Business and Business Environment: A Comprehensive Analysis of Organizations and the UK Supermarket Sector

BUSINESS AND BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION............................................................................................................................. 2
SECTION 1 - ESSAY......................................................................................................................... 3
Different types of organizations (P1).........................................................................................3
Differences between profit, not for profit and non-governmental organizations (NGOs).....3
Profit Organizations............................................................................................................... 3
Not-for-Profit Organizations..................................................................................................4
Non-governmental organizations..........................................................................................5
Size and scope of the organizations (P2)...................................................................................7
Difference between micro, small, medium-size and large enterprises..................................7
Market share, profit share, growth and sustainability...........................................................8
Organization structures and functions (P3)...............................................................................9
Complexities of transnational, international and global organization structures................10
How functions relate to overall organizational mission and objectives...............................11
SECTION 2 - THE UK SUPERMARKET SECTOR...............................................................................13
Using PESTEL model, identifying the positive and negative impacts the macro environment
has upon the UK retail sector (P4)...........................................................................................13
Identifying the strengths and weaknesses of retail industry by SWOT Analysis (P5)...............15
Explaining how strengths and weaknesses interrelate with external macro factors (P6)........17
CONCLUSION............................................................................................................................... 18
REFERENCES.................................................................................................................................19

INTRODUCTION
The purpose of this assignment is to provide the knowledge and understanding of different
types of businesses, their functions and the business environment in which they are operating.
Profit, not-for-profit are the main types of organizations when differentiated on the basis of
profit generation. On the other hand, when categorized on the size and scope, the
organizations can be of 4 types i.e. micro, small, medium and large. The operations of these
businesses are also highlighted in the assignment.
The assignment is divided into two parts, an essay and a case study. The first part covers the
types of organizations and the second part of the assignment covers a case study of the UK
supermarket sector. The examples of Tesco and Oxfam have been taken into consideration,
which are the two best examples of profit and non-profit organizations in the UK.

SECTION 1 - ESSAY
Different types of organizations (P1)
In this modern era, the Success of the organizations is depending on the experience and
competence of the officers of that particular organization. This is because they are the most
important part of the organization and effective in achieving the goals and objectives of the
organizations (Roness, 2017). Organizations are designed on the basis or principles of labour
and span of management. Following are the main types of organizations when compared on
the basis of profit generation:
Differences between profit, not for profit and non-governmental organizations
(NGOs)
Profit Organizations
These organizations are the one that is owned and run by the private individuals. For example,
the sole traders are an individual that is running a business on his/her own risk. The other
example of private sector organizations is the partnership businesses that are run and owned
by two or more people who are sharing both profit and losses (Rahim, 2017). Franchise and all
the private small, medium and large companies are the examples of private sector businesses.
TESCO is one of the British Multinational retailers and groceries and its headquarters are
located in the Welwyn, Hertfordshire, England. Tesco is the third largest retailer in the world

and this position is calculated when the profit has been taken into consideration. On the
revenue basis, it is the 9th largest retailer in the world (TESCO, 2018). The first shop of Tesco was
opened in the year 1931 and now the private company has stores in around 7 countries all over
Asia and Europe. The company is based on the retailing is based on a diverse range of products
including the books, clothing, electronics, toys, software etc.
Business purpose and supply of goods and services of TESCO
TESCO is aiming to make shopping cheaper for all the average households. The Tesco is
achieving this aim by cutting the prices and offering the products and services more in the
store. Other than this, introducing more healthy eating products for the people is also the
business purpose and objective of TESCO, as they are supplying these products to all the
groceries under their operations. The goods and services are designed by the Tesco engineers
from getting the raw materials from various suppliers and dealers are also helpful in the supply
of goods and services (TESCO, 2018).
Not-for-Profit Organizations
These businesses are dedicated to promoting a specific social cause and the main aim of these
organizations is not to earn the profit. These organizations do not have to pay tax on the money
that is earned by them (Maroun and Lodhia, 2018). The government and public sector
authorities are responsible for running these businesses. The overall management is observed
by the government. These organizations can operate in all the settings like research, religious,
educational and scientific.

Metropolitan Police Service (MET) is the best example of these organizations and the main
responsibilities of it are coordinating and leading on various terrorism matters in the UK along
with the protection of senior members of the British Royal Family. MET is having more than
43,000 full-time employees which include police officers, police staff and support officers (MET
POLICE, 2018).
Business purpose and supply of goods and services of MET
Public safety and security along with the security of the main members of the Royal family are
the basic business purpose of the MET. The VAMs, other safety equipment are provided by the
government of the country. Also, the management of the MET is overlooked by the
government and its authorities along with the support from the local people (MET POLICE,
2018).
Non-governmental organizations
NGOs are the organizations that are independent of local and state governments along with the
internal government organizations. But they are often funded by the governments. There are
various objectives of the NGOs in order to solve the social issues, to provide education to the
local people, awareness of human rights, health care and other environmental protection
activities can be performed in the NGOs (Elbers, 2017).