BUSINESS AND BUSINESS ENVIRONMENT.

BUSINESS AND BUSINESS
ENVIRONMENT

Contents
Table of Contents
To, North West London Chamber of Commerce.........................................................................................3
From, XYX, Business Analyst......................................................................................................................3
INTRODUCTION...........................................................................................................................................3
TASK 1 .....................................................................................................................................................3
P1. Varied kind of organisations including their Purposes and Lawful Structures...................................3
P2 mention about Size & Scope for distinct types of business firms........................................................7
TASK 2..........................................................................................................................................................9
P3. Interrelationship among different business Functions and link it with Organisational structuring
and functioning........................................................................................................................................9
TASK 3........................................................................................................................................................12
P4 Benefit and Drawback of macro environment on business activities of a firm.................................12
TASK 4........................................................................................................................................................15
P5. SWOT Analysis of Both Public and Private Sector Organisation.......................................................15
P6. Interrelationship of External business Factors with the weaknesses and strengths of company....16
CONCLUSION.............................................................................................................................................16
REFERENCES..............................................................................................................................................17

To, North West London Chamber of Commerce
From, XYX, Business Analyst
“To help TESCO and prospective businesses to be more successful in their business
ventures”
INTRODUCTION
Business environment is defined as a situation in which business of an organisation
survives and sustains in marketplace so that high revenues can be earned. It includes
technologies, suppliers, market conditions, investors, rivals and other aspects which impacts an
organizational business in any manner (Andersson, Forsgren and Holm, 2015). There are
different types of business firm like public, voluntary and private companies which have
different scope and vision but main aim of these firms is to retain their customers for maximum
time period. This assignment is prepared in context with TESCO which is a UK based private
organisation offering grocery products to their customers. Also, some information will be
provided about public and voluntary organisation. This report will also discuss about the scope,
mission, vision, background, products and services offered by this firm. Also, interrelation
among organizational departments is carried out. At last, with the help of PESTLE and SWOT,
macro & micro environment of business will be analyzed in a detailed manner.
TASK 1
P1. Varied kind of organisations including their Purposes and Lawful Structures
Business organisation is stated as a group of human association that is established for
attaining goals and targets so that high outcomes can be gained. Main aim of these firms is to
either earn maximised\profits or satisfying the urges of people via social care and benefits.
Below is mentioned some information about different kind of organisations existing in business
environment:
Public Sector Organizations: This sector involves those companies that are financed and
owned by government and their officials on the behalf of common people. Main purpose of these
firm is to help common people of society in sustaining a good life. For example, NHS. It is a
central government owned public sector organisation.

Purpose: Main purpose of public firms is to offer health care service to common people by using
available resources in optimal manner.
Legal structure:
 Central government: It gather funds from individuals in the form of public tax. This
government operates business organisation in entire country.
 Local government: This government collect money from people as council tax and they
manage affairs of people within towns, cities and local area.
 State government: They have power to manage the affairs of entire state and possess
specific power which is applicable on certain fields.
Private sector organisations: This sector involves those firms that are established and
maintained by private enterprises or individuals. These firms can either managed by a single
individuals or in partnership. For instance, TESCO which is a PLC operating in global manner,
mainly in US, UK and other European nation (Boons and Lüdeke-Freund, 2013).
Purpose: Aim of these companies is to earn maximized revenues and profits so that big
advantage over rivals can be attained without any complexities.
Legal Structures:
 Sole proprietorship: Under this legal structure, a person manages and own business
individually in hope to earn high sales and profits. To operate as a sole proprietor, a
person requires licence from local government. In this an individual provides goods and
services to the client with the motive of earning profits.
 Partnership: It is an association of people which manage a business and share profits as
per their stocks. To work in partnership, people are required to sign a contract where they
decided to pay debts or share profits as per their agreed proportions. A partnership is a
kind of organisation that have more than one individual. The legal obligations within
partnership are similar to sole trader.
 Limited Company: In order to became limited company, these firms are needed to
register themselves. Profits of these firms, belong to the organisation rather than
shareholders. These firms have to pay corporate tax every year on their earned profit. For
example, TESCO is a public limited company. The organisation require to be certified to
become a limited company. Shareholders acquire the profits in the form of dividend.