Type of Organisational Structure and Purpose of Tesco and Oxfam

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Year 12 Business
P3 Unit 1 – The Business Environment
Tesco and Oxfam are both huge global businesses who both sell products to the general public however are organised completely different. In this leaflet I will compare and contrast organisational structures of both companies. Type of organisational structure and purpose of Tesco and Oxfam Part A Tesco organisational structure is hierarchical. A hierarchical structure has many levels. Each level is controlled by one person. Hierarchical companies tend to be a very big company just like Tesco is. In a hierarchical instructions are generally passed down from one person to another until it gets to the bottom of the hierarchical structure. If there was a problem in a hierarchical structure it would move up through the structure again from one person to another until it gets to where it is supported to be. This could make it difficult to make decisions quickly as it would take a long time for an idea to go up the structure to someone who could put it to action. In a hierarchical structure 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. This could make it fairly difficult to get a decision through the layers of the organisational structure to the top person. Oxfam’s organisational structure is different to Tesco’s. It is flatter due to there not being as many people organising and running the company. The charity is run by a chairwomen who is the leader of a number of trustees who makes all the main decisions within the company therefore their structure is fairly flat as there isn’t as many people to run things past. Charities try to have less managers to keep costs down and most of the trustees are volunteers and don’t get paid. Oxfam’s organisational structure is geographic because they work around the world with lots of different countries, helping people who are less fortunate than others. Oxfam’s line on control will be smaller which means it will be easier to set work out because the functional areas aren’t as big. This makes it easier for decisions to be made as there doesn’t have to be as many meetings and it won’t be as difficult to get to the top person of a functional area. Overall Tesco and Oxfam are very different in terms of their organisational structures. Tesco’s organisational is tall meaning that the business includes various managers who have different responsibilities and are in charge of functional areas. Also due to Tesco being a Public Limited Company it means the organisational structure includes shareholders which makes the organisational structure bigger. As Tesco is a worldwide hierarchical company their organisational structure is going to be bigger due to its mammoth size. Oxfam’s organisational structure is smaller only one chairwomen is in charge of a number of trustees meaning there organisational structure is more simple because their a smaller company. Oxfam is also an LTD which means it doesn’t include shareholders. Organisational structure diagrams

Oxfam –
Andy Friend (Non-Executive Director)

Andy Friend (Non-Executive Director)

David Pitt – Watson (Honorary Treasurer)

David Pitt – Watson (Honorary Treasurer)

Karen Brown – Chair Women
Karen Brown – Chair Women

Oxfam Trustees:
Rajiv Joshi , David Pitt-Watson, Tricia Zipfel, Namukale Chintu, Tim Robinson, Andy Friend, Matthew Martin, Vanessa Godfrey, Marjori e Scardino, James Darcy, Maja Daruwala, Nkoyo Toyo

Oxfam Trustees:
Rajiv Joshi , David Pitt-Watson, Tricia Zipfel, Namukale Chintu, Tim Robinson, Andy Friend, Matthew Martin, Vanessa Godfrey, Marjori e Scardino, James Darcy, Maja Daruwala, Nkoyo Toyo

Oxfam association:
Miqdad Asaria Andy Burgen Kate Cook Mark Dawson Bob Dewar Janet Harrison Fiona Hodgson Rachel Holmes Rizwana Khan

Oxfam association:
Miqdad Asaria Andy Burgen Kate Cook Mark Dawson Bob Dewar Janet Harrison Fiona Hodgson Rachel Holmes Rizwana...
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