Business organizations and structures are crucial for any organizational realization of the set goals and objectives. In this research, I shall be looking at the structures of two businesses, the Tesco organization, and the LSE Retail Group Limited, which sells lighting equipment both at retail and the wholesale levels. Tesco is a large organization, with a set-up includes various hierarchical stages which enable it to enhance its objectives. Tesco is a large UK grocery with a large number of employee and even distribution chain.
The business of selling vegetables and other related commodities has become increasing competitive and is highly recommended that there should be a strong organization and management for any business to be able to make profits. The Tesco business is a multinational organization which offers food stuff ad on -food stuff to people, both in the wholesale and the retail stores. The team of Tesco is a broad range of hierarchical positions where management is given priority to ensure that there are competitiveness and the realization of the set goals and objectives. LSE Retail Group Limited on the other side is a growing company which was started over thirty years ago. The two companies have various comparisons in their structural organizations which enable them to be highly competitive in the market.
Ownership, Control and the Structures of the Businesses
Tesco is a large business organization whose foundation was set by Jack Cohen in the year 1932. The company has advanced to grow over the years and expanding its branches all over the world. It is an industry which has seen enormous economic and structural growth, whose success can be attributed to the devotion and the tremendous organizational leadership in the organization. The Tesco business has a strong internal team made up of the general employee members, the management staff, and the accepted code of conduct, which sets the foundation for the employee code of conduct. Tesco business is controlled internally by the directorate teams which ensure that there is a high adherence to the set rules as well as regulations by all members of the company. The company is further structured into various departments whose primary work is to ensure that the organizational goals and objectives are achieved. The business has Customer Service and Research and Development department, the Distribution, Finance, Human Resources, and the Marketing, Sales, and Production sectors which ensure that the organization keeps moving.
LSE Retail Group is a business started by David Gutfreund, in the year 2009. The market has been growing in the recent years, offering various materials both in wholesale and retail prices, such as materials in the lighting sector (Terrelonge, 2015). LSE Retail Group has a strong internal organization, where the business is organized into neighboring departments which allow the clients and the attendants to interact together offering their services. The company has different branches all over Europe. The LSE Retail Group is, therefore, a private business while Tesco organization can be said to be public enterprise.
Advantages and Disadvantages of a Private and Public Business Ownership
There are various benefits of having a public business, as the Tesco business. The business stakeholders have limited liability, which means that they cannot lose their personal property even when the company makes a loss (Eugene & Jensen, 2009). The company also enjoys a separate control from within because the board of the governors and directors has the ultimate monitoring of the firm. Having a large number of people is an advantage to the business because it makes it possible for the organization to mobilize a significant amount of capital from its members.
However, there are various disadvantages attached to the public business such as the loss of control of the company to the public due to the high numbers of people who are involved in the firm. The many legal formalities which need to be followed so as to ensure that the companies’ registration and operations are of the course make it difficult to operate the business. High levels of order and controls have to be ensured, so as to ensure the privacy of the top shareholder, hence making it difficult for the business to expand its activities (Demsetz, 2006).
LSE Retail Group is a private company whose operations lie within the jurisdiction of the owners’ authority. There are various advantages associated with owning a private business such as the ability to have full control over the firm operations. It is easy to regulate the flow of capital, in and out of the company, which minimizes the chances of making losses. All the financial records are kept a secret and only available to me as the business owner (Kobras, 2010).
There is the ultimate control of all the people who come into the firm, and the activities which take place in the enterprise. There are many disadvantages, however, associated with the having a private business such as the loss of the company when one dies. The company also faces many financial challenges because of the financial constraints that the owner faces. Owners also lose the businesses in case of debts because the private companies have unlimited liability (The Company Warehouse, 2014). High debts and ill health of the owner might cost the business because there is no one to run the business, on their behalf.
Organizational, Structural and Operational Changes in the Businesses
Tesco business is internally and externally structured, making it better to compete in the world of business. The organization has various cultural and management structures which ensure that the company can achieve its set goals and objectives. The organization has the functional organizational structure responsible for the daily allocation of resources and the general production of the body.
The business also has the divisional teams, where departments such as the finance, the HR, the support marketing, the sales, and production departments are placed. The rigid business organization has been able to enhance the business capabilities to increase the ability to change over time. The business has been able to evolve over time, within the lifespan of the thirty years it has been operating. The organization has been transformed where the loyalty has been increased on the employee side, as well as an introduction to a decentralized structure, which has been able to eliminate the be aura cratic structures which hinder development in the organization.
The LSE Group, on the other hand, has been able to organize its activities into rigid structures which take care of the customer needs. Being a private enterprise LSE Group lays its claim on the centralized power system where the business operates under the direct order from the owner. The business has, however, been able to adopt the changes needed and developed departments which would be core in taking acre of the customer needs.
References
Demsetz, H., (2006), THE STRUCTURE OF OWNERSHIP AND THE THEORY OF THE FIRM, Journal of Law and Economics, University of California, Los Angeles (http://www.rwi.uzh.ch/lehreforschung/alphabetisch/weberr/archiv/FS08/unterlagen/unterlagenLE/aufsaetze/TheStructureofOwnershipandtheTheoryoftheFirm.pdf)
Eugene, F.F., and Jensen, M.C., (2009), SEPARATION OF OWNERSHIP AND CONTROL, Journal of Law and Economics, Vol. 26, No. 2, Corporations and Private Property: A Conference Sponsored by the Hoover Institution (Jun. 1983), pp. 301-325, the University of Chicago Press
Kang, D.L., and Sorensen, A.B., (1999), Ownership Organization and Firm Performance, Annual Review of Sociology (http://are.berkeley.edu/~cmantinori/prclass/KangSorensen.pdf)
Kobras, S., (2010), Business Structures in Australia, Retrieved from http://www.schweizer.com.au/articles/Business_Structures_in_Australia_(SK00125445).pdf
Merchant, P., (2016), Features of a Public Limited Company, Demand Media, retrieved from http://smallbusiness.chron.com/features-public-limited-company-18143.html
Terrelonge, Z., (2015), The UK’s fastest growing private companies: Hot 100 2015 – (4) LSE Retail Group, Caspian Media, Retrieved from http://realbusiness.co.uk/article/30567-the-uks-fastest-growing-private-companies-hot-100-2015--4-lse-retail-group
The Company Warehouse, (2014), Advantages and Disadvantages of a Limited Company, Retrieved from http://blog.thecompanywarehouse.co.uk/2010/02/03/advantages-and-disadvantages-of-a-limited-company/
