Business and Business Environment Assignment (Doc)
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Added on 2020-03-16
Business and Business Environment Assignment (Doc)
Added on 2020-03-16
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Running head: BUSINESS AND BUSINESS ENVIRONMENTBusiness and Business EnvironmentStudent’s name:Name of the university:Author’s note:
1BUSINESS AND BUSINESS ENVIRONMENTTable of Contents Introduction......................................................................................................................................2P4 Identifying both positive and negative influences the microenvironment has on the businessoperations.........................................................................................................................................2P5 Conducting both internal and external analysis of Tesco in order to identify strengths andweaknesses.......................................................................................................................................6P6 Explaining the strengths and weaknesses of the organisation that can interrelate externalmacro factors...................................................................................................................................9M1 Analysing the structure, scope and size of different organisations to link with productofferings and business objectives..................................................................................................10M2 Analysing the advantages and disadvantages of interrelationships between organizationalfunctions and impact upon organizational structure......................................................................11M3 Applying PESTLE model to support analysis of microenvironment......................................12M4 Applying TOWS analysis and justifying the influences of decision-making.........................14Conclusion.....................................................................................................................................16Reference List................................................................................................................................18
2BUSINESS AND BUSINESS ENVIRONMENTIntroductionBusiness environment defines all the internal and external factors that can affectorganisational functions including management, customers, employees and demands. Moreover,the condition of supermarket industry is determined by the competitive condition in the marketperformance. Business environment is the sum total of all the factors that affect an organisation.In this study, private, public and voluntary organisations will be chosen in order to justify thefactors. Organisational size, type and scope will be described on three types of firms andrelationship between firms’ structure and departments will be explained. Moreover, businessenvironment is related to business decisions and these decisions are needed to be taken based onboth macro and micro environmental factors. Strengths and weaknesses of the firm will be foundout and their impact on macro-environmental factors will be justified. P4 Identifying both positive and negative influences the microenvironment has on thebusiness operations Tesco is one of the major players in the supermarket industry in the UK. During the timeof 2004, Tesco had the market share of 10.3% and now, Tesco has the market share of 15.2% inthe supermarket industry (Yu et al. 2014). External culture and other market players who arecompetitors in the market of Tesco impact heavily on Tesco’s business strategies. Demographic forces:Demographic factors impact on the business of retail industry as demographic force isrelated to the people. People in the retail industry are the customers of the retail sector and theirsize, density, age and gender. The large and diverse population can impact both opportunity and
3BUSINESS AND BUSINESS ENVIRONMENTpose the challenge to the business. As stated by Fernie and Sparks (2014), changingdemographics can change the market and organisations need to adjust the market. In case ofTesco, it is in the retail industry and it offers a vast amount of products to the customers and itkeeps close eyes on the customers with their different trends. The growth of the population isimportant as a number of customers will be increased. In the UK, the growth of the population issignificant as it is 0.8% in annual change and however, UK population showed the sharpestgrowth in the year 2016 after 70 years (Retaileconomics.co.uk 2014). It clears the indication ofdifferent consumers' preferences. The UK is one the richest country in the world and changesrequired of the population are significant. Moreover, demographics also refer to the age structureof the population. Retail industry offers products to all ages; however, the UK has to follow agedpopulation in the years to come. Most of the population in the UK belong to between 20 and 50(16.751 million males and 15.563 million females) (Deloitte.com 2017). This will impact on asupply of workers in the workplace and customers in the organisation. Aging population in thefuture can pose a negative impact on the retail industry. Moreover, global migration is animportant factor in recent time and by the end of 2040, the expected migration of geographicalshifting will see the double. This will impact major on both natures of demand and location ofstores of Tesco.Political forces:Tesco, however, started in the UK; however, it has now stores in more than six differentcountries in the Europe and many countries in the Asia. Tesco's performance is influenced by theglobal politics and political atmosphere in respective countries. The UK left the EU and itinfluenced heavily on the Tesco as regulations of EU are no longer impact on retail marketing.The political condition of the UK is not stable for now and Brexit impacted on the retail industry
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