Type of Organisational Structure and Purpose of Tesco and Oxfam

2047 words 9 pages
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
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This shows the board of directors within Tesco and what functional area they are head of.

As Tesco have several managers with managers underneath them for example department managers which have responsibility for employees makes Tesco have a wide span of control. Oxfam however have a smaller span of control than Tesco as they have less managers with less people working under them, departments such as the marketing departments are smaller in because there isn’t as many people working within the business. Part B

The finance department for most businesses is the most important part to a company. This is basically because every business needs an income so they can pay bills and employees etc. The finance managers in companies like Tesco keep a record of the profit or loss of profit coming in and how much is being made by each product and store. They also make decisions on how retained profit should be spent for example on store refurbishments or rebranding. Oxfam’s financial manager’s play a similar role to Tesco except Oxfam are a charity and rely on donations from the general public therefore they keep a