(P4) Describe the Functional Activities and the Independencies of Tesco Plc and Coleraine Borough Council
(P4) Describe the Functional Activities and the Independencies of Tesco Plc and Coleraine Borough Council
Introduction
In this assignment I will explain and understand the functional activities and organisational structures of both Tesco Plc and Coleraine Borough Council.
1. Functional Activities
This is the make up of a business, in which departments are combined in order to execute specific operations/functions.
Functional activities of Tesco Plc
Managing the functions in small and micro businesses
Not every business will contain the twelve main functions listed above as like ‘Tesco’. Typically as an example; sole traders may be of this nature. In which many only have one owner, and may not have the funding or requirements to specialise in all of the functions listed. This does not however, mean the business cannot specialise in all of these areas, but no one person can manage all of these functions. Specialists can be hired in order to perform these functions; this ...
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Functional activities of Tesco Plc
Managing the functions in small and micro businesses
Not every business will contain the twelve main functions listed above as like ‘Tesco’. Typically as an example; sole traders may be of this nature. In which many only have one owner, and may not have the funding or requirements to specialise in all of the functions listed. This does not however, mean the business cannot specialise in all of these areas, but no one person can manage all of these functions. Specialists can be hired in order to perform these functions; this is normally the most advisable option for small businesses.
Relationships between Functional Activities
Due to the ever inclining growth of Tesco Plc, communication made between the various departments within the business tends to deteriorate. Coleraine Borough Council is not an international business it is a local and therefore does not have any other facilities within other countries. This means the business will likely be able to communicate more effectively than Tesco but will still have distortion in communication, especially if the business intends to expand, e.g. services, facilities etc. In order to prevent this deterioration of communication it is liable that many businesses will break down these functions, into smaller groups enabling these functions to work together. All employees within these two organisations strive to achieve the goals of the business, this cab be achieved by each employee performing their role and also working together with each functional area. How well Tesco or Coleraine Borough Council succeeds within these areas will be dependant upon;
- Whether their organisational structure promotes effective communication and workflow.
- The management style of both businesses and in which way they approach their employees. Successful businesses acknowledge the comments from their staff and promote admiration in the awareness these employees contribute.
Flow of Work
The flow of work is vitally important if the business is to succeed in specific jobs. When creating a new product (Tesco Plc) /service (Coleraine Borough Council), a business will require each of the functional sectors to incorporate their fragment to fulfil the product/service in order enable its optimum performance and successful trade. Below shows various examples of how both businesses use their departments, to make contributions in achieving their aims and objectives.
Tesco Plc – Flow of work
Tesco Plc may wish to provide an extension of their product range to the local community. Through these new products, different functions will have a key input which will have a contribution to these products. The flow of work between each department is indicated by the arrows, also shown are the various departments that contribute that contributing to that particular aim/objective. I am now going to present three examples for Tesco Plc and three for Coleraine Borough Council.
Tesco Plc
1. Identification of consumer’s needs, which then contribute to the development of new produce.
2. Requirement of more employees for marketing aspect
Coleraine Borough Council – Flow of work
I am now going to provide three examples relating to the departments within Coleraine Borough Council presenting how they will work together in order to achieve their aims and objectives.
1 Introducing a new tourist attraction to the triangle area
2. Inspection regarding a compliant of food Safety within a restaurant workplace
3.Implementing updates to the business website.
*All documents passed through various functions will have to under go a series of quality control procedures.
Independencies
As mentioned it is important to break down these functions in order to improve the relations and communication methods between departments. Often this can be achieved through splitting employees into cross-functional organisational teams. Generally this process is used in managing projects. E.g. Tesco Plc, when designing a new product will require;
- R&D specialists – to put forward ideas of how the product can be manufactured
- Marketing specialists – identifying customer needs
- Financial specialists – those who carry out costing and set and financial implications of new produce
- Quality control specialists – Measure quality related matters
- Human Resource specialists – Input work-related issues – whether or not will cause hassle, how it influences employees etc.
- ICT specialists – Who will draw out implications of the project.
Generally it is through the use of ICT that enables this data to be past through various functions in the most effective manner. This data is likely to be arranged accordingly within databases, where it can then be queried when required. Typically this is done through the form of electronic exchange rather than physical, therefore it cuts out unneeded expenses, especially if the business is to transport these documents to various countries worldwide. Meetings can be arranged virtually rather than physically, this means teams from various countries can meet and discuss matters electronically rather than having to use air transport to reach a destination to discuss matters (physically), this would likely be used within Tesco Plc as directors from the board may be situated within different countries. Whereas physical meetings may be more appropriate within the borough as directors are likely to be based in the same counties and towns.
This diagram portrays how various functions (e.g. Finance accountants, Marketers etc) use ICT in order to share data and communicate effectively throughout Tesco Plc.
This diagram portrays how various departments use ICT in order to share data and communicate effectively within Coleraine Borough Council.
Outsourcing
Definition: This is when a business hires a contractor (third party), who in turn, will offer their services to perform a partition of the businesses operations.
Outsourcing can be split into two separate types of activities, these including;
- Core Activities – Parts within the businesses functions that earn them their main source of income.
- Non - Core Activities – Things in which the business needs to do or needs someone else to do them for the business. However, these processes may not be at the heart of the business.
Activities in which businesses can currently outsource include;
- Delivery – This is done through the use of mail services such as; Royal mail, Parcel Force, DHL etc. This is main form of outsourcing.
- Call Centres - Tesco Plc requires call centre work as part of the functions for customer views, opinions etc. Tesco will describe the minimum standards to be met through the use of the call centre(s). The Call Centre will be held liable for controlling this data on behalf of Tesco Plc. These call centres can be used by Tesco to perform a variety of operations, including; selling products, customer complaints etc.
- Administration – This faculty can also be outsourced, for example within both Tesco and Coleraine Borough Council – the photocopying of materials, processing word documents, maintaining databases, and website upgrades etc. These can all be classified as forms of outsourcing.
- Production – Many companies tend to outsource their production function as this then allows them to concentrate upon more of the other functions e.g. selling the goods/services, Advertising, Market research, designing methods of a prototype etc. Through doing this, businesses can also keep their costs down due to lower cost rates to manufacture goods in far eastern countries.
- Finance – Frequently for both smaller and large businesses, an accountant will be hired in order to produce the accounting records for the business year, or to produce pay rolls for fellow employees.
- IT – Specialist can be brought in from other businesses to set-up MIS systems, Edit website functionality etc.
- Public Sector Services - Coleraine Borough Council hires contractors to provide services to the local community (ratepayers); this is a form of outsourcing for the business as it is cheaper for them to hire contractors than to provide the necessary equipment to perform these services themselves. Through CCT (Compulsory Competitive Tendering) it is made liable that the council hires these contractors.
Tesco Plc Outsourcing
“One way Tesco's Fresh & Easy Neighbourhood Market retail operation in the U.S. is cutting costs and saving money is by outsourcing virtually all of its information technology (IT) functions, finance, payroll, personnel and other departmental operations to a subsidiary, Tesco Hindustan Service Centre, in Bangalore, India”.
Fresh & Easy Buzz
Advantages of Outsourcing
- Cheaper
- Contractor held responsible for performing operations – Not Business
- Wide range of services offered – Many Contractors – Value for money
Disadvantages of Outsourcing
- Call centres can be dangerous – hired employees may work for criminal organisations, therefore leading t identity theft of customers etc. Proving large problems for the organisation at its reputation.
Supply Chain
This is deemed the process from whenst a product/service has been designed to when it has been sold. In other words it refers to the beginning of a product/service life to the end.
Outsourcing through the supply chain includes; some of the activities in extracting raw materials, transporting them, organising the logistics, manufacturing the final product/service, and then distribution to customers.