Introduction to Business Management

This document provides an introduction to business management, covering topics such as Mintzberg's theory of management, PESTLE analysis, Porter's 5 forces, corporate responsibility, and Hofstede's cultural dimensions. It explores the fundamentals of business management and its implications on the organization.

Introduction to business
management

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART A...........................................................................................................................................3
What is management...................................................................................................................3
Mintzberg's theory of management.............................................................................................3
PART B............................................................................................................................................5
PESTLE analysis.........................................................................................................................5
Porter's 5 forces...........................................................................................................................6
PART C............................................................................................................................................7
Corporate Responsibility.............................................................................................................7
Examples of Corporate Malpractice............................................................................................8
Hofstede's Cultural Dimensions..................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Business management is defined as organisation and analysis of various business
operation in which with the help of different fundamental skills business is managed. This is
known as the degree in which efficient working fro the tasks within business is enumerated.
Whereas business environment is defined as sum of internal and external factors which are
having high implications on business organisation (Serrat, 2018). On the other hand this is highly
required for the business that they inhale proper amount of CSR practices so that to provide
adequate information for the business and to meet expectations of their shareholders. This report
is covering major aspects of business management so as to stay adhered to all the practices which
upkeeps any changes in market condition by which implications on the business cane b drawn.
PART A
What is management
Management is defined as coordination and administration of various tasks within a
business in order to attain overall goals of organisation (Keegan, 2017). This aspect is associated
with those management activities in which strategy is being prepared by the administration and
resources are provided as well so that way can be provided in which organisational goals can be
achieved.
Mintzberg's theory of management
The major use of this theory is associated with managing of the organisation and by this
managers are ensuring that existence of various roles are necessary in which organisational
situation can be managed.
According to Mintzberg, there are varied roles which are managed by a manager and in
order to manager certain situation these roles are executed. Explanation of the same is given as
under:
Figurehead: A manager is requisite to act like a figurehead so that to manage various
situation within organisation. For instance in Tesco, the manager is required to look after various
situation and by which appropriate actions are taken by them as well (Wren and Bedeian, 2020).
Leader: A manager is having role to guide their subordinates so that to attain
organisational objectives in most effective manner. For instance managers of Tesco are required

to behave like a leader so that to guide their subordinates and manage organisational working in
proper manner.
Liaison: In this manager of Tesco are required to create liaisons which are helpful to
them in completion of their assigned tasks. This is possible by making inter-personal
relationships between managers and other workers.
Monitor: In this manager is is trying to monitor various activities in which functioning of
Tesco can be manager in most effective manner.
Disseminator: Under this manager of Tesco is having role of transmitting valuable
information to their employee in effective manner.
Spokesperson: In this manager is having major role of acting as spokesperson in which
they are trying to understand the needs of their subordinates.
Entrepreneur: Within this role the manger of Tesco is inspiring change and innovation
in their organisation so that to update their business with market needs.
Disturbance-handler: During business operations there are certain disturbances which
are faced by Tesco and a manager is required to handle the same so that complexities can be
avoided.
Negotiator: In this manager is acting as negotiator in which manager of Tesco is
establishing negotiations by which situations can be handled in proper way.
Identification of tasks with the use of this theory: By using this theory in organisation
managers get to know regarding their varied roles in which they are required to perform.
Manager of Tesco is allocating tasks in various people according to their skills and capabilities.
This is helping the business to bring high sufficiency and productivity in the business in order to
achieve organisational task.
The use of critical thinking: When critical thinking is used by manager then prominent
situations can be handled in a very systematic way. In the context of Tesco their managers are
having abilities of developing their critical thinking so that to improve decision making skills
which directly impacts development and growth of the organisation (Mintzberg, 2017)).
Diverse interest of stakeholders: There are varied class of stakeholders which are
existed internally and externally. In the context of Tesco their managers are required to
understand interest of their stakeholders so that to take action in that manner. In order to consider
diversified interest needs and demands of the stakeholders are to be understand by manager.

PART B
PESTLE analysis
This is a strategical framework which is used to analyse external macro environmental
factors which are having high implications in business operations. PESTLE analysis is helpful in
scanning the environment so that to modify business working in order to stay adhered to external
factors and to intensify their business working. For Tesco PESTLE analysis is elaborated as
under: Political: This factor is associated with rules and regulations of the nation by which
political stability can be measured. As in UK due to Brexit implications political situation
has been degraded which resultantly providing impact on exiting them from European
region. Tesco is one of the largest supermarket in UK in which they are making high
policies in which they can survive in political instability. Economical: Under this factor various economic factor such as currency rate, inflation,
recession and many more. In the context of UK their economic background is highly
valuable in which the company is facing high demands along with less revenue. In the
context of Tesco their products are economic in prices due to which these can be bought
by all class of people (Rosnizam and et. al., 2020). Social: This factor is associated with perception of society, age, gender, religion and
many more. As in current scenario customers are prone to buy items from supermarkets
and this is the reason that Tesco is associated with delivering their goods in reliable
prices by providing discount benefits. Technological: This factor is associated with availability of nee technology and
resources by which high business opportunities can be rendered along with technology
existence. Tesco is using latest technology in their business by which they are able to
enhance their production process in which high business efficacy is attained by them.
 Environmental: This factor is associated with environment aspect in which business is
run so as to minimise negative impact on environment. In the context of Tesco the
company is supporting environment and for this they are using sustainable environmental
practices so as to reduce industrial wastage which could impact the environment in negative
manner. On the other hand they are using recyclable packaging material in which is giving them
high insight to sustain within marketplace.

 Legal: These factors are defined as those laws and regulations which affect the business
and have inclination towards consumer behaviour. In the context of UK, employment law
is widely followed there which provide high impact to the business organisation for the
same. Government of UK is very strict regarding enforceability of these laws and for
Tesco this factor is putting high implications as the company is engaged in selling
packaged food which contains high sugar intakes due to which children and aged people
are facing problems (SHTAL and et. al., 2018).
Which of the external forces is having more implication to the business?
The economic factor is having most implication on Tesco as in current time economy is
facing huge losses due to COVID 19 and due to which high business implications are obtained.
On to what extent the organisation policies taken account of forces?
The major force which is undertaken by Tesco in order to account their forces is political
factor as there are various norms which are undertaken by the government as they are enhancing
corporate governance in which overall mobility is given to Tesco.
How should manager decide which of the many factor identified in the Pestle analysis they
should attend to?
The manager of Tesco is having high focus on political, legal and economic as due to
manager are measuring policies which are having high impact on internal premises, economic
stability, inflation and recession these are the major complexities are drawn on the business of
Tesco. These are the aspects in which Tesco is required to control these aspects in order to
examine their liquidity and these legal laws are abiding guidelines of retail market in food
industry.
Porter's 5 forces
Porter's five forces is a model in which competitive forces within market can be analysed
in order to provide shape to the industry and to recognise strengths and weakness. The five
forces in context of Tesco is elaborated as under:
Competition in the industry: This is referred as the competition held within industry.
For Tesco their market presence is high but at the same time market is having high competition
due to which this force is keeping high power (Kurnianto and et. al., 2019).

Potential of new entrants: This is associated with entry of new rival within marketplace
and in the context of Tesco this force is showing low implications as in order to establish a new
business high investment is required due to which this is difficult for a new venture to get
entered in retail industry.
Power of suppliers: This is related with power hold by suppliers and the obtained impact
on them. In the industry of retailing suppliers are dominant so they are controlling overall prices
in significant manner. So this can be said that under this factor power is high for Tesco.
Power of customers: This force is associated with power hold by the customer in context
of any fluctuations in prices and other services. For Tesco this force is obtaining high impact on
Tesco as market is having so many competitors which are selling homogeneous products so this
power is high for the company. In order to manage this force manager of Tesco is required to
meet needs and demands of their customers.
Threat of substitutes: This is associated with existence of substitute in which similar
products are available in the marketplace. As Tesco is facing high competition with their rivals
and this force is existed with high degree so this is one of the major threat for the company.
Justification: Tesco is facing high intensity of 4 forces out of 5. In order to control these
forces manager of Tesco is required to frame strategies in which high influence of these forces
can be minimised. For UK employment laws are rigidly followed over there so this is providing
high implications in their business regulation. On the other hand as Tesco is a market leader so in
order to survive and inculcate these factors they are required to compete with other market giants
in sustainable way (Ayers and Odegaard, 2017).
PART C
Corporate Responsibility
Corporate responsibility is defined as the role and contribution of organisation towards
society in which high value can be added by the company to their society. This is known as an
essential aspect for the company in which image within marketplace can be enhanced. In the
context of Tesco this is significant that they follow practices of corporate responsibilities so as to
fulfil their objectives in appropriate manner (Leipziger, 2017).

Corporate Governance: Corporate governance is the sum of rules, laws in which
business functions are executed and controlled. For Tesco they are able to organise such
activities in proper manner so that to maintain their business.
Practices of the organization to promote and monitor corporate responsibility
Tackling of climate change: The major focus of Tesco is managing climate change in
which they are adopting sustainable environment friendly techniques so as to manage their
output process.
Tackling of injustice: For Tesco they are emphasised on managing injustice within
society for which they are aiming towards recognising bad practices which are existed within
society and taking steps in order to eliminate the same.
Tackling of inequality: In society in many segment inequality is existed and in order to
manager the same Tesco is making high efforts so that to fulfil corporate responsibility needs of
their society (Huda and et. al., 2018).
Ending poverty: One of the largest problem which is existed in society is poverty. So for
this Tesco is putting high efforts so that to eliminate societal problem of poverty and they are
adopting various measures thereon.
Corporate Malpractice: Malpractices are referred as improper, illegal and negligent
behaviour which is shown are termed as corporate malpractices. This is having negative image
on the business so Tesco is required to avoid the same. Some of the examples of malpractices are
as under:
Examples of Corporate Malpractice
U.K. Healthcare System: In UK within public hospitals funds are improperly utilised as
per the budget which is given by the government. So this is treated as an example of corporate
malpractice in which they are lacking behind in the ability of under utilising the funds in which
patients are underprivileged of using prominent health care services (Fuoli and Hart, 2018)
(Khlif, 2016.
Fraud transactions in companies in the name of charity: IN current time in order to
save taxes businesses are indulged in showing fraud transactions over donations and charity and
this leads in improper management of business and known as an example of corporate
malpractice.

Not following government rules and regulations: In some of the nation amount
donated as charity are not allowed to be shown by business which leads to generation of
corporate malpractice.
Hofstede's Cultural Dimensions
Hofstede's Cultural Dimensions is defined as the method by which organisational culture
is being analysed by the organisation in proper manner. By using this model organisational
culture can be better understood by the organisation which leads to generation of simplicity in
the organisation. In this model different categories are inserted and some of them are explained
as under:
Power Distance Index: This is referred as the extent at which power within inequality is
accepted. In Tesco high power distance means existence of autocracy in the organisation. On the
other hand low power distance means in decision making process decentralization is existed. For
instance: The managers of Tesco is delegating responsibilities to their subordinates as according
to their skills and capabilities and by this power making decision are developed in the
subordinates. So this can be said that in this case power distance index is low for Tesco.
Individualism vs. Collectivism: This means that significance of the individual within
organisation and in this case major focus is enumerated on individual in context of individualism
and in collectivism the focus is being centralised on collective goals of the business. In the
context of Tesco the company is focused on collectivism in which overall goals are focused by
the company as Tesco is collectively working in order tom attain overall objectives.
Uncertainty Avoidance Index: This is referred as the avoidance of uncertainty which
can be avoided within organisation. In case as this is high then existence of high ambiguity and
uncertainty is there within organisation. On the other hand when this aspect is high that means
low ambiguity and uncertainty is exited within organisation. For instance in order to run business
in most proper way this factor is required to be low so as to have pertinent growth (Fuoli and
Hart, 2018).
Masculinity vs. Femininity: Masculinity is defined as strengths of taking any sort of
decision and on the other hand femininity means protectiveness. This is highly required to
maintain a balance between both of them so that to avoid any complexities and to undertake
robust decision. In the context of Tesco manager of the business are required to focus on
attaining overall objectives of the business.

Long-term orientation vs. Short-term orientation: By deciding long term orientation
high focus is to be put on future so for this pathway is to be prepared. Short term orientation
means to decide on various strategies which are made for near future. For instance Tesco is
focused on making balance between both of them so that manager try to frame short term and
long term strategies (Khlif, 2016).
CONCLUSION
From the above detailed report this can be concluded that business management in which
various strategies are made by business manager. Mintzberg's theory is having various roles in
which managers in which different stages are played. Business environment is defined as sum of
various factors in which some of the aspects such as PESTLE and porter's five forces are
associated. Corporate social responsibility is defined as acts by which upliftment of society is
established. Hofstede's Cultural Dimensions is a major aspect by which organisational culture is
to be identifiable by the manger of the organisation.

REFERENCES
Books and journals
Ayers, J.B. and Odegaard, M.A., 2017. Retail supply chain management. CRC Press.
Fuoli, M. and Hart, C., 2018. Trust-building strategies in corporate discourse: An experimental
study. Discourse & Society. 29(5). pp.514-552.
Huda and et. al., 2018. Empowering corporate social responsibility (CSR): insights from service
learning. Social Responsibility Journal.
Keegan, W.J., 2017. Global marketing management. Pearson India.
Khlif, H., 2016. Hofstede’s cultural dimensions in accounting research: a review. Meditari
Accountancy Research.
Kurnianto and et. al., 2019. Marketing Strategy on the Project Planning of Retail Business for
Garage Shop. International Journal of Multicultural and Multireligious Understanding.
6(1). pp.217-228.
Leipziger, D., 2017. The corporate responsibility code book. Routledge.
Mintzberg, H., 2017. Developing theory about the development of theory. In Handbook of
Middle Management Strategy Process Research. Edward Elgar Publishing.
Rosnizam and et. al., 2020. Market Opportunities and Challenges: A Case Study of
Tesco. Journal of the community development in Asia. 3(2). pp.18-27.
Serrat, O., 2018. Mintzberg's model of managing: Random thoughts from an observation.
Unpublished manuscript, The Chicago School of Professional Psychology.
SHTAL and et. al., 2018. Methods of analysis of the external environment of business activities.
Revista ESPACIOS. 39(12).
Wren, D.A. and Bedeian, A.G., 2020. The evolution of management thought. John Wiley &
Sons.