For my business report I am investigating the Co-op erative society supermarket.

Advertising can be defined as the presenting of a product to the public to encourage sales.

It is important because it provides the customers with information about a product or service which can attract customers this can be done to notify customers of sales and new stock they also give out leaflets to notify the public of new products and special offers, Discounts and sales. There are now various mediums or advertising these include:

* Prime time television

* Internet

* Radio

* Newspapers

* Mail slots

* Billboards

How the advertising and marketing function helps the business meet its objectives

Co-op advertising and marketing function helps the business as a whole to achieve its objectives by:

).Marketing the businesses products and through the various media identified above. This enables the business to become familiar and recognized, the marketing function is mainly responsible for making the business know and its brand name recognizable

2).Advertising the advertising department enables Co-op to meet its objectives by:

Providing basic facts about the existence of the business, its address(s) and contact details - as well as any changes that take place

* Increasing sales by notifying potential customers about the businesses products

* Change people's attitudes towards the business and building a firm reputation for the business

* Recruit staff - advertising is not used solely for sales and marketing. it can also be used to recruit staff

* recruit suppliers and contractors - this also helps to position the business as active and expanding

Advertising is done by Co-op through the various mediums identified in the chart above.

Here are some of the promotions that Co-op is running this Christmas season

2. Production and Manufacturing Function

The production function is critical to the survival to any business that produces or manufactures its goods.

This function concentrates on converting the resources and raw materials of Co-op into goods or services which can be sold to customers. Resources include buildings/land, equipment, people (including specialist materials), raw materials and stock for sale. The purpose of the production function is to produce goods. The production function is also responsible for planning how to use allocated funds and capital and will also use quality control to ensure that production targets are met. The production function in Co-op concerned with obtaining the resources required to produce goods or provide a service. Production is also concerned with organising resources to produce the goods or provide the service in a cost effective manner.

ACTIVITES OF THE PRODUCTION FUNCTION

Obtaining resources required to produce goods or services:

For each production process the producer will need a wide range of resources before production is possible. These resources can be listed under four main headings:-

Land and buildings:

All production must take place somewhere and therefore require some land. Since Co-op is in the retail sector it needs land and buildings to carry out its production processes. Co-op has various warehouses and storage facilities were packaging and distribution of products to its different store locations takes place

Equipment and machinery

Equipment and machinery are classified as the tools and equipment used in the production and manufacturing e.g. computers, assembly tables, Packaging and labelling machines. Equipment and machinery also known as capital is vital to any business in the production and manufacturing sector without capital the process of manufacturing cannot take place Co-op has acquired various machines and equipment that will enable the business to speed up the production process and increase efficiency.

Manpower

These are individuals employed to produce and manufacture the goods

Co-op s production manager has the overall responsibility for the functional he ensures that there are qualified staff and personnel are available to carry out the production and packaging

Raw Materials:

These are the materials that are needed to produce goods or services. Materials can include stock which is bought for resale in retail stores and the raw materials which are purchased by manufacturing organisations and assembled into the finished product. Co-op has to buy and acquire raw materials to enable the business to carry out the production and manufacturing of its goods

How production and manufacturing function helps Co-op meet its business objectives and aims

The production and manufacturing function Co-op helps the business meet its aims and objectives by using raw materials which are then processed to manufacture and produce finished products, which are then sold to the final consumer. This particular function is important to Co-op because it is a business whose activities are found in the tertiary sector, and its main activities are production and retail. This is the main source of revenue for Co-op and it is what keeps the business as a whole in the market.

The production and manufacturing function has to carry out actions like:

* Adding value to its products to encourage customers to buy the businesses brand of goods i.e. more products for a lesser price.

* Using quality control methods to lower the businesses costs and increase efficiency i.e. less time spent checking goods for production errors and faults and correcting mistakes can reduce the businesses costs and increase profitability.

* packaging the goods attractively to encourage customers to buy the businesses products

3. Finance and Account function

The finance and accounts function in Co-op retail is responsible for looking after the financial records and transactions of the business. It is responsible for recording and dealing with all the monetary aspects of the business.

The importance of the finance and accounting function at Co-op

The finance function is the most important of all the functional areas at Co-op because this department keeps track of all the companies' finances, income, costs and revenue and also to make sure that that all bills are paid and that the staff salary is received each month.

To control the financial aspect of the business the company allocates different department budgets and expect them to keep to the planned level of income and expenditure, finance also has the task of preparing all the accounts each year and complying with its legal responsibilities to the Inland Revenue.

The purpose of the finance department at Co-op is to keep all the financial records required by Co-op retails detailing all the receipts and payments that have been made, it also undertakes the task of monitoring the income and expenditure of different departments against the budget of the company.

Here are some of the activities that Co-op s accounts function carries out In order to enable the business to run and survive cost effectively.

* Keeping track of the Businesses costs and revenues

* Analysing and interpreting financial information

* Providing information about the amount of capital needed for the business to run efficiently

* Financial documents are used and How payments are made (Methods of making and receiving payments)

* Providing financial information on business performance to managers and stakeholders

* Paying the staff and employees wages/salaries

* Dealing with the businesses debtors and creditors

* Dealing with payments to suppliers

* Making sure the invoices received from suppliers match the goods supplied to the business

Preparing accounts:

Co-op retails has to prepare its accounts for tax and Inland Revenue purposes this is important because it is the businesses legal requirement Co-op s accounting department has a team of qualified certified accountants who carry out the task of preparing the companies accounts and balancing its books this is vital because it provides a direct overview into the state of the businesses finances and disposable income.

Obtaining capital and resources

One of the aims of every business is to grow and expand into various market ventures in order to grow the business will needs funds to grow so this has to be obtained through owners and workers efforts and input into the business. Co-op obtains capital and resources to run and finance the business through investment form different sponsors and stakeholders, these include owners.

Paying wages and salaries

The finance department is responsible for paying the employees wages and salaries. Co-op uses credit transfer which is one of the safest methods of paying employees, this is a safe method because the money can be easily traced and pay advice can be given to the employees or staff.

How Co-op s finance and accounting functions help the business meets its aims and objectives

Finance is important to every business; it covers every monetary aspect of business.

Co-op s finance function helps it meet its aims and objectives by:

* overseeing all the financial aspects of the business mentioned above

* budgeting and allocating funds and revenue to the different functional departments and areas

* ensuring that employees and staff salaries and wages are paid on time

* making sure all the businesses suppliers are paid within the credit period

* researching and developing new areas and aspects for the business to generate revenue

* ensuring that the businesses profit figures and costing are updated for legal purposes

Here are the sales figures for Co-op retails stores nationwide from 1999/04

Key financial statistics 1999-2003

Restated

999

Restated

2000

Restated

2001

Restated

2002

2003

£m

£m

£m

£m

£m

Gross income

- Food retail

,590.2

2,447.6

2,624.2

2,851.5

3,468.1

- Specialist retail

504.4

615.8

656.1

782.7

860.6

- Property, production and other trading

424.1

450.5

498.8

511.2

513.7

- Federal services

,451.0

,786.1

,926.2

2,084.3

2,315.6

3,969.7

5,300.0

5,705.3

6,229.7

7,158.0

Deduct inter segment trade

(881.1)

(1,161.7)

(1,389.5)

(1,444.1)

(1,563.0

(Figures taken form Co-op online)

4. ICT function

ICT is now the most important function in any business of today, without an ICT function all business would not be able to survive in the modern market.

For a large business like Co-op to survive in the competitive market it has to have its own website this is a screen dump taken from Co-op online Co-op s website where customers can order goods online and have it delivered to their doorstep this is just one of the many functions of the ICT department

The ICT department is responsible for overseeing all the functions to do with internal and external communications these include:

* Email

* Fax

* Intranet

* Internet

The ICT department of Co-op has to ensure that all the necessary ICT components are made available to the businesses staff and employees.

Email is of importance to any business as it is very versatile, large documents and files can be sent via email and received almost instantaneously, also one document or message can be sent to different email addresses at the same time this enables quick, efficient and easy transfer of data both internally and externally through intranet and internet.

Co-op s ICT department hires skilled and qualified technicians to carry out all tasks pertaining to its ICT function from setting up its internet connection to repairing and maintaining computer equipment.

The head of the ICT department is the system administrator he/she oversees all the activities in that department. Their job is to find, introduce and new methods and technology to increase the efficiency of the business communication links.

The introduction of IT in shopping has been a progressive movement and the banks are also involved and this has resulted in new developments in payment methods.

An advancement been made in the form of electronic funds transfer at point of sale (EFTPOS) this allows Co-op to charge payments to a customers bank account or credit card account automatically this is made possible by the Co-op s ICT function. One more development has been made in this department in the form of cash back.

The Co-op pricing system is also enabled by the ICT function this is wherein over 30, 000 different products that Co-op sells and details of any special offers on them. It records details about each sale, not just the amount of each item sold, but whether the price has been reduced, the amount of money tendered and the change given. It also controls Co-op processing, registering the points earned on the card. Whilst the system manages the main grocery tills, it also has the ability to be aligned to specific business functions.

The Co-op system is also used to control the back office and cash areas. During a normal day's operation the system will transmit batches of information to the mainframe systems at Head Office. This is primarily sales data, but also includes details on reduction sales and Co-op details, together with daily totals and so on. In return, it receives price changes, and new de-listed product information.

The Co-op has a loyalty card which customers can earn points by buying Co-op products this is also made possible by the Co-op ICT function

How the ICT function helps Co-op meet its objectives

The ICT function of Co-op helps the business meet its functional objectives by:

. Providing the software the business needs to function and communicate both internally and externally

2. Providing the services and vital support the business needs to function.

3. The ICT function is also responsible for providing the technical staff the business need to carry put its activities. They are responsible for undertaking all aspects pertaining to internal communications and I.T

4. The ICT function helps the business keep track of its customers and their buying habits.

Co-op utilizes ICT by using databases to keep record of customer details and data. The business also has an electronic stock-take system which automatically alerts the sales manager if certain products or goods are out of stock or short, this ensures the business always has goods in stock. This is just one example of how the ICT function helps Co-op meet its objective of providing its customers with quality goods and products at all times.

5. Human resource function

Co-op supermarket group cannot be successful without the commitment of the human resource support. They main responsibility of the human resource department is to recruit the best workers for the right job. Co-op retails grants its staff and employees equal opportunities in terms of recruitment promotion and retention, paying them respectable wages and treating them fairly. The human resource function is also responsible for training its staff and appraising them regularly to ensure they are motivated, meeting their individual targets and are happy with their job role and all other aspects of the job.

The human resource function or department of the Co-op retail is also responsible for making sure that their highly qualified staffs are maintained. They have to ensure that the organization has less turnover of staff each year, try to avoid unlawful or unfair dismiss and decimation within the organization and finally dealing with all the health and safety issues ensuring that all government health and safety regulations are met and that its employees, staff and customers are free to work and shop in a safe hazard free environment.

Recruitment

For Co-op to ensure that all its staff and personnel are highly trained and qualified hiring and recruitment takes place in different stages theses include

Health and safety

Health and safety wise personnel are responsible for training the staff in the health, fire and first aid procedures.

This department is required by law to assess the risks in the work place this activity is undertaken so that the employer can take precautions to avoid accidents happening in the work place.

Co-op human resource and personnel department has to take five steps in assessing risks in the work place i.e.

. Looking for hazards in the shop floor and its environment

2. Deciding who might be harmed and in what way

3. Evaluating the risks and deciding whether the existing precautions are adequate

4. Recording and storing the findings

5. Reviewing the assessment and to make amendments if necessary

Some responsibility of human resource:

* Welfare and wages.

* The holiday entitlement and making sure that the workers receive their pay whilst on leave or holiday.

* Equal opportunity in recruitment, retention and promotion.

* Ensuring that Co-op s staff and employees are happy and gaining job satisfaction form their job roles.

* Fair and ethical work practices

* Liaising with trade unions to ensure that its members are taken care of and all the needs and constraints are being met or considered

* working hours and salary

The importance of H.R. and how it helps Co-op meet its aims

Human resources are a function important to every business by providing the vital resource (personnel) which the business needs to carry out its functions it overall helps the business meets its goals. This function is vital because without the right qualified people carrying out the job roles the business would not be able to carry out its functions efficiently. HR not only recruits. The human resources function also helps the business as a whole meet its aims and objectives by finding out new ways to lower staff turnover and keep its employees motivated.

The chart below shows the number of stores and employees

Number of

Outlets

Number of

employees#

Food Retail

,756

47,920

Figures taken from www.Co-op .co.uk

6. CUSTOMER SERVICE

Customer service is very important to both the business and the customer for the business it acts as a means for the customers to receive necessary information about products or services provided by the business or to make suggestions, comments or complaints about any aspect or activity of the business. The customer service department is also important to the business because they could find out from customer's responses and complaints how to improve certain areas of the business.

This aspect of the business also works in unison with the marketing and sales department. Their concern is also to keep up the reputation of the business.

Some of the factors that contribute to good customer service are customers expect that the price of the goods and services are reasonable, a wide range of products which must be available at the right time. The customers also expect a fast service; the payment period for business customers has to be attractive. Customers can also to pay by cash, cheques, credit cards or debit cards. Co-op endeavours to meet the customer expectations by providing a wide range of goods and giving information to customers for example they have a leaflets or magazines showing the new products.

Co-op meets the customer expectations by pricing their goods reasonably and providing offers and sales to encourage customers.

Co-op has to consider the following to provide good customer service.

) Polite service

The most important issue in trading is politeness and the businesses attitude towards its customers, Co-op s staff are trained to deal with all types of customers and situations to provide the customers with their needs and expectations.

2) Value for money

Value for money basically means a product is worth what it is being paid for. Customers hate the feeling of paying for overpriced goods. Co-op s main objectives are to provide quality household and grocery products at a fair reasonable price and paying farmers a fair and reasonable price for goods.

3) Well packaged goods

Goods have to be packaged attractively to catch the customer's eye and to interest them in purchasing the product, the packaging should also contain information about the product and its uses. The packaging is useful because it also protects the product from damaging; the customers expect the goods to be received by them in perfect condition.

4) Safe products

Acts have been passed in parliament that make it an offence to sell damaged or goods that have met up to the stipulated safety standards and requirements.

* The consumer rights act 1987

The consumer rights act was written up to protect both the business and is customer this states that a trader can only sell a product or service which is deemed fit for its purpose and that the product has to meet all specifications and health and safety requirements

* Trade descriptions act 1968

This particular act makes it an offence for any business or trader to falsely describe goods or product, its specifications or use.

This protects the customer from businesses that sell damaged, illegal or counterfeit products. Co-op ensures that all its goods and products of quality and meets all health and safety requirements.

5) Product availability

Customers buy goods or services to satisfy their needs and wants. Therefore customers expect to find products when they want them, meets these expectations buy providing quality goods and services at the right time and seasons when they are needed or in large demand.

How the customer services function helps Co-op meet its objectives

The customer services function of co-op is very important to the business because this department deals directly with the customers of the business and they are there to meet their needs and provide them with the information they require. The customer services staffs have to be trained to deal with all situations that may arise on the shop floor.

The customer services function of Co-op aids in the business meeting its objectives by:

* Providing assistance and information to the businesses customers about the businesses products or services.

* Ensuring that the customers are provided with correct and helpful information about various aspects pertaining to customer service

* Aiding to meet the customers shopping needs in a helpful and polite manner

* Dealing with customer complaints in a professional manner

* Ensuring that the store staff are trained to deal with various customers in different situations

* Ensuring that the customer receive the correct services and/or products they require in good condition without damage of flaw

7. Transportation function

Transportation is an important issue for any business that is in the production and manufacturing sector.

This is important because it is the means of travel or by a large number of goods, resources or materials can be moved form one location to another.

This function is important to Co-op s survival because gods have to be transported form the production (factories and packaging plants) to its different regional stores

Co-op has also been working on projects to minimise the empty space in its Lorries returning from stores to the distribution centres. They have made sure that return loads include both cardboard and plastic for recycling at their distribution centres, and goods picked up from suppliers local to our stores. This reduces the number of vehicles travelling empty on one leg of their journey. This has also increased the number of double deck trailers to maximise the amount of product delivered to a store. This as a result has produced a highly efficient use of the distribution fleet which minimises the number of vehicles on the road servicing Co-op s stores.

Transportation does not only carry out the above Co-op has to deliver its goods to customers who buy online this is an important function as it also ties in with the ICT function

Co-op s home delivery department responsible is the Co-op 2u which delivers and distributes goods ordered from their online store.

Green Travel Plans

Since the beginning of 2003, green travel plans have become an integral part of all Co-op stores and store extension development proposals.

These green travel plans outline the measures that Co-op takes to reduce the number of store employees coming to work by car; including staff travel surveys, car sharing and walking buddies. Where employees participate in car sharing or walking buddy schemes, Co-op offers them a guaranteed ride home in the event of emergencies.

This year Co-op have met their target to increase the number of cases of products delivered per litre of fuel consumed, from 18.4 last year to 19.1 this year, which represents an increase of 3.8% in efficiency. This means that they have increased the number of products delivered to stores per vehicle, which has resulted in a more efficient use of the distribution fleet.

(Figures taken from Co-op online)

How the transportation function of Co-op helps the business meets its objectives

The transportation function of Co-op helps the business meet its objectives by:

* Providing the right means of transportation for the business to move heavy goods and deliver products to the various store locations nationwide

* Ensuring that delivery timetables are being met efficiently with the right goods are being delivered to the right place at the right time

* Cutting down on pollution and increasing the efficiency of the businesses delivery needs

* Developing new methods and schemes of how the business can cut down on fuel costs and the use of fuel.

How the functional areas support the business and help meet the businesses objectives

FUNCTIONAL OBJECTIVES OF CO-OP

Co-op objectives are to survive and expand as a business, provide goods and services to the local community, providing a highly competitive service and to maximise sales or improving the quality of a product or service. Each functional area operates to support the business aims and objectives. Below is how each functional area contributes to the overall business objectives.

The finance function

The finance function contributes towards Co-op achieving its main objectives by:

. Managing the businesses finances appropriately and ensuring that all the businesses bills and costs are covered.

2. Allocating funds and capital to the different departments and functional areas ensuring that the funds are managed appropriately.

3. Budgeting and forecasting the businesses costs and revenue to present a financial analysis and to give a view form the financial aspect whether the business is succeeding or running at a loss.

4. It is a legal requirement to present financial information and profit figures for government taxation purposes and Inland Revenue. This is another task undertaken by the finance function.

The sales and marketing function

the sales and marketing function of Co-op retails is responsible for undertaking all aspects pertaining to advertising and promotion of the business and its products through the various forms, methods and using all available types of media to advertise and promote the business.

Co-op retails sales departments' main aim is to find out new and effective methods by which it can maximise the sales of its goods and services. To achieve this business utilizes various niches in its market structure in order to increase it sales and turnover figure.

Advertising is very important to any business the various forms of advertising can account for up to 30% of a businesses turnover figure. Utilizing the various types of media to promote a business and build up a profile can have satisfying results. Due to this statistic figure Co-op retails exploits the various forms of advertising to maximise the recognition and reputation of the business products.

The Human Resources function

The human resources function is concerned with employees who work in an organisation. Co-op would not be successful if it did not have the commitment of its entire staff/owners. Human resources organize the training for new staff or organise seminars and staff having to learn some new skills and develop their potential.

This is a beneficial aspect to both the business and its staff:

Continuous training has the following advantages to the business:

* Continuously training staff and employees can lower turnover of staff and personnel staff retention can cut a businesses overall turnover (profit) by at least 5.5% this which may not seem like a lot but in a business aspect is money lost, this is spent on recruitment. Co-op trains it employees to keep them motivated and increase productivity.

The function will give advice if there are any labour disputes and will be involved in any union negotiations.

* Co-op operates an equal opportunities policy and aims to treat all its employees fairly and equally in all aspects relating to their employment regardless of race, colour, sexuality or religion

* This is also one of Co-op s principles and the human resource function endeavour to provide equal opportunities to its staff and potential employees in terms of recruitment, retention and dismissal

* This function also ensures that each member of staff has a confidential interview with his or her manager

The ICT function

This function enables Co-op to meet some of its objectives by providing the essential connections to the outside world, contacts and other businesses. By enabling the business to communicate through various mediums the business can communicate, receive and send important information which may be vital to the businesses survival.

HOW THE I.T FUNCTION AIDS CO-OP 'S COMMUNICATION

The I.T. function aids in the establishment of good lines of communication so that the business can carry out its communication function by providing the connection the business needs to

* Sending letters between departments and outside contacts

* Preparing letters and memos

* enabling staff and employees to utilize various forms of communication in everyday use

3.4 Management Style and culture

ORGANISATIONAL CULTURE

All businesses organise their employees according to their job roles. The organisational culture is defined as being the shared realities that appear to exist among different groups of people within an organisation. The organisation culture governs the way an organisation behaves.

Different types of culture have been identified based on particular aspect of an organisation and it management which are:

* Power culture: which is when employees do as the are told

* Role culture: This is when employees act within the parameters of their job description.

* Task culture: This is when the employees act in the way considered suitable for their job.

* Person culture: which is when employees do what ever they want

All organisational culture is defined as containing the following;

* Values

* Beliefs

* Norms

* Symbols

* Philosophy

* Climate

Organizational Structure

An organization structure or chart is a diagram, which shows the structure of an organization. It shows the job titles of employees and the relationship with each and usually it does not include people's name, as it would go out of date too quickly.

The five organizational structure types are;

* Flat structure

* Functional or hierarchical structure

* Multi division structure

* Holding company structure

* Matrix structure.

Flat Structure

Flat structure is a structure with few levels and it is usually a small, informal organisation. It usually has the benefit of flexibility, responsiveness and good communication.

The disadvantage of this structure there are no structured job role, conflicting instruction and no formal personal policies

Some examples of this type of job role include sole traders

Functional Structure

The functional structure is also known as the hierarchal organizational structure it have so many levels, it's usually a large more formal organization.

Advantages of a functional structure

* The structure has a clear job role with specialist staff proper personal procedure promotion prospects.

* There are clear definitions of power levels

* Reduces and simplifies control mechanisms.

Disadvantages of a functional structure

* Communication showed responsiveness, many people have to be consulted before a decision can be made

* There is too Much paper work and bureaucracy involved

* Staff at the bottom may feel isolated from the 'real' bosses.

* Messages can be distorted as information has to pass between levels,

* Failure to adapt.

* Senior managers may neglect strategic issues.

Matrix Structure

The matrix structure is usually a subdivided structure mostly fitted to projects

Advantages of matrix structure

* The quality of decision making where interests conflict.

* Increase of managerial motivation and development through involvement.

* It allows the involvement of relatively junior staff, giving them valuable field experience for the expression and application of their particular skill.

Disadvantages of matrix structure

* Possible communication problems between staff in all different area and staff just specializing in are area with perhaps on opportunity to get wider experience.

* The have a length of time to take decisions,

* unclear job and task responsibilities

* High degree of conflict and have profit responsibilities.

Division structure

A divisional structure is use to represent large manufacturers organization on both nation and international and is also know as multination chart or structure.

Advantages

* They can specialize in the separate points, the organization e.g. different products, different geographical areas, different function e.g. sales, production, finance, marking.

* Concentration on business area also helps the organization its directors and managers to oversee the businesses success easily.

* Facilitates the measurement of unit performance, these give the manger of that unit a chance to over the successes of the unit.

* The type of structure enables senior management teams to adjust and adapt to the strategy of the business.

Disadvantages

* Poor communication across the organization the left hand not knowing what the right had is doing.

* Possible confusion over responsibility and conflict between divisions, this may be costly.

Co-op Retail Organization structure

The Co-op retail group has the hierarchical organizational structure. The chart below shows their relationship of and flow of communication within the organisation.

The advantages of Co-op having this type of organisation structure are:

Management Styles

Management style refers to the approach that an organization or business takes in setting objectives for its employees and the way it manages relations between superiors and subordinates. Management style can also be described as a typical pattern of behavior management shows in carrying out the role of managing the business over a period of time

There are four main management styles types:

* Autocratic Style

* Democratic Style

* Laissez Faire Style

Autocratic management Style

This management style is where the manager is used to giving out instructions and telling staff what to do. The manager is the only individual contributing to the decision making process the staff and employees have no say or opinions in the matter.

Characteristics of this management style are:

* The management makes all the decision or the business.

* The workers have to obey and comply.

* Employees tend to be less motivated and become lethargic and distant

* Suited to hierarchical structure because of the chain of command and flow of communication

Democratic management style

The manager makes the decision, but consults employees in the process. Also this management style promotes empowerment. Individuals and staff are given the responsibility to make decisions and carry them out. Team work is the emphasis of this management style and the team is held accountable for the decisions made. A democratic manager has to have good overall understanding and should receive regular feed back on the results.

Characteristics of this management style are:

* Employees tend to be More motivated

* Suited to flatter structure because of the emphasis on team work

* Manager has a good understanding of the decisions made and receives regular feedback on results

Laissez Faire management Style

This type of management allows its employees to carry out activities freely. This results in the business having a relaxed and informal approach to management; it also enables therein to be an atmosphere of independence which allows the employees to use initiative. There are few

* The manager lets the employees, get on with it

* Employees tend to be Unproductive and lethargic

* This type of management is suited to Small team structure with close ties with employees and management

* There is a lack of motivation due to the employees just left to get on with it.

* Can result in poor productivity

Consultative management style

This type of management is for management who seek to consult second parties before making a decision. This is a type of management that wants to draw on more sources of opinion than just settle on their own. In an organisation with this type of management culture of consultation draws on the influences and concerns of other people before a final conclusion is made.

Characteristics of this

Co-op retails Management Style

Co-op eratives are democratic organizations controlled by their members, who actively participate in setting up their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary Co-op eratives members have equal voting rights (one member, one vote), and Co-op eratives at other levels are also organized in a democratic manner.

The Co-op retail group has two management styles, which are autocratic management style and democratic management style, but in practice the Co-op democratic style of management is only at the top between the board of directors, regional committees and the store managers.

The autocratic management style of the Co-op is between the store manager and their staff. In the store the manager makes all the decisions and the staff has to comply as it is their role. The business as a whole is trying to abolish this type of management style by giving the staff more independence to use their initiative; as the business is opinion on human welfare and fair and equal treatment it is trying to get its staff more involved in the decision making process in it stores.

To allow the staff to become motivated the welling branch of the Co-op supermarket frequently holds staff meetings in which the staff and management can exchange ideas, views and generally brain storm, each members opinion and contribution is taken into consideration and everyone gets a chance to speak their mind.

Organization culture

Many researchers have argued that the success and effectiveness of an organization are not determined solely by the abilities and competences of the employees, but their successes are also associated with organization culture.

The level of commitment of employees on the organization is dependant on the prevailing organization culture. It should be noted that a highly committed workforce is a significant source of competitive advantage for the business or organization.

Here are a few definitions of organizational culture:

Role culture

Organisation possessing a role culture will be more likely to be traditional and, perhaps, in the public sector. Their objectives will include:

* Providing services to the community

* Developing a skilled workforce

* Offering high quality products and services.

Task culture

Task culture is a way of getting things done and is appropriate for businesses in highly competitive and innovative industries. These business may seek to:

* Supply high-quality products and services

* Maximize profits

* Increase sales or market share

* Survive (maybe)

Person-oriented culture

Person-oriented culture places great importance on the individuals within the organisation. They are valued for their skills, their professionalism, their creativity and ingenuity.

Change culture

Change cultures are valuable for businesses trading in highly competitive area and flexible markets. Objectives can be to

* Marking profit

* Increasing sales or market share

* Surviving

Power culture

Business that has power culture is likely to be small with strong charismatic leader. With employees doing what he/she has told to do?

Researcher's definitions of organizational culture

This is defined as" The collective programming of the mind that distinguishes members of one his me

This is the institutionalized power of dominant interest groups of an organisation

By (Wilson and Rosenfeld, managing organisation)

"Culture is known as the customs and rights and the organization's 'own way' its norms, rituals and traditions". (Schein, 1992)

"Organization culture is created by those within the organisation and lives in the relationships, conversation and commitments that occur". (Harrison, Harvard Business Review, 1972)

Edgar schein's 3 levels

Diagram of organizational culture

Culture and Objectives

The Co-op retails culture

The Co-op retails culture is the task culture which's characteristics state that employees and staff act within a certain way considered suitable for their job and are valued for their skill and contribution.

The Co-op erative society's principle is to treat its staff and employees as though they are part of the businesses and own or posses a stake in the business this is the belief that is passed on to employees and managers. This enables them to act on their own and take the incentive to carryout tasks and also to use their initiative more often, other than being told what to do.

The major advantage of this culture is that employees and managers are more independent and become more adapted to the businesses perspective and directive.

There are various factors that influence the culture of a business these are:

Social

Co-op s social objectives can determine the business culture Co-op s social objective is to promote equality and fairness this has been the CWS motto since it was founded.

Environmental

Co-op environmental stance can also determine the businesses culture, Co-op strongly believes in the preservation of the environment and reducing pollution. The CWS is an active member of various environmental organizations and is involved in researching new methods of cutting pollution and reducing co2 emissions.

Economical

Co-op economical objectives can also determine the businesses organizational culture, ie.To generate revenue through producing and selling quality products and services to the general public at fair and reasonable prices.

Ethics

Ethics play an important part of Co-op s organizational culture.

Ethics are a set of moral principles that are generally accepted and recognized within a particular society. Co-op portrays an image of being a very ethical establishment it is always working towards the rights and well being of its staff and customers. Co-op believes that its employees and customers are valuable to the business. Co-op retail is part of a society in which takes note of the interests and concerns of many different groups. For Co-op this includes fair and equal treatment of its customers which is primary and Co-op puts their concerns and opinions first.

stakeholders and suppliers are also a priority to the business Co-op believes in buying its suppliers and farm fresh products form small time suppliers and farmers (who are sometimes members of the CWS) in order to promote their business and cut the farmers a fair deal by buying the products at a reasonable price and giving them a percentage of the revenue form selling that particular product.

Like all other large companies and establishments' Co-op recognizes that its wider reputation depends on its business activities, ethics, customer relations and its attitude towards the environment, also its relationship with its suppliers. Co-op recognizes that it must be open and have perspective of what the future of the business lies to ensure this the business ensures that every area of it organizational structure and every job role is filled in by qualified and skilled individuals.

Co-op realizes that the market sectors its activities are carried out in are constantly changing due to various factors, Co-op retails as a corporation has to have perspective and look ahead to achieve this Co-op :

* Views the customers needs and requirements and assess how weel the overall business is meeting those needs, what needs to be done to meet the customers need more efficiently

* looks retrospectively at is operations and activities in relation to its competitors

* seeks ways and methods by which the business can change or diversify it activities to become more profitable

3.5 COMMUNICATION

Communication

Communication is very important to every business. There has to be good and clear lines of communication so that information can be sent and received effectively.

There are two main categories of communication these are:

Oral communication: this is mainly communication wherein information is conveyed through word of mouth e.g. face to face meetings, phone conversations, voicemail

Written communication: this is a form of communication by which information is conveyed through written or documented form this included email, news letters and catalogues, written and typed documents.

How Co-op communicates within its functional areas

Co-op as a whole has to establish good lines of communication within the business in order for its operations to run smoothly. This is achieved within the company by utilizing the various methods of communication.

Communication can be done within the company either formally or informally

Formal communication: this is communication done by employees and is mainly concerned with work e.g. telephone conversations, memos, emails etc

Informal communication: this is communication done generally and does not necessarily have to be concerned with work employees or colleagues may communicate and this may involve some gossip or speculation.

Due to large advancements in communication technology there are now endless methods by which information can be transferred.

Co-op 's employees and managers have good lines of communication as they utilize the various available methods. An example of this is the organisations internal email system which enables staff to regularly contact each other, this is very effective as all staff have access to a computer this is a perfect example of how the organisation utilizes the I.T function to carry out internal communication.

The functional areas at Co-op have clear and goods lines of communication.

Two ways which Co-op 's functional areas communication can be identified by: The weekly meetings held between the sales/marketing department and the production department. These are held every Wednesday and these functions discuss the sales and production targets, any other problems in production which are affecting orders are also discussed. This is a perfect example of oral or face to face internal communication.

Each director holds a weekly team briefing with his/her staff to keep them updated on the latest developments in the organisation; these are informal and relatively short to keep the staff informed.

External communications at Co-op

For any business to be successful it has to establish good lines of communication with its outside contacts and customers. For example suppliers have to be communicated to by either written documents or email to obtain supplies and the lines of communication have to be very clear to ensure no mistakes are made.

Co-op mainly contacts its external customers, important potential business customers and senior sales staff by letters, telephone and fax.

The company has to deal with orders and enquires from its customers these always take priority and are dealt with promptly.

Customer complaints are dealt with by the customer service department whose goal is to respond to all enquires and complaints by customers. These complaints are made over the phone, letters, emails etc. a letter of acknowledgement is sent to the complaining customers.

Some examples of how Co-op communicates with outside contacts include:

* Fax

* Email

* Telephone

The use of internal and external communication and the role of ICT

Internal communications at Co-op : Internal communications at Co-op are made possible by ICT and its application to its aspects. The ICT function enables Co-op to efficiently communicate internally and within the business, it has a large role in the providing the different means and mediums the business can communicate and also providing them with the essential training on how to utilize them.

The different means Co-op uses to communicate internally

Internal communication:

Internal communication is important to any business; it is the backbone of a successful business. It is important that there are clear lines of communication are established and messages and information can be conveyed efficiently without distortion of the emphasis or aim.

Due to the advancement in communications technology there have been various methods and ways that information can be sent and received. ICT has played a major role in the advancement of communications technology. This has helped Co-op advance its internal communications.

As the business as a whole is a functional organisation with several functional areas it is of primary importance that all the functional areas can communicate internally. Here are some of the ICT methods that Co-op utilizes in order to communicate internally.

E-mail:

This is the sending and receiving of electronic messages by means of a computer. Co-op uses this method of communication because it is fast efficient and the messages can be received almost instantly it is mostly used by the functional departments when face-to face and verbal communication is not necessary or possible, it is also very versatile as one message can be sent to various receivers. Due to ICT it is now possible for Co-op to send files, messages and important documents with unmatched efficiency and speed. This is important to a business like Co-op because this can save time and money if inefficient methods of communication are used.

For example: if the director wants to send out a report or notice to the entire department within the company he/she can Email the word processed report and all the parties can receive it instantly and act on it. Each co-op employee has an email address through which they can send and receive internal emails and messages.

Fax

This is an electronic method of scanning and sending an image through the connection of a phone line. This is a versatile method of communication and can be used to fax presentations, with graphics and visual aid form one department to another with speed and efficiency.

Intranet

This is a businesses or companies own private internal website. The only difference with this technology is that contents are not accessible to the world. An intranet system is distinctly more significant than that of the internet. Co-op has its own intranet site which is accessible to employees and staff through the means of a password. Each employee has his/her user area in which updates and messages form their managers. This is very useful to Co-op internal communications as it a method of keeping in-touch with the business employees and the management don't feel isolated. It can also be used for in house training.

One of the advantages of an intranet system is that it is customisable in order to serve the interests of the business or company, which can be directed towards helping its employees and staff perform their tasks more efficiently.

Video calling

This is a fairly new addition to the advancement in ICT this method involves actually seeing the individual that you are speaking via a video connection this can be either mobile or stationary but is very versatile. Co-op uses this method when department managers want to discuss an issue or problem but there is no time to call an official meeting. This is fast and a resolution can be met during, this communication emphasizes face to face communication and emotions to convey messages and information. This helps Co-op s management make more efficient decisions; it encourages flexibility within the organisation.

External Communication

This type of communication is also of great importance to the business and is used when the business needs to interact with another organisation, business or individual. ICT has helped Co-op improve its external communications. In Co-op s case it is essential that the businesses external lines and methods of communication are clear

Fax:

In Co-op a fax machines are versatile, useful and cheap. Most offices have them, for transmitting documents over any distance quickly and easily. Automated fax machines can undertake many operations independently. Frequently used numbers can be stored in the machine's memory, which has a search facility for speedy retrieval, so that faxes can be sent automatically during cheap-rate and off-peak times. The machine can be programmed printed cover sheet giving the name of the organisation and sender, and to print a previously stored signature at a specific point.

The main benefit of this method of communication to Co-op is that the document does not need re-sending. Another advantage of fax is that there is a wider access to fax machines than to e-mail. Faxes can be sent on headed paper so that the document looks more official than an e-mail message. Faxes also have advantage of being able to transmit graphics, maps and photographs.

Letters:

In Co-op a business letter is still the most widely used form of external communication. It may be used for example, to:

* Make arrangements without the need for parties to meet.

* Provide both parties with a permanent record of such arrangement.

* Confirm verbal arrangement.

In Co-op a well-written business letter in Co-op conveys its message while maintaining goodwill. If a letter is sent promptly, is well set out and conveys its message accurately, the person who receives it will develop a favourable impression of that organisation and is more if the letter is late and inaccurate.

In Co-op the layout, style and appearance of business letters- and even the envelope vary between organisations. Most will try to create a good for an eye-catching heading and layout. Organisations often have a house style that they encourage all administrative staff to follow. Business letters are usually typed on A4 paper, and a fully blocked, open-punctuated style which is now a very common from of display.

Advertisement:

Advertising is a very effective medium and can increase the notability of a business increasing the public knowledge of the business. The use of ICT to advertise the business and its products has helped

Examples of advertising on the internet:

Source: http://www.Co-op .co.uk/

Many minor communication difficulties in Co-op have been minimised as a result of ICT that also help the communication within Co-op effective and Efficient. The impact of ICT upon the internal and external communication is that it saves Co-op the cost and time involved in sending messages in different format e.g. E-mail can be used in place of postal of postal services and also the use of mobile phones is used to communicate.

By Co-op management style, it can be said that Co-op is involved in the circle network communication:

3.6 THE PRODUCTION PROCESS

The production process:

The production process is by which a business produces its goods and services.

This process involves adding Value to the various factors of production

These factors include: materials and Labour these are input into the production process to enable the finished product to be to the customer's requirements and specifications.

Adding value in the production process the aim of Co-op s production process is to add value to the goods the business sell to its customers in order for the business to gain revenue. Co-op adds value to its products by taking raw materials and resources and putting them through the process of production.

ADDING VALUE IN THE PRODUCTION PROCESS

Adding value to a product is the term given when a product is made more attractive to the final consumer. The aim of the production process is to 'add value' to the goods being supplied to customers so that they can be sold at a reasonable price in order to gain returns (revenue). One of the prime concerns of Co-op s production functions aim is to convert inputs into outputs to satisfy the needs of consumers.

Adding value in the production process the aim of Co-op s production process is to add value to the goods the business sell to its customers in order for the business to gain revenue. Co-op adds value to its products by taking raw materials and resources and putting them through the process of production.

QUALITY CONTROL

Quality Control is defined as "the part of quality management focused on fulfilling quality requirements.

Quality Control often refers to the Inspection of finished products, meaning to check whether they meet the desired Requirements and Specifications. But it is not limited to inspecting products as it might also include detecting the cause for non-conformities and not meeting the requirements documented in the specifications for the product.

Quality control:

Co-op has to implement quality control into its production process in order for the business to become more efficient and profitable, by using quality control and quality assurance methods co-op ensures that human error is kept to a minimum. Due to the fact that customers now expect a higher degree of quality from products, goods have to be produced to a standard wherein errors and mistakes are non-existent.

Here are some of the methods co-op has introduced in order to ensure that the goods it produces are of the highest quality.

What is Quality Control quality control can be described as

* To meet target specification;

* A proof of craftsmanship

* A systematic approach to search of the excellence

There are eight Quality control aspects which Co-op takes into consideration duringv its production process these are:

* Performance

* Features,

* Reliability,

* Conformance,

* Durability,

* Serviceability,

* Aesthetics

* Perceived quality

To achieve this quality control has to be introduced into every step of the production process. This is advantageous because it:

* Lowers the business costs

* Increases efficiency

* Allows goods to be produced at higher standard

Quality control is important to Co-op because it

* Reduce costs

Because the goods being produced are of high quality costs are significantly lowered this means that less money and resources are spent on correcting mistakes.

* Increases customer satisfaction;

An increase in customer satisfaction is good for any business. If customers are happy with the goods and products they buy the business will benefit from the loyalty and trust.

* Loyal customers;

Customer loyalty is gained when goods are of a high quality.

* Highly motivates employees

Quality control not only benefits external stakeholders it also is very advantageous to the inner workings especially in the production function. If the business is constantly producing goods of exceptional standard and quality it will gain more revenue and increase it profitability. This benefits the employees as they will gain satisfaction from knowing they are working for a reputable establishment.

* Right the first time and every time

This is the fundamental principle of quality control, it lays emphasis on getting it right the first time this reduces the amount of time spent checking and correcting mistakes this enables the business to become more efficient.

This graph is a sample of how production quality over time is analysed

* Three inter-related elements, namely the input, process and output

* The target is to detect the defects, feedback of the information, find out the cause and make correction.

* For knitted fabric, the input is yarn, the process is knitting and the output is the fabric.

How Co-op implements quality control in the production process:

Co-op carries out its quality control by simply extracting samples of a certain size from the ongoing production process. They are then produced in line charts of the variability in those samples, and considered by their closeness to target specifications. If a trend emerges in those lines, or if samples fall outside pre-specified limits, then the production process of that product is declared to be out of control and action is taken to find the cause of the problem. Co-op refers to these types of charts as Shewhart control charts (named after W. A. Shewhart who is generally credited as being the first to introduce these methods). Those control charts are often referred to as "Quality Control Chart" or Statistical Process Control Chart (SPC-Chart).

Self checking and inspection:

This is an aspect of quality control which involves inspection of the final product in order to ensure that it meets Co-op s quality standard with satisfactory results, this ensures that unsatisfactory products are rejected and scrapped, for example in the production of Co-op s fruit salad if by human error one of the fruits that were used to produce the salad had gone off or was rotten then but had entered the production process but was discovered at the self-checking inspection the whole bowl would have to be disposed of. This can prove to be a costly method as a lot of waste occurs.

A 100% inspection to ensure has various advantages and disadvantages Co-op is constantly producing high quality goods due to the fact it a quality control section in its production process which is solely responsible for ensuring that the goods leaving the factory floor are of the highest possible standard and quality.

QUALITY ASSURANCE

Quality assurance is the means by which an organisation implements its commitment to quality. It helps firms such as Co-op to do the job properly the first time, because it is designed to prevent failures rather than detecting errors once they have occurred. In this way a quality assurance scheme differs radically from quality control systems which involve inspection procedures at various stages of production

Quality Assurance standards

The adoption of formal quality assurance systems has accelerated in recent years because of the development of internationally recognised quality standards.

Quality assurance

This is a concept based on the fact that everybody is somehow responsible.

This emphasizes that all goods and services are produced free of fault or error. This concept also identifies that if all the individuals involved in the process of producing an item are committed and 100% focused on the task then the margin for error would be greatly marginalised. Co-op has implemented this into its production process by not only checking the finished product for errors but by identifying where the errors occur and ensuring that it does not happen again. The involvement of everybody involved is crucial for this to succeed. The success of this is due to the fact the Co-op has embraced the concept of Total Quality Management.

Total quality management in the production process

Total quality management (TQM) refers to a management style where the goal is producing quality products or services for the customer and in which the customer defines quality. Total quality management proposes that a service or product is not successful unless the customer is satisfied with the service or product, and that the product or process should be continually improving. Total quality management and related approaches are sometimes referred to as total quality improvement, world-class quality, continuous quality improvement, total service quality, and total quality leadership.

Some basic principles of total quality management are that quality is determined by the customer, quality is continuously changing and needs to be re-evaluated frequently, and quality can only be improved when real statistics and customer feedback are studied. Some components of total quality

Management are creating quality frameworks, defining an organization's focus, empowering an organization's employees, and implementing a structure to allow employees to participate in the management of the organization.

Co-op embraces the T.Q.M ideology and integrates it into every step of its production process. The business believes that the product has to reach the customer or final consumer in perfect condition and that the product meets all the requirements and specifications this ties in with Co-op aims and objectives which is to provide its customers with goods and products of the highest quality

Co-op s approach to TQM has been to reiterate the fact that team work is important. Each worker has a number of checks he/she has to carry out before the product can be moved on in the production line this is known as self-checking

Below are pictures of one of Co-op s employees carrying out self-checking during the production process of its fruit salad:

This process ensures that errors are kept to a minimum

An apple is checked for tenderness by measuring the amount of pressure that can be exerted on to its surface. If the fruit were soft (i.e. not crisp), then the amount of force (pressure) needed would be very low.

On receipt of every batch of fruit, quality control checks are carried out by operators on random samples. The quality control checks include a visual inspection of the fruit, for example to ensure that there is no bruising or rot damage. In addition, colour charts (on the wall) help the operator assess the condition and ripeness of the fruit.

The delivery of all fruit is recorded on the computer system. The fruit is then monitored and tracked throughout production

Another test is to measure the amount of sugar present in a fruit. A refrecto-meter is used to undertake this test. The operator looks through the eye-piece to view the result.

The internal temperature of the fruit is also taken. This ensures that on delivery, the fruit is chilled.

The fruit is stored at low temperatures, around 4-6oC.

The manufacturing plant is operational 24 hours-a-day. Therefore, fruit is delivered on a daily basis. Storage is often short, as it is usually used soon after it has been delivered

Many of the fruits delivered are larger than consumers would expect to find in their local supermarket. Very large fruit is used in processing to help increase yield (the amount of usable fruit you can get from a fruit once skin/pips/stones are removed). It is also far quicker to prepare larger fruit, than handling tiny fruit which would be more time consuming.

The plastic bowls pass through a machine which covers it with a plastic film. The film is heat sealed around the edge of the bowl.

The sealed bowls emerge from the machine

Firstly, the sealed bowl passes through a metal detector. If any metal is detected the bowl is automatically removed from the line.

Secondly, the bowl passes over a 'check-weighed' device. This checks that each product is of a specified weight (within a strict tolerance level), and if not, the bowl is removed from the line.

Lastly, the bowls pass through into the low-risk area for labelling to be applied and to be stored ready for distribution.

TAY Go (Taste as you go) is performed on a routine basis. Samples of products are removed from assembly lines and are prepared ready for tasting. The aim of the TAY Go session is to assess the sensory attributes of the product against a set of predetermined quality attributes

All quality control checks must meet or exceed the high standards set out in the specification.

(c1.) Judgements about how successfully Co-op is meeting its objectives

Is Co-op retails as a whole meeting the both the Co-op erative and functional objectives?

Through my investigation and findings, I can conclude that the Co-op retails are meeting the company's cooperative and functional objectives.

There are a number of ways that a business like Co-op can be assessed to see if the business as a whole is meeting its objectives. The business main aim is to provide for the shopping needs of the community this being said the businesses functional areas work together to meet this through different objectives set out.

There are various ways a businesses succession on meeting its objectives can be analysed some of these methods include:

Balance sheet: this is basically a summary of the business at a particular time it gives and idea of the businesses assets and liabilities

Cash flow statement: a cash flow statement is a financial statement that shows the businesses sources of revenue/income and the uses and expenses the businesses incurred during the trading period.

Profit and loss account: this presents a summary of all the businesses transactions and shows the flow of expenditure and income during the trading period.

My evidence to support this is the sales/ revenue figures these clearly show that the businesses goods and services it offers are being brought in large numbers by customers and consumers alike. This does not necessarily mean the business is meeting all of its corporate objectives it just presents the evidence that the business is turning over its stock and generating revenue.

Survival: one of co-op retails corporate objectives is to survive in the market sector it is in it is meeting this objective in many ways by the business expanding its activities. This is done by the business trying to break into new markets and

Co-op is a well developed and expanding organisation so its survival is not really a primary issue. The Co-op movement is steadily showing signs of growth and revenue figures are steadily rising. So strong is the Co-op retails enterprise that even if there was a recession with the U.K economy the business can be safe in the fact that it is well established and will not worry about closing down.

Here is a summary of Co-op s revenue figures: Gross turnover increased by £352m to £1.67bn, an increase of 26.7%, operating profit before exceptional items increased by £8.8m or 26.7% Profit after interest nearly doubled to £35.5m. This is proof that the businesses profit figure is expanding and that the business is steadily growing.

Providing a service to the community: as Co-op is a business in the retail sector and produces some and sell its products with in its stores it constantly emphases its services it provides to the customers and local community. As well as taking part in various environmentally friendly activities and services, Co-op aims to continually improve the services and products it provides. This is done to actively involve itself in the community and putting the local people first and endeavouring to meet their needs.

These are some of the charities and community relations organisations that Co-op funds

The Co-op erative Charitable Foundation

Objective: Supporting individuals and communities across our trading area

The Co-op erative Charitable Foundation is an independent charitable trust set up in 2000.

The Foundation is solely funded by United Co-op eratives which has trading interests within the North West, South Cumbria, Yorkshire, North Midlands, Northern Ireland and North Wales.

United Co-op eratives has donated £5.4 million to the Foundation to be invested to generate income to support the Foundation's grant making programme.

The Aim of the Foundation

We are all part of a community, whether a geographical community or a community based on a common interest. Communities are made up of a wide range of people with different needs and views. The Co-op erative Movement has existed for more than 150 years and has played a major part in supporting, developing and promoting community groups and activities and the people who make up those communities.

Today, The Co-op erative Charitable Foundation is committed to promoting co-op erative solutions to community challenges.

There are also non financial objectives that the business has to meet in order to conclude that it is meeting it objectives efficiently

Work with the community

All the Member Relations Committees have participated in the Food Group Community Award Scheme, giving useful local advice on the groups to be supported. The Scheme allocates £30,000each year in Community Awards which go to organisations such as youth groups, football teams, residents' associations and play groups. The village of Saltaire near Bradford celebrated its 150th year with a festival covering two weeks in September 2003.On the final weekend of the Festival, Yorkshire Member Relations Committee members joined other local organisations with a stall in the village. The stall was used to promote Fair Trade products that the Society sells through its Stores, in particular the Co-op 's own Fair-Trade chocolate and wine. The Committee provided free tasting of wine and chocolate and received many visitors over the two days. While members of the public enjoyed themselves, the Yorkshire Committee members promoted the Society and the work it does in the community.

Increasing profit and revenue

Co-op is a business in a competitive environment which means that the business has to generate revenue and have a sizeable market share in order to survive and expand its activities. Co-op has been succeeded in meeting it corporate objective of increasing the businesses profit and revenue figure

Examples of these are found in the chart below:

Turnover by Business

£m

Number of Stores by Business

Food Group

755

Food

497

Travel Group

443

Travel

96

Motor Group

47

Pharmacy

28

Healthcare Group

28

Funerals

84

Department Stores Group

74

Non Food

6

Funeral

35

Motor

5

Other

96

Total

671

Total

936

Number of Members

.2m

Number of Employees

5,212

Co-op s turnover for the year can also be used to determine whether the business is meeting its objectives

In a highly successful year Food Group generated a profit figure of £775 million in 2003 to 2004 financial year. This year has been very successful for the Co-op group with a growth in the profit percentage and a substantial amount of revenue gained through sales of its goods and services.

Co-op has also met its objective of endeavouring to lower staff turnover. The business has devised a scheme which helps develop and train staff for internal promotion. This has proven to be very successful as it has lowered staff turnover from 15.5% in 2003 to 10.05% in 3004 this has also lowered training and recruitment costs.

Restated

999

Restated

2000

Restated

2001

Restated

2002

2003

£m

£m

£m

£m

£m

Gross income

- Food retail

,590.2

2,447.6

2,624.2

2,851.5

3,468.1

- Specialist retail

504.4

615.8

656.1

782.7

860.6

- Property, production and other trading

424.1

450.5

498.8

511.2

513.7

- Federal services

,451.0

,786.1

,926.2

2,084.3

2,315.6

3,969.7

5,300.0

5,705.3

6,229.7

7,158.0

Deduct inter segment trade

(881.1)

(1,161.7)

(1,389.5)

(1,444.1)

(1,563.0

Co-op retails increased its turnover by 32.2% to£755.4

Financial Highlights

January 2004

January

2003

Change

£

£

£

Turnover

,671

,319

26.7%

Operating Profit before Exceptional Items

41.9

33.0

26.7%

Trading Profit before Exceptional Items

42.9

34.5

24.4%

Trading Profit before Depreciation

69.4

55.2

25.8%

Profit before Distributions

3 5.5

8.

87.4%

Distributions

8.9*

6.8

31.5%

Net Assets

323.8

304.1

6.5%

Gearing

28.8%

37.1%

8.3%

Return on Capital employed

0.1%

9.9%

0.2%

These are the financial highlights for Co-op retails comparing the profit and turnover figures from 2004 and 2003 showing the improvement.

(c2) Analysis of how the organisational Structure, culture and management style of the business affects its operation and helps it meets its objectives.

The organisational structure and, culture and management style of Co-op affects the businesses performance in various ways and could have adverse of favourable effects on the business and its performance and how competitive it is.

As identified earlier the management style of Co-op appears to be democratic. The business is very customer oriented and is striving towards customer satisfaction, it places a high value on the skills and job roles the businesses employees and staff offer.

As a large organisation Co-op has a hierarchical structure the business has a chief executive director, a deputy the management is divided into the various functional areas which each functional area having a manager and deputy who oversee and assist in the carrying out the activities of the business. Each manager is in charge of a specific organisational function and sees that its activities are carried out efficiently to tie in with the overall objectives of the business. The chief executive director ties in all the functional areas of the business together and encourages the staff and management to make decisions and use their initiative and judgement to carry out their job role. This encourages the development and improvement within the organisation. This also gives the business the capacity to grow expand and overall meet is goals, aims and objectives

The effects the organisational structure has on Co-op s performance.

The organisational or functional structure of Co-op has many effects and influences on how the business is run and how decisions are made within the organisation.

As discussed earlier Co-op has a hierarchical functional structure, which separates the various functional areas within the business with department managers assigned to oversee the activities of each of the functional areas and ensuring that the functional objectives of each department are being met efficiently

As you can see from the organsiation structure of Co-op s each horizontal level represents a step in the level of importance and responsibility of the staff . Staff at the bottom are made to feel valued and recognised by their line managers and therefore is advantegous to the business organisation as it lowers the rate of staff turnover. This provides Co-op with a lot of dedicated staff who are willing to provide services for their customers, this also means that Co-op spends less on recruitment. It is an obvious fact that the Organisational structure of a company can affect its performance, good and bad, internal and external:

Internal Factors

The business size - As the scale of the business increases, an entrepreneurial structure, and becomes unsuitable. As the business grows further, the chain of command is likely to be lengthened encouraging the removal of some layers of hierarchy and broader span of control

The Nature of the Product - Co-op produces a wide range of products this may encourage the business to divide itself into divisions to undertake various tasks within the business. Co-op production department is divided into

External Factors

The environment in which the business is operating is important. Fierce competitive pressure will encourage other companies to reduce costs and to ensure that the organisation can remain competitive

One of the Co-op key objectives is to provide its customers with excellent customer service which will in turn lead to brand loyalty and enhanced profitability. The Co-op staff and employees are a key component of this objective they have to have the skill and knowledge to deal with customer complaints, requests and enquiries on a day to day basis. Co-op s philosophy is to treat each and every stakeholder of the business as an owner or someone who contributes towards the businesses success.

The marketing function helps to inform customers about the new products and special offers through advertising, this helps Co-op gain and retain customers thus increasing profitability.

The production function undertakes the task of producing goods of the highest quality to satisfy customers. The structure also helps Co-op to remain efficient in its activities. These would not be acheiveable if the business had a different organisational structure.

The human resources function provides the employees with guidance and advice pertaining to issues regarding their rights as employees. This function also provides the staff with additional training opportunities, company benefits, promotion prospects. As a whole this function deals with any problems so staff isolated. The staff feel satisfied with the working conditions pay and state that there is possibility for advancement and promotion working for the business. Another piece of evidence that supports my conclusion is the responses from carrying out primary research by speaking to some of the staff store workers and customers at the welling branch I was able to get first hand accounts of what the employees thought of the business, their job roles and other aspects including health and safety and promotion. To conclude the responses were satisfactory and showed that Co-op really cares about its staff. The customer responses were also very satisfying as customers stated that Co-op s prices and products were very competitive and that the customer service they receive was very beneficial.

Co-op retails are working towards a task culture which encourages the staff and employees to make decisions and use their initiative and not to rely on being told what to do all the time. This encourages the staff to take responsibility can expose those members of staff who are pro-active and this type of culture can help harness and develop the potential of Co-op s employees, this is also beneficial to the staff as they become more motivated and tend to stay with the business thus lowering staff turnover. This present culture inspires creativity and independence and also introduces fresh thinking and new ideas, this challenges convention and encourages its staff to take on responsibility. Co-op aims to challenge the conventional wisdom within other businesses within the same market sector by, implementing new ideas and granting the employees and staff some control and say in the decision making and management of the business.

MANAGEMENT STYLE:

Co-op has got an democratic management style which means that that decisions have to be voted on. All the decisions and setting of objectives and allocated tasks to employees expects them to be carried out exactly as specified but with the okay or vote of cofidence from the staff and employees. In theory this is how it should be but in reality the employees are told exactly what, how and when work must be started and finished. In Co-op the autocratic style of management is centred around production. Power is focused at the top, and the centralised decision making it geared towards getting the goods out of the production factory and to customers. Little regard is paid to any non monetary needs of employees; they are not consulted or involved in decision making processes of the business. Employees may resent every aspect of their working day being controlled by the leader and might seek every opportunity to relax their effort when not being supervised, the autocratic style of management encourages lack of teamwork the complete lack of consultation can produce a de-motivated workforce that just follows orders.

The autocratic style of mangement helps Co-op meet its objectives in a way that employees respond to the management style, in a way that workers have confidence in the leader's decision making that the complete lack of consultation and delegation is more than outweighed by a regular and acceptable income. Employees also prefer an autocratic approach as it is a clear and consistent leadership style - they know what to expect, where they stand and their work is not complicated by interventions from several unpredictable sources. Currently Co-op is having trouble maximising its sales and it is also not making enough profit compared to its rivals. the autocratic style helps in a way that the speed of action, deciseveness and lack of sentimentality have become a necessity. Co-op attitude towards dicipline is a major cause of some of the management problems they face.

(c3) The impact of ICT on the businesses internal and external communications

The impact of ICT on Co-op internal and external communications is very influential and has overall increased the efficiency by which Co-op communicates with it internal and external contacts.

New technology has replaced many of the communication functions that had to be done manually this has overall helped Co-op to become more efficient in its communication links.

The need for information and the consequent requirement for a means of processing raw data rapidly and accurately apply to a wide range of business functions. Perhaps the most obviously needed information is a company's financial position as derived from is its business transactions.

Information technology systems are a means of gathering all the business transactions, and processing them accurately and economically in order to provide not only the statutory information required of an organisation but also further information to improve its efficiency and profitability. The use of ICT touches every part of Co-op customers' day to day contacts with Co-op reveal just how much ICT is used.

ICT has had an enormous impact on the internal and external commuications in Co-op ;

Checkout till:

Co-op tills are connected to the store's computers. The checkout tills use scanners to read bar codes. Each checkout cnnected to a computer with a bar code scanner that can also transfer money from a customer's account using the customer's credit or debit card.

Stock control:

When the gods are scanned, the bar code which contains data on the product is sent to the database in Co-op s stock room computer. The database holds a record of the number of those products held in stock; the database then reduces the number held in stock by one each time a product is scanned.

This allows Co-op ' database to create an order to replace the used sold up stock. When the stock level reaches this minimum level an order to the suppliers is created and sent via E-mail this either goes to Co-op own main warehouses or the suppliers themselves depending on the product. The database is able to identify to identify the suppliers from the bar code and an order to replace the product is sent electronically via a network. This increases Co-op efficiency by enabling the business to control the flow of stock and only orders goods when they are needed.

Loyalty cards:

Co-op offer loyalty cards to their customers; these are plastic cards with magnetic strips. The strips hold customer data as well as a number for that customer. When the customer presents their card at the checkout, Co-op is able to reward its customers points based on the purchases made. When the points reach a certain total, the customer is rewarded with either money off their bill or gifts/offers. Each time the customer uses the card; Co-op is able to store the information about what they have purchased and when the purchases were made as well as the payment methods used. This information helps Co-op to decide what stock in the store and to work out what other products the customer might buy in the future.

Internet shopping:

Increasingly, the larger supermarket chains offer Internet shopping. This allows the customer to make purchases via the supermarket's website. The customer keys in their customer loyalty card number and then start making choices from a series of menus which detail all of products available. A 'shopping basket' details all of the choices made by the customer. It is possible to add to the basket or take items out of it. Once the customer has completed their shopping, they click on the 'proceed to checkout' option and they are as asked to choose the method of payment, either credit/debit cards can be used. The customer can then choose form the options regarding the delivery of the order to their home. Once the order has been placed the list is sent electronically to the nearest Co-op branch and an employee does the shopping for the customer and packs the products ready for a van to deliver at the time that the customer has chosen

Displaying information about products:

Co-op uses wide screens to display some of the products it has in-store. The screen is shown below: shows some of the options Co-op used to display information in store

Effective marketing

At Co-op the introduction of ICT has had an enormous impact on the way in which the business markets its products and services. The marketing department places advertisements in newspapers and magazines, on the television or radio, or it pays to have posters or billboards displayed. The ICT function has made possible to email existing and potential customers offering products and services.. Many Co-op customers who have email accounts receive an email a day from the company. The emails can be about offers; like the one below:

(Co-op .co.uk)

Co-op has found out that by finding more about the person who has an email account, they can target their emails towards people who would be interested in the company's products/services.

Efficient working

Employees, who do not have access to information that they need to do their jobs or to make decisions, cannot be expected to work efficiently. If Co-op does not make sure that information is shared, it may often find that its employees are repeating work that has already been done. Even simple tasks, such as informing a customer that a product that they have ordered has arrived, can end up being done inefficiently if it is not noted that the customer has already been informed. More than one employee may inform the customer, and this is not cost effective to Co-op due to the cost of the employees' time and/or the cost of the telephone calls.

By using ICT the latest data can be at employees' fingertips and they can use this information in order to make more effective use of their working day

Maintaining customer interest

A major part of maintaining good relationships with customers and ensuring that they are satisfied is keeping them up to date. As the business develops new products and services, existing customers or customers who have bought from the business (Co-op ) in the past should be told of these developments. By regularly updating customers (particularly in the case of computer software, where, for example, Co-op offers a free update to download), a customer will be tempted to purchase something new when they visit the website to download the update. The download is illustrated below;

Increased profitability

Effective and cost-effective communication means that a business is not wasting money. If a business like Co-op can identifies and utilizes the best method of communicating with its suppliers and customers, and within the organisation itself, then it will find that necessary information reaches the right people. Each time a business has to resend information as a result of choosing the wrong communication method then the business is not being efficient. If these costs accumulate then it will reduce the profits. A business will experiment with ways of communication and eventually it will find the best way to convey information and data, and also the best method or retrieving information form the correct sources when it is needed. Co-op regularly reviews the way in which its processes information and will look for more efficient methods of achieving the same results.

ICT helps this, particularly through email, which can inform customers about the business and new products offered. Email is also a simple way for customers to contact the business to place orders or ask for more information.

Information flow

In Co-op modern ICT is used which means that all employees at every level will be able to have all the information that they need at their finger tips (access to certain information may be restricted to those with authorisation). If information such as newsletters and emails to all employees are accessible, then news and vital information can be passed on to everyone who needs it to carry.

A.I HOW THE ORGANISATION STRUCTURE, MANAGEMENT STYLE AND CULTURE INTERRELATE IN CO-OP AND AN EVALUATUION OF THE IMPACT OF ICT ON THE PERFORMANCE OF THE BUSINESS

The organisation itself, then it will find that necessary information reaches the right people. Each time a business has to resend information as a result of choosing the wrong communication method, this will cost the business money. If the business has too many of these rising costs, then it will cut into the profits. A business has to experiment and develop new ways of communication and eventually choose the most efficient method of retrieving and sending information to the right people when it is needed. A business will regularly review the way in which it processes information and will look for cost-effective ways of achieving the same results.

ICT helps this, particularly through e-mail, which can inform customers about the business and its products will not be expecting to be paid the same salary a s the quality control staff because he/she is the one that tell them what to do, he/she is the who receives feedback from the finance department advising him/her on costs.

THEIR IMPACT ON THE PERFORMANCE ON CO-OP

The organisation structure, management style and culture of Co-op have a significant impact on the performance of the business. The values, attitudes and belief of the business flow down from the top of the business and affect everyone who works for the business, and who comes into contact with Co-op . These determine the personality of the business and affect the ways in which managers and employees behave, work together and resolve problems. The structure, management style and culture of the organisation will have an impact on the way the business performs or operates. When downsizing becomes necessary, the unpleasant issue of staff redundancy becomes unavoidable. The management often hesitate in making these hard decisions. Employees have to be laid off in a fashion that is least expensive to the business. Also recession is likely to lead to redundancies in rival businesses like Tesco and Asda and Sainsbury's, and there becomes a chance to pick form the newly available talent. Wages can be cut too, and contacts with weak business partners can become exploitative and profitable. The structure, style of management and culture are likely to cause frustration and resentment in Co-op ' work force.

THE IMPACT OF ICT ON THE PERFORMANCE OF CO-OP

In Co-op ICT has had an impact on the performance of the business, mainly through the human resources department:

Redundancy:

The introduction of ICT has had a gradual and dramatic effect on not only the types of jobs which employees do, but also the numbers of employees in Co-op . There comes a point when it is not possible to retrain individuals to do new jobs using ICT. Simply their jobs have been replaced by ICT and the old fashioned ways are no longer needed. In these cases their employers make employees redundant. This means that the employer does not have a job for them any more and they cannot be moved to an alternative job within the business.

Job change:

As ICT develops and new ways of working are created, it is often necessary for employees to gradually or sometimes dramatically change the way in which they work. Retraining and updating is necessary to ensure that the employees are able to use the new technology and learn new ways of carrying out their jobs.

Resistance to change:

It is not always the older members of staff who are reluctant to change the ways in which they work. Many employees in the business believe that the way they have been working is perfectly adequate and efficient. Employers who are introducing ICT need to explain the benefits both to the business and to the employee in order to overcome any reluctance to accept changes in working.

Training systems:

One of the main ways that Co-op includes its employees in any changes in ICT is to ensure that they receive regular training In order to enable the business to run as an efficient system that identifies which employees need to be trained or retrained as ICT develops. This task will usually falls to the manger of the employee or directly to the human resources department. Time will be set aside and expert trainers will be available to ensure that the most up-to-date techniques are passed on to the employees.

Demotivation:

If an employee feels anxious or insecure about their job, then they will not be motivated. They may view the introduction of ICT as a threat to their job security, and they may feel that each change brings redundancy even closer.

Information flow:

Co-op uses modern ICT, which means that all employees at every level will be able to have information available that they need at their fingertips (access to certain information may be restricted to those with authorisation). If information such as newsletters and emails to all employees are accessible, then news and vital information can be passed on to everyone who needs it to carry out their duties.

AVCE Business Studies

Business at work

Donald.Weekes