Produce a business report
Below I have explained what each functional area contributes to Tesco and how they help the organisation meet its objectives; Production; The production function is split in sections. 1- Production and planning set standards and targets for each stage of the production process, they closely monitor quality and quantity. 2- Purchasing department; provides materials and equipment required to keep production running. 3- Stores department; stock all necessary tools and new materials to service the manufacturing process, stops machinery from breaking as machines can be regularly serviced.
Marketing; Involves carrying out market research, to find out customer needs, they are also responsible for advertising existing products, through television, Internet and the radio. Tesco also gains their customers by offering special offers (i. e. ) buy one and get one free. Human Resources; are responsible for many things, they are responsible for the relationships between staff. One of their main responsibilities is to select and recruit staffs, which are most suitable for the company (i. e. ) people who are likely to stay with them for a long period.
They set up training and appraisal schemes; they help develop a good workforce by promoting staff, which will help motivate the company. They are also responsible for health and safety issues and other employment duties, at Tesco. Administration; deals with internal operations within the organisation (i. e. ) enquires, communicating messages, producing document for the company, they also provide statistics for the company board, as well as organising training for the administration staff, as well as many other internal operations.
Finance; are responsible for recording financial information, known as book keeping (i. e. ) revenue earned from sales and necessary expenditure, they are also responsible for collecting financial information from other departments, to inform external bodies (i. e. ) Inland Revenue which collects corporation and income tax, they are also responsible for staff wage/salaries. Research and Development; The purpose for research and development is to further the company’s aims by helping Tesco create new and better products and services to meet their customer needs. How the functional areas help Tesco meets its aims;
In order for the functional areas to work effectively, they must be able to communicate with each other, at Tesco some of the ways they do this is by holding regular appraisal schemes, setting up staff training events and other staff development activities, organising induction programmes to familiarise, the functional areas with Tesco methods, which keep them up to date. The functional areas at Tesco benefit from these activities, as they are able to gain experience, which makes them eligible for promotion, which gives them a chance to broaden their skills and knowledge.
Tesco also benefits a lot from this, as it helps them to motivate staff which means Tesco will meet their aims/objectives allot quicker. At Tesco the administration department has a big impact on the other functional areas as it provides support services for other functional areas to operate effectively. How the functional areas help Tesco meets its aims ; The organisational functions at Tesco are the ingredients/instructions that make an enterprise work. The factors of production are; Labour; Work carried out by employees to help the day to day running of the business. Capital; Physical capital/assets (e. g.) machinery/equipment, without these no production can take place.
Energy; Is the raw materials, that make the production machinery work e. g. heating/lighting (electricity). Information; Is the know-how, that helps the factors of production work. (Tesco don’t make all of their own products, therefore not all of the factors are relevant to Tesco) Culture and communication channels; There are four types of organisational culture that can take place within a business, the ‘term culture’, describes the typical approach within a business, culture is the personality, share beliefs and the procedures that a business uses to solve any problems.