Tesco’s key functional areas
In all companies there are many different tasks which need to be carried out regularly, in order for the business to reach its aims and objectives. Stock needs to be brought, the bills and finances need to be controlled, and customer service issues dealt with and so on. In a small organisation one or two people may do all the jobs, whereas in a large organisation people have to be specialized in many different individual tasks. In a large company it is easier to identify the separate functional areas, because groups of employees would work together in departments. Each department carries out its own individual tasks to relate to their specific area. The main purpose of functional areas is to make sure that all of the main business activities are completed properly, as its essential in order to run the business well. Key functional areas for Tesco’s
The finance department in Tesco’s is there to ensure that Tesco stays up and running. The main activities of the finance department is to record all business transaction clearly. So they would record all of their expenditure and all of their incoming money. They would also allocate each department a budget, and make sure that they do not exceed that budget. The finance department would also look at and monitor Tesco’s financial performance, by monitoring how Tesco is doing financially. They need to control all finances and cash flow to make sure that Tesco’s stays reliable and does not go bust. They need to make sure that there is enough money to pay off debts, loans, bills and their employees, and making sure that there is enough money for the company itself. To make carful financial decisions, by comparing the predicted performance with the actual performance, they do this by looking and comparing their financial situation is past years to their financial situation now. By doing this they can decide if they expense of whatever they want to invest in,...
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