organizational structures. It also discusses how organizational structure affects business productivity. The report includes a PESTLE analysis of factors that impact business performance. The study focuses on Tesco, a multinational company in the retail industry.

Business in practise

Table of Contents
Main Body ......................................................................................................................................3
Definition, characteristics and example of micro business, small business, medium size
business and large size business..................................................................................................3
Definition, characteristics and example of sole trader business, partnership, limited liability
business, public limited liability business and Cooperative. ......................................................5
Identify different organisational structures and explain how organisational structure affects
business productivity...................................................................................................................8
PESTLE analysis that affect performance of business .............................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Every business starts with a specific plan or tactics of doing activity and task related to
selling the product or services to run any business there is a need of proper strategic formulation
regarding how any business will execute their process in a market. By implementing new
procedures and methods strategy will be made (Christ and Burritt, 2019). Practises in
organisation or a business depends upon their management size and workforce and most
important on the basis of companies budget any practises are made. Some of the basic strategies
are retaining the employees,generating new ideas and skills regarding the business, implement
new management system within the organisation .The report below is based on Tesco
multinational company of British which deals in groceries and general merchandise having their
headquarters in Welwyn garden city, Hertfordshire, England,United kingdom .This Multinational
company deals in large number of customers because of their international reach ,almost 4,23000
current employees are working in Tesco with almost 6800 retail shops. They are deals in hyper
market ,super market,and fuel station as well .
Main Body
Definition, characteristics and example of micro business, small business, medium size business
and large size business.
Micro-Business: Micro business is a smaller business having a 1-9 employees in a retail
sector. Basically a business where no such practises are follow because of their smaller nature of
activities in a market, any retail sector or a shop , whose having a sole proprietor or maximum of
5 employees working in the business will considered in micro business such as a clothing retail
store they are dealing with either a sole proprietor or two to three employees (Cristofaro, 2020).
Characteristics :
 This business having a small profits and low revenue .
 Micro-business will deals in small market area than corporates and small business.
 This business will run by sole proprietor or in partnership or with limited liability
company.
 Very low number of employees or person in the business is that 1-9 members.

Example:
 Issoria
 Mantons cards
Small Business : This business are owned or managed by sole proprietorship ,in partnership
and in corporations, having a fewer employees criteria and low revenue generation in the
business so basically smaller business is a normal retail shops but dealing of their employees are
bit more then micro business (Di Muro and Turner, 2018).
Characteristics :
 Low revenue generation with low nature of business activity by that profitability will also
low as compared top other nature of business activity .
 Dealing of employees in small business is not more than 50 – 60 employees
 it will be owned by whether a sole proprietor or in partnership basically a store where
they are cater in small market areas with average customer dealing .
Example :
 Davison canners
 Fourex
Medium size Business : Its a business or organisation where number of employees are
fewer than 250 people ,due to its nature of dealing in average number of workforce .Medium size
business can be categorized with a corporates where specific business practises will be followed
on the basis of company nature (Globocnik, Faullant and Parastuty, 2020) .
Characteristics :
 Be willing to work in a pressure situation as well to achieve the goals of the company .
 There is a continuous efforts by this business to maintain the performance of their
employees by evaluating process .
 Medium size business will work on a learning approach from large business to acquire
the environment like that and to be work for employees skills and knowledge.
Example :

 Smith brothers Ltd
 John good shipping
Large Size Business : Its an organisation which are having more than 3000 employees and
the nature of business are wide across the country is that its deals with the higher revenue and
maximum profit approach on the basis of their catering the large number of customer and
proving the services world wide as dealing in large workforce turnover of this enterprise are
higher according to that of all size business it will be considered with MNC's as well (Hall and
Martin, 2019).
Characteristics:
 More than 3000 employees are working in the large scale business having a motive to
serve internationally .
 Turnover of large scale business are much higher than any other business approach .
 There is a large number recruiting process are considered and with proving on he job
training to them cause of their employment generation approach.
Example :
 Tesla
 Mark&Spencer
Definition, characteristics and example of sole trader business, partnership, limited
liability business, public limited liability business and Cooperative.
Sole trader business : Its is a simplest form of doing any business cause all the working
under sole trading are depend upon the a single person having a limited working activities more
likely to deal in retailing shop or a small business with a motive of catering the customer on a
daily basis not in large quantity approach (Harrison, Phillips and Freeman, 2020).A Sole
proprietor are legally responsible for all their working regarding their business. All the plans are
made set by a single person with a view of staring a business and dealing in their specific market
area. Example Dormant company etc.
Characteristics:
 The main benefit of doing this business is that sole proprietor will enjoying all the profits
and earning during their business activity .

 Having a specific area of doing the business works on a micro level as well.
 No workforce is needed to do that business meant to implement all the strategies by own.
Partnership : Its a formal agreement between two or more than two parties with a motive of
doing an business on some contractual basis ,its basically that type of business which are
performed by a company for certain period of time it may be of target based business as well
where two parties are work on some target and then reface their business as an existing one. Here
all partners in the partnership are legally entitled to share all profits and loss and all the liabilities
in company it can be equally divided or on some ratio basis as well (James, 2018). For
example:FRP advisory and Grant Thornton .
Characteristics:
 In this business ,number of partner will share profits equally and losses will not bear by
the single person its also share with them the burden of losses will not be deal by a single
partner
 sharing of ideas and knowledge of two or more partner will leads to more growth of the
business
By this process mutual understanding and trust will be built when working together.
Limited liability business: Its is similar to limited partnership in which owner get provide
with various liability as they provide certain level of advantages to the company for
example :electronic software filing etc.
Characteristics:
 This include number of shareholder investing in this company and have a specific
liability on the basis or ratio factor as well (Nahi, 2018).
 This business are limited by liabilities so every shareholder hold the liable ration. It can
be managed by member itself or can run by specific manager.
Public limited liability business : Its the business which run on the principle of UK
company laws and republic of Ireland. Its a type of public company where number of shares are

offered to the general public and all the buyers of this stock share are limited by liability and
don't not share any losses in the business (Reinhold, Zach and Krizaj, 2019) .Sainsbury plc
prudential plc etc.
Characteristics:
 The number of shareholder in this public limited company is minimum of two person or
more than that .
 There is a need of qualified employees in this type of business because of the more
financial terms involve ,a experienced company secretary are needed in those business .
 All the reports on account related work must be completes in 6 months period .
Cooperative: Its a business related to private organization that will run or owned by the
persons who itself uses company product,services,by taking an example of it an agricultural
cooperative where production process as well as supplying of product both are present by using
of their own product as well . Basically here the motive of a cooperative employees is to take
care of the experience of the customer by experience on its own .Example: East of England Co-
operative Society. Lincolnshire Co-operative (Risi, 2020).
Characteristics:
 All the finance of this business are contributed by members by purchase of particular
shares.
 Every person working in the cooperative has equal right of voting in any decision made
in the company with a view to take care of the decision of all.
 By providing the principle of self and mutual help to each other posses the activity of
cooperative .
Identify different organisational structures and explain how organisational structure affects
business productivity.
There are different type of organisational structure as according to the working standards
and its responsibilities get varied and it is as furthermore explained below as:

Hierarchical structure: This structure is the most used and basic structure in the
organisation where there is a designation of a person is divide and tree formation will be formed
where management rely on the chain of command from top to bottom is that from manager to
the worker, here position of a particular person is set on the basis of company policies is that
from senior level management to lower level management . Its the most commonly used chart .
Its basically a process of motivating the employees for their particular working by giving them
skills and knowledge through training programmes its defines clear and specific authority and
clarity of job .
Functional structure: Its a chart which defines the basic organization structure followed
by a company on the basis of grouping the employees skills ,knowledge and experience through
that role will be assigned to them. It is the levels of hierarchy that include different departments,
under the direction of designated leaders or seniors together (Tseng, Chiu and Liang, 2018).

PESTLE analysis that affect performance of business
Political As Tesco is a retailing industry that has operate its functions across
worldwide by which its performance also get influence along with this they
have also provide larger range of products and services by which its ability to
attain profit share is enhanced.
Economic It consist of leverage cost, profit and price share within which sustained
awareness is developed by which satisfactory changes is implemented in
ordinate mode. In this business adopt diversification by which its ability to
develop various strategies is developed over random basis/
Social The people get more focus and concerned about to make replicative changes
and for that Tesco induced adequate level of modification under which rate of
customer satisfaction is enhanced in systematic manner and it has direct
impact over the productiveness of business (Tunn and et. al., 2019).
Technological It is an aspect that is considerate under technological advancement and for
that Tesco make respective changes and modification within its offered
services at both offline and online medium. It ultimately enhance the rate of
effectiveness and ability to gain profit is achieved with perfection.
Legal It is a factor that is associated with the legal framework by which Tesco
maintain and follow food regulations and with this ability to connect with the
marketplace is increases on repetitive basis.
Environmental It is a factor that consist of different factor that is followed by the business as
with this Tesco make sure that carbon emission is controlled and with this rate

of pollution generation is controlled and long term sustainability is
maintained.
CONCLUSION
It has been concluded from the above report that businesses practices are the basic form
that is followed by the business under which working standards and its potential is increases on
continuous basis. In this there are different type of organisation that is varied as per according to
its structure and behaviour with this ability to perform and conduct various changes is managed.
In addition Pestle analysis is considered that assist to make better analysis of external factors and
its impact due to which long term success is attained with perfection.

REFERENCES
Books and Journals
Christ, K.L. and Burritt, R.L., 2019. Implementation of sustainable development goals: The role
for business academics. Australian Journal of Management, 44(4), pp.571-593.
Cristofaro, M., 2020. E-business evolution: an analysis of mobile applications’ business
models. Technology Analysis & Strategic Management, 32(1), pp.88-103.
Di Muro, P. and Turner, J.R., 2018. Entrepreneurial opportunity pursuit through business model
transformation: a project perspective. International Journal of Project
Management, 36(7), pp.968-979.
Globocnik, D., Faullant, R. and Parastuty, Z., 2020. Bridging strategic planning and business
model management–A formal control framework to manage business model portfolios
and dynamics. European Management Journal, 38(2), pp.231-243.
Hall, J. and Martin, B.R., 2019. Towards a taxonomy of research misconduct: The case of
business school research. Research Policy, 48(2), pp.414-427.
Harrison, J.S., Phillips, R.A. and Freeman, R.E., 2020. On the 2019 business roundtable
“statement on the purpose of a corporation”. Journal of Management, 46(7), pp.1223-
1237.
James, L., 2018. Making cyber-security a strategic business priority. Network Security, 2018(5),
pp.6-8.
Nahi, T., 2018. Co‐creation for sustainable development: The bounds of NGO contributions to
inclusive business. Business Strategy & Development, 1(2), pp.88-102.
Reinhold, S., Zach, F.J. and Krizaj, D., 2019. Business models in tourism–state of the
art. Tourism review.
Risi, D., 2020. Time and business sustainability: Socially responsible investing in Swiss banks
and insurance companies. Business & society, 59(7), pp.1410-1440.
Tseng, M.L., Chiu, A.S. and Liang, D., 2018. Sustainable consumption and production in
business decision-making models.
Tunn, V.S.C. and et. al., 2019. Business models for sustainable consumption in the circular
economy: An expert study. Journal of cleaner production, 212, pp.324-333.