Business and the Business Environment

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Different types and purposes of organisations.......................................................................1
P2 Size and scope of different types of an organisation.............................................................3
P3 Relationship between different organisational functions.......................................................5
P4 The positive and negative factors of macro environmental factors within Tesco.................6
P5 Internal and external analysis of specific organisations to identify strength and wakkness .8
P6 Discuss strength and weaknesses interrelate with macro factors.........................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment consist of sum of both internal and external factors that includes
various aspects such as level of competition, employment, demand and supply, suppliers, client,
management, market trends and so on(Quinlan and et. al., 2019). The business environment is
dynamic and the manager has to adopt the changes in policies, procedures, rules and regulation
of the company so as to gain a significant position within the market. Tesco is one of the leading
retailer in UK that deal with large variety of products such as groceries, toys, furniture and
variety of financial services across the globe. Tesco is a renowned brand and is the third largest
retailer in the world that meet the needs of individuals. This report is based on different types and
purposes of an organisations such as public, private and voluntary. This report also cover the
PESTEL AND SWOT analysis to assess the changes of internal and external analysis within the
organisation. The interrelation between various departments is also covered in a report in various
aspects like human resources, finance, marketing and so on as each department perform different
functions and responsibilities
P1 Different types and purposes of organisations
Organisation comprises of group of people who work together for accomplishment of a
common task. The manager perform various functions such as planning, organising, directing
and monitoring the activities to facilitate the smooth operation of a business enterprise. The
organisation help in dividing the work among the subordinates in according to their specialised
skills so that they work with greater efficiency and contribute to the success and prosperity in a
workforce. There are different types of organisation such as private, public and voluntary which
are describes as follows:
Public organisation: These are the organisation that are owned and operated by the
government and the tax that are collected from the large number of individuals are used for
important projects like public parks, water supply, roads, railways and other infrastructure for
the development of the country(Gaganis, Pasiouras, and Voulgari, 2019). Public limited
companies have huge financial resources and their liability is limited to the extent of capital
contributed by them. It focus on providing the service that benefit the entire society and also
play an effective role in the delivery of public services. BBC is one of the leading broadcasting
public limited company in UK.
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Purpose: The main purpose of Public limited company is to provide welfare to the
society rather than earning profit. It also focuses on economic development and provide vast
growth opportunities in the economy.
Legal structure: the legal structure of public organisation is described as below:
Local Government: These are owned locally by the government that have control over
their specific region. It elect officials and collect taxes on a small scale and do many other things.
Central Government: These are owned centrally by the government and control major
part of the country.
State Government: These are owned by the state as it has separate department for overall
functioning of the state that includes education, agriculture and so on.
Private Organisation: These organisations are managed and operated by the individuals
and their main motive is to earn profit(Contractor, and et. al., 2019). The private sector makes
the big portion of the economy and also one of the advantage is that it provide world class
infrastructure facilities and shares are easily transferable in case of public company. It is
regarded as expensive as compared to a public limited company. Tesco is one of the private
retailing company in UK.
Purpose: The main purpose of private limited company is to make money and provide
the long term growth of a company. Also, they take prompt decisions and have great sense of
personal touch with employees within a business enterprise.
Legal structure: It has separate legal entity and shareholders has limited liability in
respect of company's debt. A company is run by board of directors by following the legal
documents like Article of Association and Memorandum of Association.
Voluntary Organisation: These organisations refer to non profit organisation and it is
formed by association or group of people(Trigkas and et. al., 2020). The motive is to provide
welfare to the community members and their purpose is not to earn profit. Wellcome Trust is one
of the leading charitable organisation in UK.
Purpose: The main purpose of voluntary organisation is to fulfil their mission and work
towards the greater good rather than to make a profit. It create a social wealth rather than to
make a profit.
Legal structure: The three main legal structure used by voluntary groups are as follows:
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