Business Management Report: UGB107 Assignment on Mintzberg, Tesco, CSR

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This report delves into key aspects of business management, commencing with an examination of Mintzberg's theory of management roles, contrasting it with traditional task-based approaches. The analysis extends to the external business environment, featuring a PESTLE analysis of Tesco, evaluating its political, economic, social, technological, legal, and environmental factors. Furthermore, Porter's five forces model is applied to assess the competitive landscape. The report then explores corporate social responsibility (CSR), evaluating practices employed by companies to promote and monitor their social responsibility, alongside examples of corporate malpractice and philanthropic behavior. Finally, Hofstede's dimensions of national culture are discussed, offering a comprehensive understanding of the multifaceted nature of business operations and their impact on the broader environment. The report aims to provide a comprehensive analysis of management theories and practical business applications.
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INTRODUCTION TO BUSINESS
MANAGEMENT
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................2
PART A Management......................................................................................................................3
Describe Mintzberg’s theory of management. How does Mintzberg’s theory of management
roles complement that which identifies the tasks of management?.............................................3
PART B Business Environment.......................................................................................................5
Pestle Analysis of Tesco..............................................................................................................5
Porter’s five force Analysis.........................................................................................................8
PART C Corporate Responsibility and National Culture................................................................9
Practices used by the company so that they can promote and monitor the responsibility of
corporate......................................................................................................................................9
Two recent examples of corporate malpractice and two philanthropic behavior with their
effects.........................................................................................................................................10
Hofstede’s dimension of national culture..................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
Business and Management are the disciplines devoted to organizing, analyzing, and planning
various types of business operations. These degree programs teach the fundamental skills that are
required to efficiently run or manage a business. The aim of this report was to take out the
importance of CSR and assessing the aspects that helps to manage the business effectively. This
report contains three tasks which highlights the issues of management, analysis with pestle and
porter five force about the needs of external market and the third one is to assess the need and
importance of activities of CSR.
PART A Management
Describe Mintzberg’s theory of management. How does Mintzberg’s theory of management
roles complement that which identifies the tasks of management?
Management is considered as administration of the company. The theory by Mintzberg states
that roles and responsibilities which are concerned with management are broken down so that the
level of complexity can be reduced. There are many roles involved in the theory of Mintzberg
that states that it is the duty of the managers to guide the team to the right path and manage any
conflict which arises between the tasks. This helps the company to generate more customers and
achieve success. Managers has to comply with the needs of the situation which may ask them to
change their behavior so that the expectations of the people can be satisfied. There are 10
different types of behaviors which states that manager has different functions that works under a
set of categories and they are divided under different and specific roles which helps them to work
on the basis of needs and wants of the situation (Matheson and Sutcliffe, 2017).
Interpersonal Category-
Figurehead-
In this aspect manager of the company has to focus on making sure that the confidence of
their team is boosted so that they can work which is as per the name established by the company
in the market. In order to do that manager has to make sure that they are the role model for the
employees.
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Leader-
The requirement of this aspect is to be the leader so that they can make sure everyone is
working as per their guidelines. Through this they assess their performance of the team.
Liaison-
This requires that communication between all the members are worked upon internally
and externally so that task can be assessed efficiently. This helps to improve the network through
which they keep relations with many people (Grosser, Moon and Nelson, 2017).
Informational Category-
Monitor-
The manager scans the environment so that they can collect the new information. It is
believed that manager has to work up to their potential so that they can transmit the information
and work with the changes that are external so that this reflects positively in the aspect of
productivity (Haldorai, Ramu and Murugan, 2018).
Disseminator-
This aspect deals with helping the manager to look and sharing the information to the
other team members.
Spokesperson-
This aspect deals with sharing the information which is outside and to the members who
belong to other company..
Decisional Category-
Entrepreneur-
It is the duty of the manager to keep up with the change which is affecting its business so
that they can assess the outcome of the forces and solve the problems with more creativity
(Mendling and et.al., 2017).
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Disturbance Handler-
Manager deals with those issues that cannot be avoided because of the involvement of
high level of pressure.
Resource Allocator-
Behavior of manager will help the business to allocate their resources into the right area
and take the help of people whose performance can improve the results of the business so that
goals can be achieved and it will all be done under the resources that are allocated. This done by
the manager as they have the power to decide who gets what,
Negotiator-
Manager of the company commits themselves with the available resources of the
company and they deal with them from their role of information with the broad channel of
information available to them. If the manager of the company lets themselves involve in
between the dealings then it will be helpful for the business as managers will help them to cut a
better deal if they know all the details of the negotiation (Schaltegger, Burritt and Petersen,
2017).
If the managers of the company think before taking a decision then they will be able to
analyze and predict the outcome of it so that they can gather the results that are effective and
assess the interest of shareholders so that strategies can be formed on the basis of that.
PART B Business Environment
Pestle Analysis of Tesco
Political Factors-
After the evaluation of the market it has been assessed that Tesco has successfully gained
the position of being the largest retailers in the market because of their establishments in
different countries. Still there are some factors that make it necessary for the company to serve
under the regulations which are provided by the government. This way there will be no
restrictions and less interference in the operations of the business. Also before making a decision
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to expand the operations of the business into different countries they need to assess that if or not
their political issues are stable so that factors related to trade is not affected. Recently it is the
Brexit and the pandemic of Covid-19 that has affected the business of the company because of
the changes that has been made by the government. Due to the impact of Covid-19 many
regulations has been changed as the whole country was in lockdown which has affected the
business.
Economic Factors-
The company needs to analyze the economy so that they can determine the rate of profits
and the rate of growth in a certain market. This way they will be able to set the price of their
products against the considerations of factors such as tax so that their profit margin is sustained.
Even after conducting their operations in different countries most of the revenue that is generated
is from UK. The company deals in those products which is the daily consumption of people and
it is the cost leadership strategy of the company that has helped them achieved success in the
market. If there are any changes in this aspect then they will loose their share in the market
Currently many of the businesses have been affected due to the pandemic of the virus which has
affected the economy of country deeply and it will take time to recover from that so company
should take decisions on the basis of that..
Social Factors-
This factors works on the basis of culture, values and beliefs that is followed by the
people. Tesco makes sure that they are working under the compliance of the society so that they
can fulfill their needs and have their support. On the basis of recent trends company has changed
their model and that is now they offer products that are other than food products. Trends changes
with time and beliefs in the market. It is important for the company to change their product
portfolio so that they can gather the attention of people who are young. After the conduction of
research and successful analysis they have been able to assess that in order to meet with the
changing needs they have to start dealing in the line of goods that are organic. It is because of the
current situation of widespread of disease which is making people concern about their fitness and
opening a opportunity for the company.
Technological Factors-
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These are the factors that has made sure that has helped the business to changed their way
of operating as it has changed the way the whole market operates. With the help of this the brand
has been able to position themselves differently so that they can gather the attention of youth.
This way they have been successful in shifting their 43 per cent of traditional customers to their
online base. Apart from it this has also helped the company to change their method of promoting
their dealings online and this has helped the company to increase their sales as there as the reach
of online aspects has no limit. Also company has tied their hands with Amazon Go which is for
customers to making the experience of paying bills easier as this way it can be done instantly and
a lot of time can be saved. Tesco has their own website through which they deliver products in
UK and it has opened up more opportunities as now they are able to use it up for promotion.
(Suša Vugec, Tomičić-Pupek and Vukšić, 2018).
Legal Factors-
These factors are concerned with the changes and regulations that is mandatory to be
followed otherwise legal action will be taken against the company. If they work against these
measures then they will not be allowed by the government of the country. There are many a time
that company breaks law without even noticing as they do maintain their operations in different
countries and every country has different regulations which is necessary to be kept in mind by
the company. This reflects the image of the company in the market as if there is any legal breach
then it leads to break the trust of the consumer over the company which may affect their sales.
Tesco has been in many of these cases where they had to pay huge sum of amounts in order to
settle their case in court.
Environmental Factors-
There has been a lot of pressure by the government of every country that is to protect the
forces of environment which has been damaged by their use and increasing needs of expansion.
This is why Tesco is contributing in the area of these aspects so that they can sustain the
environment and its future for the upcoming generation. They are reducing the use of carbon
footprint which is released by their stores as they have taken a initiative and that is to reduce the
level of energy usage and change it to resources that are renewable.
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It is necessary that Tesco complies with these factors as the profits of the company are suffering
from huge margins so that their share in the market can be regained. More the managers give
attention to these measures more they will be able to achieve success.
A) It is the technological factors that have the most implications for the business.
B) It is necessary up to an high extent that policy of the company comply with these factors.
C) The value of the Pestle analysis is high as it helps them to get the insight of the forces of
the market and with the help of attending the factor of political and economic factors they
will be able to take decisions easily.
Porter’s five force Analysis
Bargaining Power of Buyers-
Before due to less availability of products and less competitors in the market the power of
bargaining of people was less but now with the increased level of competition the dominance of
Tesco has been affected in the market which has made the bargaining power of buyers increased
(Foster, O'Reilly and Dávila, 2016).
Bargaining Power of Suppliers-
Suppliers do not have more power than the company that is because there are many
suppliers in the line of commodity Tesco deals in which is why Tesco have advantage over them.
Whoever gives the materials at best price is chosen but company takes advantage of this as there
has been many cases noted where the company is bullying their suppliers so that they can
increase their margin of profit.
Threat of new entrants-
The level at which company operates is very high and it is not easy for anyone to enter
into the same line of business and reach at their scale as lot of investment is required in order to
enter into the market which is why the risk of new entrants to Tesco is very less.
Threat of substitute products-
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Managers of Tesco do not focus on this area because they believe Tesco has a strong
image in the market and the portfolio they offer is very diversified which attracts the level of
customers (Strydom and Rudansky-Kloppers, 2016).
Rivalry among existing Competitors-
There are many key players that maintains their operations on the same scale as them
which makes it difficult for them to maintain their operations. This is why threat of competitors
is high in the market as it is a cut throat competition.
There are only two competitors of the company who has successfully implemented the five force
analysis of Porter and that is Aldi and Lidi. It is because only they are the ones who have been
able to leave their competition behind.
PART C Corporate Responsibility and National Culture
Practices used by the company so that they can promote and monitor the responsibility of
corporate
The Shrinking Role of Government-
Managers of the company has started to look after the forces of the environment so that
they can work in compliance with the set guidelines and meet the needs and wants of the
changing needs of environment. But now things have changed slightly as government is not
putting too much pressure on them which is making their resources low as they are not trusting
the companies they have set rules to participate for them in these activities either voluntary or
regulatory (Đuričin and Herceg, 2018).
Demands for greater disclosure-
The demand that is from the suppliers, customers, stakeholders, investors and people of
society is increasing which states that company has to contribute in the factors which helps for
the betterment of the society (Davis and Comeau, 2020).
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Increased interest of customer-
It has been observed that more the company donates their resources in these factors or
areas more the customers are motivated to make a purchase for them. This way they can fulfill
the responsibility which meets with the needs of people and the society. For the work done and
performance of the employees they are rewarding them so that they look more after these areas.
Competitive labor markets-
Market for hiring the right type of labor has become very competitive and expensive as
the company will have to pay things out as per their demand if they want skilled and talented
employees in their team. This involves other things such as their culture and agreement of their
conditions of working in the company as they believe that they want to make progress in their
career which is why they look for the company on the basis of that.
Company has started their community fund from 2014 and with the help of people they have
been able to donate more than 3.7 million Euros which is for good deeds. Other than this they
have taken a initiative and that is to not waste food. In Ireland food that is not acceptable by
people are kept in their stores so that it can be used somewhere else. The managers keep a check
on the progress made by company each year to monitor and look after the aspect of CSR.
Two recent examples of corporate malpractice and two philanthropic behavior with their effects
There have been many cases such as the malpractice in the sector of corporate which
happened in a car accident because of the defect in the system. It was assessed that brakes of the
car were failed when the car was driven in cold weather and company knew about this but they
did not recalled their cars because changing it up would have cost them in huge amounts which
led to an accident.
Other than this there was another case where someone was leaking the information of the
customers that is also known as insider information which is not meant to be leaked and kept
secure on a high level as the company can loose their credibility because of it. The leakage of the
data cost the company thousands of dollars for one night (Brondoni, 2018).
Philanthropic Behavior-
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Values-
Every individual works with a different approach and many of them believes in a vision
that in order to make the world a better place they need to work for it ethically. For example
donating something to those who are in need.
Reputation-
There are many people who believe that doing philanthropic work and working for the
benefit of the society will help them to gain more customers and earn more goodwill. For
instance donating goods and then asking them from for the publicity of the company.
Hofstede’s dimension of national culture
Power Distance-
This culture works on a belief that they assess the differences which is on the basis of
power and status so that they can accept it. On the basis of the theory if the distance between the
power is low then they will be able to distribute the power on equal basis so that they will
believe that people who do not have power are allowed to have some. On the other hand if the
power is high then the situation will be different people will tend to feel that there is inequality
and they accept the hierarchies that are presented in it. It is the society who assess the
inequalities in between different class of people. They believe that if the power is high then it is
justified that everyone has a place in the level of hierarchy. And when it is assessed that power is
low then they will focus on making it divide in an equal manner (Badenhorst, 2019). For
example countries such as Saudi Arabia and China have a high power distance index.
Uncertainty Avoidance-
This dimension of culture deals with patience and tolerance which is against the rules and
policies made for them. This helps to measure the level it can be measured up to so that they can
assess of what situations people are scared and from the analysis it is mostly when they are
ambiguous. After the evaluation it has came to knowledge that the rules and policies of people
helps to accept the terms of the organization. People who work on the basis of their culture has to
deal with a lot of uncertain issues and that can make them feel uncomfortable in many areas. On
the other hand people who face culture on a low level needs to have a uncertainty and they thrive
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in the area where the outcome of the situation can be more unpredictable. For example countries
which belong from South America such as Chile, Peru and Argentina avoids uncertainty on an
high level.
Masculinity vs. Femininity-
This culture deals with the issue of stereotype over traits of masculine and feminine. For
the issue of masculine it highlights key areas such as respect, status, title etc it is done to measure
the rate of their success. It will be more convenient if the environment of the company is work
friendly. The goals are divided into different aspects which is on two issues that is masculine and
feminine. This deals with the level of motivation involved, culture of people etc. for instance
Japan is the one who has a masculine oriented culture whereas Thailand is the one who has
feminine oriented culture (Aithal, 2017).
Individualism vs. Collectivism-
The culture of individualism refers to those people who show themselves as they are self
made and want to achieve every goal in their life without the help of others. On the contrary the
culture of collectivism refers to people who believes in working together as a team or in a group
so that they can earn the name for the company. For example the USA is referred to one of those
countries which is believed to be the most individualistic.
Long vs. Short Term Orientation-
This is the last aspect of the culture by Hofstede which also goes by Confucian
Dynamism. This model is considered to be complex because it deals with values and their
impacts in relation with the orientation of task. Some of the characteristics are-
Long Term Orientation-
It takes time to achieve the expected results or even accept that it will consume a lot of time. For
instance China and Japan are known for their long term orientation.
Short Term Orientation-
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