Business and the Business Environment

Business And The
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
1) Critical analysis of different types of business structure.............................................................1
a) Difference between profitable, non profitable and non government organisations................1
b) Difference between micro, small and medium sized organisation.........................................3
c) Legal structures of different forms of business and analyse how size, scope and legal
structure of different organisation link to the business objectives and products and services....4
2) Interrelationship of different organisational functions and how they link to organisational
structure and objectives....................................................................................................................6
ACTIVITY 2....................................................................................................................................7
1) By using PESTLE analysis conduct macro environmental analysis with the positive and
negative impacts..........................................................................................................................7
2) Using Porter's five force model in order to do micro environmental analysis along with the
favourable and adverse impacts..................................................................................................9
3) Using VRIO to analyse organisational strength and weaknesses.........................................10
4) Conduct SWOT analysis of organisation..............................................................................11
5) Using TWOS matrix and justify how strength and weakness interrelated with micro and
macro factors which influence strategic business decisions.....................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment consists of two factors such as internal and external that influence
business activities and functions and that are outside the control of organisations. Every
businesses requires to be considered the analysis of regular changes in order to deal with those
changes. Business environment plays an essential role regarding to aware of strategies as well as
actions of rivals which enables company to formulate effective and competitive plans and
practices. For this Tesco plc is chosen which is a largest retailer of grocery items that are ranging
from households to non households products. In this report, BBC is considered as a public sector
company, Tesco as an private organisation and Oxfam as a non profitable company. Under this
assignment, discuss about the different types of business structure, size and scope as they analyse
structure of profitable, non profitable and public businesses along with the analysis of
interrelatedness among different organisational functions. In scenario 2, discuss about the
PESTLE analysis for analysing external environment, for micro environmental analysis use
Porter's five force and conduct SWOT and VRIO model for knowing company's capabilities and
competencies. Lastly, conduct TWOS analysis integrating strengths and weaknesses of business
with the micro and macro factors that mainly impacts on the business decisions.
ACTIVITY 1
1) Critical analysis of different types of business structure.
a) Difference between profitable, non profitable and non government organisations.
Organisations refers to the group of individuals or humans that are working together for
the purpose of accomplishing single objectives to earn maximum profit. There are mainly three
types of organisation that operates their operations within the confines of business that namely
public, private and voluntary (Deshpande, 2018). For differentiating all organisations the nature,
purpose and legal structure of all these businesses are discussed. Such as follows:
Public organisation: These type of organisations operates under the control or
jurisdiction of the government and these are work for the social welfare and empowerment. Most
significant examples of public sector businesses is BBC. As this is a public company which
conducts their operations within the broadcasting industry.
Purpose of public sector organisation:
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The main purpose of these organisations is to operate in the favour of society and their
well-being purpose by facilitating better quality of broadcast services.
Legal structure:
All public sector businesses have different legal structure that are varies as per the
government under whose jurisdiction businesses operates. It can be explained in detail as
follows: Local government: In this, businesses works within the control body of local government
and authority body. State government: In this the companies work under the territory of state government.
 Central government: Hereby, firms operates their businesses and its operations in the
power of central government as they facilitates funds by getting income tax from public.
Private organisation: these kind of business operations are mainly owned and controlled
by individuals, groups as well as financial institutions (Sodeyfi, 2016). The main purpose of
these businesses is to earn maximum profits as well as ensures their long term survivability and
success in the competitive market. Remarkable example of these type of businesses is TESCO
which is a renowned British retailer.
Purpose of private sector organisation:
The main motto of private sector organisation like Tesco is to provide better quality of
services to the general public in order to get their maximum satisfaction.
Legal structure:
These type of businesses operates in different forms that are varied from each other on
the behalf of their internal management of constitution. Thus, several forms of private sector
organisations are considered as follows: Sole proprietorship: In this, firms are owned by a single person who makes all the
decisions and bear risks along with the all gains individually. There is no control of
government and the law doesn't make any kind of distinction in business venture and for
owners. Partnership: It is that kind of organisation in which two or more individuals agreed on a
single partnership deed in order to do business together for earning high profits. As all
members are equally responsible for all profits, loss and risks.
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