Introduction to Business Management

This document provides an introduction to business management, discussing the best practices and strategies for achieving organizational goals. It explores Mintzberg's theory of management and the roles and responsibilities of managers. The document also discusses the PESTEL model and Porter's five forces framework for analyzing the external environment. Additionally, it highlights the importance of corporate social responsibility and its structure within organizations.

Introduction to
Business Management

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
PART1....................................................................................................................................3
PART2....................................................................................................................................5
PART 3...................................................................................................................................9
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12

INTRODUCTION
Business management can be defined best practices done by the individual for
administration within the organisation so that it can manage different strategies to achieve the
goals and objectives of the firm but establishing coordination between different individuals
were walking with the firm toward the common goals and objective (Dibrell and Memili,
2019). Current business environment is changing continuously which also impacting The
Business Management concept. In the current report The Chosen organisation is Tesco, it is
a British multinational retail joint ventures spelling its product in UK and global world. In
this given report there is discussion about different factors related to business management
where the analysis of Pittsburgh theory of management will do by identifying the different
concept under this theory. There is also a discussion about the business environment related
to Tesco where the best lens of matrix will be used to identify different factors and
competitive advantage within market. In the end of this report there is discussion about the
importance of Corporate responsibility and national culture which is required to be followed
by firm for achieving its business objectives (Kétyi, 2016).
MAIN BODY
PART1
Management: Management can be defined as a function of administration within an
organisation which is related to managing the business in an appropriate way where different
activities are performed in strategic management to achieve coordination within the efforts of
employee to accomplish goals and objectives of the organisation.
Mintzberg’s theory of management
This theory of management is dependent upon the management roles and
responsibility within the organisation so that the workplace simplified by reducing the
complex components (Morden, 2017). Under this theory manager believe that there are
different skills which are to be learnt by the individual with experience and cannot be taught
within the classroom. According to this theory there are various managerial roles which are
divided in different functions and are discussed below:
Interpersonal category: Under this category the manager roles which are involved are
related to providing the information and Idea. All these rules are discussed below:

Figurehead: It is the most important role of a manager where they become liable for
social, ceremonial and legal responsibilities. The manager treated as a source of inspiration
within the organisation with each employee look at the authority of a manager.
Leader: One more important role of management is to become a leader. Leadership
provide a way to different individual within the entire organisation to work in a particular
direction and achieve the goals and objectives. Manger has to play the role of leader in
different situation where the management of performance and responsibility within the group
is required.
Licence: Industry manager is also treated as a licence between different parties where
it maintained internal and external contacts which are required to formulate an efficient
network on the behalf of organisation for establishing better communication and achieving
the goals and objectives (Strydom and Rudansky-Kloppers, 2016).
Informational category: Under this category the manager has the play the rules related to
supply of information and become a communication channel within the organisation. These
rules are discussed below:
Monitor: Under this role the manager also act as a monitor within the firm where it
seeks out different information related to the organisation and industry and look different
challenges within the environment so that it can monitor the team and provide them adequate
information for increasing their productivity and wellbeing.
Disseminator: This role is also played by a manager where it communicate the
potential and useful information to different parties and colleagues within the team so that
they can maintain a proper working environment by identifying the resources and necessary
information (Badenhorst, 2019).
Spokesperson: Manager also becomes a spokesperson within the organisation where
it speaks for the organisation in front of different stakeholders. Manager is also play the role
of transmitting the information for achieving the goals of organisation.
Decisional category: Under this category roles are categorised which involve the using of
information supplied from the above roles of manager. The different role under this category
is discussed below:

Entrepreneur: According to the theory, manager is also a entrepreneur within the
organisation where it create control and established change within the organisation by solving
different problems and generating new ideas.
Disturbance handler: Manager also acts as a disturbance handler within the
organisation where it identify unexpected roadblocks and manage them for continue working.
Resource allocator: According to the author, manager also worked as a resource
allocator within an organisation where it identify the different resources related to funding
and financing the different operation and manage these resources so that the staff and other
organisation employees can work in an effective me by using these resources efficiently
(Suša Vugec, Tomičić-Pupek and Vukšić, 2018).
Negotiator: Negotiator can be defined as a person can negotiate from different
stakeholders for the organisation to achieve the organisation objectives. According to the
author, manager also plays the role of negotiator where dragon sheet from different parties to
the organisation for achieving the goals and objectives and maintaining proper working
conditions.
It can be evaluated from the above-mentioned theory that there are various functions
which has to be play by the manager within the organisation to achieve the business
objectives and gain maximum competitive advantage. This theory is also useful to identify
the role of manager within the organisation for managing different functions and achieving
the best possible outcomes.
PART2
The PESTEL model
It is a Framework which is related to the scanning of external environment factors
which can impact on the organisations performance and decision making ability. It is
important for the organisation to identify the external factors so that it can achieve the
maximum competitive advantage by analysing different factors which can impact on the
performance. This analysis includes identification of various factors all these are mentioned
below:
Political factors: Political factors are those which include rules and regulation in
different countries related to the product and services offered by the organisation.in Relation

to Tesco it is a global organisation which is performing in various nations but the major
operation of Tesco is in UK. The major political factors which impact the performance of
Tesco are BREXIT and terrorism. BREXIT has both positive and negative impact on the
performance of Tesco. The positive impact of BREXIT is that it helped in formulating
different policies for global expansion due to grants from government (Schaltegger, Burritt
and Petersen, 2017). The negative impact of BREXIT on Tesco is that it force organisation to
change its policies according to the government norms which can impact on the cost of
products as well as various other functions related to operations. Terrorism is also factor
which is related to social factors and has negative impact on performance of Tesco because
terrify different individuals as well as reduce the global expansion chances of organisation in
countries which are facing terrorism.
Economic factor: Economic factors are those which are related to the economic
condition of the area where the organisation is working. Include different factors like GDP
growth standard of living employment ratio and many more. It is important for organisation
like Tesco to identify different factors within the economy of the area where the organisation
is working. Tesco is working within the environment of UK where the economic condition is
in favour of the organisation which help organisation in growing its business and achieving
its objectives. This can be seen from the strategy of expansion which is adopted by Tesco
because of favourable economic condition and high level of profit with an economy of UK.
(Adekola and Sergi, 2016)
Social factors: Social factors are those which are related to the trends within the
society which include culture behaviour thinking and various other factors related to
individual live within the society where the organisation is working. It is important for
organisation like Tesco to identify the social factors so that it can achieve maximum
competitive advantage within the market. Tesco is following these trends where company use
up research and development department to identify different trends behaviour and
psychology of customers related to the product offered by firm. This is impact positively on
the organisation because it can increase its sales according to the behaviour of individual
within the society (Aithal, 2017).
Technical factors: technological factors are those which are directly related to the
flow of technology and development within the technology of the area where the organisation
is working. In context of Tesco, it is working within the area where the technology

requirement is very low. In current time, Tesco is using proper technological development
within the organisation where it used to continue develop its functions and technology for
achieving the goals and objectives in more effective and smooth way (Ross, 2016).
Environment factor: Environment factor include the factors related to the
environment where the organisation is working. It includes different factors like natural
climate, environment protection, pollution and many more. In relation to Tesco,
congratulations following different names related to environment protection where
companies trying to use recyclable energy resources so that it can minimise the negative
impact of non-renewable energy sources. It is impacting positively on the organisation as it
increasing the Goodwill of the firm within the market as well as contributing towards the
environment protection.
Legal factors: It includes the factors which are related to the rules and regulations of
different government authorities and institute within the economy where the organisation is
performing its different operations. Tesco is performing its operation at global level where it
has to follow the rules and regulation of each and every country. This will help the
organisation in gaining the maximum advantage by fulfilling its responsibility towards legal
equality and reducing the chances of legal liabilities in future (Matheson and Sutcliffe, 2017).
It can be evaluated from the above-mentioned Framework that it is important for a
firm to identify different factors which can impact on the performance of organisation
achieving a competitive edge within the market.
Porter’s five forces framework
It is a business analysis model which is used by the organisation for industry to
identify the profitability level within the market where they are going to trade or trading
currently. This model is also associated with formulation of competitive strategy by the
organisation and making different activities so that it can achieve its goals and objectives
within the market. For the discussion on the porter five forces model is mentioned below:
Competition in industry: It is the first factor which impact directly to the
organisation where it has to identify the competition within the industry for making its
different policies and achieving the goals and objectives. In relation to Tesco, there are
various competitive within the market which makes a Tesco less powerful. The high edge
competitor of Tesco is Sainsbury and ASDA. Controversially, Tesco is managing its

computer and an effective way where it adopted a proper strategy of charging low price and
providing effective quality to the customer for attracting them (Maylor, Blackmon and
Huemann, 2016).
Potential of entrants into the industry: One of the major factor and porter's five
force model with impact the organisation directly is the potential of new entrants within the
market so that organisation can achieve its business objectives. In relation to the retail
industry where the Tesco is trading, it is difficult for competitors to achieve a market edge
because of high level investment. This helped Tesco in achieving a competitive advantage in
the market because the threats of new entrants are low within market.
Power of supplier: It is the third factor within the five force model which is directly
related to the power of supplier on the cost of inputs. In relation to TESCO, companies
managing its supply in an efficient way where it uses large number of suppliers for different
kind of products which are offered by the organisation to its customers. This is providing
competitive advantage to the organisation where it can take decisions more effectively and
achieving its goals and objectives in an appropriate way by minimising the caused by the help
of bargaining and other factors (Bell, Bryman and Harley, 2018).
Power of customer: The ability of customer to drive the prices within the market is
also included in the porters five forces model. It includes the ability of different customers to
impact the pricing policy of the organisation where if there is large number of customer then
organisation can decide the prices of the products by its own but if there is no number of
customer then organisation has to decide the price according to the customer's requirement.
In the current market Tesco is operating within the retail industry where company cover more
than 35% market share. This helps organisation in achieving its goals and objectives and
reducing the customer power within the market by lowering their negotiation skills.
Threats of substitutes: The last letter in porter's five force model which is related to
the threat of substitute within the market where the organisation is trading. Tesco is not a
producer within the market this factor does not impact TESCO directly. But there are various
organisations like Sainsbury and ASDA, which are also dealing within the retail industry and
can impact the market of TESCO. For saving the interest of organisation from these
competitors, who is using differentiation policies where it cell different products then its
competitor which reduce the chances of substitute and help organisation in achieve
competitive edge (Chang, 2016).

PART 3
Structure for corporate social responsibility
It is essential for every organisation to follow a proper structure for fulfilling the
corporate social responsibility of the organisation towards the society. In relation to
organisation always use the corporate social responsibility as an internal part of overall
corporate governance framework of the form where it uses a proper structure for corporate
social responsibility to achieve its objectives. Company follow-up proper structure where it
focus on different factors which are mentioned below
Corporate governance: Governance enable the organisation to comment on 5
standard where has to follow the approach of governance and management of non-financial
risk which health organisation in reducing in negative impacts and increasing the
responsibilities as an integral part of fulfilling corporate social responsibility in relation to
different individuals. These individuals are major stakeholders of the organisation which
contribute to the success of various operations (Myers, 2019).
String wheel: It is also important for organisation to maintain team working
environment within the organisation where it can easily meet its objectives regarding
corporate social responsibility. Tesco always try to fulfil this function where it use different
management functions which help in establishing a proper spring wheels so that all work can
be measured at a single place by increasing the performance of individual and balancing each
and every individual within the team by assigning then appropriate roles and responsibilities.
Assurance: Assuring is also important part of the structure in related to fulfilment of
corporate social responsibility of organisation. In relation to this function test for always used
to perform internal audits of its corporate social responsibility systems where it ensure that all
the work is working in an appropriate way we are the external and internal factors are
identified and accountability of different individuals are set to achieve the objectives
regarding corporate social responsibility (Morden, 2016).
Communication: Communication is the last factor within the structure of corporate
social responsibility where organisation has to review the methods which are adopted to fulfil
the corporate social responsibility of the organisation. Organisation has to identify different
policies and areas where it is working to fulfil its corporate social responsibility and identify
the impact of the policies adopted by firm to fulfil its responsibilities towards the society.

Two recent examples of corporate malpractice
Auto defect: The popular case related to the malpractices which can be held
responsible for non-fulfilment of corporate social responsibility is related to the auto defect
which impacted in car accident of different individuals. Under this case organisation is not
providing the quality product related to braking system. Due to non-fulfilment of proper
quality organisation faces various legal issues due failure in braking system and accident fees
by different customers of the organisation.
Supplier of confidential information: One of the biggest malpractices in the current
time is related to supply of configuration information. This impacted negatively on customer
because it leads to theft of their hundred and thousands of dollars from their bank accounts.
Hofstede’s distinguished five dimensions five dimensions of national culture
Hosted model is based upon to 5 different problem areas which can be identified in a
number of national cultures. Below mentioned are these problem areas discussed in the
model:
Power distance: Power distance refers to the social inequality which have been
accepted in a number of cultures. This explains how the children who are raised in families
with high-power are always centralised in the organisation and prefer autocratic leadership.
On the other hand inequality due to power distance cultures in a number of countries
employees who are not desired always regarding decision making and prefer Democratic
leader.
Individualism versus collectivism: Individualism are preferred by those people who
are living in societies which are loosely knit whereas on the other hand collectivism are the
cultures where cohesion is taught in country. An organisation individualism refers self and
autonomy whereas people who come from a culture of collectivist are team players. Tesco
prefers collectivism where all the employs in the organisation are together working in teams
and towards the organisational objectives (Waters, 2019).
Masculinity versus femininity: Masculinity in certain cultures refers different gender
roles where men only focus on success and rewards whereas women are considered to be
tender and more towards life and modesty. Masculinity is preferred to be more decisive and
assertive whereas femininity is good in negotiating and solving the disputes and encouraging

participating in different decisions. In Tesco both masculinity and femininity are given
importance as there are times when strict decisions are to be taken by the management and a
number of times they need to negotiate with suppliers, consumers and other stakeholders.
Uncertainty avoidance: Uncertainty refers to the degree where people are unfamiliar
with the situation and always threatened. It is hard work which is embraced and anxieties also
brought due to uncertainty. On the other hand uncertainty avoidance means we are people are
free of fear and they can exist together in relaxed cultures. Uncertainty avoidance is given
importance by Tesco as they want their employees to feel safe and secure. It is also one of the
needs that are to be fulfilled by the managers towards the employees so that employees can
speak their mind and work without any pressure. This also helps in encouraging them to work
to their maximum capacity and productivity (Corsten and Gössinger, 2016).
Long-term orientation short-term orientation: Long-term orientation and short-
term orientation refers to when people or future oriented and dynamic. In short term
orientation the focus on past as well as the present. In Tesco more focus on long-term
orientation to make strategies for achieving their aims and objectives which are usually done
on a yearly basis. Whereas in order to fulfil the requirements of target the focus on short-term
orientation which helps them to make instant plans to increase sales and revenues whenever
needed
CONCLUSION
It can be concluded from the above-mentioned information there are various functions
which has to be identified by the organisation before implementing its Business and
Management concept within the firm. It can also concluded that it is mandatory to the form
for identifying different factors in the external environment which impact on the
organisations performance and competitive strategy. This can be achieved by the help of
proper frame works as well as strategies within the market. In the end it can be concluded that
it is important for the organisation to follow the corporate social responsibility and a proper
structure which help Organisation in ethics commitment ethics audits and ethical reporting
system to achieve its business objective and reducing the chances of malpractices.

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