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Introduction:
For this task I will need to create a factsheet describing how my two businesses are organised, this will be given to the operations manager to help her review the structure of her own business, with an accompanying factsheet, with an explanation of how the organisational structure and strategic planning help the businesses to achieve their purpose and aims needs to be included.
This factsheet will be about how two businesses are organised as well as how the style of organisations are used to help fulfil their purpose and aims. A structure is used because all businesses have to organise what they do so workers know what job they are doing as well as who they have to report to.
Each business has a purpose and benefits that make the businesses successful. In order for an organisation to fulfil their mission, they need to use strategic planning. These are meeting goals and objectives.

Task 1 Factsheet
Describe how two businesses are organised (P3)

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Organisational Structure
? Overview of the purpose of organisational structure
Organisations need to be organised into a structure that will enable them to meet their purposes. A purpose of an organisational structure is to divide up the work that needs to be done. This means dividing up the work in a way that means people are clear about who does what in the organisation and that all of the tasks required are performed.
Another purpose of an organisational structure is to establish clear lines of control and communication. Organisational structure is important in controlling activities, to avoid conflict and individuals making decisions that contradict others.
The organisation structure therefore creates a pattern through decisions and activities that can be controlled. This often involves chain of command, or line of control. Individuals that are lower down the organisation will often have to report to a senior before taking action or making a particular decision. Organisational structures also set out important aspects of how communication will take place. Lines of communication refer to who will talk to whom in an organisation. Some decisions and plans made will need to be made through a team communicating with each other. In other situations, communications may be top down, this I s, a senior who tells a junior what needs to be down.

? The different types of structure (include tall, flat and matrix):
An organisational structure is a system used to define a hierarchy within a business. A hierarchy is a system in which members of an organisation or society are ranked according to relative status or authority. The advantages of an hierarchical structure is that it is easy to see what each team is called and how many members each team has and how they relate to the other members in the team. However, the disadvantages of the hierarchical structure is that it is harder for people that are on the lowest level of structure to get to directly report to the one at the top.
There are three types of this structure, Tall, Flat and Matrix. A tall structure is where a business has many levels of hierarchy, the span of control is narrow and there are opportunities for promotion, however due to the many levels, communication can be lost this makes the business unresponsive to change.
A flat structure is where a business has few levels of hierarchy, the lines of communication are short. This means that the routes the message travels along aren’t very long. The communication can easily travel across the organisation without being lost; making the business responsive to change.
A Matrix structure is where an organisation has combined the departments seen in functional structure with project teams. In this structure, individuals work across teams and projects as well as their own department or function.
These structures can be based on the features of the company, such as:

Functional: This is the way a business arranges itself according to what each section or department does.
? Advantages:
Specification – each department focuses on its own work
Accountability – someone is responsible for the section
Clarity – know your and others’ roles
? Disadvantages:
Closed communication could lead to lack of focus
Departments can become resistant to change
Coordination may take too long
Gap between top and bottom
Tesco would be an example of this because they have many departments (food, clothing, technology)

Product group: Where the organisation organises according to the different products made.
• Advantages:
Clear focus on market segment helps meet customers’ needs
Positive competition between divisions
Better control as each division can act as separate profit centre
• Disadvantages:
Duplication of functions (e.g. different sales force for each division)
Negative effects of competition
Lack of central control over each separate divisions
A car company such as Volvo would be an example of this feature because they may have to get part from different companies to complete there models.

Types of customers: Where businesses are based on their customers, with different customer groups, who have different needs.
• Advantages:
Clear focus on market segment helps meet customers’ needs
Positive competition between divisions
Better control as each division can act as separate profit centre
• Disadvantages:
Duplication of functions (e.g. different sales force for each division)
Negative effects of competition
Lack of central control over each separate division
HSB bank would be a great example for this because they are based on their customers.
Area: Where an organisation operates in a dedicated area.
• Advantages:
serve local needs better
Positive competition
More effective communication between firm and local customers
• Disadvantages:
Conflict between local and central management
Duplication of resources and functions
First buses and SouthWest trains only operate in their chosen area.

Describe the purpose and responsibilities of the functional areas within BOTH your organisations:

? What structure does your private sector organisation use?
Tesco:
Tesco has a hierarchical structure because it has a lot of layers and a lot of people to more than one person before that information gets to the correct authority. A hierarchical structure has many levels; each level is controlled by a competent person. A hierarchical company tends to be a large organisation, like Tesco. In a hierarchy instructions are generally passed down from one person to another until it gets to the bottom of the hierarchical structure however, with long lines of communication the information passed down may sometimes be lost. Once it has reached the correct person in the structure, information will be sent back up the lines of communication through managers of departments eventually reaching who it is supposed to reach such as the director or CEO of the company.
The strengths of a hierarchical company is that there is a close control of workers. Workers in Tesco will know exactly what they have to do so they don’t wait around until they are told.
Tesco’s Aim is to provide quality goods/service. Improve the value for money by beating their competitions (ASDA, Lidl, Morrisons) and improving the standards of their products and service as well as reaching profit maximisation.
Tesco’s purpose:
“To be the most highly valued business by the customers. The communities in which we operate, our loyal and committed colleagues and of course, our Shareholders” – Tesco

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