Tableof Content 2
1.1Task 1 a 4
1.2Task 1 b 5
2.1Task 2 a 6
2.2Task 2 b 7
The paper begins with an analysis of the goals and aims of TescoChain of supermarkets. Managers can use their function of planning,organizing, leading and controlling to achieve the objectives of thecompany. In the process of strategic management, internal analysis isa crucial stage because it defines the competence of the firm. Manybenefits accrue to companies that encourage employee innovativenessand those that invest in effective communication.
The success of any firm is greatly dependent on the management role.Good managers can take a company to greater lengths while theirincompetent counterparts can bring a company to its knees in a matterof days. Corporate goals and aims help to guide managers to ensure acommon point of focus in all management functions. A good managementteam is the one that aligns itself with the corporate goals of thecompany they work for. Mangers who concentrate on petty sideshowswith their juniors often deviate from the corporate goals of thecompany. This paper seeks to analyze the role of management,organizational structure and effective communication on the successof a business.
In the financial year that ended in May 2015, Tesco set up a numberof corporate goals and targets to guide the management for the nexttwelve months. Among the most emphasized corporate goals wereregaining trust with creditors, developing a new business conductthrough training, a speak- up culture with prime focus on ethics,helping tackle food poverty, and helping on health (tescoplc.com,2016). Tesco’s success is built on offering customers exemplaryservices and a wide variety of goods. All the corporate goals set in2015 aim at improving customer service in the supermarket chain.
Managers can use the function of planning to achieve Tesco’s goalto regain trust among creditors (Macmillan & Tampoe, 2001). Themanagement team can plan a repay plan to all creditors in theshortest time possible in order to avoid breaking trust. Managers canalso plan to have talks with other employees in a bid to enhance aspeak-up culture. The planning function of management will beimportant in materializing all the aforementioned goals because theyare all new objectives that lack an implementation plan.
Organizing the members of staff to meet the corporate goals of Tescois a crucial role of management (Macmillan & Tampoe, 2001). Forinstance, for the managers to develop a new business conduct throughtraining, they will need to organize the employees into smallergroups that will go into training. When a company sets out on analien path, organization is necessary to maintain its integrity.
Goals that require the employees to develop a new organizationalculture will need the function of leading and controlling (Macmillan& Tampoe, 2001). In order to institute the managers will lead byexample and control non-compliance. The managers will also need toexhibit control and leadership after the company employees undergotraining on ethics. Without these functions of management, all theethics learned during training will not undergo implementation.
Tesco’s organization structure comprises a board of directors atthe top, supported by a committee (Tescoplc.com, 2016). The committeeadvises the director regarding the issues of management as astrategy. Below the directors are the managers. The organizationstructure of Tesco falls under the category of divisional. Since thecompany has branches in several countries in Europe, it cannot affordto have autonomous departments with distinct goals and aims. Suchorganization structures can only be functional in smallorganizations. Tesco on the other has branches in different regionshence it would be impractical to assume that all branches havesimilar challenges and goals. Differentiating the company intodepartments would make the coordination of the numerous a nightmare.For instance, the Human Resources department would be in charge ofemployees in over 12 branches. With such a wide scope ofresponsibilities, mistakes are bound to happen.
The divisional organization structure employed by Tesco is becauseof the numerous roles that the company engages (Jones, 2010). Theentity procures products from producers, stores them and conductsvigorous marketing. All these roles, including traditional functionssuch as HR, finance and administration, make the running of Tesco acomplex venture. The primary advantage of this organization structureis that it allows local branches to concentrate on their customizedgoals rather than working towards general organization goals that maynot be applicable to that particular locality. The structure alsoallows managers to share information, hence increasing coordinationbetween various departments. In addition, the organization structureallows employees to have a shared culture and supports factors thatenhance employee motivation. The major drawback in this structure isthe repetitive effort in decision-making. Managers and directorsalike make decisions on the same issue leading to time wastage.
Task 2 a
The internal analysis seeks to establish the strength, position andcompetitiveness of the firm in accordance with achieving its goalsand aims (Macmillan & Tampoe, 2001). An internal analysis issynonymous with a SWOT analysis performed on businesses before theymake major decisions.
Internal analysis is important in determining the organization’sstrength and competency (Stock & Lambert, 2001). A commonquestion that arises is how well a firm know whether it is strongand competent? A strong, firm uses appropriate technology to performimportant tasks. In addition, a strong firm meets its financialgoals. Firms can establish their competency by comparing some of itsaspects such as turnover, human resources, and production methods,with those of competitors.
An internal analysis will enable the company to detect any loomingthreats (Stock and Lambert, 2001). This type of analysis in strategicmanagement gives the managers to look at the company from theperspective of the future. The analysis will tell whether the firmcan withstand future threats or not. With the current market placebeing filled with new entrants, the firm needs to devise ways tocounter their innovative products, hence the need for internalanalysis.
The analysis helps the managers to determine the cost position of thecompany (Macmillan & Tampoe, 2001). The cost position of acompany is its ability to acquire more resources. If a firm is in aposition to buy more resources, the number of business opportunitieswill increase. However, if the cost position of a firm is weak, itshould concentrate on fully utilizing the available resources insteadof acquiring new ones. Hence, through internal analysis, the firmprevents blind acquisition of resources, a venture that may renderthe company bankrupt.
Task 2 b
According to Azanza et al (2013), an organizational culture thatallows employees free time to experiment with new technology,products or services, encourages a culture of innovation. Quiteoften, managers expect their juniors to be engrossed in their work inorder to make the best use of the employees. These managers are alsohesitant to try out new processes or services proposed by employees.They believe that the only way to achieve corporate goals and aims isvia playing by the book. Such a culture prevents employees fromexercising their power of creativity and consequently, growth of thecompany stagnates because it relies on a few people to create newsolutions and processes.
The company management should be intentional in its quest toencourage innovativeness among employees. In most instances,companies have vague objectives regarding employee innovations(Uzkurt et al, 2013). A company could state its objective for thefinancial year 2015/2016 is to increase levels of innovativeorganizational culture. Such a goal is vague because it does notinclude the mechanisms through which the company intends to achievethe goal. A company that wants to increase employee innovativenessshould make its intention clear by laying down tools to support sucha venture. In addition, the leadership of the form should be at theFrontline when it comes to matters innovativeness.
Companies should implement innovative ideas from employees in orderto instill an organizational culture of innovativeness (Uzkurt et al,2013). When an employee spends most of their free time to develop aprocess that will reduce the time spent per client, they expect thecompany management to adopt the idea. When managers fail to implementthe innovation due to logistical issues- or sometimes mere ego- theemployee will be demoralized from materializing any other innovation.It is therefore important to ensure that brilliant innovation byemployees do not go to waste.
Task 2 c
Effective communication allows big and small firms alike, tocoordinate their activities (Austin & Pinkleton, 2015). Withoutcommunication, a company such as Tesco would run into losses on adaily basis. For instance, Tesco needs effective communicationbetween all its branches to facilitate uniform implementation of newpolicies and avoid duplicating roles. A firm without effectivecommunication will encounter problems such as wastage of rawmaterials, and failure to address disgruntled employees.
Effective communication is a major contributor to employeemotivation. When employees maintain clear channels of communicationbetween themselves and their superiors, they develop a sense ofimportance to the company (Austin & Pinkleton, 2015). Whenvertical or horizontal communication is ineffective, a feeling ofbelittlement often creeps in. The affected parties will feel inferiorand worthless to the organization. Consequently, their motivationgoes down. If such a scenario happens on a larger scale, then theperformance of the company is bound to go down.
According to Ulmer et al (2013), when communication is effective,passing information becomes easy and distortions are limited.Distorted information is often a result of unnecessary bureaucraciesdue to long chains of commands. In such organizations, by the timeinformation trickles down the pyramid, its original state is alreadydistorted. However, when an organization maintains a short chain ofcommand for all the important information and pressing issues, theoperations of the firm run smoothly.
Effective communication is important if the organization intends tocreate good relations with stakeholders. A company needs tocommunicate well with rivals, creditors, the society, shareholdersand clients. These groups of stakeholders form the networks thatevery company seriously needs. Improper communication may create awrong impression in the minds of these stakeholders. A company couldeasily go down the drains if miscommunication occurs between it andany of the networks.
Austin, E.W. and Pinkleton, B.E., 2015. Strategic Public RelationsManagement: Planning and Managing Effective Communication Campaigns(Vol. 10). Routledge.
Azanza, G., Moriano, J.A. and Molero, F., 2013. Authentic leadershipand organizational culture as drivers of employees’ jobsatisfaction. Revista de Psicología del Trabajo y de lasOrganizaciones, 29(2), pp.45-50.
Jones, G.R., 2010. Organizational theory, design, and change.Upper Saddle River: Pearson.
Macmillan, H. and Tampoe, M., 2001. Strategic management: process,content, and implementation.
Stock, J.R. and Lambert, D.M., 2001. Strategic logisticsmanagement (Vol. 4). Boston, MA: McGraw-Hill/Irwin.
Tescoplc.com. 2016. Strategic report. Retrieved from<http://www.tescoplc.com/files/pdf/reports/ar15/download_strategic_report.pdf>Accessed March 20, 2016
Ulmer, R.R., Sellnow, T.L. and Seeger, M.W., 2013. Effectivecrisis communication: Moving from crisis to opportunity. SagePublications.
Uzkurt, C., Kumar, R., Semih Kimzan, H. and Eminoglu, G., 2013. Roleof innovation in the relationship between organizational culture andfirm performance: A study of the banking sector in Turkey. EuropeanJournal of innovation management, 16(1), pp.92-117