Business at work

employment standards in matters such as fair pay or minimum working ages. Tesco believes it can play a positive role in influencing working practices around the world.

Like other large companies, however, Tesco recognises that its wider reputation depends on other things, such as its staff relations, its attitude to the environment, its support to the community, and its relationships with its suppliers. Also, as a leading food retailer, the company must ensure that it provides products, which are safe to eat or use, as well as giving customers advice on matters such as healthy diets.

Health and safety

Tesco customers rightly expect that their purchases will be safe to eat or use. The company applies the highest standards in meeting these expectations and makes special provision for those with special dietary needs. Following government recommendations on the nation’s diet, Tesco was the first retailer to promote healthy eating.

Environmental policies

Tesco is committed to protecting the environment and to using its commercial strength to put its principles into practice. In many cases, the company’s standards far exceed legal requirements. Its environmental policies cover matters such as recycling of packaging, working with suppliers to minimise the use of pesticides, energy conservation, and the siting and design of its stores. Tesco also works closely with environmental organisations in areas relevant to its business.

Animal welfare

The company aims to set the highest standards of animal welfare in the industry, and has introduced a code of practice on the treatment of animals to which all its suppliers must adhere. The company is also funding research to improve understanding of animal welfare, and will continue to promote and implement high standards in order to improve animal husbandry still further.

Relationships with suppliers

Tesco has relationships with thousands of suppliers in the UK and overseas, and works closely with these suppliers in order to ensure that products are of the highest quality and delivered in the best possible condition. By working in close partnership with its suppliers, Tesco is helping them to meet its own high standards, not just in efficiency and product quality, but also in environmental protection, animal welfare and employment practices.

The community

Tesco is very much part of local communities throughout the UK and is committed to playing a positive role by working with community organisations. The company’s community contribution covers support for education, groups dedicated to helping people with disabilities, and a wide variety of other organisations. The company has introduced schemes which enable its own staff and customers to help raise money for good causes.

Each large supermarket retailer in Britain has its own corporate identity and culture. Often these are very similar, yet each organisation seeks to present its own individual image. Of the types of cultures that I have discussed above, I think that Tesco displays many of these differing forms, especially customer driven or customer orientated, task culture, competitive culture, innovative culture and positive culture. It is often said that in business “the customer is King” and this is very true of Tesco, which operates in a very competitive market. It must be very heavily customer orientated as satisfied customers will usually regularly return, but dissatisfied customers may not …. and go elsewhere! It is also very innovative, always encouraging new ideas and products, e.g. the possible introduction of car sales. Tesco used to be a food retailer, but now it also sells clothing, electrical goods, books and stationary, computers, mobile phones, etc. It has a very positive culture as it is always searching for new opportunities for its staff and also its retail products. Its success is now a good indicator of how this blend of business cultures has led to market growth and market leadership.

E5

Communications

The efficient communication of information is particularly important for organisation that operates in competitive markets. Relevant and accurate information is needed to plan and manage efficient production, marketing, distribution and cost control. Information – whatever it is nature and purpose – must be communicated as efficiently as possible.

All people in an organisation are part of an information flow – they are involved to varying degrees in providing and receiving information. However, there are three main levels at which information is required:

• operational level

• middle management

• senior management.

Operational level

At the operational level – on the factory floor, in the office or at premises where consumer services are provided – there are charge hands and supervisors who must ensure that work is planned and carried out as efficiently as possible. In a factory, for example, a supervisor giving the task of overseeing the production of a particular item needs to know:

• the quantity to be handle

• the completion date

• the availability of plans and machine capacity

• the operations to be performed

• the kinds of labour needed and its availability

• the materials and components required to produce the order.

The kind of information assists the supervisor in planning and controlling he work and it is essential for decision making at an operational level. Activities at the operational of an organisation produce data that will be processed to provide much of the information required by middle management.

Middle management

Middle management needs to know how efficiently work at operational level is been carried out and the extend to which any resources under their control are being used to achieve the organisation’s objectives. Much of this information relates to the productivity of labour, the utilisation of machine capacity and the rate at which materials and other inputs are being consumed.

Middle management also needs a great deal of financial information about the costs of the resources consumed in relation to output. This financial data can be used to determine and monitor total costs, revenues, profits and the achievement of business objectives for example, it will be possible to identify any fall-off in productivity or rise in labour costs which might contribute to arise in unit labour costs or to detect the excessive use of materials which might suggest an increased in wastage.

Senior management

So far, I have mainly considered the need for information that is processed and generated from sources within the organisation. At senior level, however, information from internal sources often has to be supported by information derive from external sources to help managers ensure that the resources and their control are used as efficiently as possible in achieving business objectives. Decision making at senior management level has a major influence on the success or failure of the organisation. Any decisions concerned with controlling the organisation, assessing its performance, planning its future and initiating action must be supported by all relevant information.

Decision making at senior level in areas such as business strategy and planning requires information about broad trends rather than detailed information needed to make many routine decisions on day-to-day matters at lower levels of the organisation. Senior management need information about:

• developments in initial costs and sale trends

• overall profitability, and the respective contribution of each part of the business

• capital requirements, and availability of internal funds and the cost and sources of external capital

• manpower and skills requirements

• forecast of demand of the organisation’s markets

• the impact on business of any changes in the economic, political, social and legal environment.

Superior

Prep Line manager Prep

group group

Staff Subordinates Staff

relationships relationships

Figure 1.9: Communication network

Communication channels and methods

The communication channel refers to the means by which information is communicated. The actual choice of communication channel depends upon a combination of:

• the need for an immediate feedback or response

• costs

• speed and urgency

• the number and location of the people who need the information

• the degree of confidentiality and security required

• the desired degree of formality

• convenience

• the complexity and amount of detail to be conveyed

• the