Comparative Analysis: Business Environment of Harrods and Tesco Report

This report provides a comprehensive analysis of the business environments of Harrods and Tesco. It begins with an overview of the companies, highlighting their nature, scope, and objectives, including a PowerPoint presentation comparing their structures and strategies. The report then delves into organizational functions, exploring how these functions connect with business objectives and structures, and how the web interrelationship among these functions affects the business structure. The study also examines the positive and negative impacts of the macro environment on both companies and conducts internal and external analyses to determine their core strengths and weaknesses. Furthermore, it explores how these strengths and weaknesses are linked to external macro factors, concluding with a reflective statement and overall conclusions about the businesses and their environments. The report covers various aspects, including their differing organizational structures, business strategies, and responses to the macro environment, providing a comparative analysis of their operations within the retail industry.

Business and Business Environment
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TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................4
a) PowerPoint presentation .........................................................................................................4
b)................................................................................................................................................13
P3 Organizational functions and how it is connected with business objectives and structures 13
M2 Manner in which business structure affected by web interrelationship among functions of
business .....................................................................................................................................14
c)................................................................................................................................................15
D1 Difference and complexities of two business in terms of structures...................................15
PART 2..........................................................................................................................................16
a)................................................................................................................................................16
P4 Positive and negative impacts of the macro environment....................................................16
P5 Carrying out internal and external analysis to determine core strengths and weaknesses...17
P6 Manner in which strengths and weakness are linked to external macro factors...................19
M3 and M4 Impact of macro environment on business decision making process....................20
b) ...............................................................................................................................................20
D2 Reflective statement ............................................................................................................20
CONCLUSION..............................................................................................................................22
REFERENCES .............................................................................................................................24
REFERENCES..............................................................................................................................26
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INTRODUCTION
Every Business cannot be conducted in vacuum thus role of environment is significant as
companies operate in an environment. Organizational environment is comprised of internal as
well as external factors which greatly extent affect the operations of the firm. In addition to this,
it also influences the company's stakeholders that include employees, customers etc. This also
includes external factors which can affect the business operations such as demand, supply as well
as regulations on whole (Giechaskiel and et. al., 2012). Moreover, business environment is
combined of customers needs this presents that organization needs to comply with their
requirements. In the present report, Harrods and Tesco have been taken into account. Harrods is
a private sector firm and it is the luxury department store which is engaged in offering greater
number of products and services to the individuals. In contrast to this, Tesco is a public limited
company which is British multinational grocery as well as general merchandise retailer. The
organization is the third largest retailer across the globe when measured in terms of profit.
Further, it is fifth largest when it is measured in terms of revenue across the globe (Hamilton and
Webster., 2015).
The present study entails to understand various organizational functions and manner in
which such are connected to objectives as well as structures of the firm. Along with this, it
includes differences as well as complexities among two businesses. The study includes positive
as well as negative impacts of macro environment on the organizational operations. Further, it
involves internal as well as external analysis for the purpose of determining strengths and
weaknesses
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PART 1
a) PowerPoint presentation
The purpose of the company is to become number one departmental store in world for
luxury branded merchandise, maintaining a new level of retail standards, expertise and
profitability through an aggregation of product, innovation and eccentricity. The company aims
to provide its customers a sophisticated and alluring retail experience that is not available
anywhere else. What sets Harrods apart is a commitment to exceed expectations.
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Companies like Tesco, which enjoys long term success are focused businesses. They have a core
vision which remains constant while its business strategies and practices regularly adapt to the
changing world. In an highly competitive global environment, without a clear purpose and
mission business will lack direction and will not be able to sustain. Tesco is a firm which is built
around customers and peers. Its vision guides the direction of the organisation and the strategic
decisions it makes.
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Basis of difference Harrods Tesco
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Nature Harrods is a private sector
organisation which performs its
operations for gaining profit. It
is not owned, controlled or
operated in any form by the
government or state.
Tesco is a public sector
organisation which is owned
operated by government. It
often provides services to
citizens regardless of person's
ability to pay. Same as
voluntary organisations, it do
not seek to generate profits.
Purpose The purpose of the company is
to be a number one
departmental store worldwide
for luxury branded
merchandise, maintaining a
new level of retail standards,
expertise and profitability
through a combination of
product, creation and
eccentricity.
The core purpose of the
company is to serve Britain's
shoppers a little better
everyday. It was built with a
simple mission i.e. to be the
champion for customers and
help them to enjoy a better
quality of life and an easy way
of living.
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Size The store occupies a 5 acre
site and has over one
million square feet of
selling space in over 330
departments making its the
largest department store in
Europe.
Tesco metro stores are
sized between Tesco
superstores and Tesco
Express stores, with stores
averaging 1,000 square
meters(11,000square feet)
Scope Harrods may expand its
brand presence in the
coming future. The
company is finding new
sites in New York,
London as well as other
premier cities for much
awaited Harrods hotel.
It is concerned with the
overall purpose and scope
of the business to fulfil
stakeholder expectations.
Tesco's business strategy
is to expand overseas,
maintain a strong UK
business and expand into
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non food merchandise.
Tesco's growth over the last two or three decades has involved a transformation in its
strategy and image. Tesco metro stores are sized between Tesco superstores and Tesco Express
stores, with stores averaging 1,000 square meters(11,000square feet). They are majorly situated
in city centres beside train stations, the inner city and on the high streets of towns. The
organisational structure is highly hierarchical reflecting the large size of business. Even in store
level, there are four layer of management in some of the large stores. However, it has to noted
that this structure is not rigid for all stores of Tesco and some of them operate with a slenderly
different structure depending on their location, size and range of other store specific factors. In
the hierarchical organisational structure, positions and obligations are divided into many parts to
assure efficiency and smoothness in work. Top managers and executives have the maximum
responsibilities and authority. Tesco's business strategy is to expand overseas, maintain a strong
UK business and expand into non food merchandise. The products and services offered by Tesco
includes food products, non food items, groceries, clothing, home living range, life insurance, pet
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insurance, home insurance, travel insurance, motor insurance, saving account, personal loans,
secure investment bonds, online mortgage finder etc.
The store covers a 5 acre site and has over one million square feet of selling space in over
330 departments making its the largest department store in Europe. This firm also follows
hierarchical organisational structure where power and responsibilities are clearly given to
individuals according to their standing or position in the hierarchy. Under this structure, the
employees ate ranked at different levels within the company, each level is one above the other.
At each stage in the chain, one employee has a number of workers directly under him within
their span of control. It gives benefits of clearly defined job functions, promotions, smooth flow
of communication to the cited firm. Harrods may extend its brand presence in the nearest future.
The firm is finding new sites in New York, London as well as other prime cities for much
awaited Harrods hotel. The company offers products such as luxury handbags, stylish totes,
trendy clutch bags, luxury women wear, beauty essentials, skin care products, shoes, clothing for
men, children, infants, electronics, jewellery, sporting gear, bridal trousseau, pets and pet
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accessories, toys, food and drinks, packaged gifts, stationery, furniture banking services,
restaurants, beauty spa and salon, barber shop, financial services, private events planning and
catering, food delivery etc.
Both the companies are very different in their nature, scope and size but there are many things
which links both of them. The industry in which they operates is similar i.e. the retail industry.
Both offer almost same products except some of them. The organizational structure followed by
both the companies are same which connects both of them.
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b)
P3 Organizational functions and how it is connected with business objectives and structures
The companies such as Harrods possess various strategic objectives. This includes
increase in profitability and enhancing awareness about the brand in the market. Further, it
includes reducing the total cost of the production. Along with this, it has major strategic
objective to increase the market share through customer focused approach. In these businesses,
to conquer higher goals as well as target it is important to lay emphasis on structure and
functions of the business. Every firm is categorized into varied number of departments. This
includes marketing, finance, production, human resource management as well as technical.
Every department contributes equally and has greater impact on attainment of the business
targets to a greater extent (Joardar, Kostova and Wu, 2014). The function within the firm are
categorized into various parts and in accordance with such the departments are allocated like
production, marketing, finance, human resource and technical. The major reason beside
assignment of all departments is towards enhancing the profitability of the firm by providing
equal contribution. This demonstrates that different function of the business are interrelated and
thus it assist in attainment of business objectives to a greater extent.
The structure of the firm demonstrates procedure as well as allocation of the work which
is offered to every personnel within the organization. As Harrods is luxury departmental store
thus it is required to lay emphasis upon productivity as well as marketing strategies to develop
relationship with the customers. It performs functions on the basis of functional structure of the
business. It works with the combination of equal coordination as well as supervision without any
kind of differences in the work division between the personnel (Klapper and Parker, 2011).
Further, the tasks are allocated to the lines of authorities which come within the hierarchy of the
business structure. The lack of proper functioning even at the smallest personnel group within
the firm can result in causing greater impact on the status of the firm. Maslow has proposed the
tool that is being referred to as hierarchy of the need. This can be used in an effective manner for
meeting the goals of the personnel.
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