Unit No: 7 Assignment 2 Business Strategy Higher National Certificate in Business Year 2

Topics: Strategic management, Management, Organization Pages: 11 (2783 words) Published: September 19, 2008
Table of Contents


Organisational Features5

Leadership Styles6

Internal Resources7

External Resources8
TASK 310



Monitor and Control12

Select two distinctly different organisations from the FTSE 100 and consider the following requirements:


Contrast each organisation relating to the culture, organisational features and leadership style:

In this assignment the choice has been made to use Tesco Plc, this organisation was original identified in Assignment 1 and is a different type of organisation to BAE Systems, the other organisation chosen for this assignment. Tesco is the leading supermarket chain and supplies food and other dry goods to the general public. BAE Systems is a Defence Contractor which supplies military defence systems to the MOD and other countries Armed Forces. Therefore it could be suggested that BAE Systems and Tesco are two distinctively different organisations in very different markets. They are both large, well established and have various sites in UK, Europe and the rest of the world.

Tesco has a Role Culture in their organisation and has a functional structure wit a Tall organisational structure with a narrow span of control.

It has a high level structure with the higher levels holding the departments of Finance, Purchasing, and Marketing etc which operate at a corporate level over all Tesco stores.

The individual stores each have a main store manager who operates and is supported by his first line managers, the line managers then have line employees to control or co-ordinate.

There is heavy investment in the employees by supplying training and promotion from within, it is important to Tesco that their employees know what is required from them in their job and responsibility and how they strive for excellence and customer satisfaction.

Tesco are also concerned with their employee’s opinions on how to improve the organisations performance. They are constantly striving to find innovative ways to bring young people who have great potential into their business. Tesco have recently launched A-Level Option, which fast-tracks them into management.

“Role Culture rests on the strength of strong organisational ‘pillars’ - the functions of specialists in, for example, finance, purchasing and productions. The works of, and interaction between, the pillars is controlled by procedures and rules, and co-originated by the pediment of a small band of senior managers. Role or job description is often more important the individual and position power is the main source of power.” (Mullins.L.J 2005)

BAE Systems appears to have a task Culture in their organisation. They have a functional structure and elements of ‘The Matrix’ and fit into the Tall organisation with a narrow span of control much like Tesco.

BAE Systems is similar to Tesco in the form of the structure, their culture on the other hand is different, BAE Systems are Task focused, and this may be because they are a manufacturer with projects to complete and may be more focused on project orientation. They operate in a very specialist market that requires a lot more specialist and expert knowledge. BAE Systems, like Tesco invest heavily in their employees and in some ways more so given because given the nature of their business they require a lot more specialist skills and knowledge. These skills and Knowledge are required to meet the business strategy. Because of this it is also very important to promote from within.

“Task Culture is job-oriented or project-oriented. In terms of structure the task culture can be likened to a net, some strands of which are stronger than others, and with much of the power and influence at the interstices. An example is the matrix organisation. Task culture seeks to bring together the right resources and people, and utilises the unifying power of...
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