Understanding the Business Environment - Assignment
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Added on 2020-12-09
Understanding the Business Environment - Assignment
Added on 2020-12-09
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BUSINESS AND BUSINESSENVIRONMENT
Table of ContentsINTRODUCTION...........................................................................................................................1ACTIVITY 1....................................................................................................................................1Three different types of companies........................................................................................1Organizations background, size, scope and objectives..........................................................2Interrelationships between the functions of TESCO............................................................12ACTIVITY 2..................................................................................................................................13PESTLE Analysis.................................................................................................................13Internal and external analysis...............................................................................................15SWOT Analysis ...................................................................................................................16Strength.................................................................................................................................16Weaknesses...........................................................................................................................16Opportunities........................................................................................................................16Threats..................................................................................................................................17CONCLUSION .............................................................................................................................17REFERENCES .............................................................................................................................18
INTRODUCTIONBusiness environment is an inherent part of efficient and effective management of thecompany. It is the set of institutional conditions, economic, political and legal that isuncontrollable and impact on firm functions and activities effectively (Kolk, 2016). Internal andexternal two types of factors affect organization business environment and influence upon theirproductivity and profitability. The present study will discuss about three different types of companies including theirbackground, facilities, size, purpose and scope of the firm. It will also explain about their vision,mission, objective of business, legal structure and more about its stakeholders. Moreover, thisreport will justify about their various functions and activities of business and also theirrelationship with organizational objectives and structure. Furthermore, this study clarifiesexternal environment impact on business by using PESTEL. Through SWOT analysis this studyidentifies the strengths and weakness of the organization. ACTIVITY 1Three different types of companiesPublic organizationPublic sector is usually governed or owned by the governments and publicly controlled orfunded by agencies, organizations and other institutes that deliver public programs, services andgoods for example, London and continental railways. Public Limited organizations-Public limited firm is a corporation whose possession is spread among general public inmany shares of stock which are escaped traded on exchange stock or in over counter markets.McDonald' is the best example of public limited company. Private companies-Private organizations are the part of countries economy system that run their businessindividually rather than through government. The purpose of this sector is to make money orprofit by supply good quality products or services to customers (Kuipers and et.al., 2014). Theirintention is making profit that build its reputation in market better than its competitors. Thissector includes many companies who run business for increasing profitability and productivityfor example, TESCO. All these things are not operated or owned by the government. Voluntary organizations-1
Voluntary sector refers to the companies who run their business through charities,organize health and social care events etc. for example Save the children is one of the voluntaryorganization that primary focus on creating health environment and provide better treatment topeople for better life style. They perform their role and functions in many places for theirmembers through the network of much health care institutions. They provide social care serviceto poor, neglected, needy and old aged peoples. Voluntary union is a union of individuals whoenter on the bases of agreement usually as volunteers to form an organization that need toaccomplish their purpose. Organizations background, size, scope and objectivesTESCO (Private organization)-TESCO is a British multinational grocery and general merchandise retailer companyhaving headquarter in Welwyn Garden City, England. They have diversified into areas such asclothing, retailing of books, electronic, toys, furniture, petrol, internet and telecoms services.TESCO superstore, extra, express, metro etc. has been included in the portfolio of company.They provide online groceries and banking services to the customers which make them happyand satisfied. Company believe in producing nutritious and healthy food within reducing fat,sugar and salt. Size and scope of TESCOTESCO have Gregory shops in seven countries across Europe and Asia where they have28.04 % market share. They expand their business at global level with operating 11 othercountries in the world. Company give their best service and products in low cost to attract people2
or social group more than the others. In UK firm operates home shopping facility through theirown websites that is very beneficial for their business. By entering into local partners and jointventures they expand their business internationally which is one of their best strategy. Thus, to run the entire business functions and activities smoothly they need effectiveworkforce who help them through their performances. In the company number of employees(476,000+) are working with them and support TESCO for increasing profits. It is private limitedenterprise that run its business liability and privately including members of their organization.Their mission is to achieve target market and goals of business by applying many techniques andtactics. The main aim is to provide better electronic, clothing and groceries products to thecustomers. To become leading retailer in supermarket and give good quality goods at low cost isone of their business objectives. Through expanding business they garb the best opportunitiesand expand their services across the world. Organizational and legal structureTESCO follows hierarchical organizational structure, in which obligation and positionsare divided into many parts to assure that work will be accomplish smoothly and efficiently. Atthe top business pyramid have many authorities and responsibilities (Van der Voet, 2014). In theorganization 10 members are consists as board of directors that take place on board duringfinancial year. Their organizational structure reflect level of many stores which operates by manyindividuals such as managers. All stores have operated by managers how give their performancefor increasing profits and business growth. Regional, store, food and non-food trading managermanage the whole functions and activities of their store effectively. 3
TESCO is a private company and run their business separately with legal identity. Theirlegal structure is based on private limited organization which are owned by many shareholders.By following the rules and regulations of government organization run business effectivelywithout any barrier in trading process. 4Illustration 1: TESCO Organizational Structure(Source: TESCO organizational structure, 2018)
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