Business Environment: Tesco's Organisational Structure and Functions

This report examines Tesco's organisational structure and how its various functions interconnect within the broader business environment. It discusses different organisational structures such as divisional, functional, and matrix structures, highlighting why Tesco employs a divisional structure due to its international presence. The report emphasises the importance of inter-departmental coordination, using examples like the marketing and finance departments, to illustrate how effective collaboration contributes to achieving organisational goals. The analysis concludes that a well-coordinated divisional structure is beneficial for Tesco's operations across multiple locations, enabling efficient work distribution and sustained market presence. Desklib offers a wide array of solved assignments and past papers to aid students in their academic pursuits.

Business environment
Part 2

Table of Contents
INTRODUCTION.....................................................................................................................................3
TASK 2....................................................................................................................................................3
P3 Interconnection with organisation function and their organisational structure..............................3
CONCLUSION.........................................................................................................................................4
REFERENCES..........................................................................................................................................5

INTRODUCTION
This part will have explained about organisational structural and how these are interlinked
with each other is also discussed. For this TESCO company has been taken whose aim is to
offer wider range of products and to become market leader in this sector.
TASK 2
P3 Interconnection with organisation function and their organisational structure
There are different types of organisation structure which can be followed by entity. It
is liable on company aims and objectives that which structure is suitable for them to follow
properly. Different type of organisational structure is divisional, functional and matrix. These
structure are explained as below:
Divisional structure – This structure is normally followed by those organisations who
are controlling and regulating business at international level. In this, task is bifurcated into
small parts which to entity to run their business function smoothly. It will also help to
organisation in attaining their goals and objectives step by step (Sekaran and Bougie, 2016).
As there are many branches of organisation in different countries in that there is always one
person who is responsible for managing all activities which are attaining by them.
Matrix structure – This structure is the mixture of functional and divisional. This
structure is followed by those organisations who are running more than one business in
different countries and having capabilities to take risk at higher level. While following this
structure it may sometime become difficult for organisation to attain their main motives
because of handling different nature of business at same particular period of time. So, if any
entity will follow this structure, the more efforts are required to operate the business at
international level.
Functional structure – Here, higher authorities are delegating task according to
people who are working in group. In organisation there are different departments and all are
having their own roles and responsibilities which has to be perform by them. For example,
sales departments are having responsibility to increase the sales so that they can target their
objectives. Apart from that, finance department are liable to budget on regular basis so that
they can determine how much funds are required to invest in a particular activity.

TESCO is following divisional structure because this company is having many outlets
in different countries (Snow and et. al., 2011). In this structure the works are divided into the
different departments and having their own roles and responsibilities to perform them
specifically. With the help of this structure organisation can attain their goals and objectives
in best manner and also retain in market for a longer period of time.
Apart from that, it is major responsibilities of every department to work in coordination so
that they can cope up with the aims of entity. The functions of TESCO company are
interlinked with each other if any of the departments are nor working in effective manner
then it will effect to their entire organisation which also give negative impact on them. Let’s
discussed it with the help of example. If marketing departments is linked with the finance,
then both are having major responsibility to work in coordination. As it will help to
marketing department to utilise the funds in effective manner through which they can save
some amount of funds for future use. Thus, finance sector is important. On other side, the
task which are executing by finance departments are also important for HR. as it tells about
how much funds will be required by them while selecting and recruiting new candidates.
Along with this, bonus or salaries will also provide to staff or workers accordingly (Yoo and
et. al., 2012). Apart from that, marketing and sales departments are also interlinked with each
other. Sales managers has to offer goods and services to those customers only which
identified by the marketing department. As it will help them in to satisfy the customers’
requirements and also having major responsibility to service should be delivered in time
period. Therefore, it is important for TESCO to maintain healthy and positive relations
among departments so that they can target their aims in time period.
CONCLUSION
Organizational function for public, private and voluntary to identify their scope so that they
can work accordingly in competitive market. Furthermore, it will be beneficial for TESCO
company to follow divisional structure because there are many stores which are situated at
different place and according to they can distribute the work in proper manner.

REFERENCES
Books and journals
Adeoye, A. O. and Elegunde, A. F., 2012. Impacts of external business environment on
organisational performance in the food and beverage industry in Nigeria. British Journal
of Arts and Social Sciences. 6(2). pp.56-65.
Chavis, L. W., Klapper, L. F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp.486-507.
Chittithaworn, C. and et. al., 2011. Factors affecting business success of small & medium
enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
Fiss, P. C., 2011. Building better causal theories: A fuzzy set approach to typologies in
organization research. Academy of Management Journal. 54(2). pp.393-420.
Jiménez-Jiménez, D. and Sanz-Valle, R., 2011. Innovation, organizational learning, and
performance. Journal of business research. 64(4). pp.408-417.
Miyake, A. and Friedman, N. P., 2012. The nature and organization of individual differences
in executive functions: Four general conclusions. Current directions in psychological
science. 21(1). pp.8-14.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Snow, C. C. and et. al., 2011. Organizing continuous product development and
commercialization: the collaborative community of firms model. Journal of Product
Innovation Management. 28(1). pp.3-16.
Yoo, Y. and et. al., 2012. Organizing for innovation in the digitized world. Organization
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Online
Welcome Trust. 2013. [Online]. Available through:
<http://www.publichealth.cam.ac.uk/funding/funders/wellcome-trust/>. [Accessed on
27th October 2017].