Business Strategy and Operations Analysis

This report requires students to analyze a case study of a company and provide a detailed analysis of its business model, including a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis and a PESTLE (Political, Economic, Social, Technological, Legal, Environmental) analysis. The student must also identify measures to overcome weaknesses and increase productivity.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Different types and Purpose of organisation.....................................................................1
P2 Size and Scope of different types of organisation ............................................................3
P3 Relationship Between Organisational functions...............................................................5
P4 Impact of macro environment on business operations (Positive and Negative )..............6
P5Strength and weaknesses by internal and external analysis by organisation.....................7
P6 Interrelation of strength and weakness of macro environment elements on a company...8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment comprises of companies, individuals, entities and other external or
internal components, which might or might not be under control of the organisation, also affects
its performance, efficiency, growth and survival (Ballard, 2012 ). It is of two types macro
environment and micro environment. In the given report the research has been regulated on three
organisations, part of private organisation is Tesco, Crown prosecution services conducting its
business operations in public sector and lastly Oxfam is dealing in voluntary organisation. In the
report various types of organisation, its purpose, and legal structure has been discussed. It also
includes size and scope of types of organisations. In present report it is also explains about
interrelationship of different organisational functions with other and their relatedness with
objectives and structure of organisation. Further, internal and external investigation of
organisation is conducted to identify strength and weakness. At last interrelatedness of strength
and weakness with external macro factors has been explained.
P1 Different types and Purpose of organisation
Business organisation refers to entity with the aim at carrying on commercial enterprise
by providing good and service to satisfy the customers (Berg, 2014). Their are different types of
of business organisations which are explained below:-
Private Organisation: They are closely-held and controlled by sole proprietors, partnership
firms, franchises and private firms with the aim of generating profit. Private company comprises
of minimum 2 and maximum 50 employees. Tesco Plc. is the British multinational retail
company dealing in groceries and merchandise which is based at Welwyn Garden City,
Hertfordshire, England founded in 1919 by Jack Cohen.
Purpose: Tesco is multinational retail company with the aim to rule the market by
customer satisfaction by providing standard life with an casual way of living. The main
objective of Tesco is to maintain customer loyalty with better quality products at cheap cost.
Legal Structure: The Tesco's legal structure comprises of corporate governance and
deal with shareholders, it is done to ensure that Tesco is accomplishing its plan of action and
objectives that stakeholders want company to accomplish. The organisation has to fulfil social
responsibility towards society to make sure that huge amount of carbon dioxide is not produced
by the company.
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Public Organisation:These organisations are directed and controlled by government. A British
non-ministerial governmental agency named as Crown Prosecution Services was found in 1986.
It is headquartered at London, SWIH (Buckley, 2016). This organisation offers legal advices to
police and investigate related agencies.
Purpose:To systematically conduct the prosecutions in criminal cases is purpose of Crow
Prosecution services. Company offers impressive legal proposal for investigation bureau and
police force. This organisations perform its services in secondary sector and collect raw subject
matter and further offer advices. This also advice the police force on lawsuit for possible
criminal prosecution.
Legal Structure: Crown Prosecution Services conduct its legal structure proceedings at
high level. The procedure of examining police confirmation and deciding where to execute
criminal proceedings is performed at next level of hierarchy. Very few number of superiors exist
in this company. This structure helps to take effective decisions and formulation of plans
according to the situations arises.
Voluntary Organisation: It is the unit of individuals who come into agreement, commonly as
volunteers, to form a organisation to accomplish the aims, objectives and goals of organisation
(Bullock, 2015). Oxfam is an coalition of 20 autonomous charitable organisations which focuses
on poverty alleviation. It is non-profit organisation founded by Cecil Jackson-Cole founded in
1942 which is based in England.
Purpose: The main purpose is to provide answers against poverty injustice. Their imagination is
to have global world without poverty. They need a world in which group of people can
utilise their lives and rights, can shape their decisions and can presume their duties. The
mission statement of the company is to provide equal and fair treatment across the globe.
Oxfam offer its services in drought prone and famine prone areas.
Legal Structure: Voluntary organisation's legal structure comprises of unorganized association,
trust involvement of society company, etc.
 A trust: It is fiduciary relationship between two or more parties give another party the
right to hold title of property or assets to the beneficiary. A trust ensure continuity and
confidentiality. Their main aim is to manage and cater efficacious funds for the well-
being of community.
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 An Unincorporated association: It is a accumulation between individuals having no
legal existence. All judicial proceeding that are taken are essentially on the interest of
groups.
 Company limited by Guarantee: It is a separate legal entity which is established or
formulated on the basis of vision and mission of the company(Hilton, 2013). It is a
business firm having limited liability so that their associates are protected.
P2 Size and Scope of different types of organisation
Business organisations are formed between two or more persons with a common objective or
goal. these are further differentiated on the basis of aims and long-term goals which are
mentioned below -
Public organisation : Crown Prosecution Service
Product & Services Size and Scope Vision Mission
The services offered
by Crown Prosecution
Services related to
giving advices to
investigation agencies
and department of
police. The managers
of company gathers
information and take
decisions regarding
criminal charges on
suspect.
The organisation
Crown Prosecution
Services manages
around 800,000 and
more prosecution
under it, and have
2900 solicitors and
includes 600 staff
members respectively
(Janita, 2013).
The vision of Crown
Prosecution services
to become
independent and offer
their advices in fair
and effective manner.
The standards of
Crown Prosecution
Services are set after
considering the public.
The mission of Crown
Prosecution Service is
to act in professional
manner. CPS strive for
excellence in the
market and advices are
offered in effective and
fair manner. So that
trust of its colleagues,
communities and
customers can be
achieved easily. This
organisation insures
that it offers effective
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proposals and suspect
right vicious person i.e.
Criminal.
Private Organisation : Tesco
Product & Services Size and Scope Vision Mission
Tesco Plc. deals with
several categories
comprising of
beverages, clothing,
food, household
products, mobile
services and
commercial services.
Tesco use its own-
brand products,
including the high
range, and mid-range
and low-price products
for lower- range
(Kaplan, 2001).
The scope of
organisation is related
to the market level.
market into which it
sells its products and
services. Tesco
operates in almost
7,000 stores across
the globe. Tesco has
the largest shop in
England with floor
space of 17,230
square metres i.e.
(185,500 sq ft).
The sight of Tesco is
to offer products and
services according to
preference of
customers and give
them maximum
satisfaction.
The mission statement
of Tesco is to provides
goods and service with
best and good quality
in order to gain loyalty
of customers for long-
term.
Voluntary Organisation :Oxfam
Product & Services Size and Scope Vision Mission
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Oxfam which is
voluntary organisation
offers humanistic
services for famine
and drought prone
areas.
Their main motive is
poverty alleviation and
raising standard of
living of people from
all over the world. The
organisation offer
products and services
fairly to customers like
food, clothing,
handicrafts and
artifacts.
Oxfam comprises of
independent charitable
organisations working
with the motive of
poverty reduction and
welfare services in
famine and drought
prone areas.
Vision of the
organisation is to
satisfy consumers
effectively and remain
conscious with all
actions (Kennerley,
2003). Its vision also
includes providing
attractive,affordable
and good quality
clothes to consumers.
The Oxfam's mission
is to eradicate poverty
across the globe and
providing good quality
life by securing their
rights to individuals.
Oxfam also wants to
reduce inequalities and
maintain peace for
rich and poor.
P3 Relationship Between Organisational functions.
The various kinds of functional units in every business arrangement which help in
performing their business in impressive and interconnected mode to attain goals and verifiable
objectives of company (Prajogo, 2016). Tesco comprises of several departments which carry out
business operations mutually for increasing the fruitfulness and efficiency for the organisation.
Each and every department have different set of roles and responsibilities but have to accomplish
common goals and objectives. Each and every department is interlinked with each departmental
unit which are defined below:-
 Marketing Department: Various functions are being performed by the employees of
marketing department which consist of promotion of merchandise and services in the
segmented sphere. Marketing department Tesco assist the different departments in
providing them with raw material, human resource and funds. Different elements of
communication marketing mix comprises of print and media advertisement, gross sales
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promotion, public relations, events and experiences are adopted by retailing companies to
convey the message among the consumers.
 Human Resource Department : The most valuable asset for every organisation is
human resource as without this element no function in organisation can be performed
(Prins, 2011). The main function of Tesco is to recruit and hire effective talented
candidates in the organisation. HR department of Tesco is committed towards employee
development and their satisfaction at workplace.
 Sales Department : The sales department of every organisation helps in creating direct
link with customers and company's products and services. The purpose of sales
department is to increase the sales by effective pricing and distribution channel. The
personnel of Sales department of Tesco forms harmonious and effective relationships
with their customers as this helps in getting suggestions for modifications and changes in
the products according to the changing necessities and preferences of customers.
All the departments are interlinked and interrelated to each other in Tesco as this will not
only help in increasing profits but also help in achieving their targets in the effective time frame
(Vitale, 2011). These departments help to accomplish the goals and objectives of Tesco in
efficient manner which will enhance the growth and survival of the company.
P4 Impact of macro environment on business operations (Positive and Negative )
The largest multinational retail sector company across the globe is Tesco. Their are
certain elements which impact the business dealings of the company. Some of the factors are
under the control while some are beyond the control of the company. To identify such factors
PEST is applied by Tesco:-
1. Political : This factor is the important and most poignant factor for an organisation.
Tesco offer its products across different locations of the world, a modification in
governmental policies can affect the functioning of its business operations. For example,
increase in export or import duty can decrease the profitability of Tesco.
Positive-This factor assist Tesco to operate legally and ethically so, that no issue arises.
Negative : any changes in policies of import and export by UK government will led to
decrease in gainfulness of Tesco.
2. Economical : These factors of every nation plays important role in the execution and
performance of the organisation. UK dominates with precise economy which helps Tesco
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in conducting its business operations effectively (Weiss, 2014). For example, refund in
taxation policies accompanying import and export.
Positive : UK government provides rebates in various taxation policies to assist Tesco
exchange its products at low-priced rates.
Negative : Hike in interest rates and taxation policies immediately impact the business
operations of Tesco.
3. Social : This factor refers to cultural beliefs, values of a specific geographic location.
Tesco has good reputation so, social issues should be solved which will help in raise in
goodwill for the company This will directly help in increasing the profitability ratio and
capture large marketplace of UK. For example, the biggest problem for company is
unemployment, so Tesco must hire large number of skilled employees. This will help
them to acquire qualified and talented employees and also increase the repute by
determining problems of unemployment.
Positive : This factors helps in increasing the profitability and reputation at the
marketplace.
Negative :this factor can have a negative impact on Tesco if CSR is not fulfilled and it
will also affect its goodwill.
4. Technological : Tesco remains self-updated with different new technologies, as they
perform effectively as it helps in improving the effectiveness.
Positive : This will aid Tesco in performing their functions efficiently, as it will help in
increasing productivity.
Negative : Pioneering new and latest technologies on regular intervals will increase the
expenditure for Tesco.
P5Strength and weaknesses by internal and external analysis by organisation
Tesco is British retail sector company dealing with consumer goods and all-purpose
commodities which was established in 1919 in UK (Werbach, 2012). Tesco has its operations in
all over the world and have around 7000 stores in the world. SWOT analysis of company will
help in identifying its strength and weaknesses.
Strength Weaknesses
 Tesco is a starring company in the retail  The biggest weakness for Tesco is that
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industry with approx 5,00,000
employees across the globe. The
organisation has almost 7000 stores
across the globe in almost 14
countries .
 Tesco offers best quality products with
strong customer base (Wheelen,
2017).
 Various patents and licenses are under
the name of Tesco which helps in
attracting more and more companies for
projects.
it faced many controversies for
violating patents of Varco which lead to
increase the legal cost and impact the
business and image.
 Tesco has its limited presence in
emerging countries as compared to its
rivals.
 Tesco has decreased the employee
morale so the productivity is also
decreased.
 Tesco has failed in conducting its
business operations in countries like
USA and Japan.
Opportunities Threats
 Tesco captures the new emerging
markets by adopting latest technology
and expand the area of its business
operations all over the world
(Schaltegger, 2012).
 To enhance its processes Tesco has
made substantial investments to save
time and money.
 Tesco faces decline in its demand due
to seasonal changes as, they affect the
planning and execution related to
different projects.
 The business of Tesco has impact
because of changes in government
policies,taxation policies and interest
rates.
P6 Interrelation of strength and weakness of macro environment elements on a company
On the basis of PEST analysis Interrelatedness of strength and weaknesses of macro
environment has been described below:-
 Political factors- These factors includes changes in government regulations and legal
laws.
Strengths-Adherence to all legal laws assist to conduct business operations
effectively.
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Weakness-It is necessary for Tesco to comply with laws of UK government so, it
affects the decisions and strategies of business.
 Economical factors- Economic factors outlines the economic issues that affects
company's success (Avramenko, 2012.).
Strengths- It is important for Tesco to formulate policies and strategies after
analysing various economic factors as, it helps to increase competitive advancement at
marketplace.
Weakness- Various economic factors of country affects the functioning of
business operations.
 Social factors-This factor comprises of social values, norms, culture. These factors affect
the demand for products and services.
Strengths- Proper consideration of social factors helps to attract more customers
and maximise their satisfaction.
Weakness- The company should not adopt green-washing practices as it misleads
the customers and affects customer base at marketplace.
 Technological factor-Technological factors include changes in technology, automation,
innovations and activities related to research and development.
Strengths- Adoption and application of new technologies fosters growth and
enhances productivity for the company.
Weakness- Their will be increment in the expenditure if huge amount is invested
in adopting technological advancements as, company can occur losses after application of
technology in conducting business operations.
CONCLUSION
As per the above report it has been concluded that business environment consist of
various internal and external factors includes political, social, technological and many more
factors which affects the survival and growth of organisation. Basically, business sector
comprises of three types Public organisation, Private organisation and Voluntary organisation
having distinct purpose, functioning and legal structure. Every department of each organisation
are integrated which helps in enhancing productivity and profitability. This report also includes
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SWOT and PESTLE analysis which helps in identifying the strength and weakness. Also, find
measures and ways to overcome the weaknesses and helps in increasing productivity.
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REFERENCES
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