Essay on P3: Describe How Two Businesses Are Organised- Unit 1

2995 WordsMay 31, 201312 Pages
P3: Describe how two businesses are organised Tesco Purpose the first business that I have chosen is Tesco PLC. Tesco's purpose is to serve its customers. The primary function of any business is to make money and invest; if it doesn't do that, it can't exist. Tesco is a major retailer in grocery and general retailing. As Tesco is a profit-based business, it maximises their sales and profit, expanding to maintain its competitiveness in addition to outshining competitor. It also focuses on providing shareholders with progressive returns on their investment improving profitability through investment in efficient stores and distribution depots, in productivity improvements and in new technology, developing the talents of its people…show more content…
the people below them in the chart). The chain of command refers to the number of layers through which messages (commands) have to pass in order to get from the person at the top level of authority to staff at the bottom level. The larger the business, the longer the chain of command is likely to be. With Tesco as it is a very large business, the chain of command is very big, as messages and commands from the head directors or even CEO, have to go through a lot of people to get to the sales staff of the shop floor. Functional Areas Finance Most entrepreneurs consider this is the most important function in the business. This is because all businesses need a regular stream of income to pay the bills. With Finance staff record all the money earned and spent so that the senior managers always know how much profit (or loss) is being made

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