Introduction to Business Environment - Assignment

Business and Business
Environment

INTRODUCTION...........................................................................................................................1
Part1.................................................................................................................................................1
1. Presenting different types of organization..............................................................................1
2. Size and Scope of the organization.........................................................................................2
..........................................................................................................................................................4
P3. Relationship with different organizational functions............................................................4
LO4..................................................................................................................................................6
P4. Impact of macro environment has upon business operations...............................................6
P5. Conduct internal and external analysis.................................................................................7
P6. Strength and weakness interrelates with external macro factors..........................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The business environment is the sum and collection of all factors whether they are
internal or external that directly affect the business in both positive as well as negative way. In
the same way, the report main aim is to understand business, its functions which are also
influence by business environment. The chosen firm for this report is TESCO which is one of the
leading retail supermarket in UK and it provides the best quality of products at low and
reasonable rates.
The report is divided into two parts such that in section one which is essay where report
will describe different types of organization such as public, private and voluntary on the basis of
their purpose, size scope. Further report will describe the interrelationship between different
organization structure and functions, how their functions are relates to overall organization
mission and objectives. In second part of the report, report will describe how macro environment
factor impact upon business by using PESTLE analysis and then by applying SWOT, report will
determine the internal factors. Then report will also describe Porter five force analysis to TESCO
and describe how they influence decision.
PART 1
Presenting different types of organization
Organization: It is the group of people who have a particular purpose to set up the
business and it is combines with different firm such as profit firms, not for profit and voluntary
firms. These are as mentioned below:
Profit : This sector is run by the individual or group whose usually aim is to earn profit
and this sector is not controlled by state (Bouckaert, Peters and Verhoest, 2016). This sector is
also known as private sector and in UK, this sector contributed their biggest part in the growth of
the economy. Therefore, in private sector, activities are basically guided by a motive to earn only
money.
Objectives/Purpose: Profit sector main purpose is to earn the money and expand their
current business.
Supply of goods and services: These company supply all kinds of goods and it includes
Sole proprietor. Designers, Plumbers etc.
For example, IKEA which is one of the largest company online furniture selling company
in UK who provide all kind of furniture is an example of Private sector.
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Not for Profit: This is also called public sector and this sector did not set their business
to earn profit but to provide benefit to society. This sector is majorly run by government and this
enterprise even sale the private goods but usually operate on a commercial basis (Mazzucato,
2015).
Objectives/Purpose: the aim of this sector is to work for the welfare of a society rather
than earning money for the business expansion.
Supply of goods and services: This includes the services such as military, law
enforcement, roads, public bridges etc.
Non- Governmental Organization (NGOs): It is also known as Voluntary sector which
are usually funded by donation and run by volunteers. They also focus on issues such as Human
Right, environment and health.
Objectives/Purpose: It main purpose is to serve specific social or political purpose rather
than commercial.
Supply of goods and services: Red Cross is an example which provide health and care
services at the time of crisis in UK.
Size and Scope of the organization-
Micro enterprise:
Size: Size of all micro businesses are small and limited in which owner just full fill their
basic needs or feed their family requirement. Number of employees in micro businesses is 1-9
(Bonafede and et.al., 2016).
Scope: Scope of Micro organisations are quite vast in terms of covering several new
technologies, development, expansion. They have many options s to grow their business into
next level.
Market share: Market share of micro businesses are very high because of high start-ups
that helps in economic development.
Profit share: Profit of micro businesses are limited to other organisations. They earn
very limited amount of profit because they invest limited on the business. They earn limited
profit through which they can survive (Legg and et.al., 2015).
Growth: Growth of micro organisation is limited as compare to large or medium size of
organisations.
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