Assignment On Business Management


Describe, analyse and make recommendations of a management and organizations company or organization you know or have experienced, and demonstrate in your analysis and recommendations some significant learnings from this ICT 215 Business Management Subject that cover most aspects of the course.

Situation of an organization and its related managerial sector are complementary for itself. The management of a company researches on the relevant theories and considers contemporary global situation. Thus the management of the concerned company sets goals and strategies to improve in the market. Organizational situation also directs the management of an organization to think on a new perspective and also to construct policies to enrich the environment, culture, leadership, dedication, liabilities, motivation, satisfaction and financial condition of the workforce (Finkelstein et al. 2008).

In this study an UK based company, Tesco, is going to be nurtured on the basis of the Management and organizational situation. Tesco is spread in twelve countries of Asia and Europe including United Kingdom. More than 530,000 people are engaged in Tesco as employees ( , 2014). Per week shopping trips of this organization are seventy five million.


Management in an organization is the system that harmonizes the labors of all engaged employees to satisfy the achievable objectives. Proper using of raw materials, resources, human efforts and matters of stakeholders is onto the managerial sector. Business Communication Management transforms all the resources related to the company into needed utilization. The managerial sector of any company is expected to contain six activities. Those are forecasting, projecting, organizing, ruling, synchronizing and managing. Only planning works and trying to meet aims is not only works of a modern management. Primarily the management of a company has to maintain the concerned matters of all the stakeholders along with the profit margin (Hill and Jones, 2006).


Management of Tesco:

Tesco UK is one of the largest retailers in United Kingdom. It is seen to hold the Middle Management system which is the transitional management of a hierarchical company. Managers of the Tesco are higher than the lowest levels of organizational employees, but they are subordinate to the upper most management. In Tesco equipped supervisors are granted as the middle management grounding on the strategy of the Tesco.

Recently Tesco has been located to work on its middle management system. It is an ethical issue that in middle management procedure an organization can cut down its management according to its marketing and financial situation. Downsizing, redundancy, outsourcing may be dealt in this case. Tesco in recent years has changed a lot in its middle management system. Fifty managers including middle and senior managers have become redundant. Tesco has reconstructed its managerial area. It is expected by corporate experts that this massive change will put impact on Tesco’s business plan of clothing and non-food products (Apéria and Georgson, 2011). Tesco’s offices at Cheshunt and Welwyn Garden City play big roles and receive great influences due to this change.

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Functions of Tesco’s Organizational Situation:

Research and realistic study about Tesco tells that organization structure of the concerned company mainly focuses on the five basic functions e.g. finance, human resource, administration, marketing and promotion (Kapferer, 2008).

Finance Department of Tesco:

Finance department of Tesco initially keeps and maintains records of every business transaction. Each and every outlay, paid amount, earning and investment is recorded in the logbook. By doing so, the finance department accumulates the exact view of recent business trend of Tesco whether it is optimistic or pessimistic.  The concerned finance department also maintains economical factors and money-flow to keep the dealing of Tesco meaningful. In short, here the finance department of Tesco checks the fluency and affluences of finance. One of the biggest responsibilities of Tesco’s finance department is to take actual decision about financial investment into business across the whole network. The important and key employees of the finance department judge which investment may be fruitful and which one may fail in the corporate world (Schein, 2010). Tesco very efficiently harmonizes all the financial data of previous years and present era on the basis of market demands.

Tesco has shown more than twelve percent sales growth and hiking of stores is more than seven percent averagely in a year. In United Kingdom Tesco’s finance department efficiently has promoted its profit to seven hundred sixty million pound by near about seven percent growth rate. Recent trend shows that Tesco is building its financial backbone strong through selling of food products.

Finance Department at Tesco holds a management also. There “Accounting Information System” has been employed to construct plans, necessary decisions and govern all the related matters. This said system is to be supposed to quench all the money related queries of the concerned organization (Todnem, and Burnes, 2011). It prepares budget and checks progress. Finance department of Tesco contains a process which aims at all economical events of future.

Tesco’s functional area of Human Resources:

Human Resource is considered as Tesco’s second most essential department like any other big organization. In the middle management system of Tesco, Human Resource department of Tesco aims at selection, recruitment, training and developing of the employees. Right worker or manager at right place has given Tesco a strong performance. It is also the liability of Human Resource sector to fit the newly installed employees into the work culture of Tesco (Rollison, 2008).

In the recruitment process of the Tesco, all wiling people at first have to fill up an application form. It is very important strategy of Tesco to recruit new employees. In that form, Tesco asks a would-be employee about her/his personal factors, individual skill, communication skill and expectations from the job. On the basis of the ‘psychological’ form, Tesco’s human resource department judges and overviews all the people and good ones are to be chosen from the list (Baker and Desjardins, 2013).

As the responsibilities – at first – legal responsibility comes forward. According to data protection law, Human Resource Department of Tesco keeps all the data and all the records about employees, stakeholders and people related to the workforce. In short, Human Resource Department of Tesco plays in the concerned organization a very important role to employ new employee in the work processing so that workforce can be enriched. Lawfully maintain all the confidential data and records is also a key duty of Tesco’s Human Resource Department.

For engaging more people with Tesco they have introduced “Club Card”.  As far record says, Tesco has over 1.5 million members. This thing has helped Tesco to improve near about seventy percent of sell. They have spent their resources, capital and time on customers and people to attract them more (Steers et al. 2004).

Function of Marketing in Tesco:

Marketing Department of Tesco normally is busy in researching marketing department. This department makes new ideas to generate profit. Customers’ feedback such as problem, complaints is dealt by Tesco’s marketing department. Key personnel of marketing department generally make it confirmed that sales promotion is going to take right path in that organization. Promotion of sales and marketing has to be effective for all shoppers so that they easily can witness that. Proper advertisement, maintenance of online portal and database, up gradation of all the information are one of the main duties of Marketing Department (Augier and Teece, 2009).

Descent study on customers has shown that they look for low prices for good and branded commodities. Marketing department of Tesco has invested their resources and efforts to keep prices of many commodities low. Marketing department of Tesco has gained this by the speculation of over thirty million ( , 2014).  They have achieved this criterion by better gathering of raw materials, savings from all supply chain procedure, shorting down unnecessary expenses and developing sales mix.

Tesco has also aims at customer care services. Tesco has newly introduced 24*7 trading at some retail outlets and employed more than five thousand ‘customer assistant’ to give greater care for the buyers. Tesco’s 9.8 percent salary cost comes from selling directly.

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Activities of Administration:

Each and every organization needs an administration system to be more cohesive and methodical. A methodical organization can perform quite well and optimistically (Dionne  et al. 2007). Tesco has also an administration to run the business with fruitfulness. Various portions and segments of business, different sectors are brought together by the administration of the concerned company. Calculated way to work has enabled Tesco to act properly. Administration has a crucial role to attain the objectives of the company.  It plays a role of a bridge between the employees and executive managers. Administration of Tesco notes down all the processes and methods through which the managers, directors, leaders and employees have to generate the job. This thing has a crucial impact on the organization. All the relevant people of the workforce may be able to know what is going to be done as the company’s product and in which way the product is going to be produced. Due to it all staffs of Tesco can come under a single ceiling.

Another duty of the administration is to observe exact processes and products of the work (Stumpf, 2006).  Tesco’s highly supervision and performance appraisal have fallen good impact not only in the commodities but also in the performance of the employees. Administration with the help of human resource department is considered as a successful one to motivate all the employees. Continuous monitoring and inspiring workers put good results on services.

Another very important aspect of Tesco is to conform that the concerned organization has successfully reached at the desired ambition. Beside it, administration department also needs to confirm that the organization is well equipped with proper machines, staffs, resources, raw materials and apt marketing space. Supporting staffs of administration sector in Tesco are very developed to handle every situation in every marketing policy. In this content Tesco has shown its transparency.

Activities of AdministrationActivities of Administration

Research and Improvement:

The main responsibility of the research and improvement department of an organization is to attain a competitive edge in the business world (Chen, 2009). Tesco’s department has researched to improve the quality of goods, advertisement policies and customers’ satisfaction with ethics and proper value. Tesco has spread it up in different places. So it is their million dollar business. They need proper way to look it after. High risk to project business is essential in the corporate arena. To take apt risk and way research team is needed (Fombrun  et al. 2008).

Research team of Tesco has added new creativities to their business. They consider them as a multichannel retailer. They give their customers many facilities with an extensive collection of products and services. Tesco Mobile, Tesco Bank and Blink-Box belong to the services of Tesco along with its grocery goods. The variation of products under a single banner attracts consumers to the world of Tesco. Blink-box is a video-on-demand service introduced by Tesco.  “Talking Shop” is new ideas of Tesco. “Haris + Hoole” and “Giraffe” are online facilities through which the customers of Tesco can shop and meet with others also. Research and improvement team of Tesco has given the grocery shopping concept a new looking.

Managerial Sector:

As per corporate governance an organization contains some necessary and executive posts at the managerial sector. Board of Directors and Executive Committee are considered as the supreme of the concerned organization. Generally Board of Directors holds some posts of odd numbers and Executive Committee also comprises few essential personnel (Hem et al. 2009).

Board of Directors in Tesco has twelve members. Those are respectively Non-executive Chairman, Group Chief Executive, Chief Financial Officer, Senior Independent Director, and seven Non-executive Directors and Company Secretary. Sir Richard Broadbent is the Non-executive Chairman. Executive committee of Tesco holds seventeen members. Those designations are Group Chief Executive, Chief Financial Officer, Chief Marketing Officer, Managing Director-UK, Managing Director- Developing Business, Group Commercial Director, CEO of Tesco Bank, Director of Group Business Planning, Group Personnel Director, CEO Asia, Chief Information Officer, Group General Counsel, Group Property Director, Group Corporate Affairs Director, Group Multichannel Director, Managing Director- Central Europe and Turkey and Company Secretary.

Treasury Management:

Treasury management is very important in an organization. Through this management system the treasury of a company is monitored and maintained (Kapferer, 2008). It is ultimately supervised by the board. External and internal auditors review this. Another work of the treasury management is to face financial risk which may caused by exchange and interest rates. Tesco also maintains this treasury management.

Management Activities:

Generally management of an organization bears the liability to ensure the concerned organization’s operations and objectives. They take rules, regulation, authorities, laws, social construction, and work environment into their construction.  Activities of management are not the same as activities of the managers. Managers generally control individual sectors of work. But the whole management monitors the whole process of the workforce in the concerned organization. There are some problems with performance appraisal system of the employees. Continuous judging of employees may a cause of monotony of them. Beside it, though managers think that they are doing a good job with appraisal, many times the appraisal system in many organizations is seen as obstructive (Yasin et al. 2007).

Activities of Management Team in Tesco Stores:

Each and every store of Tesco runs as it is self-dependent and independent one. Every employee of every Tesco store is reported for subscribing great customer service and customer facilities.


It has been experienced that every Tesco branch in United Kingdom supplies great customer satisfaction. Staffs of Tesco attend every consumer with importance. It is important in Tesco that every employee shares their view to promote sells and the employees also share their experience of endorsing goods with other employees (Delaney and Huselid, 2009).

Size of Stores:

Naturally Tesco establishes its stores and branches on the basis of market demand at tactful locations. So, on the basis of adjacent business objectives the stores may be big or little. Every store has individual and unique challenges to promote the business of Tesco. Every store – irrespectively large or little – get necessary helps from the management.

Friendly Structure:

Tesco’s stores are not permitted b\y the chief management to keep the crucial buyers waiting. Every puzzled customer gets a well structured way to find her/his own products. Beside this, Tesco offers a huge preferences and huge rewards for their consumers, employees and stakeholders also.

Ownership style of Tesco:

Organizational situation of a company depends also on its ownership style. An organization’s success and failure are related to its partnership style and its partnership activities. Tesco is a Public Limited Company and is possessed by shareholders. Generally, the original proprietor loses her/his influence in the organization by the quantity and amount of the share trading. The concerned organization, Tesco, is in the tertiary sector and also in the secondary sector, as Tesco delivers its own produced commodities.

What Public Limited Company is:

A Public Limited Company or PLC is a typical ‘Public Company’ according to the laws of United Kingdom. Shares of a public limited company are marketed to sell openly in the stock exchanges market. Shares are open of a public limited company for public. Least share capital of a public limited company is fifty thousand pound. Such kind of companies may be included in the stock exchange market or not. A private limited company is limited by shares. This company has to pass certain resolutions to be existed as a public limited company. A public limited company also can be transferred into a private limited company. Such a company contains various types of shares like redeemable shares, preference shares, ordinary shares, cumulative preference shares and bearer shares. While a public limited company is going to be formed, all the members of the concerned organization have to agree to hold all or some amount of the shares. Those people are considered as the subscribers. The Memorandum of Association is prescribed to display the names of the subscribers and the amount of their shares (Olian and Rynes, 2008).

Public Limited Company

Tesco as a Public Limited Company:

Tesco is considered as a public limited company as the company has spread its shares for public in the market. Tesco has been witnessed to expand itself in numerous paths. Through the shares trading Tesco has been able to raise the funds. As a Public Limited Company, Tesco has very limited responsibilities for all of the shareholders. Business style of Tesco has unique legal existence. If anyone of the shareholders die. Tesco will not be stopped. Tesco also can increase its capital, as there is no certain limit of share-trading in stock exchange market. Moreover the shares of the Tesco are totally free to transfer and it gives many more liquidity ( , 2014).

Beside all these merits, Tesco bears also some demerits as public Limited Company.  A public limited company has to produce its obedience to many legal formalities. These formalities are too much costly and these also suck many important time of the concerned organization. As, in Tesco, many common public are engaged as the shareholders there are many strict controls of government and legal rules and regulations to be maintained mandatorily.  For keeping all the regulations intact and supervised Tesco spends many times, many capital and many human resources. Moreover, Tesco is bound to publish its accounts reports. It is also considered by many experts as a hectic deed for developing and developed companies. As Tesco is a public limited company, the actual owner or owners of it may lose supervision and proprietorship over the organization (, 2014).

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Most important problem for Tesco as a public limited company lies under the management sector. As a public limited company is large in size, it can face the problem to maintain the whole management of the commercial network. Bigger management chain produces sluggish decision making hazard. It may be rooted as a big cause to worry for business ( , 2014).


The whole concerned study is based upon management and organizational situation of Tesco Public Limited Company which is actually a British organization. All the matters of Tesco’s management and factors behind organizational situation here have been granted under consideration and discussion. Since the foundation period management of Tesco has shown its innovation and as an organization, internal and external situations of Tesco are great. The concerned organization needs to look after recent redundancy debates and limitations as a public limited company.