Introduction to Business: Tommies Childcare Case Study

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Introduction to Business
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Table of Contents
Introduction................................................................................................................................3
1. Describe the functional areas of one chosen business and its hierarchy of Management......4
2. Why is communication central to leadership and management?...........................................5
3. What are the current drivers of globalisation?......................................................................6
4. Compare and contrast two chosen styles of leadership or Management?.............................8
Conclusion..................................................................................................................................9
Reference List..........................................................................................................................10
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Introduction
Business is a collection of commercial activities which is performed by a single or a group of
individuals who come together to provide a service or product to the industry to receive
profits. For the purpose of this report, Tommies Childcare has been selected. Tommies
Childcare is an award-winning medium sized childcare and nursery provider which helps
children grow. The company has around 200 employees and has been operating within the
United Kingdom markets in 1990 (Tommies Childcare, 2019). Within this specific report, the
functional departments of the organisation its hierarchy, its leadership methods, and the way
in which it can globalise in the international market and other aspects will be fulfilled.
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1. Describe the functional areas of one chosen business and its hierarchy of
Management.
The functional areas a business encompass those fields which work with one another to
produce higher levels of output within an organisation. The five core functional areas within
an organisation include departments such as Human resources, accounting, marketing, sales,
operations and others (Burns and Dewhurst, 2016). All these areas in connection to Tommies
Childcare are illustrated here.
Human resources - Human resource managers hire caretakers who look over the needs and
desires of children within Tommies Childcare. When hiring caretakers it is of vital
importance that these employees have good communication skills and are able to connect
with children at a joyful level.
Accounting - The accountants present within Tommies Childcare look over the financial
aspects of the business. They make sure that a budget is present so that all the activities which
are going to be performed within the next year can be done.
Marketing - The marketing team of Tommies Childcare create advertisement campaigns
which encompass online and offline methods. Through these methods, the attention of every
parent that is active in their real life and digitally can know Tommies Childcare offer care
services for various types of children.
Sales - The more kids become a part of Tommies Childcare, the more revenue comes within
the organisation as more parents are enjoying the work that is being provided by the business.
In order for the sales to stay maximized, constant focus on upgrading the quality of services
being provided must be overviewed.
Operations - The operation team helps in the production of books, papers and other
academic tools for children. The operation department in Tommies Childcare helps in
providing each and every child with the necessary tools through which their knowledge can
be increased.
There are various types of organisational structure that an enterprise can follow. The
structures in include administrative structure, functional structure, divisional structure, and
management structure (Shenkar et al., 2014). Tommies Childcare follows an
administrative structure of hierarchy management. This is a simplistic organisational
structure where there are clear lines on how the power within the organisation operates. Here
specific roles are assigned to managers, employees, and other people within the organisation.
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In this type of structure for any query to be resolved is must go through every level of
hierarchy which is present before reaching the ultimate heads. This form of structure is
bureaucratic and formal in nature.
The impact of having such a hierarchy system is that there is least amount of confusion
present on what type of work employees must perform. The downside of this structure is that
it takes a lot of time for problems to be resolved as there are so many departmental levels.
However, with their being over 200 employees present within Tommies Childcare, it is
appropriate that such a structure exist as there would be fewer chances of conflict being
present within the organisation and more harmony will flow
2. Why is communication central to leadership and management?
Communication is a method through which ideas and thoughts are interchanged so that a
high degree of productivity is present within an organisation such as Tommies Childcare
(Habermas, 2015). Communication and leadership are directly connected as top leaders
utilise communication to make employees understand their points of view for doing a certain
type of work within the organisation. Through good leadership techniques and methods are
able to be taught at a faster rate to employees so that they become more knowledgeable.
The reasons why communication is the most vital part of leadership and management has
been elaborated here:
 It helps there to be instructions on what tasks must be performed in order for there to
be productivity within Tommies Childcare.
 Communication helps in creating higher levels of employee relations through which
the bonds between the employers and employees is at a better level.
 Communication assists managers to create high-pressure situations through which the
speed of work is accelerated (Hill et al., 2014).
 It helps in aligning the objectives of the organisation with the goals of the employees.
Some examples to be provided here to illustrate how effective interdepartmental
communication is within an organisation such as Tommies Childcare:
 When there is a shortage in the number of children enrolling within the organisation
then there is communication between the human resources team and the marketing
team. So that better caretakers are hired and more marketing efforts are created so that
a higher number of children are being attracted towards enrolling in Tommies
Childcare.
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 When the marketing budget of the organisation falls short, then the managers within
the department request the finance department to allocate more financial resources
towards them. Within an elevated amount of cash, more advertisements can be put in
the market to create higher goodwill (Ansoff et al., 2018).
3. What are the current drivers of globalisation?
Globalisation is the method through which an organisation is able to extend its business
capabilities at an international level and raise their operations to draw in higher revenue
(Berden et al., 2014). Owing to globalisation the business environment within which an
organisation of operates is constantly changing. Furthermore, there is more competition and
different marketing and pricing strategies prevalent in the industry. The advancement in
technology helps more businesses who are trying to enter the digital realm in order to gain the
attention of consumers who are active in various social media platforms. With globalisation,
electronic businesses are now a new concept through which a company is able to provide
services to another area without being physically present there. Tommies Childcare can
introduce electronic business through new technologies such as video conference, text
counselling services and others.
The key issues in contemporary Business and Management have been illustrated below:
 Work ethics - With organisational scandals prevailing in the market such as
Volkswagen emission test, Equifax's Data Breaches, and others. It is important for
businesses to perform ethically so that they do not do anything illegal or immoral
(Potrafke, 2015).
 Managing innovation - Currently, all around the world, new innovations are being
made every day. Tommies Childcare can also implement technologies such as online
learning, video care and other services through which more advancement can be
present within the business.
 Sustainability - With the increased degree of air and solid pollution in the industry
because of industrialisation. Companies such as Tommies Childcare are forced to
conduct corporate social responsibility activities through which more educational
camp will be established where children can attain free knowledge.
Currently, in the United Kingdom market, there are four main drivers of globalisation all of
which have been enlisted here:
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Figure 1 Drivers of globalisation
(Source: Ferguson, 2014)
Market drivers - As per the per capita income of the country in which the organisation is
entering it determines how much revenue can be attained by the businesses expanding there.
In addition to that as per the lifestyle choices and tastes, the entire new consumer switch
organisation is aiming for necessary changes within the products which are being offered
must be brought.
Cost drivers - Within a new country, it might be possible that there is an accelerated rate of
technological innovation than the country from which organisation is trying to rise. The
more technologically advanced the country is, the more cost will be incurred by the newly
established business to be on par with other enterprises. This is especially true in countries
such as China, Japan and others where there are constant innovations being made (Ferguson,
2014).
Government drivers - In countries such as Korea, China and others there is a high degree of
legal compliance which is required to be followed by the organisation so that there is better
work ethics. In addition to this more tariffs are at present within a country, legal compliance
will delay the company to fully establish operations in a timely manner.
Competitive drivers - Many entrepreneurs are by driven the fact that there are multiple
players present in the global sphere. In order to be at the same level as other companies, these
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businesses are motivated to increase their operation, hire new employees and introduce new
products and services.
The way in which the drivers of globalisation impacts Tommies Childcare has been
elaborated here:
 Tommies Childcare has the opportunity to expand in several countries such as
Melbourne, Austria, New York and other places.
 The decision-making process of the managerial heads within Tommies Childcare is
directly influenced by the amount of per capita which is present in different countries
which has the scope of expansion (Hanson et al., 2016).
 The most technological advance a country is, the more financial funds Tommies
Childcare will be required to raise from the market so that it has enough resources to
buy necessary care tools. These tools might include toys, books and other things to
help children.
4. Compare and contrast two chosen styles of leadership or Management?
Leadership is the way through which a group of people are lead towards a specific
goal/outcome (Northouse, 2018). Good leadership relies on there being trust and reliability
and clarity of objectives. Multiple types of leadership roles include being able to collect
resources, setting high goals for the group and supervising the quality of work performed.
The various styles of leadership and management include autocratic, democratic, and
transactional leadership and others. While leadership style such as autocratic focuses on
giving on direct instructions, on the other hand, democratic focuses on inviting opinions of
others so that better bonds can be created. Autocratic leadership is most strict in nature while
democratic is more liberated and free in nature. While Democratic leadership might seem
more attractive, it consumes more time and there is less efficiency when trying to fulfil the
points of views of everyone (Daft, 2014). Within Tommies Childcare, an autocratic form of
leadership is practised through which caretakers, teachers and others follow the instruction
which is being provided by the board of directors. When the organisation desires to go
forward into the international market, autocratic leadership would be helpful as more control
will be present on different branches.
Some recommendations which can be made to Tommies Childcare are as follows:
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 It is suggested that the organisation moves towards high population countries such as
China, India, Russia and others. With the increasing population, it would be easy for
the organisation to draw in large groups of children and help their lives.
 It is recommended that the organisation higher teachers and caretakers who have a
diversified background so that they are able to deal with kids more easily and impart
knowledge in various areas.
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Conclusion
In the above study, Tommies Childcare has been taken into consideration where it has been
ascertained that there are four major areas of functioning within the business. This includes
human resources, operations, marketing and sales. It has been determined after evaluation
that within the organisation and Administrative structure prevails. Following which the ways
communication is the central factor to leadership and management has been illustrated
through multiple examples between different departments present within Tommies Childcare.
After which it has been ascertained that there are four drivers of globalisation which includes
market drivers, cost drivers, government drivers, competitive drivers and others. In the final
stages of this report, special emphasis has been provided on autocratic leadership and
democratic leadership and it has been asserted that within Tommies Childcare autocratic
leadership is followed so that there are high levels of bureaucracy.
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Reference List
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2018. Implanting
strategic management. Springer.
Berden, K., Bergstrand, J.H. and Van Etten, E., 2014. Governance and globalisation. The
World Economy, 37(3), pp.353-386.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Daft, R.L., 2014. The leadership experience. Cengage Learning.
Ferguson, Y.H., 2014. The history and dynamics of globalisation. Diplomacy &
Statecraft, 25(1), pp.135-155.
Habermas, J., 2015. Communication and the Evolution of Society. John Wiley & Sons.
Hanson, D., Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management:
Competitiveness and globalisation. Cengage AU.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: Theory & cases:
An integrated approach. Cengage Learning.
Northouse, P.G., 2018. Leadership: Theory and practice. Sage publications.
Potrafke, N., 2015. The evidence on globalisation. The World Economy, 38(3), pp.509-552.
Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routledge.
Tommies Childcare, 2019. Tommies Childcare - Award Winning Day Nursery Provider.
[online] Available at: https://www.tommieschildcare.co.uk/ [Accessed 22 May 2019].
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