Conor Cunningham
Unit 1 – Exploring Business
M2 – Analyse how the structures of two contrasting businesses allow each to achieve its
aims and objectives.
Organisations are made up of stakeholders and have aims and objectives to satisfy these
stakeholders. Tesco and Newry Mourne and Down District Council have similar
stakeholders. For example, their most important are probably their customers who are the
people who will be using their products and services. The stakeholders in a business have a
large influence on the strategic plans of the organisation and its mission, values and
objectives.
Setting Aims and Objectives
An aim is where the business wants to go in the future, its goals. They give clear direction to
the organisation. They must be clearly communicated to all concerned. For example, in
Tesco, its employees and customers. The aims of the company give a general sense of
direction and planning. It is a statement of purpose. For example, to grow or increase their
market share. All businesses have an aim or purpose. This could be to survive, grow, to
become a market leader, to develop a long-standing family tradition, to provide excellent
service, or to create a reputation as the best in their field.
Organisational structures in Tesco and Newry Mourne and Down District Council
Organisational structure refers to the way that roles are organised within a firm. The
structure if often represented in a diagram called an organisation chart. Many organisations
are typically set up in a hierarchical structure. This is where workers are divided into
management layers, with those in the top levels having greater authority than those in
lower levels. Instructions are passed down through layers along the chain of command.
A hierarchy is an organisation structured in layers where each person has clear roles and
responsibilities. Those at the top of the hierarchy have more authority than those lower
down. An organisations structure should be designed to deliver goals and use resources in
the best possible way. Just as Tesco’s organisational structure is designed to deliver its
business goals and strategy, the organisational structure of the local council is designed to
reflect the intended outcomes of the project. The structure is a relatively flat hierarchy. This
means there are only a few layers within it. Having a flat structure can aid communication as
messages do not have to pass through intermediaries.
Organisations may be structured by product, function or geography. Tesco is structured by
function. Some of these include Finance, Sales, Customer Service and Production. Council
departments are structured by function, for example, Administration, Planning and Building
Control, Leisure, Human Resources and Tourism.
, Conor Cunningham
An organisational chart shows the pattern of relationships between the different workers in
a firm. How these different roles interact will depend on the aims, objectives or culture of
the organisation. Some organisations have many layers within them. This often leads to a
narrow span of control. This means that each manager is responsible for only a small
number of people. These tall organisations allow for tighter control and supervision but may
stifle motivation or the creativity of workers.
Newry Mourne Down and District Council organisational structure
As can be seen from the above organisational chart, Newry Mourne and Down District
Council has a flat organisational structure. This has fewer layers and larger spans of control.
Communication is generally quicker in this structure and enables creative approaches and
the freedom to explore new options. Organisations like the Council need to identify the best
structures to enable them to meet their objectives. They must also be able to respond
quickly to both internal and external factors affecting their work.
A span of control is the number of people who report to one manager in a hierarchy. The
more people under the control of one manager - the wider the span of control. Less means
a narrower span of control. Newry Mourne and Down District Council have a wide span of
control as there is not that many managers. There are few people overlooking the different
departments.
The Councils goal is to ensure that they contribute positively to protecting the environment
and looking after the safety of the community. It does this by ensuring housing and buildings
are safe as well as sports buildings and leisure facilities are provided. They also bring tourists
into the area to spend money and boost the local economy.
To achieve this, the council has adopted a flat structure to ensure decisions are made
quickly with only a few managers to communicate with. This also means there are less staff
and so more money is spent on providing a good service for the community. It has adopted
Unit 1 – Exploring Business
M2 – Analyse how the structures of two contrasting businesses allow each to achieve its
aims and objectives.
Organisations are made up of stakeholders and have aims and objectives to satisfy these
stakeholders. Tesco and Newry Mourne and Down District Council have similar
stakeholders. For example, their most important are probably their customers who are the
people who will be using their products and services. The stakeholders in a business have a
large influence on the strategic plans of the organisation and its mission, values and
objectives.
Setting Aims and Objectives
An aim is where the business wants to go in the future, its goals. They give clear direction to
the organisation. They must be clearly communicated to all concerned. For example, in
Tesco, its employees and customers. The aims of the company give a general sense of
direction and planning. It is a statement of purpose. For example, to grow or increase their
market share. All businesses have an aim or purpose. This could be to survive, grow, to
become a market leader, to develop a long-standing family tradition, to provide excellent
service, or to create a reputation as the best in their field.
Organisational structures in Tesco and Newry Mourne and Down District Council
Organisational structure refers to the way that roles are organised within a firm. The
structure if often represented in a diagram called an organisation chart. Many organisations
are typically set up in a hierarchical structure. This is where workers are divided into
management layers, with those in the top levels having greater authority than those in
lower levels. Instructions are passed down through layers along the chain of command.
A hierarchy is an organisation structured in layers where each person has clear roles and
responsibilities. Those at the top of the hierarchy have more authority than those lower
down. An organisations structure should be designed to deliver goals and use resources in
the best possible way. Just as Tesco’s organisational structure is designed to deliver its
business goals and strategy, the organisational structure of the local council is designed to
reflect the intended outcomes of the project. The structure is a relatively flat hierarchy. This
means there are only a few layers within it. Having a flat structure can aid communication as
messages do not have to pass through intermediaries.
Organisations may be structured by product, function or geography. Tesco is structured by
function. Some of these include Finance, Sales, Customer Service and Production. Council
departments are structured by function, for example, Administration, Planning and Building
Control, Leisure, Human Resources and Tourism.
, Conor Cunningham
An organisational chart shows the pattern of relationships between the different workers in
a firm. How these different roles interact will depend on the aims, objectives or culture of
the organisation. Some organisations have many layers within them. This often leads to a
narrow span of control. This means that each manager is responsible for only a small
number of people. These tall organisations allow for tighter control and supervision but may
stifle motivation or the creativity of workers.
Newry Mourne Down and District Council organisational structure
As can be seen from the above organisational chart, Newry Mourne and Down District
Council has a flat organisational structure. This has fewer layers and larger spans of control.
Communication is generally quicker in this structure and enables creative approaches and
the freedom to explore new options. Organisations like the Council need to identify the best
structures to enable them to meet their objectives. They must also be able to respond
quickly to both internal and external factors affecting their work.
A span of control is the number of people who report to one manager in a hierarchy. The
more people under the control of one manager - the wider the span of control. Less means
a narrower span of control. Newry Mourne and Down District Council have a wide span of
control as there is not that many managers. There are few people overlooking the different
departments.
The Councils goal is to ensure that they contribute positively to protecting the environment
and looking after the safety of the community. It does this by ensuring housing and buildings
are safe as well as sports buildings and leisure facilities are provided. They also bring tourists
into the area to spend money and boost the local economy.
To achieve this, the council has adopted a flat structure to ensure decisions are made
quickly with only a few managers to communicate with. This also means there are less staff
and so more money is spent on providing a good service for the community. It has adopted
