BUSINESS AND BUSINESS ENVIRONMENT.

BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain different types and purpose of organisation with their legal structure.....................1
P2 Explain size and scope of range of different types of organisation.......................................3
TASK 2............................................................................................................................................5
P3 Explain relationship between organisational functions and how they link to organisation
objectives and structure...............................................................................................................5
TASK 3............................................................................................................................................6
P4 Identity positive and negative impact the macro environment has upon business operations
.....................................................................................................................................................6
TASK 4............................................................................................................................................9
P5 Conduct internal and external analysis of specific organisation in order to identify strength
weaknesses..................................................................................................................................9
P6 Explain strength and weaknesses interrelate with external macro factor............................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
A business environment refers to the integration of internal and external factors that can
affect the company and their activities which includes employees, customers, supply & demand,
business regulations etc. It is very essential for business enterprises to analyse the several aspects
within marketplace so that operations can be done effectively and strategies can be executed
effectively. This report is based on several types of organisations that undertake the size, scope,
purpose and their legal structure so that their capabilities can be examined effectively. It also
explains the structure and interrelation of the several departments within the organisation so that
objectives can be attained by the organisation. Further it explains the internal and external factors
that can helpful in gaining the business profits and sustainability(Hamilton and Webster, P.,
2018).
TASK 1
P1 Explain different types and purpose of organisation with their legal structure
Organisation refers to the group of a number of people that can work together for attaining
the common goals. It can be of several types that are public organisation, private, voluntary
business enterprises. All these businesses are working for achieving their own objectives and
consider under the legal structure as per their criteria that can be shown below:
Private organisation- This type of organisations are directed and operated by the individual
person with the main motive of generating high profits that is known as private organisation
Example- Tesco Plc(Gaganis, Pasiouras and Voulgari, 2019).
Purpose- The main purpose of this organisation is to satisfying the needs of customers by
providing them satisfactory goods and services so that higher profits can be attained with large
market growth. In terms of Tesco Plc. their major goal is to earn higher profits.
Legal structure
 Sole proprietorship- This type of business enterprises are operated by single person
where all the decisions are to be taken quickly and formulate effectively by a business
owner. In this low legal rules are included and in this risk can be beard by only the sole
trader.
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 Partnership- This type of business enterprise is to be operated by two or more than two
persons under the partnership deed that involves the set of rules and regulations related to
partnership. In these partners sharing or profits and losses can be disclosed.
 Company- This refers to that business entity which is owned by the shareholders byu
investing within the company. in this profits and losses can be divided into the
shareholders as per shares proportion. Company can be operated by several laws in which
when funds are to be generated by general public is called public limited company and in
which funds are to be collected privately are known as private limited company.
Public organisation- This Company can be monitored and supported by the government of the
country for providing the benefits of the society. The examples is UKTV.
Purpose- The main purpose of public organisation is to work for benefitting the society with
secondary benefits of earning profits. In case of UKTV they can operate their business for
creating awareness within society related towel being and gain profits for meetings the
expenditures(Franklin and Marshall, 2019).
Legal structure
 Local- This authority is highly accountable to the central government and controlling the
local region by performing several welfare activities.
 State- They are generally accountable for particular state and follow the orders of central
authority.
 Central- It reflects as a central body which can control overall country and several
departments for the welfare of the society.
Voluntary organisation- it reflects to those entities which can serve the society for enhancing
the standard of living in this they can offer contribution to society. The best examples is National
Trust.
Purpose- This type of organisations are not to be monitored by the government as they are
operated by the society people for saving and serving the several types of services and products
that are beneficial to them. in this National Trust is working for preserving the cultural heritage.
Legal structure
 Charitable trust- These refer to those entities which are accountable for managing the
funds that are collected for serving the society welfare. These funds are to be used for
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offering food to malnutrition people so that society can enhance their living
standard(Arsić and et. al., 2018).
 Unincorporated association- These types of organisation are to be formed as a group to
attain the particular goal that is beneficial for the public.
Basis Profit organisation Non government
organisation
Not for profit
Meaning These types of
organisation are to be
developed for gaining
higher profits by
providing the several
services and products
to their customers. In
this ownership is hold
by shareholders. In
this they follow
several rules because
of public money is to
be invested within
this.
This type of
organisations is
working without
government
dependency and any
local bodies. this are
to be run by donation.
It can be done thier
operations for not
getting the higher
profits but to satisfy
the demands of the
society. In this money
is to be distributed by
investors and in this
developing trust is
mainly essential for
getting high
transparent results.
Scope The scope of this is to
get higher profits
from their wide
operation(Uluskan
and Godfrey, 2018)
(Kokodey, Gnezdova
and Lomachenko,
2018).
It includes the public,
local and international
enterprises to
involving in work for
joint affairs.
The scope of this is
high as they can be
operated for offering
the benefits to society.
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P2 Explain size and scope of range of different types of organisation
Tesco plc- It is a leading British multinational superstore within UK that deals in several types of
consumer products. Tesco is based on Ninth larges revenues earner within UK.
Purpose- The major purpose is to provide the products and services to customers at low price as
compare to competitors so that large number of customers are to be attracted.
Products and services- Company offers the several products that are clothing, food, home wares
etc. for beating the competitors and gaining large customer base(Lim, 2018).
Profit and Market share- In Tesco there are wide range of employees are working that are
around 30000 and having a market share of 28.4% with a revenue of 6391.1 crore in the 2019.
Size- Tesco can operate their business international market as the of this is very wide. It deals in
around several countries for gaining profits.
UKTV- It is the multinational British broadcaster that is operated as a public sector within
London. This company can offer their services by using digital satellite and subscription of cable
In UK and Ireland(Saura, Palos-Sanchez and Correia, 2019).
Purpose- The major objective is to spread awareness by using tghe TV news, programs and
many others related to society and also entertain them.
Product and services- The services that UKTV can offer are TV News, programs and several
other TV shows.
Profit and market share- This firm having the 592 employees and also present at rank 3 with
their 10 competitors. They capture the 7.8% market share which helps in gaining the higher
profits with parent company that is BBC Company.
Size- The size of UKTV is not much wider as it is only presented within the UK and Ireland and
several other in Europe.
National Trust UK is a company that is working for achieving the objectives related to creating
awareness in public based on preserving the cultural heritage fore specific region.
Purpose- The main aim of National Trust UK is to examine the techniques that is useful to
saving the cultural heritage for a longer period of time.
Product and services- This company can recognise all the services and activities that are
effective for preventing the heritage in a considerable way.
Size and scope- It involves the many volunteers that are working for saving the cultural
inheritance.
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Market and Profit share- This Company cannot highly focus on generating profits as they can
collect funds as a charitable amount from several business entities. They mainly work for gaining
welfare of society(Blachetta and Kleinaltenkamp, 2019).
Analyse structure, size and scope of organisation link to business objectives and products
and services offered by organisation
From above analysis it is evaluated that several business organisation that are public,
private and voluntary can highly linked to the objectives of business because they can have their
own objectives as per their legal structure which helps in setting the goals and attaining the
profits and welfare of the society. As per the legal structure and their size products and services
are to be offered by them to their customers so that high sustainability can be enjoyed by the
companies in marketplace.
TASK 2
P3 Explain relationship between organisational functions and how they link to organisation
objectives and structure
Organisational structure refers to that system which includes the activities that are helpful to
make a systematic work on the basis of roles and responsibilities of the people that are
working(Toma and Mirica, 2018). It includes the several types of organisational structure that
can be shown below:
 Hierarchical structure- It includes the several level which are responsible for the
delegating the task with in the several departments. It includes the several roles and
responsibilities that can be structure systematically to attain the task in effective and
efficient manner. In terms of Tesco this structure is very effective as it helps in attaining
the task as per the capabilities and abilities of the business employees and due to this
conflicts are also to be removed and manager can take decision effectively.
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Figure 1Tesco organisational structure
 Flat structure- It refers to that structure in which employees are present at the same level
so that communication can be done strongly between top and lower level authorities.
Tesco Plc can adopt this type of structure to attain their business goals effectively and
proficiently so that they will sustain for a longer period of time(Somers, 2019).
Organisational function interrelationship between departments
Within Tesco, interrelationship between the departments is very essential because it helps
in taking the decision effectively and accomplishing the target appropriately and productively so
that firm will sustain for longer period of time. It includes several interrelations that can be
shown below:
 Marketing and sales department- In this marketing department can generate the sales
by creating awareness in the customers by using several promotional tools so that
relations can be maintained effectively in this sales department can effectively
collaborates the marketing department so that they can recognised the high sales and
analyse the data effectively(Lindgreen and Di Benedetto, 2020).
 Finance and production department- In this Finance department can develops the
budget fro production department so that they can appropriately focus on producing the
goods and services by optimum utilisation of resources so that high profit margin are to
be enjoyed(Beynon-Davies, 2020).
Analyse advantage and disadvantage of interrelationship between departments within
organisation
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From the above analysis it is evaluated that interrelationship between the departments is very
essential and advantageous for the organisation because it helps in smooth functioning of the task
and gaining the high profits within marketplace. Positive interrelationship between departments
helps in gaining the competitive advantage that helps in longer survival of the firm. On the other
hand it creates drawbacks to the company as due to this conflicts are to be arises and late
decision making due to which firm will face major issues in attracting the profits.
TASK 3
P4 Identity positive and negative impact the macro environment has upon business operations
To analyse the impact of external factors on the company Tesco and UKTV can majorly
focus on analysing their strength and weaknesses that can be shown below:
Tesco Pestle analysis Positive and negative impact can be shown below:
Political
 Positive- In this factor local government authorities can dismissed the supermarket tax
due to which customers are not emphasis on paying the tax that will enhance the price of
goods(Mustapha and et. al., 2020).
 Negative- By maximising the impact of import duty, raw material is to be purchased high
by the company this will enhance the overall cost of the firm because they can import
their products and services from east Asia and China.
Economical
 Positive- Tesco has high global business and high range of products and services helps in
gaining the high market share within several countries that will enhance the economy of
country.
 Negative- By increasing their daily wage rate Tesco can pay the huge amount within the
employees’ salary which will impact their operational cost and creates issues in running
business in smooth manner.
Social
 Positive- in this sector Tesco can gain the high customer base as it will fulfils all their
demands of customers by following proper delivery channels. This helps in becomo9ng a
market leader(Hasan and et. al., 2019).
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 Negative- Because of enhancing the demand of the customers related to organic
commodities Tesco can face the major threats related to their previous stock which is
related to sweetened food.
Technological
 Positive- Using advanced technology in Supply and promoting the goods and services
Tesco can attain the high market share. In this they highly focused on RFID technology
to make payment easy.
 Negative- Focusing on adopting updated technology Tesco can includes high cost and it
will impact their profit margin and their operational cost.
Environmental
 Positive- Tesco can take the initiative of not to use the plastic bags to save the
environment and for this they can attracts the large number of customers.
 Negative- Including the initiative will impact on overall cost that will highly impacted
the company overall cost and expenses.
Legal
 Positive- Focusing on adopting the several laws related to customers benefits and
employees benefits helps in gaining high returns and longer sustainability.
 Negative-Due to adopting the legal laws and standards company operating cost is to be
suffered and if firm cannot follow proper rules it will affect the brand image.
UKTV Pestle analysis positive and negative impact can show below:
Political
 Positive- Getting high supports of the government helps in gaining the customer
satisfaction and this will increase the profit margin of UKTV.
 Negative- Because of high tax rate customers has to pay more cost in getting the services
of UKTV this will impact the overall profit margin of company(Boyce and Mano, 2018)
(Ndoro, Louw and Kanyangale, 2019) (Berman and Dalzell-Payne, 2018).
Economical
 Positive- Customer high purchasing power will helps the UKTV to enhance profits and
sustainability which will helps in enhancing the economy of country.
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 Negative- More fees charged by cast and crew members will affect the profit margin of
UKTV due to this they cannot highly support to their economy.
Social
 Positive- This factor is very effective for UKLTV because customers are highly focused
towards enjoying their life and spending their leisure time effectively that will positively
impact the company profits.
 Negative- In this because of gaining customer attraction UKTV can pay high to their cast
members so that they can work effectively and in this high training cost it is to be
included.
Technological
 Positive- High technology can be adopts by the UKTV that is effctiev for sustaining
within marketplace and gaining more customers trust and loyalty.
 Negative- Including high cost can affect he overall operational cost of company and
their profit margin within the UKTV.
Legal
 Positive- UKTV can highly focus on satisfying their customer and for their they can and
follow several rules and regulations which is effective to gaining high returns.
 Negative- Adopting the proper rules and procedures can includes the high cist and the
company can arrange funds from the government which is quite tough to follow
effectively(Ndoro, Louw and Kanyangale, 2019).
Environmental
 Positive- In this UKTV can focus on CSR policies that can helpful in attracting
customers attentions so that high growth is to be enjoyed by company.
 Negative- By adopting the CSR policies UKTV can focus on several strategies and
activities which contain high cost and due to this their overall expenses is to be high.
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TASK 4
P5 Conduct internal and external analysis of specific organisation in order to identify strength
weaknesses
The critical analysis can be done with the help of SWOT that helps in examine the strength
and weaknesses by evaluating the internal and external analysis. In context of Tesco
SWOT analysis can be shown below:
Strength Weaknesses
Tesco is one of the leading organisations in
grocery that can gain higher profits by
selling the huge range of food and
beverages to attract the customers.
In this firm will offer the buyer’s one stop
shopping so that customers feel satisfied.
The major weaknesses of Tesco are their
low cost market strategy that can affect their
profit ratio.
The liability of the debtor is affecting the
image and revenues of company(Berman
and Dalzell-Payne, 2018).
Opportunities Threats
The main opportunity that a Tesco can
capture is to sell their commodities via
online market.
Another opportunity is to adopt the strategic
alliance strategy to gain the competitive
advantage.
The major threats are their competitors like
Sainsbury’s, Waitrose etc.
The company within market dealing with
the issue of price that will become a major
threat for a company.
SWOT analysis of UKTV
Strength Weaknesses
The major strength of UKTV is their cast
and crew member and also their marketing
skills that help in attracting number of
customers towards it.
Thier funding is another major strength
which is to be done by government.
The weakness of UKTV is tier market
diversity that is very limited.
Opportunities Threats
The main opportunity is their fan base and The major threats is the other shows which
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the use of trans media that can helpful in
their long term survival.
are present within marketplace and the
interference of external parties.
P6 Explain strength and weaknesses interrelate with external macro factor
Interrelation of Tesco Plc can be reflected below:
PESTLE Strength Weaknesses
Political Because of reducing the tax
rate of Tesco they will create a
major opportunities within
market to expand their
product.
Due to large import duty
company can face the issue of
reducing their profit margin
and also operation cost.
Economical Because of strategic alliance
Tesco can gain high solution
to satisfy customer solution so
purchasing power is to
enhanced(Berman and
Dalzell-Payne, 2018).
Due to high labour cost
overall cost of Tesco is
maximised.
Social Because of high population
within UK, customers are also
increasing and enjoying Tesco
commodities.
In this Tesco can move
towards the use of organic
products be considering the
people health will includes
high cost of company
Technological Tesco can adopts the high
technologies, due to this
customer base is also
enhanced and helps in
becoming market leader
Using advanced technologies
will increase the company
cost.
Legal By implementing all laws
customers and employees are
to be satisfied and retain with
Because of liability debt Tesco
profits is to be decreased.
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organisation.
Environmental By adopting several waste
management determinants
Tesco can develops their
market image(Saura, Palos-
Sanchez and Correia, 2019).
Adoption of environmental
tools which enhance overall
cost.
CONCLUSION
From the above examine report it is to be concluded that business and business environment
is a prominent concept for the several types of organisation as it helps in attaining the
objectives and goals so that firms will be sustain for a longer period of time. This is very
effective to examine the several framework related to customers so that offering te products
and services can be done appropriately. In this interrelations between the several
departments can helps in achieving the objectives so that longer survival can be gain by the
business enterprises. In this to identify the capabilities of business there sixe and scope is to
be determined. It is very effective to analyse the internal and external factors that helkps in
recognising the impact of the several factors on business with the help of SWOT and
PESTLE.
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