(PDF) Understanding the Business Environment

Added on - Nov 2020

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Business and Business
Environment
Table of Contents
INTRODUCTION...........................................................................................................................1
PROJECT A.....................................................................................................................................1
TASK 1............................................................................................................................................1
P1: Types and purposes of organisations...............................................................................1
P2: Size and scope of chosen organisations...........................................................................4
TASK 2............................................................................................................................................6
P3: Relationship between different organisational functions.................................................6
PROJECT B.....................................................................................................................................8
TASK 3............................................................................................................................................8
P4: Positive and negative impact of Macro-Environmental over business operations..........8
TASK 4.........................................................................................................................................10
P5: SWOT analysis of Tesco plc..........................................................................................10
P6. External factors interlinked with Strength and Weakness.............................................12
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19
INTRODUCTION
Business environment provides full of complexities to an organisation whether engaged
in retail, manufacturing or service sector due to presence ofintrinsic as well as extrinsicfactors.
Internal factors consists of employees morale, management support, availability of capital etc.
whereasextrinsicfactorsincludespoliticalandeconomicfluctuations,technological
advancement, environmental factors etc. For this, it is important for an organisation to have an
effective management who are more capable to make relevant decisions and suitable plans for
maintaining their sustainability and achieve desired aims and objectives within pre-determined
time period. The present assignment report is based on three organisations such as private, public
and voluntary in which Tesco Plc, National Audit Office and Cancer Research UK has been
taken respectively. The whole file is based on Tesco Plc which is one of the largest multinational
supermarket chain in the UK. The project discusses the aims, mission, size and scope of every
kinds of organisation along with their purposes and organisational structure. In addition with
this,interrelationshipbetweendifferentdepartmentstoachieveorganisationgoalsand
objectives, SWOT Analysis and PESTLE Analysis along with their positive and negative impact
on an organisation.
PROJECT A
TASK 1
P1: Types and purposes of organisations
In business environment, there are mainly three kinds of organisations such as public,
private and voluntary which are engaged in performing different functions in order to achieve
their different purposes following distinct legal structure. It includes:
Public organisation:
It is an organisation which are under the controlled of Governmental authorities due to
having shares of more than 51% share in company. It gets financial support from national
revenue for the purpose of welfare of society. For example, national audit office is an example of
public organisation which was established in the year 1983 in UK. It is audit department who is
responsible to audit government departments, non-governmental public bodies and government
agencies(Aithal, 2016).
Aims and purpose of National audit office
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There are various aims and purposes of public organisations and they are discussed below
:-Reduction of concentration of wealth and income :-It is the purpose of NAO that
prosperity of the economy must be shared with all the people. To ensure this, it is
necessary to reduce the concentration of economic power in private hands.Value for money :-NAO audits non financial aspects of organisations which includes
measurement of effectiveness, efficiency of government spendings, etc.
Financial audit :-NAO make financial audit which assures government expenditure,
truth and fairness in financial statements and regularity of the expenditure (Bovee, Thill
and Raina, 2016).
Legal structure of public organisation
Central government :-It is the legislative body which have an authority to manage and
formulate rules and regulations for whole nation. It relates to the operations like finance,
commerce, defence, etc.
State government :-The role of state government is to promote rules and regulations to
the state. It controls the operations within state and promotes state economy.
Localgovernment :-They arecontrolledby thestategovernmentsand perform
operations and activities within a district.
Private organisations
Private sector is that part of economy which is run by individuals or group of individuals
rather then government. People who run private organisations are profit centric as their main
purpose is to earn profits. They generate their resources from sources like bank loans, savings,
mutual funds, etc. For instance, TESCO is the private organisation which was founded in 1919
and deals in retail industry(CuervoCazurra, 2011).
Aims and purposes of TESCO
There are various aims and purposes of TESCO which are discussed below:-Profit maximisation :-The main and primary objective of every private organisation and
TESCO is to earn and maximise profits.Flexibility :-As these are run and governed by privately owned people, TESCO enjoy
freedom and flexibility in their operations and functioning.
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Advancedplanning:-TESCOmakelongtermandadvancedplanningfortheir
operations as they wish to earn greater return on investments.
Legal structures of private organisations
Sole trader :-This type of business is run and operated by one single person. The profits
and business incomes are taxed as personal income.
Partnership:- This type of organisation is run and operated by group of people where
each partner act as an agent for the another.
Limited partnership:- This type of private organisation allows partner to avoid personal
asset liability and there are special income tax rules.
Voluntary organisation
Voluntaryorganisationsareindependent,flexible,democratic,secular,nonprofit
organisation which works for the welfare of the society. They are indispensable and perform
various functions for the welfare of its members and nation. For instance, Cancer research is a
UK based voluntary organisation which was founded in 2002 with the purpose of focussing on
cancer research and health policy(Hair, 2015).
Aims and purposes of Cancer Research
There are numerous aims and motives of the voluntary organisations and so as Cancer
Research and they are discussed below :-Act as helping hand :-These organisations work and act as a helping hand to those who
are facing social issues. Cancer research helps the people who are suffering from cancer
financially and emotionally through donations and charities.Provides education :-These organisations provides education to the society on many
issues like customer rights, laws, women rights, etc. Cancer research provides knowledge
to the people regarding various symptoms of cancer, their treatment, etc.
Campaigns :-It promotes various campaigns and events related to some cause and
encourages people to participate in those activities. Cancer research organisation runs
campaigns namely The Cancer Research Campaigns and aimed to fight against cancer.
Legal structure of voluntary organisation
Trust :-As these organisations are run and governed by trustees only and no other
member can run these organisations. They are personally liable for all the activities
performed.
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