ASSIGNMENT

Organizational Behaviour

ORGANIZATIONAL BEHAVIOUR

Introduction

Deal and Kennedy (2009, 102) described that organizational behaviour is the study of human behaviour in the heart of the organization. It is a discipline, in which, we seek to better discern actions and behaviour of individuals and groups, interpersonal interactions, and mechanics of the organization.

Bluedorn (2002, 135) said that management of organizational behaviour is an important aspect for an organization in this world of fierce competition. In the management of organizational behaviour, the manager's role is of fundamental importance and helps senior management in facing new challenges for the company's strategic, organizational behaviour. A manager must be able to achieve work objectives with the team maintaining their motivation and commitment to the company. Planning, organizing, directing and controlling it will be four essential functions within the company.

Discussion

In the opinion of Calori and Sarnin (2011, 49) one cannot conceive the organization as an entity isolated from the environment in which it operates. The company must continuously monitor its environment because, firstly, it fits into this environment, and, secondly, it acts on that environment. Its environment in a positive way (environmental opportunities) or a negative (environmental) can influence the company. The business environment is undergoing a transformation in competition.

Market forces and pricing of TESCO

Price is the one of element of the marketing mix that produces revenue; other element produce cost. Pricing is a critical element in any marketing plan of a company, because it directly affects revenue and profit goal. According to Deal and Kennedy (2009, 87), pricing is the most flexible element of marketing strategy in that pricing decisions can be implemented relatively quickly in comparison with the other elements of marketing strategy. Deal and Kennedy (2009, 87) have defined the market forces as determinants of supply and demand. Where the supply and demand of a product is equal, it is the point of equilibrium price i.e. optimum price for a given product. If there is a change in either the supply or demand of the product, than there will be an effect on the price of the product.

The competition in the retail industry of UK is very fierce, and retailers in the United Kingdom food retail market range widely in size with a large chain supermarkets or hypermarkets as Tesco embodying far stronger forces than smaller specialty, luxury or organic food outlets whose grip on the industry is significant but currently limited (www.tescoplc.com).

TESCO also announced a 30% price cut on its different products; announce a five hundred million pound price cut and a start of a price war (Simms 2011, 90). These examples of TESCO could be described as an example of strategic marketing, where companies have been changing their marketing strategies according to the conditions in the market. The pricing strategy is very important from the perspective of a firm, as the pricing strategy of a firm helps the firm in generating revenue for its operations and helps it in gaining market share, as well. In the UK retail industry, companies keep on changing ...