Business & Business Environment Structures

Business and Business Environment

Table of Contents
Section 1 (LO1 & LO2)...................................................................................................................3
1 Different types of organisation ................................................................................................3
2 Size and scope of the organisations.........................................................................................4
3 Organisation structures and functions......................................................................................5
Section 2 (LO3 & LO4)...................................................................................................................7
PESTEL model of the sector for analysing impact of macro environment on UK retail sector.7
SWOT analysis and Porter five forces analysis for determining the influence on decision of
the supermarket...........................................................................................................................8
Impact of macro and micro environmental factors on business objectives and decision making
...................................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Business can be defined as an economic system in which goods and services are
exchanged in order to earning money or profit. Whereas, Business environment is a
structure in which business organisations performs their duties so as to achieving their preset
goals. Taken firm for this assignment is Tesco Plc., which is a multinational grocery retailer
along with headquarters in UK. Present assignment is divided in two segments in which first
one will discuss about several kind of organisational along with their purpose and difference
among large, medium, micro and small firms. In addition, complexities of multinational,
transnational, international organisation structures will also covered in this report. Apart
from that, second segment of report will includes PESTLE model for analysing macro
environmental factors of UK retail industry. Furthermore, SWOT and Porter's five force
model for identifying their impact on decision-making of supermarkets will also covered in
this report.
Section 1 (LO1 & LO2)
1 Different types of organisation
There are several organisations are exist in marketplace who performs different duties so
as to sustaining within the marketplace. These firms are also differ from each other in form of
size, purposes, products or services which are offered by them to their customers. These firms
can be classified in three parts like profit, non-profit and public organisations whose purposes are
also different behind establishing their business. Profit organisations are those who performs
their duties so as to earning money along with satisfying the needs of customers effectively.
Main purpose of these organisations behind establishing business is to gain strong brand image
and market share in marketplace along with its owners are solely liable for losses. Chosen firm
for this kind is Tesco which is a UK based multinational retailer who offers a wide range of
products and services like clothes, food products, house hold things etc. to its customers so as to
sustaining in market (Oriesek,and Schwarz, 2016). Purpose of Tesco is to enhance market share
and profitability along with serving the needs and desires of customers in market. Public
organisations are the firms which are monitored or regulated by governmental authorities and
owners are not accountable for paying losses or taking share from the profit of firm. Purposes of
these firms is to providing goods and services at reasonable prices to customers so that their

needs can be fulfilled and their life standard can be improved. Taken organisation for this type is
Transport for London (TFL) which is a public organisation and provide transportation services
across the London, UK to the societal individuals at reasonable prices. Association offers
transportations services through road, and railways. Main Purpose of TFL is to improving public
transportation services along with making journeys of individuals easier. Non-governmental
organisations (NGO) are the organisations that performs its functions independently of
government. These are formed by group of individuals for welfare of society where individuals
are mutually consent for doing duties so that standard of living can be improved. Individuals who
performs their duties in these kind of firm are called volunteer. Purpose of these firms is to
improving life standard of those individuals who have no ability to arrange required things at
their own level. Taken organisation for this kind is OXFAM which was founded in UK and
performs its duties as a Non-governmental firm along with this, organisation provide necessary
things to those individual who are not capable to earn their necessary livelihood things. Main
purpose of OXFAM is to improving life standard of poor people of society along with fulfils
their needs and wants. OXFAM raises its funds through organising fairs and donations from
multinational organisations and government of several nations. These raised funds are used for
improvement of needy individuals of society. For this, they organise several campaigns across
the world in which they supplies daily necessary things like clothes, books, shoes, food items to
the needy individuals (Neelankavil, 2015).
2 Size and scope of the organisations
Numerous organisations performs their operations and duties in marketplace whose size
and scopes are different from each other because of their offerings, revenue and sales figures. On
the basis of size and scope organisations can be divided in four parts such as micro, medium-
size, small and large. Micro organisations are those that are set-up with an investment of
approx. £1million. Along with this, these firm provides employment to 5 –10 employees, net
income of these firms iare approx. £ 0.5million. Scope of these are low because they performs
their duties at narrow level in market so as to earning money for living their life. Main example
of these firms are Corner grocery shops, Casamis etc. which are operating their functions at
micro level in UK. Apart from that, small organisations are those which needs an amount of
more than £1million for its establishment. These firms have narrow scope because they also
perform their functions at low level. Along with this, these kind of associations are setup within