Identifying strengths and weaknesses of UK retailers

Business and Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
SECTION 1.....................................................................................................................................1
P1. Different types of organizations............................................................................................1
P2. Size and scope of the organisations.......................................................................................2
P3. Organizational structures and functions................................................................................4
PART 2............................................................................................................................................5
P4. PESTLE analysis and the way positive and negative impacts macro environment has upon
the UK retail sector......................................................................................................................5
P5. SWOT analysis and five forces model of a UK supermarket to identify its strengths and
weaknesses...................................................................................................................................6
P6. The way strengths and weaknesses are interrelated to macro environmental factors...........8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment plays an important role for the organization in assessing that
whether it will prove to be profitable or not. The report makes comprehensive discussion
regarding various types of organizations such as profit, non for profit and non-government
organization. The report then focuses on size and scope of sole trader, partnership and large
corporation. It will help in analysing that whether it is small, medium or large corporation. In
order to concrete the knowledge base, the report will then focus upon conduction of SWOT
analysis, PESTLE analysis and Porter’s five forces model for Tesco which is a retail sector
organisation.
SECTION 1
P1. Different types of organizations
An entity is considered to be a social unit that is actually formed to manage and achieve
collected goals being framed by management of the organization. There are various roles and
responsibilities that are required to be carried out by the members belonging to that organization
in such a waythat collective goalswill be achieved. However, the main objective of each and
every organization may differ based upon the framework and type of organization it has chosen
to become. Various types of organizations are discussed as below in detail: Profit organization: Main objectiveof these types of entities is to earn adequate amount of
profitwhere all the members collectively try to achieve this common goal of maximization of
income. There are various organizations that are considered to be profit making such as
insurance companies, real estate firms, restaurants, etc. Tesco is one such company which
aims at earning maximum profits and enhance its overall market share in the economy as
well. Since their business purpose is to achieve maximum profits, it has become important
for them to delegate the duties in the same manner. Tesco tries to fulfil the requirements of
grocery and other daily essential products to customers.Current motive of e company is to
expand its branches worldwide (Adeoye and Elegunde, 2012). Not for profit organizations: These are the institutions which are not meant to earn profits
but to serve requirements of society. It does not have stakeholder, but members, whose main
aim is to serve the society rather than employing profits. They invest in the organization
without having any expectations of receiving returns. All profits that are generated by the
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organization are then reinvested back in the organization so that better resources can be made
available to the institution for fulfilment of its goals. Some of non-governmental
organizationsalso granted with tax exemptions that can contribute in tax deductible aspect of
the individuals who invest in the organization. Since, NPOs are the charitable trust,
cooperatives or other voluntary organizations, they are formed so as to serve the professional,
cultural and educational rights of the individuals. Common examples of the same is Oxfam
which is focused to alleviate global poverty Non-governmental organizations: There are other non-governmental organizations as well
which are private sector companies contributing to not for profit organizations as well and
hence, work for the welfare of society. The main goals of these types of businesses are
training, education and preserving human rights of individuals. They are commonly
accredited by UN where they are responsible for gathering funds or donations so as to serve
the requirements of distress people. Common examples of these types of NGOs areWorld
Wildlife Fund (WWF), International committee of Red Cross and Word Wide Web (W3).
The main aim of these organizations is to servethe society in a manner that it can be made a
better place to live in (Babatunde and Adebisi, 2012).
P2. Size and scope of the organisations
The size and scope of business may vary where there are various forms of it. Its sizes can
also have higher dependence on the form it belongs to. Various forms of businesses are described
as under: Sole Traders: In sole trader type of business, there is exclusively one owner who is entitled
to all types of profits and losses of the business. It is considered to be the simplest method to
start and run a business as it does not require any type of registration fees to it. However, it
becomes important for the individual to get himself / herself registered as a sole trader.It is
not important for a sole trader to disclose its financial accounts. However, maintenance of
records as per the convenience in the form of receipts and payment can help him in taking
better business decisions. The size of sole trading company is generally small due to limited
availability or resources and funds to runbusiness. The main issue linked to this aspect is
thatthe person is solely liable to cope up with all the debts alone which makes it difficult for
an individual to expand in a limited time period. It lies in small sized organization with less
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