FDN005

FDN005 task 1 and task 2

FDN005

TABLE OF CONTENT
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
Theories of management........................................................................................................3
Models of management..........................................................................................................5
TASK 2......................................................................................................................................6
Pestle analysis (Macro environment).....................................................................................6
CONCLUSION..........................................................................................................................9
REFERNCES...........................................................................................................................10

INTRODUCTION
In the competitive era, companies are mainly focusing upon customers needs and for
which it has to manage operations by adopting innovative theories and models of
management. Tesco is one of the biggest public limited company at UK, multinational
groceries and general merchandise retailer with headquarters in England and having many
stores globally serving various range of goods and services. The report will be discussing
different management models and theories along with their unique characteristics, thisw will
help which company to attain the defined goals effectively achieved for gaining higher
working efficiency within revenue scenarios and dynamic competitive industry. The study
will also explain further usage of pestle analysis for macro environment analysis to
determine wider goals effectively.
TASK 1
Theories of management
There are various theories of management within business environment which can be
discussed as follows:
Contingency management theory:

The Contingency management theory brings forward focus onto leaders business
traits and visualisation of leading decisions, among company where various situations
demand variable measures of flexibility within changing market and business demands within
growing competitive scenarios. The theory also states that no one approach can suit every
organisation, i.e are external and internal factors impacting which have dynamic working
operations within business world (Belas, Gavurova and Kubak, 2020). The contingency
theory identifies three variables that are likely to influence company working structure which
are size of organisation, technology being employed and style of leadership which
significantly varies. Proponent of this theory is Fred Fiedler who idealised theory with focus
onto how traits of leader have to be directly related to how effectively he can bring command
of efficiency among management within contingency periods. According to this theory Tesco
leaders have to be flexible enough for adapting to changing external environments where
contingency theory states, management has to actively evolve with various new demands and
business scenarios for gaining stronger presence within wide competitive industry. Tesco
with changing domains of retail industry has been focusing to build corporate competencies
by being advanced to integrate innovation among all contingency working parameters with
new creativity and smarter working scope. Thus it could be stated that contingency theory
widely focuses on building new pathways and working innovation by enforcing active ideas
of dynamic technical usage of innovation which will accelerate growth in long run.
Theory X and Theory Y
The theory X (authoritarian) and Theory Y (participative) refers to two contrasting
concepts where specifically it focuses on the fact that every company can choose to be
authoritative or participative based on goals and functional operations which enable long term
synergy of efficiency. Team members if show little passion for their work and are not
willing to contribute with openness, leaders are likely to employ authoritarian style of
working which is essential for gaining targets done at time (Caseiro and Coelho, 2019). On
other hand, if employees are willing and enthusiastic towards their duties by showcasing
innovative and creative ideas leaders are likely to adopt participative management. Proponent
of this theory is Douglas Mc Gregor where theorist actively shows how Theory X holds
pessimistic view of employees and Theory Y on other hand holds optimistic opinion of
employees where there is collaboration of ideas. Tesco has high progressive working culture
among management where employees and leaders have high focus to bring on diverse
functional working synergy through various new ideas, exploring expertise domains which

enhance competitive working spirits. This theory also stresses fact that various paradigms are
actively explored when people are working with high participative nature, leader believe in
collaborative hemisphere where new ideas are given platforms and vision formed as set in
accordance with objectives. Organisation by using this theory will enable fostering of new
ideas among management and also gain functional scope to be navigated onto wider levels,
with high motivating employees in all departments.
Models of management
Scientific management
The scientific management model is focused on analysing work flows within
company scenarios for analysing work flows to improve economic efficiency and especially
labour productivity within company by bringing on wider innovation among working levels.
This was developed by Fredrick Winslow Taylor who through scientific management model
brought focus onto building philosophy that makes people work as hard they could, for
efficiency and optimizing new inventions the way work can be done. Principles of scientific
management propose focus on fact that by optimizing and simplifying jobs, productivity
would increase manifold and also higher goodwill with larger revenue levels. Five principles
of scientific management procedures involve experiments, observations, analysis,
interference which in depth bring on focus for application of creation of cause and effect
relationship. Tesco with implementation of scientific management model will enable to gain
effective functional goals farmed based onto wider technology efficiency, in al products and
services. Scientific management also stresses high focus onto bringing technical innovations
among departments where all new scenarios will enable employee’s strengths among
working parameters to evolve. The main objective of simplification in scientific
management model is to eliminate unnecessary variety of products or forms which vary
within organisations based on nature and specific conditions (Çera, Belás and Strnad, 2019).
People management model
The people management model can be understood as set of practices within company
that focuses end to end procedures of talent management, higher retention rates among
employees and to provide high continued support to all employees. The model also covers all
aspects of how people are working within company for attaining wider effective business
targets in their performance level. Dynamic working actions are highly evolved among
employees to build competitive strengths and for generating new working efficiencies among

wider domains (Cugova. and Cug, 2020). This model was proponent by Elton Mayo. Tesco
by applying this model will be able to cater wide changes coming within human resource
parameters and for keeping up with strong retaining percentage among management. People
management actively involves key pillars of workforce which includes employ recruitments,
performance management and communicating various targets, motivation along with
engaging them in various training sessions. This has been recognised as also one of the most
highly important model in management where focus is pertaining on building strong talented
and diversified workforce who are skilled with specialised dynamic working standards. Tesco
has large number of employees in all company stores who are trained to work with high
specialised working skills, technical strengths for generating high dynamic aptitude within
changing business world.
TASK 2
Pestle analysis (Macro environment)
Tesco is one of the biggest multinational retailer company having stores in more than
12 countries across world and has been highly progressing in business avenues with wide
variety of products and services. The company provides services in various industries which
are finance, mobile, assurance and multi platforms have made it one of the fastest growing
competitive brand name in global retail industry. Macro environment refers to forces that
impact firms ability to built high competencies among its internal structure for developing
new functional strengths, for successful customer relationships and building long term
development. In order to determine macro environment, companies uses pestle analysis
which enables to analyse growth potentialities within future and how various resources can
be strategically invested among company scenarios. The factors that make up macro
environment are political factors, economic factors, demographic and social factors,
technological factors and legal factors.
Pestle analysis
 Political factors: With Brexit implementation, political environment has been widely
impacting working functional parameters of Tesco political environment change has
been mostly conductive to business standards. There is hike in interest rates and prices
shift where exports to European countries have made business effected widely onto
functional positions and marketing policies also impact widely (Dey, 2019). Tesco

need to re strategically formulate wider mew domains specialised working attitudes
for gaining functional synergy of political stability which may not impact businesses
in longer run. Political stability is also widely important for bringing expansion of
new business goals among major goals and for generating larger new developed
standards globally. Tesco has to also bring focus onto keeping stable price structures
of various goods and services exported within European countries, where it will
potentially enter new horizons and larger goals for gaining stronger positional metrics.
 Economical factors: The changing economic conditions of UK has effected by
Covid- 19 where people earnings have widely gone down and there is also major loss
among jobs of people (Dzwigol, Dzwigol-Barosz and Kwilinski, 2020). This has
resulted in less spending power among people where Tesco is also facing potential
threat within their business positional segments. High labour costs and particularly at
UK is also an important aspect for which Tesco has to strategically fix various
functional pricing of goods and services. There is need to invest in building economic
paradigms metrics which will analyse higher stability to formulate new strength
among working horizons, also to leverage financial stability. Economic situations are
also potentially affected when interest rates are fluctuating as it becomes hard for
people to buy and also there is wider determinant which may impact new innovation
to be actively explored. Social factors: The social factors can be understood as changing dynamic consumers
choices among products and services where there are various shifts coming on to
choose innovative products. Tesco faces competition from this factor where millions
of people have been changing their preferences for shopping and consumers also like
to have convenience shopping. Here it is vitally important to analyse that Tesco needs
for bringing on wider functional diversity among products variety and services, by
integrating innovation and longer productive goodwill strategies within consumers
market. Social shifts in consumers preferences among products is widely important
for company to potentially measure and also strategically built wide specialisation
which will bring on wide higher profit scenarios (Gaganis, Pasiouras and Voulgari,
2019). Technology factors: The technology factors within external business environment are
widely changing where various companies are bringing on new innovation production
and marketing techniques. Tesco faces competitive factors to be widely strong under
this where demand for leveraging new strength within technology goals and higher

stable revenue is goal for company. There should be investments within company to
productively bring on new technology within production scenario for generating wide
range of products variety and services for competitive goals and to built new synergy
among consumer goodwill. Technology strength works as one of the major strength
within companies where new investments among major goals enable to build new
working strength among major paradigms. Externally this is raising competitive
business scenarios where various new techniques and production scenarios are
building wider scope (Kldiashvili and Paresashvili, 2019). Legal factors : The UK and EU changes within political parameters has been also
impacting legal structure within formulation of varied legal competitive factors which
needs to be abided with strict adhere fundamentals. Tesco also should follow all legal
abidance factors for strengthening its position of goodwill among consumer market,
enter new specialised domains and to factor on productive strength. There should be
all legal safe standards provided to employees working at company levels and any
misleading information or act should not be done which may impact management
within longer run. There is wide new innovation coming on for conducting legal
factors, also there should be enforcement of safety standards within all production
arenas (Krishna, 2020). Environment factors: The external business environment is widely exploring as there
is raising importance for companies to indulge in social attributes and changes within
society standards, by contributing with various new strategies and CSR funds. This
parameter is one of the major growth goal where Tesco needs to focus for enhancing
its image of functional innovative competitiveness and to be potentially active for
bringing change in society. Environment factors are growing highly important for
brands to adhere to by minimising their waste in production pace and to navigate
wider new technical exploration, through which diversity of operations is also
expanded. It can be understood that Tesco has high potential scope to emerge within
conducting CSR activities which will leverage new goodwill within longer run.
CONCLUSION
The report can be concluded with analysis and discussion that has in depth analysed
management models and theories which enable to deliver functional management among

working paradigms within companies working synergy. The report has discussed in context
of Tesco which is one of the biggest retail public company, there is also wide explanation for
importance of macro factors within businesses to analyze productive growth within
competitive scenarios, and to yield focus onto major horizons (Li, 2019).
THE CO
REFERNCES
Books and journals

Belas, J., Gavurova, B., and Kubak, M., 2020. Evaluation of economic potential of business
environment development by comparing sector differences: perspective of
SMEs in the Czech Republic and Slovakia. Oeconomia Copernicana, 11(1),
pp.135-159.
Caseiro, N. and Coelho, A., 2019. The influence of Business Intelligence capacity, network
learning and innovativeness on startups performance. Journal of Innovation &
Knowledge, 4(3). pp.139-145.
Çera, G., Belás, J. and Strnad, Z., 2019. Important factors which predict entrepreneur’s
perception in business risk. Problems and Perspectives in Management. 17(2).
p.415.
Cugova, A. and Cug, J., 2020. Motivation for the use of creative accounting techniques in
the conditions of the globalized business environment. In SHS Web of
Conferences (Vol. 74, p. 01004). EDP Sciences.
Dey, S., 2019. Business environment.
Dzwigol, H., Dzwigol-Barosz, M. and Kwilinski, A., 2020. Formation of Global
Competitive Enterprise Environment Based on Industry 4.0
Concept. International Journal of Entrepreneurship, 24(1).
Gaganis, C., Pasiouras, F. and Voulgari, F., 2019. Culture, business environment and SMEs'
profitability: Evidence from European Countries. Economic Modelling, 78,
pp.275-292.
Kldiashvili, M. and Paresashvili, D., 2019. Meaning and Role of Prototyping in Entropic and
Extreme Business Environment in Georgia. Fundamental and applied
researches in practice of leading scientific schools, 31(1), pp.89-92.
Krishna, M. G., 2020. Business Environment & Environmental Accounting. Studies in
Indian Place Names. 40(74). pp.1990-1998.
Li, X., 2019, October. Investigation and Analysis on the Standard of Prosecution for the
Crime of Violating Business Secrets from the Perspective of Optimizing
Business Environment. In 2nd International Conference on Contemporary
Education, Social Sciences and Ecological Studies (CESSES 2019). Atlantis
Press.