Introduction to Business Studies Portfolio

Tesco is also known for its welfare activities, as well as its focus on staff members within the firm, which has been in place for more than a decade. The employees at Tesco number more than 700, with 150 administrative employees, while 100 are in management-level positions. The top-level managers at Tesco view the staff members equally, as it can clearly be seen that there is uniformity within the firm, from the upper to the lower levels. The firm operates two general stores at different locations: one in a rural area and the other in an urban area (Choi and Lee, 2018). The firm maintains employee equality and has only one registered union. The management level is also considered very cordial, as the firm has not lost a single employee due to a strike.

The firm's policy, compared to other similar firms, is considered to have fewer staff members, which means there are not many grievances raised by employees, largely due to the other benefits provided by the firm. However, the firm is also facing various problems in supplying materials to customers through online procedures. Even when the goods are delivered, there are quality issues, such as mismatches between the online products and the delivered products. Additionally, products are sometimes not delivered as per the customer's order; for example, customers order biscuits but receive chocolates instead.

The issues related to product quality arise because top-level managers at Tesco have begun placing undue burdens on staff members. Previously, there was no such issue, and top-level managers were not discriminatory towards lower-level employees. Over time, however, lower-level employees began facing discrimination based on gender, race, and age. For example, Jack and Adam are both employees, and although Jack was senior to Adam, top-level managers discriminated against Jack because of his age, assigning all his responsibilities to Adam, who was less experienced.

There was another instance where a female employee was paid less than her male counterparts, and when she complained about this incident, no one listened to her. Several coworkers made fun of her, stating that females do less work compared to men. Later, all those employees who had discriminated against her were fired.

In another case, a female employee was mentally and sexually harassed by a male coworker for about six months. When she complained about this to her managers, they mocked her and suggested that she take it as a compliment, implying that someone liked her (Zeinali, Karsinos, and Moradi, 2017). As a result, the ratio of female employees at Tesco decreased significantly. When top management became aware of this situation, they fired the employees who harassed her, as well as those who had made fun of her.

Due to these incidents, Tesco faced significant challenges with discrimination. Firms like Walmart took advantage of these issues, attracting staff members with policies that are more flexible for employees. For instance, Walmart created shifts specifically for female employees, ensuring that only female workers were present in those shifts, with no interference from male employees.

After observing these events, Tesco's managers began focusing on the loopholes within various departments, particularly the issue of employee equality. They handed over the responsibility to the HR department to address these concerns. Upon further investigation, HR managers at Tesco realised that they had been treating their workers in a very casual manner. Instead of focusing on how to improve employee relations, Tesco continued hiring new employees without addressing the issues that affected existing employees.

HR managers also focused on reward management, recognising that employees are motivated not only by benefits but also by performance appraisals and recognition. HR managers of Tesco need to place a stronger emphasis on training employees about equality, ensuring that no one is discriminated against based on age, gender, beliefs, values, or colour. Additionally, HR managers follow hygiene factors, as according to this theory, the presence of certain factors may not create a major influence, but the absence of these factors leads to demotivation among employees. Employee recognition plays a crucial role when management fails to address these issues, and it helps the firm recover from critical situations (Plagemann, 2019).

Report of Tesco on financial management

Financial management refers to the strategic planning, organisation, direction, and control of an organisation's financial undertakings. It involves the application of management principles to financial assets and plays a significant role in the fiscal management of a business. The objective of financial management is to maintain an adequate supply of funds and resources for the organisation. It ensures that shareholders of the organisation receive good returns on their investments. Financial management helps the business organisation in making the funds available for carrying out necessary transactions. If adequate funds are not available, the company may fail to achieve its desired targets.

Financial management is concerned with maximizing the returns for shareholders and increasing their wealth. Sufficient funds will enable the company to attract new investors, which will aid in raising funds from the market. Companies with effective financial planning are better able to achieve their objectives (Sadeghi and Mizera, 2017).

Role of Finance Function in Tesco

The finance function involves acquiring and utilising the funds necessary for efficient operations. Finance is the lifeblood of any business, without which operations would not run smoothly. It provides the money required to run an organisation. Tesco needs to hire and recruit more efficient and skilled staff to manage the company's funds effectively and efficiently. Training must be provided to employees to ensure that they invest funds in the most appropriate places to obtain better returns on investment. This can help the firm grow and achieve its business objectives.

The finance department is also concerned with appropriately managing the funds coming into the company through the marketing department's efforts in hiring and recruiting efficient and skilled staff. This can help Tesco enhance its revenue and increase productivity (Xiao, Zhang, and Hou, 2019).

The role of finance in an organisation like Tesco is crucial, as it helps the firm make decisions related to managing liquidity. An investor will only be interested in a company if it has a large incoming cash flow. Therefore, Tesco needs to manage its finance function appropriately. It also helps the firm in making investment decisions, working towards maximising shareholders' wealth. On the other hand, the use of debt affects the risk and return for shareholders. Though using debt may increase the return on equity, it is riskier. These decisions are of utmost importance to the organisation. It helps the firm grow and achieve a competitive advantage. Also, check out MBA assignment help for your MBA assistance.

Additionally, the finance department ensures that the company's assets are increasing while liabilities decrease. This assists in attracting more investors, which is essential for the firm's growth. The financial manager of Tesco must ensure that they acquire sufficient funds to invest in productive ventures, helping the firm expand its market share. Furthermore, the finance department must work in coordination with other departments, as this is necessary for the growth of Tesco (Mastorakis et al., 2018).

The finance function is crucial in maximising shareholder profits and investing in the most beneficial investments that help the company grow. Investors will only remain positive towards Tesco when they know that the company is engaged in making a high amount of profit and investing its resources where there is a high return. It is necessary for the company to take measures to improve financial management so that both operational performance and financial performance are improved. For this, changes in financial management and reporting are required, improving the overall situation.

Installing technology or computer systems will help streamline the process. A transaction processing system (TPS) can be installed to automate transactions and enhance business efficiency at Tesco. This system is designed to record, store, retrieve, and manage all data and information related to daily transactions (Wang, 2017). With this system, the finance director can manage and record all types of transactions, storing information related to daily orders, customer bills, payments made, etc. Moreover, both the admin and finance functions can communicate data and access it easily. This will enhance the business efficiency of the organisation, allowing it to produce meals according to order deadlines. The system will automate the overall function, and both internal and external transactions, including those with customers and suppliers, will be recorded and stored properly.

In this way, financial management can be enhanced, and reports can be generated. Additionally, by automating the system, errors and deviations can be identified and rectified. This will allow for faster sharing of data and information with other departments. The TPS will also provide real-time data, updating it easily whenever there is a change in the transaction.

The Role of Financial Management and Reporting within the Organisation

Financial management plays a crucial role in the functioning of any company. Managing funds is the responsibility of finance managers, who need to monitor the financial health of Tesco. Financial management ensures that funds are available at a reasonable cost; otherwise, this may hinder the firm's growth. It also helps the company in knowing whether funds are being effectively utilized and if they will generate profitability.

Financial management helps Tesco grow and achieve both long- and short-term financial objectives. It also supports Tesco in identifying and evaluating sources of finance. There are various sources of funds available to the company, such as angel investment and venture capitalists. These sources can help the company grow. Additionally, financial management helps Tesco in making important financial decisions, such as investment decisions. The department has knowledge about where investments would be most beneficial, which helps Tesco grow and gain a competitive advantage (Wang, 2017).

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