Business and the Business Environment

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY 1....................................................................................................................................3
a) Different types of organisations.........................................................................................3
b) Functions within business organisation and their interrelationships along advantage and
disadvantages..........................................................................................................................7
ACTIVITY 2....................................................................................................................................9
a) PESTEL analysis................................................................................................................9
b) Internal and External analysis leads to identification of strength and weaknesses and
interrelation with external macro factors..............................................................................12
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
In competitive era, it is necessary to analyse environment and conduct business activities
accordingly. Business environment is the combination of external and internal factors which
influence operating of company (Bah and Fang, 2015). It consists of clients, competitors,
suppliers, owners, law, government activities, market, economic, social and improvement in
technology. It directly affects profitability, survival, growth and performance of organisation.
The given assignment is based on TESCO which was founded in 1919 at England, United
Kingdom. It is British multinational groceries and retail business having products of
supermarket, superstore, hypermarket and convenience shop. The report covers different types of
organisation such as public (NHS), private (TESCO) and Voluntary (Save the children) along
with background details, product, vision, mission, legal structure and others. There are different
functions of all these organisations and have interrelationship with each other’s. PESTLE and
SWOT analysis of organisation has been also discussed.
ACTIVITY 1
a) Different types of organisations
According to given scenario, three organisations has been chosen which are described
below:
Public Company
It is company which issue securities through initial public offering and traded in stock
exchange (Cai and Yang, 2014). The regulation and processed are being regulated through
government. Here, chosen organisation is NHS which is public company.
Background details of organisation- National Health Service (NHS) was founded on 5th
July, 1948 at England. It is largest individual payer healthcare in world and providing services to
English resident at free of cost. The treatment of infectious disease and emergency treatment are
free to everyone including visitors. NHS provides more healthcare in England such as in patient
care, dentistry, primary care, long term healthcare and ophthalmology.
Product and Service- The products offered by NHS are related with healthcare,
medicine, free treatment. Similarly, service offered are healthcare to all United Kingdom citizens
which is based on healthcare needs rather than ability for users to pay it.

Size and Scope- According to data of 2014, there were 2165043 workforce working
under NHS in different countries. Also, 691000 nurses were registered in UK which is more than
previous year. It is fifth largest in world having 1.7 million workforces across England. It is
providing service to people in terms of healthcare, medicine in different parts of world. Through
this, it can expand its business globally which is scope for it.
Vision- The vision statement of NHS is to provide excellence in health care through
maintaining service delivery and quality performance (Chang, 2016).
Mission- The mission statement of NHS is to deliver effective and efficient health care
services by following policies and standards which are accessible, equitable, sustainable and
affordable.
Business Objectives- NHS is following objectives which are described below:
 To promote and influence NHS occupational health service.
 To promote business practices and best service through clinic.
 To exchange information, best practices and expertise.
 To generate commercial leads of business.
 To collaborate with stakeholders for training, retention and recruitment of occupational
health.
Organisational and legal Structure- There are different types of organisation running
under public company which are given below:
 Local Government- These includes authority of local governance and operating duties,
responsibility in regional or local place (Dima, Grabara and Modrak, 2014).
 State Government- It is sharing of legal and political rights among state and national
authorities. Such government possess right for formal decision without taking permission
from central government.
 Central Government- They have rights to make decisions including distribution of
budgets of nations, security of people from attack and others.
NHS has followed central government organisation as it is providing services to all
people of world. The legal structure of NHS is providing services like pharmacists, dentists
including military health services and specialised services.
Information about Stakeholders- Stakeholders of NHS are healthcare service providers,
centre for workforce intelligence, local healthcare providers and higher education institutions.