Investigate about the important roles that management plays in achieving my chosen organisation aims and objectives. My chosen business is Tesco's.

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INTRODUCTION

In this assignment, I am going to investigate about the important roles that management plays in achieving my chosen organisation aims and objectives. My chosen business is Tescos, which is UKs biggest retailer; it operates in the tertiary sector.

The focus of this report covers an explanation of how the management team of my chosen business uses planning and monitoring to help achieve the organisation's aims and objectives. I am also required to describe the role of management in improving the performance of my chosen business (Tescos) and show how management activities can raise performance.

Secondly I am to describe ways in which manager's role including the management of resources. I will have to demonstrate the role of manager's interpersonal and communication skills and make recommendations.

Finally I will evaluate the role of management in improving performance and the different ways in which management functions may be met more effectively through the use of interpersonal and communication skills.

Task 1

Explain how the aims and objectives of a business may be achieved through Planning and Monitory.

TESCOS

It all started in 1924, when a Sir Jack Cohen started selling groceries in London's East End markets. By the1950's, this had grown and supermarkets were now in development. Tescos opened its first and indeed the UK's first superstore in 1967, and by the 1980's had opened many corner stores.

Tescos quickly overtook Sainsbury to become the largest food retailer in the UK, with 1,982 UK stores, consisting of 62 Extra stores, 442 Superstores, 167 High street stores, 109 Express stores, with many accompanying a Tescos petrol station, and 1,202 newly acquired T&S stores, which was a leading convenience retailer.

Tesco offers a wide variety of food products, in-store bakeries, household goods, clothes and toiletries. Tesco has also adapted to the rapid technological changes, increasing its sales by 26% (£447m) from last year, on the on-line sales site - Tesco.com, alone.

Tesco has achieved this position as Britain's number one food retailer by offering excellent value and service to its customers.

Tesco's reputation as the supermarket choice has grown in the last five years. It now has a 53.93% (as at 21/11/03) Market share of the Food & Drug Retailers sector.

Group sales for the financial year-end 23 February 2003 rose 11.5% to £28.613bn. Tesco's joint venture with the Royal Bank of Scotland, made a profit of £96m in the year, of which Tesco get £48m.

Activities

Tesco sells all types of grocery's, non-foods, clothes and electrical items and some more kinds of products. It basically has everything that a newsagent has (even more than a newsagent). When Tesco's first started it only had all types of food but now they also sale electrical items and clothes and also toys for the young ones.

Recently Tesco focused on developing the brand into non-food and now stocks electrical items, home entertainment, toys, sports equipment, cookshop and even lighting and furnishing in many of its larger stores. Tesco also has its own brand on non-food, including value and finest ranges

Tesco's competitors are J Sainsbury, ASDA and Somerfield but it mainly competes with J Sainsbury and also tries attracting more of their existing, new and competitor's customers by giving out vouchers to their customers for discount on some of their products and services. Tesco's main Customers are their local residents and mainly middle-class people which weekly purchases are mostly products of Tesco. Tesco says, "For us our main customers are Kids," as they make their parents to go shopping.

Ownership

Tesco is a public limited company (plc), which is all owned by the shareholders so the original owner loses his/her power of the company by how many shares are sold. Tesco is in the tertiary sector and also in the secondary sector cause it also supplies it's own product

The advantages of the Tesco ownership are:

It is a public limited company.

The owners have benefit from limited liability.

The amount of capital for expansion and development is greatly increased because there are thousands of shareholders

The value of share increases cause the company is successful

It can make savings on purchasing products. For instance, they can mass produce goods for sale and buy in bulk

The disadvantages are that:

* Companies have to fulfil a number of legal formalities like publish an annual report that can be read by their competitors.

* Public limited companies have their business affairs discussed in the newspapers that can ruin the reputation of the business.

* More expensive to start off a company

* The profits are divided in the shareholders

Aims and Objectives

Aims - are the long-term goal of a business

Objectives - are the targets that help firms to achieve their aims

Aims

Tesco's aims are to be the best supermarket in the whole world and provide better services than its competitors. Its main aim is to sell most of it frozen foods through the Internet. The diagram below shows all the Tesco's aims. It also has two main aims, which are: Increase its share of the U.K grocery market and the other one is to Develop its non-food business and the other is to increase its bakery foods

Objectives

Tesco's objectives are that sell more than its competitors and to also sell more of its products that the previous year. To fulfil Tesco's aim that to increase its non-food business Tesco made some main objectives like advertise more of its non-foods, publish it on the Internet and also make it cheaper if bought through the Internet and also improve its services. One of its main objectives in the year 2000 was to be the leading grocer in the world by selling more of its products over the Internet and now that objectives are fulfilled. Tesco has main five objectives, which are:

. To understand their customers better than any of their competitors do.

2. To earn the respect of their staff and to appreciate their contribution of achieving them.

3. To be energetic and innovative and to take risks in making life better for their customers.

4. To recognize that the brilliant people working for them and to use this strength to make our customers shopping enjoyable in a way that no competitors can.

5. To use intelligence, scale and technology to deliver unbeatable value to customers in every thing they do.

As required, I have to show how the management in Tesco can use planning and monitoring to achieve their aims and objectives.

Planning: Is the determination of the goals and objectives of an enterprise and the selection, through a systematic consideration of alternatives, of the policies, programs and procedures for achieving them. An activity devoted to clearly identifying, defining, and determining courses of action, before their initiation, necessary to achieve predetermined goals and objectives. Its the analysis of relevant information from the present and the past and the assessment of probable future developments so that a course of action may be determined that enables the organization to meet its stated objectives. Planning effectively must be written and agreed, separately and together by the organisation. Planning is also the process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the goals

Planning in Tescos involves setting both long term and short term goals and plan on how to achieve them.

The management of Tescos use planning for the following reasons:

> To offset uncertainty and changes

> To focus attention on the business objectives

> To gain economical operation

> To facilitate control

In Tescos the planning process are set in stages, which are:

Types of Planning used in Tescos

Strategic

Tactical

Operational

Strategic

This are the highest position in the company E .g. board of directors

It helps the senior management of Tesco tackle and address strategic issues and long-term trends both in the firm and external environment. Match changes in external environment with existing organizational capability such as: Where will employment level be in five years? e.t.c

The types of information required in this level are as follows:

* They need both short-term and long-term information to make future decisions.

* They require information from both internal and external sources.

* They do not want non-routine information.

* A highly summarised and fully explained information in both graphical and text is required.

Tactical

This is the middle level of managements and they are higher than other employees e.g. Finance manager

The types of information required in this level are as follows:

* Qualitative information is needed.

* Internal sources of information.

* They require less summarised information.

* They require routine information.

Operational

Support operational managers by keeping track of elementary organizational activities and transactions. Systems answer routine questions and track the flow of transactions through the organization such as: Systems to record bank deposits or track the number of hours worked each day

This is the lowest level in an organisation Supervisors, chief clerk.The types of information required in this level are as follows:

* Daily, frequent and regular information are needed in order to perform any task.

* They require short-term information.

* They mainly use internal sources of information.

* And they only need and use qualitative information

Monitoring: In Tescos is the regular collection and analysis of information to assist timely decision-making, ensure accountability and provide the basis for evaluation and learning. It is a continuing function that uses methodical collection of data to provide management and the main stakeholders of an ongoing project or programme with early indications of progress and achievement of objectives. It's the act of overseeing the progress of business performance or activities to ensure that the right and well being of participant are protected. Monitoring is also an intermittent (regular or irregular) series of observations in time, carried out to show the extent of compliance with a formulated standard or degree of deviation from an expected norm. And also keep a close watch over implementation. Organisations undertake monitoring to assess whether these objectives are being met.

Monitoring is used in Tescos to:

> Monitor the set objectives of the business

> Help in the forecast of their sales

> Control their monetary, capital and production budget

I am now going to show how the management in Tescos plc uses those two activities which are planning and Monitory in the purpose of meeting the company's goals.

To provide shareholders with good dividends - As a profit making company, profit is vital to Tesco plc because to survive and grow as a business and be in the position to produce more good quality products. Planning and monitoring help them to make their customers aware of a new product introduced into their existing range; basically they will be more worried about the form of advertising to use, implementing the marketing mix (place, promotion, price, product). The management of Tesco will decide if offering incentives to consumers, like cheap products but of excellent quality, discounts and vouchers and more important how to come up with new strategies to sell the product in great quantity will profit the business and therefore the shareholders.

Planning and monitoring will help them acknowledge whether or not the new strategies put in place are going to help generate more profit to them and their shareholders as well as their stakeholders. Planning and monitoring will help them to know when Tescos plc management will have to increase their sales or decrease on their costs of production in the short run which will therefore end up as profit maximised.

Providing quality goods:

The action of planning and monitoring will help Tescos plc management keep to their aims, which is, to provide consumers with naturally homemade products such as shampoos, toiletries hair and skin products to all its customers. Planning and monitoring will the help the management team to plan in advance when they are ready to order for new raw materials through Community Trade, which a small group of third world countries suppliers exclusive to Tescos and keep an eye on the stock the raw materials will not rot inside and the finished products will be available when the consumers will demand for them. Planning and monitoring will help Tescos plc to be able to get the right raw materials in order to be able to provide quality product.

Survival as a business:

Planning and monitoring will help Tescos to achieve this objective by surviving as a business. Basically with planning, management can plan work according to the main objectives and overall targets of the business and prepare budgets for the different departments so that the money is spent according to each department's needs and overspending will be avoided.

Planning and monitoring will help management of Tescos plc to focus on the well-being of employees and see if they are being taken care of and more crucial to see in which conditions they are conducting their daily activities, if they are happy in order for them to achieve their best for the surviving of the company. This will achieve a great deal for the company and employees would be more concerned in bringing the different departments to work together to achieve goal congruence and this will make them feel more involved in the success of the company.

Make Profit

Profit is very important to Tesco. To survive as a business and be able to produce more quality product then profit will be more important. Planning and monitoring help them if there is a need advertised what they sell into the media, choosing a location, providing quality products with discounts an how to increase their stocks cutting down prices or bring out new strategies to sell their product. Planning and monitoring will help them to know whether or not the new strategy is going to be beneficial to the business and whether it will help generate more profit. In order for Tesco to achieve the objectives of making profit, management will have to make sure they plan and monitor the use of the available resources and make sure they plan staff training under customer care well so as to be able to attract more customers to be able to boost profit. Planning and monitoring will help them to know when Tesco management will have to try and increase their sales or cut down on their cost in the short run because, they know that in the long run this will make more profit for the business. Management of Tesco will use monitoring and planning to achieve this aim of making profit by planning to improve performance in work such as fast customers care. If management prepare budget for each functional area and its being monitored there will be no wastage of company's and work targets will be achieved.

Providing competitive service:

Planning and monitoring will help Tescos plc to provide highly competitive service by undertaking and cutting their competitors. For instance, planning will help them in knowing about their competitors' (Sainsburys, ASDA) prices, products, and how well they respond to their consumers' needs and wants, so that they will make improvements if needed on their services and products. As their main objective is to achieve great sales at affordable prices, they have to make sure that they keep it up as long as possible to retain their existing consumers and maybe attract new or potential ones and make more profit.

Environment friendly:

Tescos plc is a company really concerned about their competitive environmrent and their environment as well. Tesco uses organic ingredients in some product formulations. Examples include the Food-Inspired Body Range and the Lavender and Bergamot fragrance ranges. These products include organically grown ingredients sourced through their Community Trade programmes, and those are achieved through the planning and monitoring activities of management. Protection the environment includes control on vehicle emission, how the business recycles their plastic bags given to customers, and more important Tescos Purchasing Rule stipulates that the Company will not purchase any ingredient that has been tested or retested on animals for cosmetic purposes since at least 31st December 1990. Rejecting animal testing does not reduce Tescos ability to produce safe, effective and innovative products. There are over 8,000 ingredients available to select many of which have a long history of safe use from. Their monitoring systems are certified against the international Humane Cosmetics Standard, which is operated by a leading animal protection group. Planning and monitoring will help Tescos plc to control the management of energy consumption, recycling by providing dump bins in-store and reduce the environmental impact of its own merchandises

Providing Employees with good conditions and fair pay:

Planning and monitoring helps the management in Tescos plc treat their employees with consideration and pay them with the correct rate corresponding to their skills and qualification. Planning will help them design a program of induction, which will play a crucial role in helping new employees understand and engage with the Company's retail vision and values. They will make sure that the working environment is suitable to the employees to achieve their duties without feeling insecure, unsafe and restraining them from enjoying themselves while working. Close circuit cameras are installed and kept on 24-hours/7 day operation in order to keep resources on sight. The cameras are used to track down potential shoplifters and to see what is going on in the stores. Tesco treats its management and employees with respect and pays them what is considered to be the going rate for the job as their aim is to develop opportunities to employees' abilities and well rewarded for their contribution to the success of the business. Through planning and monitoring they can settle their employers without going to other company by organising training so that they can develop their skills and motivating them. Because if employees are happy they will work well by using the skills they have developed to help the business to survive and achieve its aims and objectives.

Clock - in machine system is installed for main purposes such as:

For wages and salaries- it records the time employee clocks in for work, records the time employee clocks out of work, deducts employee's break time and works out the total wage the employee is entitled to get. This is also helps the company as a whole to work more efficiently and to ensure that employees are not being underpaid or overpaid for their services as this may lead to employees leaving or suing the company.

Emergency - let imagine that there a fire or any other catastrophe, sand evacuation is required, this system plays an crucial t because it is connected to a computer system that prints out the list of names of employees who are still at work at the time of fire or catastrophe evacuation.
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They will monitor the employees' performance through appraisals, which is a method of reviewing individual performance against the company's objectives.

Increase in Market sharee - This is the proportion or percentage that the company have in the market in terms of customers. This is one of the main aim and objective of Tescos.For instance in 2004 the market share of Tescos increased and customers are still dedicated to Tescos as in the purchase of their products, the management of Tescos have set more standards to continue to increase their market share through the planning and monitory of ...

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