Regional: This is when a business works in many different areas across the globe. This is beneficial because employing someone in the UK to advertise products to someone in China would be a nightmare because there is the language barrier as well as no understanding of the customs and trends happening in different areas of China. Employing people in different areas is good because employing people external to the area of operation means that they understand current trends and cultures of that area.
Trends vary from country to country, region to region. If they have a marketing team situated there, they are going to know the current trends. They can use this as an advantage to advertise and make a good ad campaign. The span of control can be affected as poor communication between two people can completely breakdown and the benefits of having a wider span of control will have been a bad idea.
Matrix: This is when two organisational structures are used together and is usually used temporarily and its commonly used to launch new products and the organizational structure changes once it is at its maturity phase.
The span of control can be very confusing of both managers in charge of the same people have bad communication. This means that they could have two people doing a one man job effecting the efficiency of the business. An example of a matrix organisational structure would be combining regional and the product organisational structure to run the business by.
Product: This is where the structure is based on the product category. For example the meat section at a supermarket would be different to the bakery section. Bakery sections will have their own leaders and so would the meat section who feed information to their superiors.
As said confusion can easily happen due to an overlap caused by poor communication which in return will affect the span of work control alongside the division of work because they will be getting multiple people doing the same job.
Customer: A customer-oriented organization places customer satisfaction at the core of each of its business decisions. Customer orientation is defined as an approach to sales and customer-relations in which staff focus on helping customers to meet their long-term needs and wants. Here, management and employees align their individual and team objectives around satisfying and retaining customers. This contrasts, in part, with a sales orientation, which is a strategic approach where the needs and wants of the firm or salesperson are valued over the customer.
P3.4 RESEARCH AND EXPLAIN HOW VARIANCE IN THE NATURE OF BUSINESS CAN HAVE AN IMPACT IN THE ORGANISATIONAL STRUCTURE OF YOUR TWO CHOSEN BUSINESSES.
The nature of business defines what group of business the business fits in too. For example the Co-Operative is a mini supermarket, it's intensions is for small but regular sales, people don't go there and do there full shops for the week, so Co-Operative is there for small items that don't require the individual to go to a supermarket. The Co-Operative is a convenience grocery shop.
If the Co-Operative were to become a supermarket, then they would be competing with the big businesses on the market share, businesses like Tesco and Sainsbury's. Co-Operative is very high on the market share with a good image and reputation of ethical behaviour. But will they be able to compete with the supermarket fat cats. My opinion is that they wouldn't. This is because they are not suitable for large retail because people don't mind paying a little extra for a shop that's round the corner as opposed to down the road. And their prices incorporate the price of ethical trading practices, this means that they would be unable to battle businesses like Tesco because they don't follow the same ethical trait. They would be unable to contend on price and when people are buying al there weekly shopping all the little added prices that are more expensive are really going to build up and therefore people will stop going to Co-Operative because it is much more expensive as opposed to somewhere like Asda. Turning the business into a supermarket carries more responsibilities and much more staff because the operation is larger, this means that it will impact the organisational structure in place because staff members of one shop go from 30 to their hundreds. It means that a different organisational structure will be needed and it would most likely be in the form of a line organisational structure as opposed to a Co-operative organisational structure.
CB Graphics runs of a sole trader meaning she is the only person in her company and will therefore run of a stakeholder type organisational system. People who would be included in this system would be people like her supplier, and her customers. If she were to have multiple different staff members in her business then her organisational structure would be more personal to her business and would most likely be a wide organisational structure as to where Catherine is at the top and the people who feedback to her will be her staff members alongside her most important stakeholders.
Suppliers Staff Customers
P4.1 EXPLAIN IN YOUR OWN WORDS THE TERM FUNCTIONAL ACTIVITIES.
Divisions of a business cooperatively working together as one to make the business operate. A school for example has its teachers, cleaners, and governors.
P4.2 IDENTIFY AND DESCRIBE THE DIFFERENT AREAS AVAILABLE.
Sales: An individual in charge of sales regularly works at a checkout or another example would be a car dealership. They are trying to sell customers products using their training to make it more appealing.
Human resource management: Human resource management are in charge of all staff. They are also in charge of the wellbeing and problems the staff are having. They manage all the over staff. An example of management of the staff would be staff booking days of for holidays, human resources are the ones who take care of it. They are also in charge of employing and firing staff.
Customer Service: This is the area in which staff are employed to help deal with customer complaints, issues, and queries. They also deal with things such as refunds if products were not fit to be sold and they have returned it. Customer service staff need to be able to follow procedures as well as company policies in order to satisfy the customer.
Administration: There main purpose is organizing everyone. They are in charge of security alongside the health and safety of staff and themselves.
Marketing: This is where a product or service is advertised in order to create more sales of that particular product. It consists of collecting primary and secondary resources and statistics in order to see who they are best suited to advertise to, their target market. They use advertising channels like newspapers, TV, and radio in order to spread the word of their promotion.
Purchasing: Commonly this is where someone is paid to by something on their behalf, however purchasing can be as simple as buying something that is wanted.
Information technology services: It is there duty to maintain all technology within the business alongside any software that may be accompanied by it. Maintaining company documents saved in the company's online documents. Keeping up to date with new technology.
Production: The place in which the goods are crafted. Ensuring the goods made are of company standards.
Accounting: This is a very skilled area of expertise, it is where all finances, in and out are documented and kept record of as it is a legal requirement to do so. They work out monthly earnings, and the expenditure of that month. They deal with all the responsibilities of buying and selling products. Very important because all purchases and sales must be documented in order to be a law abiding business.
Research and development: This is not the creation of the product, it is the research and development of an existing product to create more sales, the reason people use specialists in this area is because they want to make their products to exceed customer expectations.
P4.3 DESCRIBE THE FUNCTIONAL AREAS THAT TAKE PLACE IN BOTH OF YOUR CHOSEN BUSINESSES.
CB Graphics: She is in charge of selling her products, this means that she deals with sales. She markets all of her products. She is in charge of all purchasing in the business. She is in charge of the production of the art, however she does not print of the art she makes as she uses a third party manufacturer. She has to keep up with current trends and constantly develop her products to keep up with her market which would mean she is involved with research and development. Catherine deals with her customers first hand and she is representing her customers which means that she deals with customer service all the time.
Co-operative: Due to the size of the business being so big there is no topic that they have not covered. They have and deal with all of the areas covered in the assignment purely because of the size of the business.
P4.4 WHAT IS A BUSINESS PLAN.
A business plan is goals that the company wants to achieve over a certain period of time. The plan will include just how they are going to achieve them, alongside how long it will take.
P4.5 DESCRIBE WHAT A MISSION STATEMENT IS, WHAT IT IS IN VISIONS, AND WHAT IT IS IN REAL WORLD TERMS.
The values of a company alongside its values. In vision it would be how you think it would be executed vs how it actually happens in real world terms.
For example a value Co-Operative has very close to the heart of the business is fair trade, they sell goods that are bought fairly from suppliers and used this as a USP. Co-Operative's mission statement was to be a profitable business that operated fairly.
So for Co-Operative this means buying there fruit from suppliers more expensive than its competitors because they are giving the suppliers a fair price for what they are buying.
CB Graphics had the same goal as she wanted to be a profitable business that could support her families' expenditure, she gave back to the community through her charity work with a type two diabetes's charity.
For CB Graphics this means that she has to contribute to the charities running may that be through helping with events or even donating.
P4.6 CHOOSE SIX OF THESE VALUES AND APPLY IT TO YOUR TWO CHOSEN BUSINESSES ARGUING, IN TODAYS ECONOMIC ENVIRONMENT, WHAT THEY MEAN IN VISION AND IN REAL TERMS.
Continuous Improvement, A worthwhile value because the better the business does measured by the profits made will therefore indicate how well the business is doing. This means that they will increase their market share. Co-Operative will want to keep improving because the Co-Operative is owned by members which means that the improvements made whether that be better working conditions for staff which will expand the time they stay worth the business and save on recruitment costs, or just trying to be more profitable by increasing sales each member will earn more money because of the investments made bettering the business.
Creativity, to improve staff conditions it is best to give staff chances to be creative, this is because everyday life doing the same thing over and over can make workers unhappy because it is boring to repeat dull tasks and do the same dull tasks daily. With thousands of staff employed by the Co-Operative it is important for staff to have creativity in their jobs so that they can be satisfied with their jobs. Co-Operative will benefit from this value because it can increase the amount of time staff spend with a company and therefore means that they save on induction costs. In the real world jobs can be long hours and very boring and tedious for people who do the same job everyday so this value means that people can have some creative outbursts whilst working.
Customer Satisfaction, This value should be very high up on the list of values because they are important and this is because it is important for a business to implement high standards of customer service if they want repeat business. This value keeps businesses like Co-Operative competitive because other supermarkets try and implement high standards of customer service which therefore makes it important to keep customers satisfied otherwise the Co-Operative can lose loyal customers and the image of the business will slowly deteriorate.
Develop Staff potential, this is beneficial to both the staff and the business. Unleashing full staff potential means that they are doing more for the business and the individual seeks benefits like the ability to achieve more in their workplace. For Co-Operative this would be things like promoting someone to a higher position in the business because they have proved that they are worthy and capable of fulfilling a higher position.
Staff Loyalty, Very important for a business like Co-Operative because if they don't have loyalty from staff then the work life of staff will be shorter and therefore recruitment costs are higher. Also staff loyalty means that there is trust built between the business and staff.
Trust: An important value because trust is between everyone involved in the business. Trust that staff can be left unsupervised to do their job, customers are able to trust that the products they are buying really are Fairtrade, and trust that everyone responsible for the running of the business is treated fairly, build-up of trust makes the business function better because lack of trust causes disputes.
Customer Satisfaction, Catherine runs a business with fewer stakeholders than a normal functioning business which means that the ones she does have need to be kept happy. Customer expectations need to be within reason. If someone has given correct and specific details to Catherine asking that they want a blue and red striped banner with a company logo on the banner, and she delivers a banner that is red and green then the customer will not be satisfied. It is about driving herself to meet the expectations of the customers.
Continuous Improvement, Catherine will want to improve her business so that she is more profitable, or for other reasons like raising awareness of her business or improving the image of the business, not that it was ever ruined, but maybe to make it better than what it was. Many of the improvements made usually tend to have profitable outcomes because things are operating better or becoming cheaper. For example if Catherine bought a fuel efficient car as opposed to the other car that requires a ton more fuel to operate and therefore costing more money, it would be beneficial because she would be saving money. The fact that she is more fuel efficient therefore means that she is taking less of a toll on the environment which could be another USP to her business.
Innovation, this is thinking of a new idea and implementing it to a business. For Catherine it could be the idea of taking a different route to make journeys shorter which means that she saves on petrol money, or planning her journeys outside of rush hour so she spends less time in traffic and spends less money on travel which is also better for the environment because less pollution is created.
Respect for the Individual, Catherine works on a very personal level with people of all different backgrounds, ethnicities, and cultures. This means that she has to be careful when she deals with customers because a hand shake can be considered offensive in different cultures which means that she needs to respect and be aware of different cultures in order to meet customer needs. Although it's a very rare occurrence that someone in the UK is offended by a handshake, there are many other traditions that can be offensive.
Service to Society, Catherine works for a diabetes charity as her way of thanking the community for choosing her as their product manufacture, she also done it to boost image reputation, and to be socially responsible.
Trust, Customer need to feel as though they are getting a good deal and that they are not being ripped off. Catherine offers a service that is run differently to big corporations which are able to manufacture products like the ones she makes cheaper. However her customer service and friendly approach to customers are what generates business, so Catherine needs to reassure them that using her business is beneficial as opposed to a bigger corporation so that customers trust Catherine to produce the product at a higher quality.
P4.7 EXPLAIN WHAT BUSINESS AIMS ARE.
A business aim is something that the business wants to achieve over a certain amount of time. These aims don't have to lay within the company as they could be related to being more socially and environmentally friendly. Aims can also be within the business alongside being measurable like trying to increase customer satisfaction rate by 5%.
P4.8 RESEARCH AND DESCRIBE IN DETAIL, THE AIMS FOR YOUR TWO CHOSEN BUSINESSES.
The Co-operative set out to get to their community. They did this by implementing community schemes like sports days. It set a good example of how to be good to their community. This was effective as they got to meet and entertain the community first hand.
Another goal set out by Co-operative was to do business fairly. Instead of exploiting farmers to get low cost fruit. They use the Fairtrade system and have strong morals that people they buy of should get a fair amount for it.
CB Graphics aimed to raise awareness and support for a charity about diabetes. They wanted to raise awareness of the illness as well as awareness. They fulfilled this aim by incorporating the charity logo on their website as well as what they do to help.
CB Graphics is trying to reduce their carbon footprint. This is a measurable aim. When making appointments with her customers she always meets them by driving to a location to suit them. These car journeys can take 20 minutes one way, and these trips on most days happen a couple times a day. This is very damaging for the environment. Instead of visiting them face to face she is doing video calls which are just as personal and still face to face. It is reducing there carbon footprint.
P4.9 USING LISTED STAKEHOLDERS EXPLAIN HOW THEY WOULD INFLUENCE THEIR AIMS.
Customers: Have a massive say on how the business is run because if they think something is unfair then they have so many places they can go as opposed to the Co-Operative. For example if one of the products being sold wasn't bought fairly, and the customers weren't happy, then sales will decrease, so then Co-Operative will aim to address the problem and promise that the issue will never surface again. Customers make the profit of a business and without them they are unable to function and therefore Co-Operative aim to satisfy and make customers happy.
Suppliers: Co-Operative will aim to make suppliers happy so that they are able to gain benefits from trading with them. The benefits help the business function and cam make expenditure more stable as they will be able to pay monthly instalments as opposed to a onetime payment for all stock.
Government: introduce new laws to all businesses which affect the way it runs so Co-Operative will need to aim to be able to adapt to the new laws so that they are not breaking the law, one of the ls that changes is the amount minimum wage is, minimum wage has been increasing and although has benefits it has drawbacks because sometimes businesses can't afford to pay staff the minimum wage and therefore they let them go.
Local Communities: Co-Operative being a local supermarket needs backing from the community because it's where it probably makes most of their money. As said before people go to Co-Operative if they don't want to do a big shop. Co-Operative will aim to keep the community happy because keeping their customers happy is very important. The Co-Operative runs locally. The local community has the power if there is enough of them to postpone and stop building permission to a business such as the Co-Operative.
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