Explain How Functional Areas Link With Each Other Within Tesco

Tesco's has recently had to make many changes in their staff and have had to change the management structure to be able to pay every manager fairly and pay the wages for their general employees. These effects were taken place due to a major profit change and an unstable financial system. Another effect that has been changed is the Tesco pension scheme back in 2012. The Tesco pension scheme had changed due to financial problems however this would mean employees who have a pension scheme with Tesco will have to work longer if they were in their early 60's . This became a challenge for Tesco's as they couldn't afford to pay out on pension schemes at that precise moment.

In all companies there are many different tasks which need to be carried out regularly, in order for the business to reach its aims and objectives. Stock needs to be brought, the bills and finances need to be controlled, and customer service issues dealt with and so on. In a small organisation one or two people may do all the jobs, whereas in a large organisation people have to be specialized in many different individual tasks. In a large company it is easier to identify the separate functional areas, because groups of employees would work together in departments. Each department carries out its own individual tasks to relate to their specific area. The main purpose of functional areas

The scale of Business that Tesco would be is international as they are in a small amount of other countries other than Great Britain. On the other hand Dartford Borough Council is local because it only supply’s/helps one area in which it is found in.

Tesco Plc is a Public Limited Company who securities and shares are included in the stock exchange and list of different countries. In UK, companies like Tesco Plc are registered under the companies Act 1980 and its shared are offered to public in regards of limited liability. In addition, Tesco is associated with retail sector that carries out a majority business of the company and contribute their share in country’s economy to a huge scale. Apart from the retail sector, Tesco Plc faced tough competition all over the world from companies like Wal-Mart, Asda, Sainsbury, and others. Although, Tesco is not in dominating position in the current retail market in the UK, but the company is one of the biggest retail companies working in the UK, North America, Asia, Europe and other. The company

Another internal economy of scale from which Tesco benefit is technical. As they grow, they are able to use the latest equipment and incorporate new methods of production. An example of is their new self-service checkouts from which people can purchases their goods from a machine using a scanner. This increases efficiency and productivity, reducing average costs of output because it means they don’t have to employ as many workers.

There are 3 core functional areas in every organisation. These core functional areas are marketing, production and finance or accounting. Although these functional area play their roles specifically, all the areas do actually relate together and have a specific goal. Each of these functional areas have to play their own part well only the organisation goal can be achieved.

'How do the main functional areas of a business interact and contribute to its effective management?'

Sysco is founded upon values that includes integrity, reliability, autonomy, quality and entrepreneurship. Sysco employs around 50000 employees over 50% of whom are hourly workers and delivery personnel. These employees are paid weekly bonus based on their performance. Sysco creates a sense of ownership among employees by rewarding employees with stock. They provide integrated solution to their customers by combining products and service. Approximately 65% of Sysco employees owns a company stock. Sysco has a relationship management system called CARES for providing best customer service. Sysco study shows higher employee satisfaction results in positive financial results. Sysco expects their business units

Tesco operates in 14 different countries. Therefore its performance may be influenced by the local legislation and political factors. There are

Tesco also have a contract with logistics company Eddie Stobart so that they can transport goods from the manufacturers to the warehouses quickly and from the

Tesco also have social factors that affect them, as the business have charity centre in helping the less privilege people and the more these people gets poor, the more they will have to stretch to help out which also spending money.

Tesco provide uniform for its employees as well as signs and signals for particular areas for the safety of customers and workers. If standards are not met Tesco could face fines and other disciplines. Tests are regularly taken to ensure Tesco are up to date with laws and regulations for example the fire alarm system will be tested every so often.

As I have mentioned before, this research paper is being taken exclusively with the aim to evaluate the Tesco’s performance in both financial and business terms over a three years period. Since the financials will be compared with its three year

* Lack of Information and communication across divisions Each division maintains its own marketing, manufacturing, logistics and administrative departments (Silos)

Businesses have many functional areas, these are important in ensuring the business runs efficiently. Here I have described 4 functional areas that most large businesses and organizations should have.