COMPARISON OF ORGANIZATIONS

Comparison of Organizations

Abstract

The paper discusses the comparison between Tesco and Wal-Mart with respect to environmental, managerial and operational analysis. Tesco and Wal-Mart ensures that they follow employment legislations and give equal opportunities to every person. Furthermore, there are similar styles of management and leadership which Tesco and Wal-Mart practice. However, there are some differences as Tesco is more democratic than Wal-Mart. There are issues and implications such as economic factors which both companies need to take care of. At time of global recession, Tesco and Wal-Mart need to ensure best practices and operational efficiencies to remain competitive. The use of SWOT analysis is also common in both the companies. Tesco and Wal-Mart are competitive organizations which ensure that their strengths overcome their weaknesses and avail the opportunities which lie ahead of them. In addition, both the companies ensure that they effectively deal with the threats in the form of competition and regulatory policies.

Comparison of Organizations

Analyzes the basic legal, social, and economic environment in which the organizations operate

Legal Factors

Tesco is functioning well and providing services with its stores all around the world. For the legislations of employment, the government promotes retailers to supply a blend of job openings from low paying stretchy and locally-based jobs to centrally-located, skilled and high paying jobs in order to meet the needs of the students, working parents and senior citizens.

On the other hand, Wal-Mart is an innately local and labor concentrated sector. It realizes that selling has a huge impact on people and the jobs factors. It often hires students, aged and disabled people at lower wages, and in an industry with characteristically soaring staff revenue, these employees proffer a higher level of allegiance and consequently symbolize sought-after workforce.

Economic Factors

Fiscal aspects are of apprehension to Tesco, as they are probable to pressure costs, prices, profits and demands. One of the most significant features on the economy is high redundancy points, which reduces the efficiency, requirement for several goods, negatively distressing the production demand. Although company could not control these economic effects, but there could be profound consequences on performance and marketing of the company (Turner & Wilson 2006). UK market is still the main source of the company's income even though the international business is still growing and contributing to the Tesco's profit. Thus, Tesco would be poorly influenced by any slowdown in the United Kingdom food market and are open to the threat in the concentration of the market.

Wal-Mart is famous for its low cost strategies and competitive prices. It has power over suppliers as well due to its operations and processes. However, due to recent recession in the US and deteriorating economy around the world, it is a struggle for Wal-Mart to deal with the challenges.



Social Factors

Present trend show that British clients have moved to 'one-stop' and 'bulk' shopping, as a result of various social changes. Tesco have, consequently, amplified the sum of non-food objects presented for sale. Demographic modifications for instance the aged people, female employees and ...