Business Environment Assignment- BBC

BUSINESS AND BUSINESS
ENVIRONMENT

INTRODUCTION
Business environment is the sum or total of all activities related to external and internal
factors that affects a business. The forces that build business environment are suppliers,
competitors and media with government are important to build environment and affect to it even
external factors are out of control. This report is based on TESCO which is a British
multinational grocery and general merchandise retailer in the whole world and its headquarter is
in England , UK. It is third largest retailer in the world in context of gross revenue and ninth
retailer in the whole world. This report is based on different kinds of organisations in which
public, private and voluntary with their legal structures, size and scope to enhance understanding.
In public sector organisation in which BBC and in voluntary organisation is Wellcome trust that
are playing crucial role in economy. It also includes interrelationship in various functions of an
organisation and their link with organisational structure. Further it elaborates about macro
environment that affect organisation with its positive and negative effects on organisational
proceedings and internal analysis of an organisation and their interrelation. For an organisation
internal and external environment are very much important to remain always competitive by
finding out major spheres in which improvement is very much crucial. All these organisations
contributes in growth and enhancement of an economy.
TASK 1
P1 Elaborate various kinds and purposes of organisations and their legal structure.
In a business environment there are various kinds of organisations that builds product and
services after evaluating needs and wants of consumers in proper way and contributes in
economic development (Al-Saleh and Mahroum, 2015). For that report the chosen organisation
of private sector is TESCO, for public organisation BBC and for voluntary organisation
Wellcome trust that all contributes in economic development. In different types of organisation
consist of Private, Public and Voluntary organisation here are the description of these
organisations and various factors:
Types of business:
There are majorly two kinds of businesses like public and private business organisations,
where some of them works to earn profit margins and some other's works to improve the living
standardisation as well.

Profit:
Profit businesses are those enterprises that builds product and services by satisfying needs
and wants as per the need of consumers to maximise profit. It also contributes in economic
development and growth.
Non-profit business:
Non-profit businesses are those that establish in market with the purpose of public
welfare and their main goal is not to earn profit but to build advance products and services as per
the need of consumers (Deasy and et. al., 2016).
Private organisation:
Private sector is a part of economy that run or operated by individuals and their main
motive is to earn profit and state does not control their works and activities (Azma and
Mostafapour, 2012). Hence it included all profit oriented organisations that are not owned and
operated by government. In that report chosen organisation for private sector is TESCO which is
a British multinational grocery and general merchandise retailer, headquarter is in England, UK
and it is a third largest retailer in the whole world in context of revenue. Its main objective is to
build products and services as per the needs and wants of consumer by earn profit. Every
organisation operates in economy with an definite objective and follow a legal structure that
helps to gain organisational goals and objectives.
Purpose:
The main objective of TESCO is to enhance living standard of people by giving
enchanted experiences to consumer base to giving values by ensuring consumer satisfaction
(Storey, 2016). It helps to give delighted experience and it ultimately proved beneficial for
organisation to enlarge business opportunities.
Legal structure:
Legal structure is an important attribute for an organisation and for private organisations
there are different kinds of legal structure that are as follows:
 Sole trader: Sole trader is one person organisation, found in trades in which only small
amount of money or finance required to set that kind of businesses. John Lewis could be
considered as a good example of Sole Trader.
 Partnership: To overcome from concerns of sole traders, a partnership firm should be
formed that is an association of individuals and have 2 to 20 partners (Cepel and et. Al.,

2018). Marks and Spencer at initial level started working as a partnership firm where the
two business partners named as Michael Marks and Thomas Spencer has shared profit
rations based on the agreement.
 Private limited company: That is a kind of joint stock company which has separate legal
identity from their owners and they are small, family runs businesses that owned and
operated by shareholders. In case of TESCO that operated under private limited company
that possess their own identity in marketplace to remain always in marketplace.
Public organisation:
Public sector is an important part of countries economy that effectively or efficiently
controlled by government and main motive is to serve people in better way. For that report
public sector organisation that is BBC (British Broadcasting corporation) which is a British
public service broadcaster. It headquarter situated in London and one of the oldest national
broadcasting organisation and largest broadcaster in terms of no. of employees.
Purpose:
The main purpose is to ensure by conducting research and development activities to fulfil
mission and promotion of the public purposes and to maintain significance in the whole market.
Legal structure:
To reach at desirable goals and objectives, there are some prescribed form of government
that are as follows:
 State government: State government is a kind of government of a country which
subdivision of federal form of government that shares political power with national
government (Deasy and et.al , 2016). For an example, BBC comes under the control of
state government that control each and every activity under state level.
 Central government: Central government that are accountable for accomplishing
important decisions related to operations of an organisation. Department for Business,
Energy & Industrial Strategy is being considered as a good example of central
government agency.
 Local government: Local government are accountable for handling and managing all
works and activities related to local authorities by applying various rules and regulations
to get assistance from government. Highways England could be considered as a particular
agency which is dealing and developing highways within the England.

Voluntary organisation:
Voluntary group or union is a group of individuals that work under a agreement as an
volunteer to accomplish some purpose or objectives (Grover and Kohli, 2013). The common
example of volunteer are trade associations, trade unions and learned societies and many more.
For that report voluntary organisation that is Wellcome trust which is a biomedical research
charity located in London UK. It established in 1936 to improve the health of both human and
animals in better way.
Purpose:
The main purpose of that trust is to provide extraordinary achievements in health by
finding or supporting the brightest minds. It also conducts biomedical research that supports the
understanding of public in science.
Legal structure:
There are a legal structure that follow by a voluntary organisation that are as follows:
 Trust: In trust consist of three parties in which donors, trustees and beneficiary that are
accountable for welfare of profit and not to earn profit. Trust is a generally a set up to
manage and coordinate money and property to attain specific role and purpose in better
way. They establish a formal relationship in the three parties that are donors, trustees and
beneficiaries that helps to set up all legal obligations in proper manner. National trust
could be considered as a good example here as a trust, which is dealing within England.
To lead in the market organisation, have to spend in current market by enlarge business
opportunities in better way. In context of TESCO primarily they operate at regional level but as
time passes it enlarge business opportunities with the help of various entry strategies and become
global brand name in the market (Hallward-Driemeier and Pritchett, 2015.). It presently work as
a global leader by acquisition other firms and products in better way. Acquisition and merger are
the transactions in which ownership of companies and other business organisation by
consolidating or transferred with other entities in positive manner. In context of TESCO which is
primarily a small business after analysing the current needs and wants of consumers they become
large enterprise and lead in market.
Difference among Private and
Public Limited:

Private Limited: These are the business organisations that basically performs operations
in order to gain profits.
Public Limited: These companies basically does work to improve the standardisation of
public that are related to economy, transportation and so on.
P2 Size and scope of a range of different types of organisations.
There are various kinds of organisations exist in economy such as public, private and
voluntary to provide good and services to consumer. The main aim of these organisation is to
earn maximum profits and revenues. They have different goals and objectives for achievement of
results. The size and scope of these organisation are as follows:
TESCO
It is private organisation which is multinational retail sector providing various goods and
service to consumers. This is providing its good globally in order to fulfils need and demand of
people. The products of TESCO includes hypermarket, convenience shop, superstore and
supermarket. It has many subsidiaries such as TESCO bank, TESCO Ireland, TESCO mobile and
others.
 Vision and mission: The vision statement of TESCO is divided into five elements such
as: needed and wanted around world, having modern and innovative ideas, growing
business with opportunities, winners apply skills globally and inspiring and earning
loyalty and trust from communities, customers and colleagues. Mission of to make what
matters them better together (Trevino and Nelson, 2016.).
 Objectives: The main objective of TESCO is to provide high quality products and
services which are affordable and cheap to people in order to increase maximize sales and
grow and maintain their goodwill and value in market.
 Size and scope: The size and scope of TESCO is large as it serves in different parts of
world such as United Kingdom, Thailand, Hungary, Ireland, Malaysia, India and Czech
Republic and others. There are more than 450,000 number of employees working in
respective organisation and providing services in various locations. The scope is to
increase market share and growth in competitive market so that goal and objectives can
be achieved.
 Product and services: There are various product and services which are offered by
TESCO for their consumers. The products includes food, clothing, mobile,

entertainment, books and others. Similarly, services provided to consumers are banking,
financial services, telecoms, internet service (Huang and et.al ., 2013).
 Organisational structure: TESCO is multinational British general and grocery
merchandise organisation which has headquarter is England. The organisational structure
of TESCO is hierarchical where obligation, positions and structure are divided into
various parts where they should ensure work is done smoothly and efficiently (TESCO
COMPANY ORGANISATIONAL STRUCTURE CHART EXAMPLE, 2016). The high
level authority has more responsibilities in business.
(Source: Organisational Structure of TESCO, 2016)
 Stakeholders: There are various stakeholder of TESCO which helps in achieving goals
and objectives of business. This includes both internal and external stakeholder. The
internal can be employees, experts, shareholders and external can be customers,
suppliers, government, community (Ghezzi, 2013.). The internal provide good and
service to consumers in effective manner and external purchase those products for
increasing profits and revenues.
British Boardcasting (BBC)
It is an organisation which was founded in 1922 at United Kingdom. It is public service
broadcaster which provide services related with radio, television and online and products like
broadcasting, web portals. This is regarded as world's oldest national broadcasting firm. There
are more than 20,000 employees working to provide services to their consumers in effective and
efficient manner.
 Vision and mission: The vision statement of BBC is to become most creative and
innovative organisation in world. The mission is to enhance and enrich live of people
with various services and programmes in order to educate, entertain and inform them.
Illustration 1: Organisational Structure of TESCO, 2016

 Objectives: The objectives of BBC is divided into four elements. The first is to provide
quality and distinctiveness, second is serving all audiences in proper manner, third is
value for money and fourth is to be openness and transparent in providing of services.
Therefore, it helps in engaging staff with strategy and building new partnership with
others.
 Size and scope: This is oldest broadcasting firm in world which has largest large
number of employees. It has employed 20,950 staff where 16,672 are in public sector
broadcasting. It has also flexible, part time and fixed contracts. It is serving products and
services worldwide. There are more than 20,000 employees working for business to
provide services.
 Product and services: There are different products and services which are deal by BBC
for their consumers. The products are related with broadcasting, radio, web portals for
their consumers (Schrader, Freimann and Seuring, 2012.). Similarly, services can be
related with television, online and radio for convenience of people. It focus on providing
high quality of good and services to individual in effective and efficient manner.
 Organisational structure: This is old public broadcasting service in world with number
of employees. This was founded under Royal Charter where agreement is formed with
Secretary of State for culture, media and sports and including functions. The
organisational structure of BBC is line which follows direction from one authority for
effective results (BBC Hierarchy, 2019). This is governed by Trust which form executive
board, team and management broad.

(Source: Organisational Structure of BBC, 2019)
 Stakeholders: There are various stakeholders of BBC which includes suppliers,
investors, management, owners, government, neighbours, employees, customers, media,
regulatory bodies and others. They work together for to provide and take services of
respective organisation.
Wellcome Trust
It is voluntary organisation which was founded in 1936 at United Kingdom. This is
biomedical trust which focus on improving animal and human health. It mainly provide
extraordinary improvements in health through funding to biomedical. Wellcome trust provide
services to UK and its overseas countries.
 Vision and mission: The vision of Wellcome Trust is to promote research excellence in
order to meet international health challenges through supporting research institutions and
researchers at low as well as middle countries by equitable partnerships and
collaborations (Mihalič, Žabkar and Cvelbar, 2012.). The mission statement of
Wellcome Trust is based on four points. First is to focus on providing high quality
research, second is partnership with institutions from low to middle income countries,
third is supporting and mentoring researcher and students and last is to do promotion and
advocacy of health.
Illustration 2: Organisational Structure of BBC,
2019

 Objectives: The objectives of respective organisation is to invest £5 billion in next five
years for improving health service in order to launches strategic framework which focus
on advancing ideas into research and science.
 Size and scope : Wellcome Trust has not more than 2100 employees for providing
services. This is largest service providers in world which mainly focus on health
improvement of people in better and effective manner. It has endowment of £25.9 billion
and disbursements of £11 billion. It has scope to increase their services in various parts of
world so that goal and objectives can be achieved and none of people suffer health
problems.
 Product and services : The products and service of Wellcome Trust are medicines,
providing treatment and helps. This also focus on people to provide them with quality
and hygiene treatment.
 Organisational structure: The organisational structure followed by this trust is
divisional as there are number of people who work together for achievement of goals and
objectives in effective and efficient manner (Tregear, 2015.). According to division
reporting is categorised where head is trustee and their subordinate’s manager business.
 Stakeholders: The stakeholder of trust are trustee, executive, committee members and
others.
TASK 2
P3 Relationship between different organisational functions.
TESCO
Vision:
The main vision of TESCO is to build products as per the consumer needs and
preferences to give delighted experience to their consumers.
Mission:
TESCO main mission is to “We make what matters better, together”.
Objectives:
The core objective of TESCO is to identify the core needs of consumers and build
products accordingly to give loyalty to consumers.
BBC

Vision:
The vision and mission of BBC is to enrich the lives of people. The main vision of
organisation is to provide entertainment, information and educate to people in better way.
objectives:
The main objectives is to gain large market share by satisfying needs and wants in better
way.
Business functions of Tesco:
Human resource: This is being considered as one of a crucial function for Tesco and its
advantage is that, it helps company in enlisting employees with great skills and more. On the
other hand, its disadvantage is that company basically reduces the limits of existing staff through
recruiting new individuals.
Operational function: It's main advantage is that, company easily runs its business in a
much more smooth manner. On the other hand, if it is talked about the disadvantage, Tesco
might require to invest a good money in order to sustain within the market. This will directly
impact negatively upon overall profit margins of the company.
Wellcome Trust
Vision and Mission:
The main vision and mission of Wellcome trust is to give best treatment to provide better
treatment to human being and animals so that they remain always healthy.
Objectives:
The main objective of that organisation is to give best treatment to animals and human
being by evaluating their disease.
In an organisation all departments closely associated with each other and plays very
important role in organisational development and enhancement in proper way (Heaton, Linden
and Teece, 2014). In context of TESCO in which all departments are closely related with each
other.
Relationship in different departments:
 Marketing with finance department: Marketing department are very much crucial for
organisation that are responsible for various works and activities to reach at large no. of
consumer base by advertising, promotions and for that huge finance required. In case of
TESCO they acquire proper knowledge and information about finance in proper way so

that various activities should be coordinated (Paul, Yeates and Cadle, 2014.). On other
hand marketing department collect about consumers demand and give information
regarding future sales so that finance department can collect proper money. In context of
TESCO they coordinate each and every activity by communicating with various
departments in organisation. On other hand in BBC and Wellcome trust all departments
also related and connected to each other they share all necessary knowledge and
information to each other to accomplish their goals and objectives in better way.
 Human resource with sales department: Human resource department are very much
crucial for an organisation. In context of TESCO sales department providing and
distributing products and services in proper way by evaluating demand and supply forces
so that balance should be maintained in proper way (Segatto, Inês Dallavalle de Pádua
and Pinheiro Martinelli, 2013. ). On other hand when in sales department skilled labour
force required in that case TESCO HR department select best candidates by evaluating
various factors. On other hand in BBC and Wellcome trust are also share role and
responsibilities with other departments in better way. Sales department give necessary
knowledge and information to human resource department to select best and competitive
staff members so that they can achieve goals and objectives in better way.
In that way all organisational departments are interrelated with each other and comply in positive
manner when changes occurs in organisational structure and their works and procedures. So it is
very important to communicate with departments so that desirable outcomes should be achieved.
Organisational structure:
Tesco is a British multinational grocery and general merchandise seller of products and
services. Tesco follows the hierarchical organisational structure in which positions and
obligations are divided in many parts to work with efficiency and effectively. On other hand
organisational structure of BBC is a public Service broadcaster and established under a Royal
charter in which agreement is made with secretary of state for culture (.Lee and et. al., 2015).
The organisational structure of Wellcome trust which follows the departmental organisational
structure that divides authority and power in well manner.
Tall and flat charts:
Tall organisational structure follows by large, complex organisations that is a long chain
of command like the military.

In Flat organisational structure have fewer management levels and each have their own
controlling a broad group.
Matrix structures:
A matrix organisational structure is a structure of an organisation that established as an
grid or matrix rather than in traditional structure. In context of Tesco they follow a strict
hierarchical structure in which everyone share their roles and responsibilities in positive manner.
TASK 3
P4: Positive and negative impacts of macro environment
Political factor:
In political factors consist of rules and regulations, policies of trade with tax regimes that
affect performance of an organisation in affirmative and negative manner (Vahlne and Johanson,
2013.). In political factors that hinders self-interest of TESCO that are Brexit in which they
effect on their profitability. For an example, when TESCO operates in market of UK Brexit
impact on their profitability and bring new changes in their rules and regulations. While
operating in different countries organisation have to changes in their works and procedures that
impact on their self-interest. So, all these factors plays very important role in organisation
decisions making in both positive and negatively on their works and procedures.
Impact on Tesco
 Positive: Due to changes in boundaries in which organisation operates with increasing
vulnerabilities in the whole world that hinders self-interest of TESCO in market of
United states and State of European union, so they lead in market to enhance market
share in positive way. Another positive attribute that while deal in different nations
organisation can be able to build products and services as per the need of consumers and
enlarge business opportunities in positive way.
 Negative: In case of TESCO Britishers cast vote for European countries that builds a
relationship in market of UK and Germany that are not good symbol for TESCO to
operate in market. Sometimes when entering into foreign market organisation face so
much burden of political instability as it face some hurdles while expand in market. On
other hand while competing in fierce competitive world when tax regimes get very heavy
for an organisation them it is very much hazardous for them to compete in the changing

environment and beat successfully. Along with this, many of staff members were in deep
trouble as they belongs to European Nation. Brexit filled them with the fear of loosing
their jobs and resigned from the jobs.
Impact on BBC
 Positive Effect: Government of UK introduce many marketing and sales policy which
gradually increase business of BBC. They even provide efficient resource and support to
BBC.
 Negative Effect: Factors which has negative impact on BBC are Political instability,
initiating new policies by new government. Policies by local government is also a
challenge to BBC. Here, developed policy related to the health conditions of staff, would
required to be managed by BBC as well.
All these factors in which effect of Brexit, change in government policies and changes in
rules and regulations also affect to works and procedures of Tesco and BBC in both positive and
negative manner. As after implication of Brexit that they have to change in their internal works
and procedures and also have to give training and development to their employees that raise the
cost of operations (Sodeyfi, 2016).
Social factors:
In social factors consist of changes in taste and preferences of consumers that come due
to demographic, culture and values of people ( Rashid and et. al., 2013). A good example over
here is that within the social factor that consist of population and taste and preferences of
consumers, lifestyle and culture of people in which they are dealing in an organisation. All these
factors are very much important, and organisation have to evaluate various factors before launch
a new product into marketplace.
Impact on Tesco
 Positive: It is a large supermarket chain and possess large product portfolio, so they are
able to mould products and services as consumer want. In context of Tesco which is a
large business organisation, have large product portfolio, possess research and
development team that helps in bring frequent changes in their products as well as
services. The positive aspect of that theory or practices that while producing products and
services as per the need and wants of consumers organisation can be able to give

delighted experience to consumer base in positive manner (Schaltegger, Lüdeke-Freund
and Hansen, 2012).
 Negative: The negative aspect that consumers are now too much purchase products from
online that decrease the sales and change taste of consumers. For an example while
expanding in foreign market they are sometimes face problem of cultural diversity that
hinders self-interest of Tesco. The adverse impact that when consumer become more
demanding it creates problem before organisation to build products and services as per
the need and want of consumers in positive way.
Impact on BBC
 Positive effect: UK has high education level and people there have a positive attitude and
beliefs towards media. People in UK accepts marketing and sales strategies introduced by
BBC.
 Negative effect: In UK viewpoint of people about health and safety is very concerned.
BBC has to take this into consideration while taking any business decisions.
Economic factors:
Economic factors related with policies, inflation rate and tax regimes and many more that
affect on business operations (Ismaeel and Blaim, 2012.). That factors directly affect on
purchasing power of consumers. IN economic factors consist of interest rate, inflation, taxation
and economic growth are major deliverables in sector of economy. In context of TESCO while
deal in various nations in which all have different rules and regulations. It impacts on their
profitability level such as after implication of Brexit interest rates rises in rapid manner and
hinders self-interest of an organisation.
Impact on Tesco
 Positive: As TESCO operates in UK with the effect of Brexit the inflation rate rises
rapidly and rate of local currency decreases. That give a opportunity to TESCO to
enhance their market share. The most positive factor is while expanding in foreign market
that they are always sell their products and services at affordable price. While deal in
various nations organisation have to adjust their works and activities as per the rules and
regulations of various nations that helps to bring stability in their works and activities in
positive manner.

 Negative: With the rise in prices organisation have to control on their prices by reducing
expenditure on research and development. In terms of Tesco, when they expand in
foreign market laws and regulations effect on their growth and enhancement in negative
manner. Economic factors are very much important to lead in market but while deal in
various nations organisation have to pay more interest and taxations that hinders their self
interest in negative manner.
Impact on BBC
 Positive Effect: Liberation helps BBC to expand business in new regions. UK has best
economic performance and this has positive effect on BBC.
 Negative effect: After recession BBC has started investing high in marketing, sales and
growth of business is also slow comparatively. Less sales and more expenditure has
affected profitability of BBC.
Technological factors:
Technological factors consist of adaptation of advance tools and techniques to give best
products and services to consumers (Voegtlin, Patzer and Scherer, 2012.). In technological
factors that affect on business of TESCO that are invention, invention of new things and
attributes, 5G technology and e commerce are very much important to organisation to remain
always in leading position in market. In context of TESCO to lead in market they adapt new
technology that helps in giving advance products and services to consumers.
Impact on Tesco
 Positive : With the advent of technological advancement organisation can be able to
provide best products and services to consumers. In Tesco, they are able to adopt any
kind of techniques that are required to become enough competitive in market.
Technological advancement give best lifestyle to people by accessing their needs and
wants of consumers in positive way. Through this Tesco can build products as well as
services as per the needs and wants of consolidating their demands in proper way.
 Negative: Advancement of technology increase the cost of training and development and
also takes so much time (Liu, 2013.). in context of Tesco, while adopting advance tools
and techniques that affect on their cost of operations and affect negatively on
organisational development and enhancement. In that case they select skilled labour force
that does not require extra efforts to understand working of machinery. While operate

with advance technology it takes time and money to operate in systematic manner and
also give proper teaching to staff members (Liu, 2013).
Impact on BBC
 Positive effect: Introducing new technologies helps BBC providing better customer
service. Phone technology has become a strong factor to increase business of BBC.
 Negative effect: BBC has to bring new and innovating technology to reduce cost of
production and meet costumers demand. Technology up gradation is still an issue of
BBC.
Legal factors:
In legal factors consist of rules and regulations that imposed by government that helps in
decision making (Lee and et. al., 2015).
Impact on Tesco
 Positive: Due to increase role of legislations that forces them to display nutritional
elements in edible products that proved helpful for health conscious consumers and
enhance market base. Legal factors works in positive manner because when Tesco adopt
them, rules and regulations bring harmony in their organisational internal environment. It
also proved helpful to motivate people. For an examples, If Tesco follows all these legal
laws and regulations, it might impact upon organisational goals of the BBC as well as
objectives in positive manner that helps in coordinate each and every activity in
systematic manner.
 Negative: To operate in changing environment Tesco have to adopt various regulations
that are very much complex in nature. While adopting laws and regulations in
organisation have to mould in their internal structure that occurs too much cost. While
applying various laws and regulations Tesco can face many kinds of problems in which
they are not able to operate all activities simultaneously in best manner and that hinders
self-interest of them.
Impact on BBC
 Positive Factors: UK has a good employment law which reduces chance of labour
turnover in cooperate sector and this effects BBC in acquiring more number of
employees.

 Negative effect: There are too many norms made by UK government related to business,
health and safety thus, BBC struggles to meet these norms.
Environmental factors:
In that factors included ecological and environmental factors that assist to organisation
(Paul, Yeates and Cadle, 2014.). In environmental factors pollution, emission, disaster, climate
and many more factors that directly affect on organisational goals and objectives in both positive
and negative manner. Lets take an example of TESCO they adopt proper measures to give eco
friendly products and services to consumers.
Impact on Tesco
 Positive: With the rise in awareness in people, organisation have to adopt various CSR
activities and have to apply waste management that enhance loyalty of consumers. Tesco
always pay attention of societal welfare that helps to build a distinction image in market.
 Negative: While applying various regulations organisation have to apply various
measures that enhance their cost and also takes time. For an example, if Tesco does not
follow regulations of building eco-friendly products and services that affect on their
business in negative way.
Impact on BBC
 Positive effect: Government of UK provides many subsidies to public companies to
invest in renewable sector (Renewable energy collected from wind, rain, tides). BBC
concentrate more on extra on reviewable sector. They also adopt eco-friendly products
and services to their consumers so that they can deals in positive way. BBC work for
welfare of society in well manner.
 Negative effect: Weather conditions of UK eventually disturbs supply chain of BBC and
it is put into cost of production which adversely affect BBC. On other hand in context of
BBC, it takes too much cost and time to remain always updated in market scape.
TASK 4
P5. SWOT analysis for determining the strengths and weaknesses
TESCO is supermarket chain which is based out of Germany but its operating across
Europe, United Kingdom and United State of America. Products offering by respective
organisation are meat, vegetables, groceries, special buys, wines, everyday collection and so on.

For identifying their internal and external factors TESCO is conducting SWOT analysis (Vahlne
and Johanson, 2013.). It stands for Strength, weakness, opportunity and threats out of this
strength and weakness are internal factors. Whereas, opportunity and threats are external factor
which also impact on it. Explanation of these are as follows :-
Strength of TESCO are as follows -
Strength
 Low price – It is one of the reason
behind TESCO success because they
offer daily uses products on low price.
As well most essential goods sell by the
company in low price as compare to
their competitors.
 Customer satisfaction – With the
assistance of low price, lower waiting
time, faster checkout as well as better
services TESCO is retaining their
existing customers and play important
role in making them satisfied.
Weakness
 Inability to penetrate successfully in
foreign market – Organisations such
as target, Walmart and TESCO has
restricted themselves mostly just in
Europe, UK and USA market.
Although, they are lacking behind in
focusing on Asia which is most
promising emerging market such as
China and India.
 Pricing problems – TESCO has
always been known for its predatory as
well as discriminatory pricing and there
have been stories of how they have
forced suppliers for cutting down
prices. it has also been undercutting
competition because of their unethical
pricing strategies.
Opportunity
Opportunity Of TESCO are as follows -
 New Segments – Retail sector is most
booming and in this online retail is also
growing. Thus, it can enter in new
segment by offering their products and
services through online apps.
 Business Expansion – Respective
Threats
 Competition – Retail sector is highly
growing as it result in high level of
competition for TESCO and there are
several competitors such as Aldi,
Morrisons, Sainsbury's, TESCO, Asda
and so on (Huang and et. al ., 2013).
Along with this, it is facing competition

organisation have opportunity to
expand their business within emerging
nations such as China and India (Azma
and Mostafapour, 2012). This is one of
the major opportunities for organisation
which result in increasing number of
customers as well as growth of
company.
 Since, Brexit made the United
Kingdom's market open, this could be
considered as the opportunity where
company could expand its business
through working among different
possible sectors.
by online stores also such as Amazon.
 Increasing focusing on low income
group – Company is focus on low
income group people which result in
building image as low quality player
within retail sector. Such practices in
long run give negative impact on the
growth of respective organisation.
 Another issue that came in front of
TESCO because of Brexit, where staff
started resigning their jobs. This
impacted negatively upon overall
performance level of the company.
SWOT analysis of BBC
Strength Weakness
BBC is largest broadcaster in the world with
respect to its employees which is more than
23.000. It has started decades back and
maintained its level or reputation from several
years. It have gain trust from people and faith
in news items which is broadcast by BBC. BBC
is using advance technology with highly
technical web design, software design and
graphic design.
Many people have blame BBC that its news
items touch sensitive issues and raise uproar
by digging controversial issues. BBC
broadcaster biggest weakness is that it require
high operating cost while competitors can
conduct its business at much lower cost. It has
face criticism that news broadcast on BBC is
biased.
Opportunity Threat
This is majorly known as new channel and its
has opportunity to enter in to new zone such as
entertainment, technology, kids channels etc.
In this industry BBC have to biggest threat
from its competitors. New channels are
growing and other rival companies using

BBC is a very popular, so it is great opportunity
to develop joint venture strategies with other
satellite channels. It can also focus on building
new brand image and remove tag of being
biased. It can also organize events which will
help in strengthen BBC brand. Popular image
of BBC has been globally, and it will help in
gaining more revenues. BBC, may also deal
among different sectors as well, through
offering customers with needs and
requirements.
innovative and creative strategies can have
negative impact on BBC business. Lunching of
domestic channels that can capture emerging
marketing is very harmful for BBC channels.
It will have direct effect on viewership of
BBC. Newspaper is print media which is a
more traditional ways of communicating news
to public. There is less threat available for the
company and this is because BBC is a public
organisation which delivers information to
public like news and much more.
P6 Strengths and weaknesses interrelate with external macro factors.
There are close relationship in internal and external factors that affects organisational
works and procedures in both positive and negative manner that are as follows:
Political factor:
The one of major factor that is political influence on organisational works and activities
that they provide products and services at low price and bring changes in their product that give
satisfaction to consumers (Mihalič, Žabkar and Cvelbar, 2012.).. In that case while they operate
in other country, they easily get opportunities to exist in market place because they by finding
taste and preferences of consumers and give delighted experience to them.
Social factors:
It concerned with changing needs and demands of consumers the major strength of
TESCO that they deal in various product range that proved beneficial to enhance sales and profit
ratio.
Economic factors:
In economic factors that they are deals in different nations and have strong presence in
terms of finance and large no. of consumer base (Al-Saleh and Mahroum, 2015.). . So when they
operate in foreign market, they get strong market share that helps to remain always competitive.
Technological factor:

In Technological advancement consist of adaptation of electronic items in display and
check out system. That give pleasant experience to consumer base and ultimately proved
beneficial for the organisation to lead in market.
Legal factors:
While operating in different nations they have to apply various kinds of rules and
regulations. Following all rules and regulations in systematic way helps to organisation build
strong faith in front of consumer and enlarge business opportunities. So there internal and
external factors closely related with each other.
CONCLUSION
After going through the above assignment is has been concluded that business
environment is dynamic in nature which have direct as well as indirect impact on the working of
companies. Along with this, there are different type of companies such as private, public and
voluntary as well as they are different from each other in the form of size, scope, purpose,
objective etc. In addition to this, business environment is of two type micro and macro it is
important for organisation to analyse this factors time to time for identifying their impact on
working on company. Thus, micro has been analysed with the assistance of SWOT whereas,
PESTEL will be analysed macro factors.

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