Business and Business Environment

Business and business
environment

Table of Contents
Introduction......................................................................................................................................3
LO1.................................................................................................................................................4
P1 Purpose of public, private and voluntary organizations. .......................................................4
P2 Size and scope of different organization................................................................................6
LO2 .................................................................................................................................................8
P3 Relationship between different organizational functions.......................................................8
LO3................................................................................................................................................10
P4 Positive and negative impacts of environment on business..................................................10
LO4................................................................................................................................................12
P5 SWOT analysis.....................................................................................................................12
P6 Interrelation of internal factor with macro factors................................................................13
CONCLUSION..............................................................................................................................15
References .....................................................................................................................................16

Introduction
Business environment is sum or collection of all external and internal factors which affects the
business these factors are such as employees, customers needs and expectations supply and
demand of customers and social trends, market trends, economic changes. Business environment
is the collection of all external and internal factors which are needs of customers, employees,
expectations from the customers, demand and supply, suppliers, clients activities by government,
market trends, social trends, change in economy etc. these factors will affect the work of the company
directly or indirectly. Business environment helps to find opportunities, useful resources, planning in
assists and also improves the whole performance, profit and the growth of the business.
LO1
P1 Purpose of public, private and voluntary organizations.
Each and every business starts with an objective. Whenever taking about an organization
fist think comes in mind a group of individual that required for smooth working of the business.
In this there are three types types of organization private sector organizations are main focuse of
earning profit by engaging large number of customers with their product and develop their
company at a large scale(Evans and et.al., 2017). Private sector companies need to compete with
their competitors for development of their business. Government have no control over private
sector whether they can prepare some rules and regulations for their business. Satisfying their
customers and achieve competitive advantage over market helps them to earn revenue for their
business. Public sector companies are controlled by government all rules and regulations of
company set by government. Public company main emphasize of serving people effectively.
Public sector is not concentrate to earn profit companies got revenue from government and tax
payers. Voluntary companies or individuals have no goal to earn profit rather work for welfare of
society and people. Voluntary sectors get some funds from government, charity, trusts. Each and
every company have an objective and they work to achieve that objective. In this tesco needs to
develop their business by working in different type of sectors.
Private sector
Tesco is a private company and main emphasize on earning a profit for business at large
scale. Aim to satisfy their customers and increase their share in market by developing
competitive advantage for their business. Business needs to develop an effective streategy for
their company. Private companies have a objective to maximize profit for their shareholders.

Private comp-any have an objective to maintain transparency to anly some of top management.
In Tesco all confidential information are given to managers or leaders employees have no idea
private companies need to maintain transparency for their success but at limited extent. Private
companies needs to develop and maintain structure of their organization. Structure of business is
important to earn profit. Companies needs to restrict access to some of the policies and strategies
of business and only some of the management person have access to those strategies. Private
sector companies like tesco wants benefit in tesco from to maximize their share of profit for that
they have to expand their business on the territory where government have low interference on
the working of the company. Private company comes with goal to develop their existence in a
market to engage large number of customers with their products.
Public company
Public company is a large size sturucture controlled by government revenue generated
from taxes from private companies and employees. Public company have less emphasize to earn
profit and comes with a purpose o serve public. Public corporation works for the development of
the territory and increase in standard of living, develop an policies that benefits common people.
Public sectors works to increase the trust on their workings. Companies have their own rules and
regulations. Tesco develop their business to works for welfare of public by providing them goods
and services at low prices, quality products are provided to customers. Help customers to
improve their lives. Provide them facilities like offers and facilities of home delivery. Develop
business at large scale help them achieve competitive advantage. Prepare policies that have no
effect from government rules and regulations.
Voluntary sectors
Voluntary sectors works for development and welfare for the society and development of
people. Voluntary sectors get funds from government and from charity(Prajogo, 2016).
Voluntary sectors may be government or an individual. All the issues in a society voluntary
organization works to solve those problems. Voluntary sectors works to provide shelters to the
individual who effected from climate change, disasters, support to group in a society. Voluntary
organization are different from other organization they have no goal to increase their profit or for
overall success of their organization. Tesco may works as an voluntary organization by providing
charities to different type of people. Develop an effective policy for welfare of an society.
Provide goods and service at low rates to some sectors of society.