Business and the Business Environment

This report explores the different types of organizations, including public, private, and voluntary sectors, and their legal structures. It also discusses the relationship between different departments within Tesco and the impact of the macro environment on business operations. Additionally, it conducts a SWOT analysis of Tesco and NHS to identify their strengths and weaknesses.

Business and the business
environment

Table of Contents
...................................................................................................................................1
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1: different types and purposes of organisation, public, private, and voluntary sector legal
structure........................................................................................................................................3
P2: Size and scope of different types of organizations................................................................4
LO2..................................................................................................................................................5
P3: Relationship between different departments of Tesco Relation of Human resource
management with marketing department.....................................................................................5
LO3..................................................................................................................................................6
P4: Positive and negative impacts the macro environment upon business operations................6
LO4..................................................................................................................................................7
P5: Internal and external analysis of specific organizations to identify strengths and
weaknesses...................................................................................................................................7
P6 : strengths and weaknesses interrelate with external macro factors.......................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment is group of interior and exterior factors like employees, expectations,
needs, and desires of the customer, political and economic factors of government, media etc.
these factors can or can't be in control of company but it affects the company. This report
describes various types of organisations like- public, private and voluntary. The major goal of
these organisations are discussed in this report. This report elaborates the legal structure of
organizations as well as the different size and structure of organizations. This report defines the
swot and pestle analysis of NHS and TESCO and this report shows the interrelation of different
departments of the organization.
MAIN BODY
LO1
P1: different types and purposes of organisation, public, private, and voluntary sector legal
structure
Public sector
Public sector companies are held and operated by the government, objective of these companies
are to provide the best quality product, goods and services to the community. government takes
all the earned government.
Example- National health services is publicly funded company which is established in 1988
owned by the government of UK, objective of NHS is to stay people healthy, and to decrease the
health imbalances. The major and emergency treatments are provided free of cost to the
community.
Legal structure- NHS England has a partner called NHS improvement. Both the companies
work for the improvement of healthcare for the community.
Private sector
Private sector companies or business are run controlled and managed by individuals,
entrepreneur and group of people, objective of these companies are to make profit. Government
doesn't interfere in these companies but they have to follow the rules, regulations and standards
set by the government (Baron, and Baron, 2018).
Example- Tesco is a British multinational grocery retailer company, established in 1919 , major
products of Tesco are food, beverages, home appliances, clothing and financial services and
online retailing.

Legal structure - Earlier Tesco was a sole proprietor company as it was founded by the Jack
Cohen. But now it is having more than 6800 branches in Asia and Europe. For that it did many
join venture with different companies like- It did venture with Samsung in south Korea, carohean
pokhand in Thailand
Voluntary sector
These sectors are non profit organisations. It is known by third sector which stands between
public and private sector. The aim of this sector is to create social wealth of the community.
Example- Amnesty international is a voluntary sector company it is a non non-government
organization having its headquarter in UNITED KINGDOM,. The objective of this company is
to protect the human rights. Some specific aim of this organization is to protect the right of
women, children and minorities, abolition of the death penalty, rights of prisoners of conscience
etc.
legal structure- as it is a non profit organization so the motive of this organization is to protect
the right of humans instead of making profit. Therefore, it doesn't fall under the category of sole
proprietorship, partnership and limited partnership company (Flanigan, and Obermier, 2016).
P2: Size and scope of different types of organizations
MICRO
COMPANIES
SMALL
COMPANIES
MEDIUM
COMPANIES
LARGE
COMPANIES
Meaning These are small
companies and
businesses with
minimum capital
and minimum
employees. Micro
companies
generally have 9
employees and
run the business
with very less
Small companies
and businesses
have small
number of
workers up to 50.
these are run by
partners and
group of
individuals. The
employees work
to achieve the
Medium
companies have
few employees
less than 300.
These companies
take slow growth
but can get the
targeted profit.
Large companies
are able to hire
more than 250
employees. They
focus on training
and development
of the employees.

capital. targets so that the
organization can
achieve the
margin profit.
Objective The motive of
these companies
to increase their
growth and share
in the market to
attain the
desirable profit.
The objective of
these companies
to increase the
number of
employees so that
they can generate
high production
because
employees stands
between the profit
generation and
production.
These companies
and firms are
generally
attracted to
increased profit
for that they
every year make
budgets to
increase the
productivity.
These companies
give more
attention to
market trends and
needs and wants
of their
customers. They
believe that
customer
satisfaction can
lead them to
desired profit and
growth.
Example Micro
strategy(UK) ltd
Broadsward event
house
Carfulan Uniliver
LO2
P3: Relationship between different departments of Tesco Relation of Human resource
management with marketing department
Human resource department indulge in the process of recruiting, educating and providing
training to the new employees according to the requirement of different departments. The HRM
department of Tesco guides, directs and instructs the employees to achieve the desirable goal of
the organisation. The main activity of marketing department is to promote the products and help
other departments to determine the fresh needs of the customer. Marketing department directly

gives their contribution to the profit while the HR department indirectly contributes in profit of
the company. the top management of Tesco can see the money which is brought by the
marketing department but it is difficult to see the revenue from the HR department. HR
department is not as productive as marketing but it helps the business to reduce the cost.
Relation of Finance department with HR department
The main function of this department is to provide funds to all the departments for their
necessary activities. This is very crucial department of Tesco as it provides wealth to all the
departments of the organisation along with this it maintains record of the fund given to other
departments. HR department is helpful in reducing the unneeded and inefficient employees and it
gives incentive and bonus to efficient employees. So both the departments have to work together
for achievement of the goal (Kennerley, and Neely, 2016.).
Relation of Marketing department with finance
Marketing department has to spend money while finance need to control it. Finance department
decide the budget of every department while the marketing department spend lavishly on
advertisement, and branding.
LO3
P4: Positive and negative impacts the macro environment upon business operations
Macro environmental analysis allow management of Tesco and NHS to understand the external
element and their effect on organization activities. They factors may be positive or negative for
their business.
PESTLE analysis of Tesco:
Political: Tesco performance is highly affected by a political and law-making conditions of
countries. For employment government encourages retailers to provide a mix job opportunities.
Tesco understand that retailing has great impact on jobs and peoples, so they provide large no. of
employment.
Economic: This element are concern of Tesco, because they are influenced by demand, costs,
price and profits. Tesco will be badly affected by any delay in the UK market and uncovered to
market risks.

Social: Shopping style change in market over a time. Tesco is developed their marketing
management to understand customers need and to provide services according to their
convenience (Pan, Chen, and Zhan, 2019.).
Technological: It is supply chain for organizations. Tesco needs to be attentive in market and to
new technology development it is opportunity for growth in market.
Environmental: Tesco needs to develop their policies and in work environment for the
environmental purpose. Tesco take initiative to collect unwanted plastic bags from consumers
and recycle them.
Legal: Government law directly impact on Tesco. Due to government law Tesco cannot connect
easily with other supermarket or buy from another supermarket.
PESTLE analysis of NHS:
Political: Political factor directly affect NHS management because it operates by government
stable funds to provide service for improvement in healthcare.
Economical: NHS faced economic culture is growing with population but service provider are
less to support the culture.
Social: Social environments shape belief, values. NHS must provide services which fulfil
customers expectations.
Technological: In healthcare sector technological environment is moving fast with continuously
development of drugs and development of techniques it is new opportunity for NHS. They
should be attentive in market and for new technology for the growth of the company.
Environmental: In NHS organization environmental factor provides benefits in financial and
environment both sector (Slusarczyk, and UL HAQUE, 2019).
Legal: This factor directly affect to the NHS growth. New laws and legal procedures can be
immediate failure for organization.
LO4
P5: Internal and external analysis of specific organizations to identify strengths and weaknesses.
SWOT analysis is the method that allow management to gain detail information related to
strengths and weakness of their companies. They can examine the result and make plan and
strategies to achieve companies objective.

SWOT analysis of Tesco:
Strengths: Tesco main strength is its growth because its growth increasing exponentially. Tesco
are leading retail stores in market. It also received several awards from different countries.
Highly skilled employees for management, strong brand portfolio reliable suppliers are also
strengths of Tesco (Vlados, and Chatzinikolaou, 2019).
Weakness: Low cost strategy, financial errors, poor performance in specific market are weakness
of Tesco organization. Tesco is not successful to maintain other work culture company. The ratio
between profit and net contribution is below average from industry.
Opportunities: Developing strategy with other reputed firm is great opportunity to spread
Market. Online shopping culture is growing in market it is also an opportunity for Tesco to
grown in online market.
Threats: Competition with other companies such as WalMart, Carrfour, etc. Liability laws is also
threat for Tesco. No innovative product are launched in market. Changing customer shopping
behaviour can be threat for existing physical Tesco stores.
SWOT analysis of NHS:
Strengths: Accident and Emergency service is unique in NHS compare to all available private
healthcare services. It maintains good relation with other health community partners.
Weakness: In NHS there is no develop waiting services. Staff negative behaviour is weakness for
NHS.
Opportunities: To achieve objectives use marketing strategies and do partnership with private
and voluntary sector is great opportunities for NHS.
Threats: High income, work for contractor and shift services to primary care this all are theatres
for NHS.
P6 : strengths and weaknesses interrelate with external macro factors
Every organization has work in environment which have strengths and weaknesses, and they are
related to external macro factors. The organization is affected by external factors because
sometimes its not easy to find problems which effect decision-making in organization. The
internal and external analysis of Tesco can be used to increase decision-making process.

For example if Tesco identify their strength and weakness using SWOT analysis then it will be
beneficial for Tesco to overcome their weakness and use strengths for growth.
Political: This issue affect the organization and increase threat. It may be strength and weakness
depend upon circumstance or example for Tesco political factor is strength because Tesco
understand the government law-making, and they provide employment but political factor is also
a weakness for Tesco because they take high taxes and Tesco weakness is low cost strategy.
Economic: This is the opportunity for the company because in economic factor organization deal
with national and international region. Using this opportunity company can grow their market.
Social: Social factor effect company in positive and negative both ways. Positive because
without society business is not possible and negative is only because responsibility company
have responsibilities to fulfil society expectations and needs.
Technological: There is various technology present in market and if organization knows these
technologies then it will be great opportunity for the company. (Contractor, 2020).
Environmental: If market manager study market effectively then the environment factor is
strength for organization.
Legal: This factor is weakness for threat or the Tesco because government law directly impact on
Tesco and Tesco cannot deal directly with legal laws. Because of this Tesco doesn't interact
directly with other super market.
So all strengths and weaknesses are interrelated with macro environment.
CONCLUSION
This file helps to understand the business operation of Tesco & NHS. The different external and
internal factor and what are the impact on the business. The difference between micro, medium
and small industry has discussed. Details regarding objectives of various types of business
industry have been inspected. This file show importance of interrelation between different
department of industry such as NHS and Tesco. NHS and Tesco are famous industry in UK.
NHS run by government dun through taxes. This file shows the environmental conditions of
NHS & Tesco through PESTEL and SWOT analysis. Learner will be able to grab detailed
information and knowledge related to elements and aspects that play important role in any
industry.

REFERENCES
Books and journals
Baron, D.P. and Baron, D.P., 2018 . Business and its environment (p. 2). Upper Saddle River,
NJ: Prentice Hall.
Behrman, J.N. and Grosse, R.E., 2018 International business and governments: Issues and
institutions. Columbia, SC: University of South Carolina Press.

Brennan, R., Canning, L. and McDowell, R., 2020. Business-to-business marketing. SAGE
Publications Limited.
Contractor, F.J., and et.al., 2020. How do country regulations and business environment impact
foreign direct investment (FDI) inflows?. International Business Review, 29(2).
p.101640.
Flanigan, R.L. and Obermier, T.R., 2016. An assessment of the use of social media in the
industrial distribution business-to-business market sector. Journal of Technology
Studies, 42(1), pp.18-29.
Kennerley, M. and Neely, A., 2016. Measuring performance in a changing business
environment. International Journal of Operations & Production Management.
Pan, W., Chen, L., and Zhan, W., 2019. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering, 35(1). p.05018013.
Susarczyk, B. and UL HAQUE, A., 2019. Public services for business environment: challenges
for implementing Industry 4.0 in Polish and Canadian logistic
enterprises. Administration & Public Management Review, (33).
Vlados, C. and Chatzinikolaou, D., 2019. Towards a restructuration of the conventional SWOT
analysis. Business and Management Studies, 5(2). pp.76-84.