Business Environment Analysis Report

The report provides a comprehensive analysis of the business environment, highlighting its importance in identifying opportunities and solving business problems. It includes three organizations - TESCO as a private sector entity, Crown Prosecution Services as a public sector organization, and Oxfam as a voluntary organization - each with their unique purpose, legal structure, and stakeholders. The report emphasizes how each department is interconnected to increase productivity and profitability.

Business and
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Various types and purpose of business organisation ............................................................3
P2 Size and Scope of different types of organisation.................................................................5
P3 Relationship between organisational functions.....................................................................7
P4 Positive and Negative Impact of macro environment on business operations.......................8
P5 Internal and external analysis of organisation and their strength and weaknesses................9
P6 Interrelation of strength and weakness of macro environment elements on a company.....10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In business environment it covers all the environmental factors which affects directly to
an organisation. It includes clients, customers, suppliers, social and market trends and so on.
Business environment helps in studying how an organisation performs and it also helps a
business for dealing with a situations. Micro environment and macro environment is also a part
of business environment which helps in studying internally and externally factors of an
organisation. It also helps in improving the performance and growth of an organisation and use
optimum utilisation of resources, which helps in identifying an opportunities for profitability of
an organisation (Hilton and Platt, 2013.). It is an very important part of business. In this report, it
includes three organisations that are TESCO, Crown prosecution services and Oxfam. In which
tesco is a private sector organisation, crown prosecution services is a public sector organisation
and Oxfam is a voluntary organisation. As per the study of report, it includes various information
about these organisation which covers all the pros and cons of macro environment. Whereas it
also covers strength and weaknesses of internal and external factors of an organisation.
P1 Various types and purpose of business organisation
In business organisation includes various categories which is given as below:-
Private organisation:- It is not a pubic body or any government. Private organisation is
an organisation which is operated by any individuals, agencies, partners or any companies where
their main motive is to earn more and more profit. In private sectors there is an opportunities for
increases in salary, career benefits, promotions, and so on. In private sectors they have minimum
2 employees and maximum 50 employees are working. In context of TESCO, it is a biggest and
profitable of Britians supermarket chain. It was founded in 1919 by6 Jack Cohen, London and
headquarters in Welwyn Garden city, Hertfordshire, England, United kingdom (Bharadwaj and
et. al., 2013).
 Purpose: It is a general merchandising retailer company and their main purpose is to
attract more and more customers and helps them for enjoying their life in a form of best
quality. In context of TESCO, their main purpose is to provide better quality of products
and gain customers loyalty toward them. According to TESCO, after analysing of
marketplace their customers wants best quality of product at low price . Whereas TESCO
has a responsibility for fulfilling their customers demand on right time.

 Legal structure: In context of TESCO, their legal structure is to deal with their
shareholders which helps a company for achieving their goal . Whereas they also have a
responsibility for make sure that they do not produce a large number of co2 , because it is
an very harmful and its directly affect a environment.
 Stakeholders: In an organisation the stakeholders is a individuals or A group of persons
who are interested in doing works and get results on their work (Berg and Kilambi,
2014). In an organisation stakeholders are shareholders, consumers, employees and so on.
Public organisation:- it is a public body which is owned and operated by the
government and those who is provided services to their citizens. In context of Crown
Prosecutions services, it is a prosecuting agency in England and Wales. Their main aim is to
provide an legal information or advice to investigating agencies for dealing with a problem
regarding criminal cases. It was founded in 1986 by Paul staff.
 Purpose: In crown prosecution services, their main is to provide an legal information or
advice to investigating agencies or police in England and Wales for dealing with a
problem regarding criminal cases.
 Legal structure: In context of crown prosecution services, their legal structure is to
manage corporate matters. In an organisation top managements helps in taking right
decision and also implementing a plan too. It is suitable for sharing informations and
task effectively which helps is getting efficient outcomes.
 Stakeholders: stakeholders of public organisation are affected by an actions and policies
of organisation. It is owned and operated by shareholders and government. It includes
government employees, financial institutions and so on.
Voluntary organisation:- Voluntary organisation also known as common interest
association or society. It is a non profit organisation which helps in solving problem in the
society. In voluntary organisation they directly deals with a people in following areas such as,
educational, rural development, health and so on. In context of Oxfam, it is an organisation
where group of individuals are working together and their main aim is to help people directly. It
is a non profit organisation. It was founded in 1942, in England by Cecil Jackson-Cole
(Schaltegger and Hansen, 2012).
 Purpose: The main purpose is to helps in creating a solution for their injustice and
poverty(Ballard and et. al., 2012). In context of Oxfam, their vision is they want to make

a equality and sustainability in society. They also want to make a world where they can
enjoy and live their life by their own choice and helps to take decisions and
responsibilities by their own. It can be say that “ world without poverty”. Whereas their
mission is to treat a person equally.
 Legal structure: In voluntary organisation, includes trust, common interest association
or society and so on. Trust means where people can do their work very effectively and
efficiently and make a positive environment. Whereas in unincorporated association there
is no legal existence.
 Stakeholders: A stakeholders is a person who is interested in a company and his
decisions are affected by voluntary organisation. This includes board, founders, staff,
volunteers, beneficiaries and donors.
P2 Size and Scope of different types of organisation
There are different types of business organisations which are mentioned below -
Public organisation : Crown Prosecution Service
Product & Services Size and Scope Vision Mission
CPS offer legal
advices to instigative
agencies and police
departments. They
allocate raw
information and then
decide criminal
charges on a suspect.
Crown Prosecution
Services manages
800,000 and more
prosecution under
them and have 2,900
solicitors and 6,00
staff member in them
respectively.
Main vision of Crown
Prosecution Service is
to become independent
and offer their advices
in fair manner.
Organisation respect
public their serve and
set their standards in
clear way (Werbach
and Hunter, 2012).
Crown Prosecution
Service mission is to
behave in professional
manner. CPS strive for
excellence and offer
their advices in fair
manner so to earn
trust of their
colleagues,
communities and
customers. CPS ensure
that they offer
effective advices and
suspect right criminal.

Private Organisation : TESCO
Product & Services Size and Scope Vision Mission
Tesco use its own-
brand products,
including the upmarket
Finest, mid-range
Tesco brand and low-
price value
encompassing several
product categories
such as beverage,
food, home, clothing,
Tesco Mobile and
commercial services.
Tesco scope relates to
the level of the market
into which it sells its
products and services.
Tesco operates almost
7,000 stores around
the world (Werbach
and Hunter, 2012) .
Tesco has the largest
shop in England by
floor space with
17,230 square metres
(185,500 sq ft).
The main vision of
Tesco is to make the
products according to
the preference of the
customers.
The mission of Tesco
is to generate value for
customers to gain their
loyalty for forever.
Voluntary Organisation :Oxfam
Product & Services Size and Scope Vision Mission
Oxfam offer
humanitarian services
in famine and drought
prone areas. They have
main motive to erase
poverty from all over
the world and people
standard of living.
Organisation sell their
products and services
There are 20
independent charitable
organisations working
together with Oxfam
to erase poverty and
provide welfare
services in drought
and famine prone
areas.
Company mission is to
make sure that their
consumers wear their
product with pride and
they stay conscious of
all company actions.
In addition to this,
company also have
vision to provide
attractive and
Oxfam core mission is
to eradicate poverty all
around the world and
protect life and
security right of
individuals (Vitale,
2011). Company
believes in peace and
reduce inequalities
related to rich and

in fair trade and offer
products like food,
clothing, handicrafts
and toys.
affordable clothes to
as many as people
(Janita and Miranda,
2013).
poor.
P3 Relationship between organisational functions
In an organisation each and every departments are interlinked with each other which
helps in performing their business effectively and efficiently for achieving organisational goal
and objectives. In context of TESCO, all department is interconnected with each other and they
do their work together which helps an organisation for increasing their productivity. In an
organisation every department has plays their own roles and responsibilities and also they have
same common purpose for achieving business objectives. There is a relationship of different
department unit of TESCO and their interrelation with each other:-
 Marketing Department: The main purpose of marketing department is to promote a
business and sells their product and service at marketplace. It also helps in identifying a
target market area and competitors. In context of TESCO, marketing department helps to
other department in order to provide some information regarding their market analysis
which helps them for solving their problem. There are various components of
promotional mix such as, advertising, personal selling, sales promotions, public relations,
direct marketing, event and sponsorship. It helps in communicating a message directly to
customers.
 Human Resource Department: In an organisation human resource department is a very
important component. They manage a several different function in an organisation. Their
main responsibility is to hire and fire an employees, provides training to workers, and so
on. In context of TESCO, the role of human resource department is to attract a new
talented candidates towards their company. HR department also helps in managing a staff
in TESCO.
 Sales Department: In an organisation the role of sales department is to make a direct
connections between a company's products and their customers. It also helps in making
good relations at marketplace (Wheelen and et. al., 2017). The role of this department is
to increase a sale of their goods and services which helps in earning profit. In context of

TESCO, they provides a good training to employees of sales department for increasing
their sales and also it helps in building relationship with their customers.
In context of TESCO, every department perform their own function but they are interconnected
with each other (Prins and Cybercrime, 2011). It helps a company for earning profit and also to
achieve their target effectively and efficiently. These all department helps an organisation to
attain their business goals and set of objectives in order to enhance the growth of the company.
Also the Interrelations between different organisation department provide various advantages to
a company. In respect of TESCO, these interrelations helps them to adopt effective channel of
communication and achieve their gaol and objectives in an effective way.
P4 Positive and Negative Impact of macro environment on business operations.
In context of TESCO, it is a biggest and profitable of Britians supermarket chain. It
involves various factors which affects their work in an organisation. Some of these are from out
of premises and also uncontrollable. For identifying such factors PEST is used by TESCO:- Political: In this factor it covers all those factors which directly affects their operations.
In context of TESCO, political factors plays a very important role in it. In TESCO, this
factor is directly affects their functioning. It also creates huge impact on their working at
a time of some changes in policies. For example, increase in export or import duty can
cause a huge loss in profitability of TESCO.
Positive: In TESCO, it helps in working ethically and legally. So they can do their work without
any legal issues.
Negative: Changes in export or import duty can cause a huge loss in profitability of TESCO. Economical: This factor is responsible for operating performance in an organisation. In
context of TESCO, this factor is helps in making their business best. For example, rebate
in taxation policies related import and export.
Positive: In TESCO, rebates in taxation policies helps in selling their products at affordable
price(Weiss, 2014).
Negative: Different type of economic factors prevailing in market affect smooth functioning of
organisation. . Social: This factor says about a social environment which also helps in identifying an
emerging trends. In context of TESCO, it helps in solving problems and making good
position or an image at marketplace. It also helps in increasing profit and capturing

market share in UK. For example, unemployment is of the biggest problem, so TESCO
can hire large number of skilful employees (Avramenko, 2012.). This will lead them to
get quality employees and also increase their reputation by solving problem of
unemployment.
Positive: This factor helps in making reputation at marketplace and increasing their profitability.
Negative: In context of TESCO, if they do not follow a functions of corporate social
responsibilities effectively and efficiently, then it directly affects their reputation at marketplace.
 Technological: In an organisation, technology plays a very important role. In context
of TESCO, technology brings new opportunities, and helps in improving their
performance and also it helps in gaining a customers trust.
Positive: Company by implementing new technology can faster their growth and business
functions.
Negative: By adopting frequent technology a lot of fresh capital is required.
P5 Internal and external analysis of organisation and their strength and weaknesses
TESCO, is a biggest and profitable of Britain supermarket chain. It was founded in 1919
by Jack Cohen, London and headquarters in Welwyn Garden city, Hertfordshire, England,
United kingdom. SWOT analysis helps in identifying their strength and weaknesses which are
discussed as below:-
Strength Weaknesses
TESCO is a leading company in the retail
industry with approx 5,00,000 plus employees
globally. TESCO has around 6500 stores all
over the world across 14 countries (Hilton and
Platt, 2013). TESCO have best quality
products due to its advertising strategies and
innovative market.
TESCO has its limited presence in emerging
countries as compared to its rivals. TESCO
has diminished the employee morale. TESCO
has weak financial performance. TESCO has
failed in the country like USA and Japan.
Opportunities Threats
TESCO has the opportunity to enter into the
new emerging markets and expand the area of
its business operations (Vitale, 2011). TESCO
The business operations of TESCO can be
affected by the government policies and
taxation. High competition from supply sides

can leverage the digital media in order to gain
their business goals.
as maintaining relationship with them is big
concerns for companies.
P6 Interrelation of strength and weakness of macro environment elements on a company
SWOT analysis helps an organisation for achieving their goals and objectives, and also it
helps in solving their problems in an effective manner. In context of TESCO, their main aim is to
satisfy customers demand and makes a positive environment of an organisation. Interrelation of
strength and weakness of external environment are discussed as below:-
Political Factors – Since TESCO operates
worldwide, So global political factors greatly
influence the performance of the company. It is
essential for them to abide all legal rules and
regulations in order to perform their functions
smoothly.
Strengths : If organisation follow all legal laws
then it will become easier for them to operate
their business functions effectively (Bharadwaj
and et. al., 2013).
Weaknesses : It is necessary for them to follow
UK government laws as it affect their decisions
and strategies of business is large manner.
Economic Factors – These are the factors
which are the main point of concern for
TESCO, as they are most likely to leverage
costs, demand, profits and prices. Thus, the
company should be aware about the changes
in policies, such as changes in taxation or any
other factors which could affect the
availability of finance.
Strength : It is necessary for TESCO to
create their business policies and strategies
after examining all economic factor. This will
help them in gaining high competitive
advantage and probability.
Weaknesses : Different type of economic
factors prevailing in market affect smooth
functioning of organisation.
Social Factors – Due to the variety of social
changes, TESCO has increased the number of
non-food items which they offered for sale,
because customers are now more aware about
the health issues (Wheelen and et. al., 2017) .
Technological Factors : The technology have
brought several new opportunities for TESCO.
It is essential for TESCO to adopt the
development and introduction of online
shopping with facilities for home delivery

Strength : This will aid them in attaining the
customer satisfaction.
Weaknesses : It is hard for any organisation to
function effectively when they do not consider
social factor. The customers of TESCO in the
UK have moved towards one stop shopping and
bulk shopping.
which is ease for customers, and which is turn
have reduced labour costs.
Strength: Company by implementing new
technology can faster their growth and
business functions.
Weaknesses: By adopting frequent
technology a lot of fresh capital is required.
Legal Factors: The government policies and
legislations directly impact the performance of
TESCO. The FRC in 2004 suggested a code of
practice which would ban many current
practices.
Strength: TESCO has provided its customers
price reductions on the fuel they purchase, in
accordance to the amount they had spent on
grocery items (Prins and Cybercrime, 2011) .
Weaknesses : Due to this factor, TESCO has
weak financial performance.
Environmental Factor: The pressure on
company to address environmental issues,
TESCO has clearly committed to reduce its
carbon footprint by 50% by 2020.
Strength : This would benefit the society.
TESCO has also minimise the waste produced
in their stores by increasing social moral sense
in customers.
Weaknesses : This affect the growth of
TESCO.
CONCLUSION
As per the above report, it has been concluded that business environment is a collection
of internal factors and external factors of an organisation which helps in identifying an
opportunities and solving a business problems. In business environment it involves clients,
customers, suppliers, social and market trends and so on. In this report, they includes three
organisations such as TESCO, Crown prosecution services and Oxfam. In which tesco is a
private sector organisation, crown prosecution services is a public sector organisation and Oxfam
is a voluntary organisation and they all have their separate purpose, legal structure and
stakeholders. Each department of an organisation is interlinked with each other for increasing
productivity and profitability.

REFERENCES
Books and Journal
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business environment. McGraw-Hill Education.
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Berg, E. and Kilambi, K., Siebel Systems Inc, 2014. Method and apparatus to facilitate
development of a customer-specific business process model. U.S. Patent 8,639,542.
Schaltegger, S., Lüdeke-reund, F. and Hansen, E. G., 2012. Business cases for sustainability: the
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Ballard, C. and et. al., 2012. Dimensional Modeling: In a Business Intelligence Environment.
IBM Redbooks.
Werbach, K. and Hunter, D., 2012. For the win: How game thinking can revolutionize your
business. Wharton Digital Press.
Vitale, R. P., 2011. Business to business marketing. Pearson Education India.
Janita, M. S. and Miranda, F. J., 2013. The antecedents of client loyalty in business-to-business
(B2B) electronic marketplaces. Industrial Marketing Management. 42(5). Pp,814-823.
Wheelen, T. L. and et. al., 2017. Strategic management and business policy. pearson.
Prins, J. R. and Cybercrime, B. U., 2011. Diginotar certificate authority breach’operation black
tulip’. Fox-IT, November.
Weiss, J. W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.
Avramenko, A., 2012. Enhancing students' employability through business
simulation. Education+ Training. 54(5). Pp,355-367.
Online
Business environment. 2018. [Online]. Available through:
<http://www.investorwords.com/19252/business_environment.html>.

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