Adding Value to a Product
- Pages: 7
- Word count: 1587
- Category: Values
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Adding value means every stage in the production stage it increases the price and the desire to the product. So when the product is finally made it will make the price twice the amount as it started the production stage 1. For example the production systems used to make special Christmas items or packaging;
C.1. Make judgements about how successfully the Business is meeting its objective.
The objectives of the business.
Tesco’s approach to ethical business operates on three levels:-
> Compliance: opening up to defined standards of human rights, social welfare and worker safety, environmental protection and, where relevant, wider ethical issues like consumer protection.
> Disclosure: only through public disclosure can a real process of dialogue and discussion with stakeholders be achieved and the right direction charted for the future.
> Campaigning: to play an active part in campaigning for positive change in the way the business operates, with the ultimate aim of making a positive social and environmental impact on the world at large.
Tesco believes that the business has responsibility to the communities in which it operates. To this end, they support and encourage employees throughout the world to volunteer their time in local action. Their community action covers a wide range of activities from conservation work to providing competitions, special give aways and customer quality.
The three ethical objectives are always achieved because from the first day of opening they are the issues that the CEO believed in. They have the highest market share in their market. Last year they were crowned the top supermarket retailer in the UK which shows how successful they have been. By this it would be understandable to assume that all if not most of the business’s objectives have been met so far. This year the company is once again currently the market leader which shows that they are still achieving their objectives
(SOURCE TESCO GLOBAL INVESTER BOOKLET)
For the next two objectives, these are measurable by the annual performance accounts, which have profit and loss accounts.
Surviving as a Business
To achieve this objective they must increase their profit margin and increase if not expand their reputation. To have a higher profit it would allow more money for Tesco to spend on advertising, this will make the public aware of the business. With the advertising it will build up the companies reputation further. Also to improve quality assurance further in the eyes of the consumer will be a dominant fact in the survival of the business.
This is like a high market share, being the best in the business. In order to do this they need to do more advertising because the minds of people nowadays are very easily changed and as the UK groceries market is very tight, market share can be lost in an instance. This is linked to increasing profits. Because if the profits rise this would mean more people are buying from the Body Shop.
The body Shop brand though a forced product strategy and increased investment in stores, to achieve this operational efficiencies in the supply chain by reducing product and inventory costs and to reinforce the stakeholder culture.
With these two objectives you can see how successful they are going by the companies report printed every year. I gathered the report and looked at the profit and less accounts and I have seen they are going very well in the 7 weeks into the year of 2002, because last two years their profits have been going down
Retained (loss) Profit 1.2m 1.4m
As you can see in 2002 there was a good profit figure of 1.2 million and in 2003 they made a profit of 1.4 million. This is not a major major increase in profit, which means that the company needs to work extra hard to expand. I think all 5 of the objectives are going well compared with previous years.
A1. Explain how the organisational structure, culture and management styles interrelate in the business.
The Organisation structure, Culture and Management styles all relate to one anther.
To become a successful business you need make all the internal factors involving the
Business right. Tesco has been around for over 25 years and is named top supermarket retailer in the UK and one of the best in the world in.
Tesco’s organisational structure is a hierarchical structure . And you can clearly see the levels of authority, and you would need to show the authority with the management styles of Democratic and Consultative because these two styles let there staff have more say in decisions, and they might get too demanding so. The hierarchical structure goes well with the management style because it lets the staff have a say, but they know their position. The Culture has a big affect on the organisational structure and the management style, because the culture has principles to help gain the objectives, with all these together it will form a complete organisation, they will gel together to make the objectives achievable.
A2. Evaluate the impact of the organisation how the organisational structure, culture and management style on the performance of the business.
You have to build an organisational structure to make and design a successful business. The organisational structure is to make the company a team, because the Body Shop is mainly a product retailer you need to work as a team and work effectively. As I said in C.2 there was a few changes in upper management. This is because they wasn’t going in the right direction and as the source of Tesco global investor booklet, it said the change as done well because it made a 3% increase in sales, from previous years it was decreasing. The hierarchical structure will show the employees their responsibility and the tasks to do. So the tasks are broken down thought the levels of communication. By this all the employees know how and when they contribute to achieving Tesco’s objectives, and this will lead to the success of the company.
The culture has a big influence on the performance of the business because the culture has principles to aim for and to address them to the objectives. By putting these cultures in to Tesco it will help the employees with increased motivation, and this will help the employees work more efficiently. And when the employees have motivation, it is easier to ensure the objectives of Tesco is being met.
The management styles that Tesco have adopted helps the employees feel useful by contribution to Tesco. Having a voice in Tesco will make the employees feel more motivated, when I went Tesco the tour guider said they do discussions like team meetings. He also said Tesco gives every employee 1000 to going a skill, this could be educational, communication or to do a once in a life time experience like sky diving. This clearly shows Tesco looks after it employees, so they can get the best out of their employees to do the work if the employees are happy to work they work better more productive.
As a whole the organisational structure and culture are likely to help in the completion of the objectives that are set.
A3. Evaluate an alternative approach to quality control or quality assurance.
This is how well the product is being manufactured, this could be types of ingredients used, the hygiene around the process of manufacturing or the time of the product. Tesco has brought in a external company to complete the manufacturing process. They have done this in order to maintain the highest standards of products. Tesco has three different working shifts to make sure that the products are being watched over during the manufacturing stage 24 hours a day. They are always cleaning up the floor and the equipment that has been used. They have people writing reports on the quality of the process and making sure it is always up to standard. They also have Health and Safety people checking the quality. The information from the checks is used to improve performance or to see if it meeting its targets. This will help to meet the needs of the customers by giving them satisfaction.
The quality assurance where all the employees in Tesco have the responsibility of all the stages of the production process. This means the employees check the production process and the quality is at a high standard. This means the shift workers will have to make regular checks for the ingredients to be made into health care products. This helps improve the quality of the production at each stage. This means the finished product will reach the customers at the highest quality. When the quality is always high the customers will keep buying from Tesco it will make the market share get higher because they wont lose any customers but gain thought the quality of the products.
The quality controlled systems is not just used in the production, its also in the finance department, because they need to make sure that all the money transactions are correct if there not the accounts will go wrong and the overall figures will be inaccurate. Also the marketing department has to make sure that research is accurate because if it is they might not be giving what the customers want.