Company Develop For Organization
Explain the responsibilities of an organisation and strategies employed to meet them.
Tesco PLC, like any other organisation, has several responsibilities towards its stakeholders and employs strategies to meet them.
Consumers: The Company gives primary importance to its customers by listening to the various complaints and suggestions put forward by them. Several stores under this chain have accompanied the government for promoting food safety in different areas of the country. It abides by the Consumer protection Act as laid down by the government. The organisation tries to provide superior quality products to the consumers at affordable prices.
Employees: The management works towards providing the employees with a safe workplace without any exploitation. Proper training facilities are provided to the staff members so that they are able to develop their performances. Attractive pay packages are also provided with appraisal programs at the end of a financial year. It also promotes equal pay without any sort of discrimination. However, in recent times the company has faced the wrath of the common people in its unfair treatment of disabled workers (Halfon, 2013).
Shareholders: The shareholders who have mainly invested in the company in order to gain in the future are always informed by the management of Tesco PLC. Meetings are conducted at regular intervals to keep the investors informed about the current situation of the company. In order to maintain the flow of funds from the shareholders, new strategies are adopted so that the company can earn greater amounts of revenue. The investors are always informed about the new strategies that are adopted by the company to increase its revenue. The chairman conducts meetings with the investors and also seeks their opinion if required.
Government: It is essential for any company to follow the rules and regulations that are put forward by the government. The government expects the organisation to ensure environmental safety. Tesco tries to follow that by limiting the amount of hazardous substances it releases in the environment. In this way the company tries to protect the health of the people living in the society. It pays proper taxes to the government and avoids getting into any legal troubles. Several stores also support the government by promoting environmental protection through various campaigns and adopting proper marketing policies (Pitt and Koufopoulos, 2012). It further avoids any kind of exploitation of the employees and the loyal customers.
Explain how economic systems attempt to allocate resources effectively.
There are a number of economic systems which help the government to allocate raw materials in various sectors of the society. The raw materials which are essential for the production of goods are labour resources, monetary resources and raw materials which are essential for the production of the goods. Planned economy, mixed economy and free economy are the various types of economy that determine the amount of resources allocated by the government.
In a planned economy the government controls the usage of resources like labour and other raw materials. Organisations face difficulty in such an economy as the government does not have much knowledge about the required amount of raw materials. Contrary to this, the free economy hardly involves any interference on the part of the government. Therefore, rules regarding resource allocation are way more flexible as compared to planned economy. The mixed economy is a combination of the other two economies (Oldroyd, 2012). The basic structure is based on free economy but the resource allocations are monitored by the government. Fiscal and monitory policies are prevalent in such an economy. Tesco PLC operates in the mixed economy of England.
Tesco benefits from the mixed economy as it helps the company to expand its business. The amount of resource allocated to the company increases with the increase in its sales and the number of stores. In order to use the resources without any sort of hindrance, the company pays relatively high taxes to the government like VAT and corporate tax of about 20%.
The amount of the resources required by Tesco depends on a few things:
- The company decides which products to produce depending on the preference patterns of the consumers. The company engages in the production of various grocery items, merchandise and supplying other financial services. Its production depends on the current requirements of the customers (Mulhearn and Vane, 2011).
- Tesco aims to maximise its profit margins for which it has established contacts with various manufacturers in order to obtain huge amounts of materials at extremely cheap prices.
- The company has a target customer base for which it produces. However, it seems to have increased the number of stores in order to generate higher amounts of revenue.Order Now