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Each sort of organisational structure has a certain function, and there are many different types of organisational structures available. These activities may include rules, roles, and responsibilities, among other things. The flow of information between levels is also influenced by the organisational structure of the organisation. While decision-making power is distributed across various levels of the organisation in a decentralised structure, decisions are made by a single person in a centralised system (Brightand Deegan, 2021).The visual portrayal of a company's form and how it may best go ahead in accomplishing its objectives is provided by this structure. The most powerful people of an organisation are usually shown in a diagram or chart resembling a pyramid, while those with the least authority reside at the bottom of the hierarchy. Certain organisations may struggle if they lack a proper structure. Some workers may not know to whom they should be reporting, for example. Because of this, there may be confusion about who is accountable for what in the company.
Line Organisational Structure
All of an organization's functions are carried out in a linear fashion. Authority passes directly from one person to the next. The chain of command or scalar principle is the simplest and oldest (Brewsterand Söderström, 2017). The chain of command begins at the top and works its way down. Every employee is responsible for his or her subordinates, and he or she is solely answerable to his or her supervisor.
When large corporations are broken down into smaller subunits, a divisional organisational structure makes this feasible. Despite the fact that this kind of organisational structure is often better suited to larger corporations, it may be beneficial to a smaller company in certain cases (Yin et al., 2018). Groups that are self-managed and focused on a single product or service tend to be more common. Dividing an organisation into smaller units has its benefits and downsides.
Efficiencies, safety, and performance are the primary goals of Tesco's strategic planning. In order to maintain a competitive pricing advantage, they concentrate on delivering value across their supply chain and customer network (Lon?ar, 2017). To preserve capital inflows and resource allocation, they guarantee that their shareholders are valued. In order to expand the scope of their exploration and innovation projects, they are focusing on expanding their research efforts. They are dedicated to ensuring that their goods and services meet the highest standards of quality. There is an emphasis on strengthening their ties with their suppliers and partners as well as their consumers.
To organise Tesco's approach, strategic planning tools may be employed for gathering and interpreting the necessary information. They are used to organise the resources required to boost a company's efficiency and productivity. The ability to think creatively and effectively about the most pressing topics is also a benefit (Muli, 2019). Performance and strategic planning may also be measured in order to ensure long-term development and favourable consequences for the company.
If Tesco's market attractiveness and company strengths are both strong, they may make investment choices by focusing their resources to strengthen their strengths. By focusing on areas where the market's need is greater than their own company capabilities, they may generate competitive advantages such as a diverse product offering, a unique store design that enhances the shopping experience for customers, and a reliable delivery system (Awadariand Kanwal, 2019). Tesco's strong market position and core competitiveness allow them to retain profitability even if the market's attractiveness is lower than their company strengths. If the market's attractiveness and Tesco's commercial strength are low, Tesco may concentrate on their product line segment and overhead expenses to stay profitable.
PESTLE analysis on Tesco
Furthermore, Tesco has business in a number of other countries. It is the company's responsibility, as one of the largest retailers in the world, to ensure that its products are safe and compliant. The company must keep an eye on the political atmosphere in each of the countries where it has business (Rosnizam et al., 2020). Political stability is a major worry. It's more probable that business can take place under a stable political context. A recent example is the Brexit. Brexit has raised questions about whether or not new limitations on imports and exports may negatively impact sales.
The company's revenue, sales, distribution, and profit might be significantly affected by changes in the economies of the countries in which it operates. The firm should be aware of the various tax regulations so that it may take advantage of them. In spite of the company's expanding foreign markets, the UK remains its primary source of revenue (Rosnizam et al., 2020). In the event of any changes in British law, the company's distribution model is likely to evolve significantly and the costs associated with this may be tremendous.
As a result of the frantic pace of contemporary life, Tesco has built its stores to accommodate customers who like to buy everything at once. Consequently, the company has become mostly a non-food business (Baliyan, 2021). Social standing and the influence of society impact the products that customers want. When it comes to buying products, cultural elements may also play a part in an individual's decision-making process. Tesco must investigate these trends in changing culture and cultural effect among the next generation, and provide consumers with a broad range of products.
Keep up with the ever-changing technology environment in order to stay relevant in today's fast-paced society (Baliyan, 2021). Some of Tesco's retail experiments have been successful, while others have been less so. By providing multiple technological benefits, such as online shopping, social media marketing and so on, it is all part of influencing the customer.
Corporate activities are directly impacted by changes in government policy. It is necessary to follow both national and international market rules in order to run a profitable business (Merritt and Zhao, 2021). Many retailers are required to follow a set of standards and rules outlined by the Food Retailing Commission.
In order to enhance the environment and establish a more sustainable society, Tesco has undertaken a number of initiatives. "Remove, Reduce, Reuse and Recycle" Phase 2 has just been launched by Tesco lately (Merritt and Zhao, 2021). Plastic that cannot be recycled has been eliminated and reduced to a minimum, and the company is looking for novel methods to reuse the remaining plastic.
Effect of Covid-19
In recent years, it has been generally recognised that the COVID-19 pandemic has had a substantial impact on Operations Management, necessitating quick innovation in items and processes across a broad spectrum of organisations and supply chains. The duration of a crisis has a substantial effect on the overall impact of the crisis (Abdelrhimand Elsayed, 2020). According to predictions, just 47% of businesses would stay open in December if the crisis extended four months instead of one month. There is also a broad variety of sensitivity to the issue among the companies. Business models that depend largely on face-to-face connection, such as personal service and retail, were considered to have the lowest chances of surviving the pandemic.
Effect of Brexit
Brexit has an influence on every business because of the probable economic consequences (such as lower investment and recession) and personnel concerns (migrated workforces and skilled worker shortages). Some sectors, such as financial services, will be affected more than others, but it is those who trade globally that will experience the most significant changes. Businesses that rely on continental European suppliers or consumers would suffer as a result, while commerce with non-EU nations will suffer as a result of the EU's present free trade agreements being terminated and any customs barriers being erected. Brexit poses a genuine threat to supply networks in terms of higher costs and delays.Upon the implementation of Brexit, the government and parliament will be tasked with dismantling the United Kingdom's regulatory structure (Hillet al., 2019). Because of the way the law is regarded in the United Kingdom, businesses are immediately affected by Brexit. As part of the process of transforming EU law into British law, the courts will have to determine whether or not they will be able to utilise judgements from the European Court of Justice as a point of reference.
Businesses are having difficulties figuring out how the new legal framework in the United Kingdom would affect their operations, including their contracts and staff, as a result of the changes. Expertise in the relevant domains is required for decision-makers in order to guarantee that risks are appropriately managed and that they are aware of any potential dangers.
The organisational structure and culture of a firm have a considerable influence on the behaviour of its personnel. When a company encourages its employees to speak out, the company gains more power. The ability of individuals and teams is determined by the culture of the organisation. The power and influence of a firm's leaders are determined by the organisation of the corporation. The communication infrastructure of a company increases in tandem with the company's growth (Guthrieet al., 2017). The likelihood of workers coming up with fresh ideas increases when an organisation has a favourable corporate culture. Employees' individual peculiarities may be readily evident in the office setting.
The talents and abilities that each human has are distinct. Everyone is unique in terms of their knowledge, their approach to problems, and the experiences they've had. People that are confident in their abilities are individuals who have a great deal of knowledge and expertise in a certain profession. As much as a person's perspective differs from that of others, so do their behaviours from those of others (Obeidatet al., 2017). Individuals' actions are impacted by the characteristics of individuals who surround them in their daily lives. It is conceivable for a person to be aggressive at work while still being in the present, maintaining a high level of self-confidence, or leading a more general life that has an impact on their behaviour.
Workers in every field have been affected by technological advancements throughout history. Working conditions have improved dramatically thanks to technological advancements that date back to the industrial revolution and continue to this day. Work processes have been made more efficient and ecologically friendly thanks to its influence on the workplace, which has made working from anywhere simpler than ever (Au-Yong-Oliveiraet al., 2018). Worker productivity has never been higher. The pace of production and the speed at which business is conducted have both grown dramatically as a result of the influence of technology on work.
Workers have never been more productive thanks to technology in the workplace. It used to take hours, but today it just takes a few minutes. In a matter of seconds, you may send messages to co-workers or customers all over the globe. Companies can send payments or offers nearly instantaneously (Hortonet al., 2018). Getting everyone on the same page has never been simpler. They can collaborate more closely even while working from a distance now that they have internet communication tools at our disposal. Teams may collaborate on the same papers using cloud-based file-sharing services like Google Drive and video conferencing technologies.
Working using project management software like Basecamp and customer relationship management software like Salesforce, companies can keep track of the progress their teams are making on individual projects (Donnellyand Johns, 2021). Using basic AI messaging technologies, you can even automate follow-ups or complete customer support discussions. The Silicon Valley-style open office area with video games and beer on tap is a well-known cliché of technology in the workplace. It's hardly likely that companies would abandon their efforts to cultivate a more welcoming workplace environment in an effort to attract top talent.
The report provides a clear view of the different structures of organisation. This also shows the external factors that affect a company (here Tesco is taken for reference). The effects of Covid and Brexit is also provided in the report. The impact of technology on organisations is also shown.
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