Business and Business Environment

This document provides an overview of the different types of organizations, their scope and size, and the structure and functions of organizations. It also discusses the impact of the business environment on firms and the importance of conducting a PESTLE analysis. The document covers the subject of Business and Business Environment and is relevant for students studying business courses.

Business and business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1. Various kind of organisations.................................................................................................1
2. Scope and Size of the organisations........................................................................................2
3. Structure and functions of organisations.................................................................................4
PART 2............................................................................................................................................6
PESTLE Analysis........................................................................................................................6
SWOT.........................................................................................................................................8
Porter five forces model............................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment is known as sum or collection of several internal and external
factors like consumers needs, employees, supply and demand, clients, management, owners,
governmental activities, market trends and so on. All these factors directly have impact on
various functions or operations of business or industries. This report is based on 2 parts, whereas
1st part will get covered different types of organisations like private (TESCO Plc), public (Crown
prosecution services) and volunteer as (OXFAM). Along with part two will be based on positive
and negative impact of macro environment has on business operations along with SWOT
analysis with their interrelationships with external macro factors (Bastian and Muchlish, 2012).
PART 1
1. Various kind of organisations
Private Organisation:
TESCO plc has been selected as an private firm which is known as one of the best British
Multinational merchandise and groceries retailer. This firm was founded in 1919 by Jack Choen
and it is headquartered in Welwyn Garden city UK. As per the current scenario, this private
organisation considered as most wide firm that have good presence of their products in UK.
Thus, it has large number of opportunities to achieve targeted goals and objectives.
Purpose: To develop better services in order to satisfying people needs and wants by
taking their feedbacks.
Nature: As this firm has good image at marketplace so that they always apply different
types of strategies in order to gain competitive scenario.
Legal structure: TESCO always use hierarchical organisational structure by which they
can segment its product along with able to follow rules and laws of country.
Business objectives: The main objective of respective private firm is to develop best
ways to meet desires of people to achieve future goals (Ashnai and et. al., 2016).
Public organisation:
There is Crown Prosecution Services has been selected as public firm which is
established in England and Wales. These type of services generally offers legal advice and
policies from federal government agencies for best research on cases.
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Purpose: Main aim of these services is to offer great culture to people by following few
protective toll and services within country.
Nature: It was founded in 1981 which is ready for making so many policies for best
investigations or research towards crime.
Legal structure: It is related with different types of services that always follows
appropriate legal rules and laws in order to protect people of country.
Business objectives: To provide effective rules and regulations within the country so that
they can make country better in an appropriate manner.
Voluntary organization:
In this sector Oxfam has been selected as an volunteer organisation which is known as
the proper connection of 20 independent firms within 1 country. It was established in 1942 in
England by Jackson Cole that help several firms globally (Cuervo‐Cazurra, 2011).
Purpose: The main aim of this organisation is to provide alternate options for people to
remove poverty.
Nature: This company is having 20 independent firms and all of them are working
together to achieve targeted goals. Along with they facilitates political advocacy by
implementing several strategies and ideas.
Legal structure: It is known as internal foundation of UK in which Oxfam is able to
give huge support to public and overcome negative impact from the culture.
Business objectives: Main business objective of this firm is to remove poverty from the
nations so that they can make people life better (Biggemann and Buttle, 2012).
2. Scope and Size of the organisations
Different types of size, scope, mission and vision of several firms has been describes
below:
Private Organisation (TESCO plc)
Scope and Size Product and Services Vision Mission
TESCO has large
scope at different level
of marketing as they
provide huge variety
This firm deals with
groceries and
merchandise products
that give huge
To satisfy needs and
wants of customers
along with their
fulfilling entire needs.
To develop best
product and services
for consumers in an
appropriate manner.
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of goods and services
to their customers. As
it is managing 7,000
stores at several place
than size of this firm is
wide.
satisfaction to their
customers.
Public Organisation: (Crown Prosecution Services)
Size and Scope Product and Services Vision Mission
Crown Prosecution
Services have good
scope in future as they
are operating 800,000
criminal prosecutions.
Along with by
operating 2,900
solicitors with 600
members they have
effective size.
This firm having large
number of proposals
from police
department. They
provide services to
reduce criminal cases
from the society
(Grewal, Chakravarty
and Saini, 2010).
Main vision of CPS is
to become more
independent by
offering advice to
people.
Mission of CPS is to
offer several services
to people so that they
can make happy.
Voluntary Sectors: (OXFAM)
Scope and Size Commodities and
Services
Vision Mission
It is associated with 20
independent charitable
trust in which all
people as employees
as well working
together. Thus, they
can overcome poverty
As it deals with
several services among
people so that they can
easily focus on their
issues and able to give
best economy culture.
To develop better
options for firm in
order to organise
some valuable ideas to
people.
Main mission is to
remover poverty from
nation to protect every
human's life. By
equally treating each
and every employee at
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through applying
various tools.
Therefore, size and
scope of this firm is
wide.
workplace.
3. Structure and functions of organisations
Within the competitive scenario there are large number of employees and firms as well
who plays significant crucial role across the globe. In regards with TESCO, they always played
properly their all functions in order to satisfy customer's needs and wants on time. With the help
of doing all these things they can become more successful and able to achieve business goals or
objectives through attaining feedback from customers. There are several kind of interrelation
between different types of functional unit, those are as follows:
Human resource department:
This functional unit plays important role within the organisation. Therefore, HR manager
has responsibility to recruit high skilled employees who always able to fulfil needs and demand
of firms (Glova, Sabol and Vajda, 2014). Along with this, functional unit of human resource
needs to analyse different types of factors in order to increase firm's productivity as well as
profit. Herein, HR manager of TESCO always able to recruit skilled employees in order to grab
further opportunities to reach profitable goals of business.
Sales department:
According to sales department, TESCO is able to have different types of goods and
services in order provide fine services to their consumers to achieve successful goals. On the
other side main aim of respective firm within this department is to offer products to consumers
on time so that they are able willingly to pay for particular product. Along with there are some
another factor in which TESCO is required to have good relations with other units of functions in
firm so that they can make better skills of marketing with sales department and have ample
number of opportunities in future.
Marketing department:
In order to make business successful marketing considered as one of the main important
department for any kind of business firm that helps businesses to target particular customers for
specific products. In regards with TESCO, they always follow hierarchical structure by which
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they can manage overall issues of firms and deals with so many difficult situations while they
produce large number of goods and services at marketplace. Therefore, marketing department
always fulfil overall demand of their customers and increase firm's value into competitive
scenario.
Organisational structure: This is very important for firms to adopt large number of
organisational structure in order to have effective ways of improving overall efficiency. In
regards with TESCO, this flat structure of organisation is applied by manager of this firm in
order to make appropriate decisions towards future. With the help of following appropriate
organisational structure they are able to manage their entire entire work at workplace (Kurnia,
Karnali and Rahim, 2015).
From the above information it can be said that several business industries and firms
should use different types of marketing functional unit along with they should have clear mission
and vision in order to achieve future based goals in a short period of time (Koh, Fichman and
Kraut, 2012). Thus, it is essential for firm to follow appropriate organisational structure to gain
successful growth of their business. On the other side disadvantages of these interrelationship
states that if marketing department of firm will not able to communicate with other functional
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unit than they will not able to target those customers that makes them productive. Thus, impact
of these assorted functional unit can be good or bad so that they are needed to follow latest
technologies to achieve business goals.
PART 2
Within the current period of time, there are lots of firms who are making and producing
different kind of goods and services in order to achieve competitive advantages. On the other
side, assorted firms face different types of environmental factors such as negative and positive
that can have direct and indirect impact on those firm while they run their business effectively.
There are different types of factors within business, those are as following under:
Dealing organisation within the business environment there are large number of factors
that all are needed to face to grab huge opportunities in future. Along with by having assorted
factors firms can get have positive or negative impact on their business so that they can easily
achieve their future goals in a perfect manner (Rainer and et. al., 2013). In regards with TESCO
as well as Crown Prosecution services, this can be said that if both firms will follow country's
rules and laws they can get best outcomes. Herein, PESTLE analysis refers to the tool that have
both negative or positive impact on firms, that are:
PESTLE Analysis
Political factors: These factor includes labour laws, political stability, political situations,
employment laws and many more factors that have directly impact on firm's functions and
activities at workplace. Herein, both TESCO and CPS are facing few issues while
implementation on new rules and laws but on the same side, both are able to gain some profits as
they can understand their current situation of people in UK.
Positive: Political stability of UK always considered as one of the best strength that
provide so many laws and rules to firms so that they can run their business effectively. Thus,
firms can get positive impact towards their functions or activities (Zeng, Li and Duan, 2012).
Negative: It comes under the trade regulations as well as tariff increment because of
Brexit that have direct impact on firm's sales and output.
Economical Factors: These factors comes under the GDP rate of country, exchange
rates, disposable income of consumers thus, all they have direct impact on all over activities of
firms. But by considering all these things they can get better results in a perfect way.
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Positive: Exchange rates stability always provided by this element to firms so that they
can run their business successfully along with able to gain desired results.
Negative: Due to inflation rate firms can have direct impact on their overall targeted
goals so that it also affect all over objectives of them. Thus, it has negative impact on entire
process of their services as they produced.
Social Factors: These sorts of factors have direct impact on all over functions of an
organisation by having so many changes among taste and preference of people. Therefore, firms
are needed to focus on entire needs and demand of people so that they can easily implements on
those factors by which they can make organisation better (Weybrecht, 2017).
Positive: Through identifying overall conditions of market place, it has become possible
for TESCO and CPS that, they are able to know accurate needs and demand of consumers and
able to influence others. Thus, they can give better services in an appropriate manner.
Negative: Sometimes demand of consumers has been rapidly grow, thus, it can be
negative impact on firms so that they are not able to influence people and not able to satisfy
consumer's at high level.
Technological Factors: Within the advancement of technologies always bring huge
changes within the working ways of establishing different types of product and services into the
environment. In the case of both firms it is necessary for them to have better technologies in
order to achieve target based goals.
Positive: In order to develop best techniques at work place always influence people and
increase firm's value positively. With the help of this they can attain desired objectives in an
appropriate manner.
Negative: For developing different types of technological skills both firm TESCO and
CPS need to take some risk factors that can be affect entire functions of them. Thus, this factor
could influence them negatively.
Legal Factors: This factor considered as special law which consist different types of
rules and regulations that have been implemented by a country as well as government that
influence firm in both positive or negative way.
Positive: In regards with firms TESCO and CPS have positive impact by implementation
of different types of rules and laws in order to achieve successful growth. Along with this, they
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are able to follow government interventions properly then they can cope up with several issues in
a perfect way.
Negative: Sometimes, it can be difficult for firms in order to follow appropriate rules and
laws which is given by government. Therefore, within the sustainable or eco friendly
environment law should be overcome (Theron and Terblanche, 2010).
Environmental Factors: These factors refers to those element which are exist in the
surrounding of firms. In reference with both TESCO and CPS, this can be said that if both are
considering on these assorted factor than they are able to manage firm's conditions.
Positive: Herein, both firms are able to deal with different types of environmental factors
so that they can sustain their goods and services in a proper way. Further it will helps them to
protecting people and increase their confidence towards them.
Negative: If firm is not able to fulfil all over demand of people than it can give negative
results at workplace.
SWOT
Strength Weakness
 TESCO, is one of the most famous
firm which always deals with large
number of groceries products and
merchandise within the UK.
Therefore, they have huge sales and
revenue as compare to other
supermarkets.
 This organisation perform effectively
by developing large number of goods
and services in order to satisfy
demand and needs of people in an
appropriate way. As this firm operates
its business globally so that they have
good strength.
 In the year of 2012 Tesco successfully
exist in Japanese market, but it was
not much proper place for them to
sustain long term. So it directly
influenced their sales of goods and
services in to the UK.
 According to huge cost and pricing
strategies they have large number of
fund but at the same time they are not
able to invest not much and create
negativity at workplace.
 As Tesco have low pricing method so
that there are some issues which is
faced by them.
Opportunities Threats
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 Tesco has newly set up Jacks stores
with huge discount offers. On the
basis of this they have opportunities
to grab successful growth of their
business by which they can sustain at
marketplace for long period of time.
 Tesco has more opportunities as they
can make new partners of their
business and able to grab future goals.
It will help them to offer more better
services to customers.
 Due to the sudden changes at
marketplace TESCO is able to
formulates their business set up
within Turkey and South Korea in
order to achieve more and more
profit.
 Brexit is considerable as the wide
issue within the business as it directly
influence overall activities of firm.
Therefore, TESCO has been faced so
many challenges and issues globally.
 Credit situation and cost on economic
system that affect entire goods and
services to this supermarket.
Therefore, they have face few
circumstances and it also develop
negativity towards achievement of
goals.
According to the current situation, there are different types of firms so that they have
different types of goals and objectives in order to achieve business functions in order to attain
valuable goals (Trkman, 2010). In regards with TESCO, as it is one of the best supermarket that
plays significant role in the economy by developing best relationship with swot and pestle
analyses, which is going to be discussed below:
Political Economical
TESCO generally manage their managerial
activities globally. Therefore, within the UK
there are various types of people who have
different types of demand. Thus, respective
firm fulfil their needs and wants in a perfect
way. Interrelation in the strength or weakness
In order to satisfy consumer's needs and
demand it is necessary for respective firm to
have low price strategies within its goods and
services. Interrelation of strength or
weakness with external factors: Interrelation
of strength and weakness with economical
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with external factors: Both strength and
weakness are interlinked with political factor
as it identifies entire value of supermarket
chain of Tesco. As firm always have
governmental rules and laws for effective goals
in future.
factor always affect their working environment
in a positive way.
Social Technological
According to social factor TESCO increases
large number of good and services to satisfy
consumer's needs and wants within the UK.
Interrelation in the strength or weakness
with external factors: Interconnection of both
functions always improve working condition of
firm by which they can get good output.
This is considered as most important part of
every firm. As it is essential for firms to have
new technologies in order to grab opportunities
in future.
Interrelation in the strength or weakness
with external factors: In context of TESCO,
interrelation of both factor shows that macro
environment influence several firm within UK.
Therefore, they should update techniques on
time (Spieth and Schneider, 2016.
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Porter five forces model
Porter Five Forces Analysis was originated by Michael E. Porter, where it is a strategic
management tool that aid a business company in analysing industry's attractiveness and also it
helps in understanding different levers that may lead an organisation in enhancing the profit
margins and competitive advantages within an industry. If it is talked about TESCO Plc, then it
is dealing within retail industry of the whole world. In order to develop an effective strategy it
will be required by TESCO Plc's management considered Porter Five Forces model, which
consists of different forces and all of these are presented underneath:
Threat of substitute: It has been analysed that existing small stores along with the other
new stores can make inconvenience for TESCO Plc is they may satisfy the requests of clients. Be
that as it may, here the risk for TESCO Plc is exceptionally low as they have made their
particular brand image much more huge in nature.
Threat of competitors: This is one of the crucial factor where Retail industry is having
high competition within the market of United Kingdom. Other retail giants that are coming under
big 4 supermarkets like Morrison's, Sainsbury's along with the ASDA has created high
competition for TESCO Plc, through offering customers with high number of products and
services.
Bargaining power of buyers: Within retail industry of United Kingdom and of other
nations, because of accessibility of different substitutes along with the other retail locations the
bargaining intensity of clients is really very high in nature. On the other hand, it is said that
TESCO Plc is required to keep the value low and sensible concerning and grabbing the
significant piece of market.
Bargaining power of suppliers: In present context, TESCO Plc is dealing within retail
industry where high rivalry among companies reduced the bargaining power of suppliers. It is
said that in order to increase this, it will be required by suppliers to improvise relations with big
four supermarkets like TESCO Plc. Then only it is said that, suppliers would lead TESCO Plc to
sustain within the market for a longer period of time.
Threat of entry: Another crucial force, which impacts retail industry, however TESCO
Plc need not to stress as to reach up to their needs in relation to invest additional amounts of
energy. The reason that came in front was that, this organisation is already having a good image
within the market and comes under big four supermarkets (Sako, 2012).
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Henceforth, these above mentioned forces mostly impacts upon TESCO Plc's business
strategies along with the plans as well. It will be required by this business organisation to grab a
good position within the market for a longer period of time. This can effectively be done through
analysing and taking right decisions based on the different situations like uncertain business
environment.
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CONCLUSION
On the basis of above respective report it has been analysed that, business and the
business environment refers to the internal and external factors that help firms to achieve
targeted goals and objectives in an appropriate way. By having impact on several functions and
activities of business firms are able to produce large number of services and goods in order to
achieve successful goals and objectives. On the other side there is porter's 5 strategy model used
by firm in order to analyse different types of factors that helps business to achieve targeted goals
and objectives in a successful way. There are PESTLE and SWOT analysis has been covered that
describes the chain of goods and services within TESCO. By conducting such kind of key
elements they are able to understand needs and wants of people so that they can make better
welfare society.
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REFERENCES
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