Organizational Behaviour Analysis and Recommendations for Tesco PLC

This report provides a comprehensive analysis of the organizational behaviour within Tesco PLC. It begins with an overview of organizational behaviour and its importance, followed by an examination of Tesco's current practices, including its functional organizational structure, cultural values, and leadership styles. The report delves into a SWOT analysis of Tesco, highlighting its strengths, weaknesses, opportunities, and threats. It then analyzes the current leadership style, which is identified as autocratic, and the prevalent power culture within the organization. The report also discusses Tesco's application of Maslow's motivational theory. Finally, the report offers recommendations for improvements, focusing on areas such as organizational structure, cultural change, and leadership adjustments to enhance employee engagement and overall organizational effectiveness. The report aims to provide a clear understanding of Tesco's organizational dynamics and suggest pathways for future development and success.

Organisational
Behaviour

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Overview......................................................................................................................................1
Current practices in Tesco PLC...................................................................................................2
RECOMMENDATION...................................................................................................................5
TESCO Matrix structure..............................................................................................................5
Cultural change............................................................................................................................7
Leadership and motivation change..............................................................................................8
Human resource and communication........................................................................................10
REFERENCES..............................................................................................................................13

INTRODUCTION
Organisation behaviour is considered as one of key aspect for every business firm so that
goals and objectives can be accomplished. It has been noticed that by having an analysis of
diverse behavioural values related to human resources the issues can be resolved in desired
manner. In addition to this, it can be said that understanding of organisational behaviour will
assist in getting knowledge regarding diverse activities which will assist in meeting
sustainability. Present report will be focused on working of Tesco PLC in order to evaluate work
practice. By having an improved level of focus on leadership style, cultural values and other
norms the issues in terms of organisational practice can be overcome. It will lead business firm
to impressive level of success.
Overview
Organisation structure decides how the obligations, exercises and duty are controlled and
composed in the association. Association culture alludes to the qualities, convictions, vision,
mission, images, and propensities for the association.
It is necessary for every business firm to have appropriate consideration of organizational
values the issues can be resolved. It will assist in meeting objectives and lead to impressive level
of success. In addition to this, it can be said that using diverse aspects in terms of human
resource and culture the overall work practice standards can be advanced (Griffin and Moorhead,
2009). It helps in meeting standards and ensure that goals and objectives are being accomplished.
In addition to this, it can be said that organizational behaviour need to be understand by having a
review of values. It has been witnessed that leadership style application is significant for
promotion of intelligence and ensure that constant development is being taken into account. For
continuous opportunities the leader’s behaviour is also a significant measure which will assist in
meeting objective.
Through having promotion of motivation values the teams can be managed in desired
manner. With an effective application of motivation theories the issues in terms of motivation
can be resolved. It will allow to assist in meeting the organizational goals so that long term
opportunities can be attained (Jelinek, 2010). Along with this, consideration of communication
practice is also significant so that long term opportunities can be attained. By having an
application of human resource practice the essential information can be shared with members in
significant manner. Communication also assist in resolving the issues.
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In order to make assessment for the business, there are different type of tools that can be
used. In this context, it includes SWOT, PESTLE, Porter five forces, etc. Among these below
given is the SWOT analysis done for TESCO. This is a tool that enables to evaluate competitive
position of company.
Strength: This is focused on providing details that make a firm different from others. In
perspective of Tesco, there are number of awards that is achieved by cited firm for customer
service, overall shopping experience, etc. (SWOT analysis of Tesco, 2015). Further, the firm has
significant cash revenue and variety of properties in its portfolio. It has improved the use of
technology throughout its operations and thus it has raised customer experience.
Weaknesses: These are barriers that affect the business to operate in effective manner. Due to
competitive pressures price wars have occurred and thus it has eroded the retailer’s profit
margin. Main market by Tesco is covered at UK and Europe and they are highly depended for its
sales. Further, there are some of the subsidiaries which are not operating and they are vulnerable
to external factors.
Opportunities: These are considered to be the favorable external factors that can be used by
company to attain competitive advantage. Tesco has the opportunity for developing strategic
alliance with other companies in order to offer product. In countries where cited firm fails to
operate effectively, then they have the opportunity for joint ventures. There are many markets in
which Tesco can start up their business.
Threats: These are factors that can harm the firm. Many companies have come up which deliver
similar type of products and services, this has reduced the sales and profitability. There are
frequent changes identified in government regulation and these have affected the business due to
changes in prices.
In accordance with the findings done, there are different type of areas that can be taken in to
consideration by Tesco. In this context, below given are the advantages and disadvantages:
Advantages:
Perception created by Tesco among people in these years have highly contributed in
raising brand image. Further, numerous rewards that cited firm attained has helped in boosting
up the perception of customers. Further, firm needs to focus on other markets as well so that they
are able to raise their sales and profitability.
Disadvantages:
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Support from the side of workers is low. They are the one who provide the products and
services, when they fail to perform their set of roles in effective manner, then it affects the
business to grow. Further, there are threats that can be worked on but management has not
working effectively to make it an opportunity.
Current practices in Tesco PLC
Organization structure determines how the duties, activities and responsibility are controlled
and coordinated in the organization. In this respect, management of Tesco is well focused
towards divisional structure which assist in meeting objectives. It has been witnessed that
company is currently focused towards functional structure. In this, structure is framed on the
basis of each function accomplished within organization (Buchanan and Huczynski, 2010). In
addition to this, it can be said that there are number of departments under which operations of
company is being taken into account.
Each bit of the association is assembled by its motivation. The fundamental downside of this
structure is the coordination and correspondence between divisions can be confined by the
hierarchical limits. In addition to this, it can be said that working of company is classified in
different departments on the basis of function. Classification of different departments can be as
marketing, human resource, finance, etc. Tesco, organisation structure is configuration to convey
its business objectives and technique (Lussier and Achua, 2009). Its authoritative structure is
generally useful chain of command and there are just couple of layers inside it and mirrors the
market openings in the business. Introduce structure is intended to reproduce the arranged results
of the undertaking. The group of senior supervisor will take abnormal state of obligation
regarding correspondence administration. Culture of this association mirror its centre estimations
of business and it shows that qualities does exclude and transparent connection between workers
that depend on the shared regard. Authoritative structure and culture impact the execution of the
business as it doesn't holds the business together and it is the necessary piece of administration
and correspondence (Pardey, 2016).
Design of the structure is not much accurate which create issues in terms of communication.
Hierarchical level in functional structure is high which creates an issue of miscommunication. It
has been noticed that business is not having employee participation which also impacts the
working culture. In addition to this, it can be said that coordination among all departments is not
appropriate which also creates issue in terms of operational values (Robbins and Judge, 2018).
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By having a continuous development in regard to such measures the overall practice can be
developed. It is necessary for business firm to ensure that inter department coordination need to
be accurate as per standards so that communication among members can be resolved. It is very
essential to have a good organizational structure in the industry so that they can lead a successful
business. In order to have sustainable development the growth opportunities need to be framed
according to collective culture so that issues can be resolved. Improper reference and
communication among all departments affects the overall outcome in diverse manner.
Conduct at work can be depicted as a work conduct one uses in business. It is a formal way
which changes from calling to calling. Work conduct is about how an individual carry on around
their associates. Representatives are to approach each other with deference and respect and they
have the duty to add to a sheltered work environment. To meet the guidelines the administration
of Tesco PLC is engaged towards utilization of absolutist initiative style. Totalitarian authority
style utilized when pioneers enlighten their representatives regarding their work (Saame, Reino
and Vadi, 2011). What they need to done and how they need to achieve it without the assistance
of their adherents. An absolutist authority style will be style in which pioneer takes every one of
the choices. One might say that all the basic leadership powers are brought together in pioneers.
They don't include the proposals of workers or subordinates. This sort of administration styles is
utilized at where representatives don't any involvement and they require supervision. The
pioneers of business element utilize dictatorial style as representative need bunches of
supervision. It enables association to take snappy choice and considered as best style that propels
the workers of Tesco PLC. It is significant in a few kinds of business where choices should be
made rapidly and unequivocally (Sheard and Kakabadse, 2014).
However, application of autocratic leadership style also create number of issues for the
business entity. It has been noticed that lack of involvement of employees in decision making
practice creates situation of dissatisfaction. In this, needs of employees is not being
communicated well to the management because of less engagement (Susaeta and et. al., 2013). It
has also affected the policies formation process and creates an issue in terms of policies
application. It has also impacted the employee’s productivity in diverse manner. Tesco also faces
issues in terms of risk identification. It is also because lack of engagement with employees, as
they are not willing to share which risk is impacting business in diverse manner.
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In this administration style pioneer settles on choices without counselling their colleagues,
regardless of whether their info is valuable. This can be appropriate when the two associations
need to settle on choices rapidly or there is no need of group input this can spare time of
association. In this approach pioneers settle on the choices alone, having complete specialist.
Pioneer can settle on any choice in associations nobody is permitted to provoke them (Tohidinia
and Mosakhani, 2010). This style is by all accounts useful for workers that necessities close
supervision to play out specific errands.
In addition to this, it can be said that organisation is focused towards consideration of power
culture which assist in meeting objectives. It has been witnessed that power culture does not
allow employees to have flexible working which might affect the overall outcome in desired
manner. It is necessary for business firm to ensure that standards in terms of work place are
properly maintained in order to have promotion of power culture. In control culture the control is
the key component at this sort of association. In this, basic leadership control rests at few
individuals as it were (Waltz, 2009). Choices are made rapidly as there is no or less meeting. It
indicates that decisions within Tesco PLC are being taken into account by having a consideration
of situation but members does not consult about facts with another person. By having an
improved focus on power culture the business firm is effectively dealing with emergency
situations as such practice is effective to deal with members and ensure that goals and objectives
can be accomplished.
In addition to this, it can be said that Tesco is currently focused towards Maslow
motivational theory. It allows to have impressive level of success and lead business to
sustainable development. By having an effective consideration of such measures the overall
practice so company can be transformed. It allows to meet the standards and ensure that long
term opportunities can be attained in desired manner. It has been witnessed that Maslow's chain
of command of necessities that extents from lower to higher (Waltz, 2009). This hypothesis
keeps up that individual does not feel a higher need until the point when the requirements of
current level have been fulfilled. It incorporates physiological inspiration, Safety needs, Social
needs, Esteem helpers and self-realization. By having an actual understanding in regard to
members the issues can be resolved and lead to impressive level of success. It has been noticed
that organization is not having effective identification of needs of members which impacts the
overall outcome. By having an application of diverse measures in regard to sustainability the
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issues can be resolved. It has been noticed that major issue that business firm faces is regarding
application of measures so that key outcome can be attained.
Authoritative hypothesis gives better data about outline, structure and relationship among
organization and its outer condition factors. It helps in finding better approaches to conquer the
issues and adjust quick changes in working of administration. Another clarification may be that it
is the hypothesis which can help people to have better openings for work and improvement in
their way of life. Authoritative hypothesis is comprised of different components like logical ways
to deal with administration (Saame, Reino and Vadi, 2011). The present approach of Tesco PLC
is bureaucratic that is influencing the execution and working of representatives. As per
investigation of association structure and culture, firm can centre over regulatory hypothesis for
better execution and having working as indicated by different standards of dynamic
administration. The absence of coordination between various divisions is influencing the
working of Tesco PLC so it is important for firm to have better coordination for development in
execution. Association can likewise adjust diverse inspiration systems and initiative style for
development in coordination. Chief can have better concentration over these components by
better thought of motivational hypothesis. It is fundamental for administrator since they need to
persuade representatives for development in execution (Sheard and Kakabadse, 2014). In the
event that administration won't have any activities for advancement of worker's then it is
conceivable that they can feel awful and not ready to give their best at work environment.
Another clarification may be that inspired worker's will give different advantages to association
by performing best and productive way. Trust additionally assumes a key part in viable group
working so it is essential for firm to spur representatives to have trust among all. On the off
chance that worker's won't have trust on each other than they won't ready to perform errand
adequately and to have compelling sharing of data inside association. In current circumstance the
business firm is confronting issues inside administration with respect to trust factor which
additionally makes issues regarding long haul supportability (Susaeta and et. al., 2013).
RECOMMENDATION
TESCO Matrix structure
TESCO is the big multinational British supermarket in the UK, which deals with various
and varieties of product and services such as clothing fashion retail, electronics, food services
etc. Moreover, to grow up the business company needs to ensure the productive and competitive
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business growth. TESCO will be planning to adopt Matrix structure to make some more
productive environment in the working surroundings. They must be more productive and
impressive. Matrix structure is one of the most complex business structure which companies can
implement (The Matrix Structur, 2018). It is a structure in which company reporting relationship
are set as a grid, or matrix rather than in the traditional hierarchy. Besides, employees have plays
dual relationship with product manager as well as product manager. They define each
departments in each particular manner. They provide flexibility in communication level to all
employees. For examples Tesco each employee can directly meet to any managers without
taking any permission, they enhance the communication and better relationship growth. In this
structure employees and team members are work as a team, they all ready to solve the query of
anyone (Liu, Y. and et.al., 2018). This organisation structure are majorly structured by
productive manner. It also helps to make good bonding different analysis process or impactful
decision making growth. In this matrix structure employees usually work under more than one
boss. Tesco is one of the biggest retail supermarket in which huge number of employees has
been work their due to which they provide flexibility in structure to communicate with any
manager to solve productive management task (The Matrix Structur, 2018).
Impact of matrix organisation structure.
Matrix organisational structure comparatively very complex organisation structure which
might be decrease confusion between employees in working culture. There must be according to
the nature and more productive manner. This gives more productive and approachable
organisation structure which is generally based on large level of organization. With the help of
this structure will allow for human resource to be shared flexibly across different products. This
structure is worked on team building approach which proves productive for the more betterment
for the organisation (The Matrix Structur, 2018). It will be more impressive or productive in
nature growth Because of the large organisation matrix structure will improve Tesco functional
areas are more improving or productive in nature growth. It also gives positive impact on the
retention of good team leaders in the organisation. Moreover, it provides the best opportunity
growth and profit making task for better customer service.
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Overall development through matrix structured in the company environment would be
great and productive. It also helps to enhance the employees skills or productivity towards the
effective work (Liu, Y. and et.al., 2018). Moreover, matrix structure has three categories strong,
balanced and weak matrix structure. It has been the best organisational structure which improves
better quality of work between the team members and maintain good working environment.
Cultural change
Power culture means an autocratic style of management is followed by an organization.
There are many advantages of this style of management but disadvantages of this style too.
Issues of this autocratic style is like increased work burden on subordinates, bad for motivated
workers, not proper communication, forced to follow instructions whether right or wrong, not
proper utilization of creative ideas and so on. But these issues can be solved by following these
instructions;
1) If a leader gives full freedom to their subordinates to perform their task then efficiency of
productivity will be increased and outcome will be on highest level to achieve success of
an organization. In power culture, there is needed to give independence culture.
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Illustration 1: Matrix structure
Source : The Matrix Structure, 2018

2) Motivational factor is an essential factor in any organization. In power culture, there is
lack of motivation factor, so subordinates cannot perform at their best level. If a leader
motivate their subordinates time to time by rewarded or appreciation than they will be
satisfied and they will perform their best.
3) To solve the issues of power culture, communication gap must be reduced. In power
culture, leader only inform and instruct about the task to their subordinates. Subordinate
cannot communicate to the leader directly. They have to be follow hierarchy. In some
time, subordinates are forced to follow the instructions whether it is right or wrong. So
there is requirement to reduce the communication gap for better involvement.
4) To resolve the issues of power culture, there is requirement to promote innovative and
creative environment. It is done by encouraging the members and by giving proper
attention on their innovative ideas.
5) There is a need of a leader who is typically excellent at solving the problems.
6) Improvement of job satisfaction is required for achievement of success. In power culture,
there is lack of motivation factor that is why workers are not satisfied. If all subordinates
are motivated than all subordinates will be job satisfied.
7) To solve the problems, there is requirement to builds strong teams. There has to be strong
and supportive environment.
8) Leader should make confidence level and loyalty among subordinates.
9) If all subordinates are aware of what is happening and what would be happened then
they will take interest, thus productivity will be increased.
10) If all the workers get full opportunity to perform their task and to implement their ideas
than it is possible for leader to utilization of capabilities of subordinates.
11) In this power culture system, the decision making process is very easy but there is
requirement to involve all the subordinates in an organization because if all the team
workers are involved in decision making process then they will satisfy, thus the
productivity will be increased and highest level of outcome will be achieved.
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Leadership
Tesco adopted Democratic leadership in order to increase the
At TESCO, employees can propelled through vote based authority style. Law based
authority is a style in which employees are permitted to participate in basic leadership process
and different exercises. Every individual from the gathering is given with the chance to propose
their perspectives and assessments and offer their contemplations. Therefore, in this
administration style, they can without much of a stretch trade their thoughts with administration.
At the point when employees are given with significance, they get inspired and buckle down for
the fulfilment of shared objectives of organization. Leader is as yet required to guide and control
their gathering. It is otherwise called take an interest administration style. It turns out to be a
compelling administration style at TESCO. By following this, employees get roused which
builds the profitability of firm. By influencing employees to feel perceived, their gathering spirit
increments. Group exercises support the working individuals as in this, they perform with higher
effectiveness keeping in mind the end goal to substantiate themselves superior to others.
Alongside that, in this initiative style, leader offer prizes to employees for their viable execution.
A law based leader should be straightforward, inventive and astute who take reasonable choices
in any circumstance of contentions. Effective leaders empowers employees on the off chance that
they confront any issue in their work. They motivate them by acknowledging or by giving
rewards.
Herzberg theory for Motivation
As indicated by this hypothesis, At Tesco if chief need to propel the employees
they have to centre around fulfilment factor like duty, accomplishment, and so on for propelling
the employees, it is required to kill the disappointment factor worker were encountering in the
association. It is highly unlikely t spur worker if this disappointment factor are not understand by
the chief. To get free out of this disappointment factor are make reasonable organization
arrangements among the worker, Respect the way of life and pride of all the colleague and give
employer stability. When contrasted with Maslow's hypothesis is to imagine that requirements
are orchestrated in the progressive system require. Higher request require end up operational just
when bring down level need satisfied. Be that as it may, Herzberg contends that there is no such
chain of command needs of representative. There is just operational needs of representative
constantly.
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Venture has received Herzberg hypothesis of inspiration which help with expanding employees'
fulfilment and also association development. According to this idea, employees can be spurred
by two segments that is cleanliness and spark factor. As indicated by cleanliness factor,
employees can be propelled by compelling pay, incidental advantages, professional stability,
perquisites and so forth, referred to organisation has effectively affected to this factor of
inspiration in light of the fact that there has uncommon planning of reward framework for those
staffs who perform adequately in the organization. Then again, according to inspiration factor,
human asset can be fulfilled and persuaded by allotment, acknowledgement, testing assignment
and development opportunity. With help of these open doors human asset can be more propelled
for higher execution, which reflect organization development and achievement. On the off
chance that association can't fulfil these two specified factor at that point work force's will be
demotivate and friends' development will decrease.
Human resource and communication
There are several HR practices which are performed by Tesco that have certain impacts
which are discussed in the report.
Human resource department of Tesco performs the following practices for effective working of
employees
Recruitment and selection
Recruitment and Selection practices of HR is generally based on the mission of the
organisation and its working culture also. This practices finds out the potential candidate which
can be a capable employee of the organisation. It includes many recruitment activities which are
conducted at various place to attract lots of candidates and selection is done on the basis of
matching up of essential qualities which are required for particular post at Tesco (Clegg,
Kornberger and Pitsis, 2015).
Impact on Organisation
Recruitment and selection practices make sure that company have adequate amount of
employees they neither should have shortage nor surplus of workers as it leads to wastage of
resources. It is also important to have an appropriate employee for all the post so that right most
suitable person should work on right post to produce an efficient output.
Work Life Balance
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Human resource department implements flexible working hours, provides options for
telecommuting and maintains the organisational culture of Tesco through which every employee
is able to achieve work life balance. They also provides counselling for balancing stress of an
employee (Tzabbar, Tzafrir and Baruch, 2017).
Impact on organisation
It has an immense effect which helps to create a result oriented environment of working
which leads to greater efficiency of workers and provides a balanced life in which employee is
able to give time to their work and as well as personal aspects also.
Training and Development
Training and development is an essential human resource practice which includes
orientation of new employee, training for job skills, training for enhancing leadership skills and
overall professional development. Training must be provided to every employee so that it can
adapt with the changes occurring in an environment for their smooth functioning.
Impact on organisation
Training and development helps to improve the skills of employees at Tesco, required for
their current positions which helps increasing their value in the company. Also it facilitates by
developing an individual professionally which helps HR department to take decisions for
succession planning.
Compensation
It considered to b the reward system for an employee in which they are rewarded by
Tesco for their excellent performance. They provides rewards like incentives, fringe benefits
bonuses to workers in accordance to their performances to motivate them for providing such
quantity of work with a great quality.
Impact on Organisation
Reward system can highly motivate every employee and can provide a greater
satisfaction of their work. It will lead to enhance their performance so that it may provide a
greater result with quality aspect also. It will lead to make the working environment very positive
which also attracts other new people to join the organisation. Most attractive compensation can
lead to generation of more interest in their respective jobs (Ruth Mayhew, 2018).
Effective communications is build up good relationship with others it is very helpful to every
organisation for expanding their business.
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1) TESCO Company needs to improve their communications with their employee within 6
months and maintaining workplace. They should check worker meet regularly or not,
they discuss their problems in every three days.
2) This company should take few steps for improving their communication process
assessing current internal communications method it is not easy to improve the internal
methods but they should try and apply new methods like message send emails through,
telephone, face to face clear all the doubts.
3) They also need to improve their communications skill at till end the 3 months workplace
also. TESCO should create an open environment they talk not only individuals while they
give the right every one discuss comfortably.
4) One of the biggest issue that is employee’s face how they communicate with manager or
top level management they feel not comfortable so in that case many employees may
choose to avoid leaving a main point.
5) So this company should making implement with in 12 months an open door policy
where their employees feel comfort and giving a full time that is benefits their
organisation.
6) TESCO needs to identify their actual goal of the business it is important for their
employees to be on work same level to identifying and clarifying common goal through
communications.
7) Listening is the part of the communications TESCO manger also need to follow this
listening skill it is most important for every one participate. Both the employers as wells
as staff member listen in active way they reflects their listening skill abilities. So it is
easy for everyone to find out the difficulties what other worker want to say.
The impact of commutations process on TESCO they increasing their profitability of the
business and expanding their business one country to another nations. It is very help full for this
company they maintain their relationship with whole staff, and easily understand.
Communication is very vital part of the every business through this process easily achieve target
of the business. Its impact on TESCO operate a new strategy for the success and solve a internal
misunderstanding related to the work. They build a network with new operations if they talk
about internal communications then it is construct mutual understanding between management
and the employees. So if their employees are directly communicating with their manger and
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other staffs then they feel connected. Effective communications can help improve the internal or
external environment of the company it is beneficial for TESCO to develop a formal, healthy and
internal its process. They also follow outlines strategies, it is very help full for this company in
building effective communications with the organisation.
achieve a goal of the organisation.
There are different type of assessment tools that are being used and these are effective enough to
identify the areas in which improvement that are needed to be made. With this respect, below
given are the assessment tool for implemented change that is being used:
Suggestion from employees: Workers are the one who have direct interaction with
customers, they have proper understanding about the issues that are faced by customers. When
suggestions are taken from employees, then it becomes favourable enough to make changes in
effective manner.
Feedback from customers: They make use of the products and services that are delivered
by company and so that know better regarding the areas in which improvement needs to be
made. This way, it becomes helpful for the business to improve those areas and make changes in
effective manner.
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