Two Contrasting Organisations

Two contrasting organisations.

As Tesco had changed their legal structure from Ltd to Plc, it gave them many advantages. This could either effect the business in a good way or in the bad way. One of the pros that could affect the business is the injection of cash. So for example as shareholders invests more and more money into the business, the business will keep their productivity at their best and this could also boost their confidence in what they are already doing. Injection of expertise is the high level of knowledge or skills in business. This can affect the business positively because of the high level of knowledge, it helps to develop the innovation within the business. As the innovation gets expanded within the business, the employees can get the new skills which could as well affect the productivity efficiently.

Loss of control could affect the business negatively as at the start there was only one manager and when the company gets bigger that would mean that the company has less responsibilities for their actions. More new employers and managers are coming over to the company and at the same time it can be hard to deal all with them so that would link to the loss of control.