Financial Report

The Tesco measure their success the most by collecting financial reports as this shows how much of a profit or a loss that Tesco is making. In the reports it shows what's coming into the business, e. g. revenue, sponsors and others types of input. It also shows what's going out of the Tesco, e. g. raw materials, rent, wages and anything costing the Tesco money. Customers Tesco measure their customer satisfaction, to see if their customer service is a success. They do this by collecting statistics. There are two types of measurements is the business's success through the customers.

Below are the two signs in measuring success through customers along with examples for each. Positive signs These are factors, which show an increase in the number of customers who approach them with an enquiry. Also increases in the number of customers who buy their products. As well as increases in the number of customers who come back and buy their products and reductions in the number of complaints and returned sales. Negative signs Are things such as increases in the number of complaints. As well as increases in the number of returned sales as faulty and reductions in the number of customers.

(1) Organisation Structures Tesco is a very large firm with several positions of responsibility. Being such a large organization provides a lot of power as well as responsibility which is why I believe the company has chosen the 'Hierarchical Structure' for its level of responsibility. This structure is in the shape of a pyramid. It begins at the top with the chairman where the ultimate power lies and broadens out towards the base with the lowest amount of responsibility being given to the workers.

Within the organization there are different functions areas each, which control different section of the business. It is up to the managers of each department to ensure that each member of staff within their department carries out the correct tasks to ensure that the business is run successfully. Advantages of hierarchical structures: There is a Clear management structure. The lines of responsibility and control are clear and the Functions are clear and distinct Disadvantages of hierarchical structures: There are many layers of communication.

There are many layers of authority and decision-making and also the Cross-departmental communication within the firm can be difficult. Each department is a functional area as proceeds as follows: Marketing department: The marketing function in Tesco is responsible for the following: Marketing research for needs of the firm. Customer care and service to all consumers. sales promotion and advertising. Preparing sales budgets and forecasts, as well as providing support services to sales staff.

This department is also responsible for sales administration and the responsibility of identifying and implementing the marketing mix. The marketing department of Tesco is essential to the firm as it deals with the marketing research for new or existing products, the advertising and promotions of a service or product to the business. This department also deals with the public relations, which is vital if a business wants to maintain good relations with other organizations and the general public, in order to give the firm a high profile image.

Human Resources department This can be considered as the most valuable resource in the business. This is due to the fact that if the business had no workers it would not be able to operate. As Tesco is a large organization it contains a large human resources department and can afford to employ more specialists. The main purpose of the human resources function is to recruit, however all departments in the organization rely on the human resource department to carry out the following functions: Recruitment, training, development, redundancy, pay and dismissal of workers.

This means finding the right people, training and developing them so they achieve their maximum potential and creating systems that achieve high levels of morale and motivation. The purpose of personnel administration is to provide and develop systems to carry out these functions and to maintain accurate personnel records as required by law. This is why this can be seen as a vital part of the business. Finance department The finance function is responsible for the financial side of the business. The main activities of this department are as follows, to record all business transactions.

To measure the financial performance of the business, control the finances and cash flow so the business can stay solvent, and the finance department is also responsible for creating financial decisions, which are taken from comparing predicted performance with actual performance. The finance department is important to the business as it provides the organisation with a number of aspects, which help towards the success. Providing financial information to management, e. g. cash and profit forecasts. Providing costings for departments, products or processes.

Providing budgets, paying suppliers and staff. Preparing annual accounts and through providing statutory information. This is what makes the finance department as important as any other department in helping a business to achieve its objectives. Administration Department Every business needs to be organised in order to achieve its objectives. The purpose of administration function is to create an ordered routine, which enables the business to function smoothly. It co-ordinates or brings together the various parts of the business so that they all work towards the same goals. Research and Development

The purpose of Research and Development is to enable an organisation to compete successfully and achieve a competitive edge over its rivals by becoming more efficient and/profitable and giving customers added value. The activities of which the R&D department achieve are as follows, Developing new products, materials and processes. Creating new services for consumers, changing/improving the existing products. This function is also responsible for finding new uses for products, testing products for strength, quality and safety. As well as collecting, analysing and cataloguing data from worldwide research, which could be of help to the business.