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Unit 1 Assignment 3, P3, P4 - Business BTEC Level 3

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Unit 1 Business BTEC Level 3 Assignment 3 All critiria passed

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Task 1 – P3

As part of this assignment, I have been exploring the way Tesco and Oxfam makes their
strategic plans, so I will describe how they are being organized.

Tesco is a public limited British company global grocery and general merchandise retailer, it is
the third largest retailer in the world. With stores in 14 different countries across the globe,
having around of 300,000 employees and 7,200 stores.

Oxfam is an international confederation of charitable organisations that works on global
poverty. It is a charity who relieve famine worldwide, it’s a global movement of people who
share the belief that in a “world rich in resources, poverty is not inevitable” it is an injustice
that can and must be overcome.

Every organisation needs a structure in order to achieve and perform their goals and objectives
as a business. An organisational structure also sets out how communication flows between the
organisations.

There are different types of organisational structures as hierarchical, tall, flat.

Hierarchal organisation structure is a system in which members of an organisation or society
are ranked according to relative status or authority, it means that every entity in the
organisation, except one, is subordinate to a single other entity.

Tall organisational structure is pyramid type organisation that has relatively large numbers of
levels in its hierarchy of authority, it is the opposite structure of flat organisation.

Flat organisational structure is and organisation structure with few or no level of middle
management between the staff and executives.

Tesco has a hierarchical organisation structure. Hierarchical structure has several levels
arranged in treelike construction with the person with more power at the top and the person
with the less power at the bottom, for example the managing directors with more power and
more authority at the top of the pyramid and a store management with less authority over
other people at the bottom. Hierarchical is used by big and successful companies like Tesco
however it has disadvantages and benefits. One of the disadvantages of using hierarchical
organisational structure is the poor flexibility that the company has, this is because hierarchical
structures tend to adapt slowly to changing needs, another disadvantages of this type of
structure is the communication barriers this is because in a company where there are a lot of
middle management communication between departments is more difficult for example ii
would be difficult for a financial accountants to send a message to the manager directors
because will be hard to find he person they want to message, another disadvantage of
hierarchical structure is the organisational disunity this is because the company’s departments
make decisions that are made to satisfy the department needs instead of benefit the
organisation goals however there are some advantages that benefices the company such as
the clear chain of command because members of the management know to whom they report
and who report to them, another advantage is the specialisation that the company has
because as a big company it should have a variety of task that have to be done by specialized
people that know how to do the work properly, so he company must divide those activities
into different departments that will specialise in a particular aspect.

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