Business and the Business Environment

Business and the Business
Environment
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INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Various forms and purpose of voluntary, private and public organisation ............................3
P2.Scope and size of various kinds of entities.............................................................................5
TASK 2............................................................................................................................................9
P3 Interrelationship among various departments within company..............................................9
TASK 3..........................................................................................................................................11
P4 Macro environment positive as well as negative aspects.....................................................11
TASK 4..........................................................................................................................................13
P5. Strength and Weaknesses identification of entity with the help of internal and external
analysis.......................................................................................................................................13
P6 Strengths and weaknesses interrelate with external macro factors.......................................14
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................17
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INTRODUCTION
Business environment is defined as a sum of various forms of external as well as internal
factors that affect functioning of organisation, employees, demand and supply, business
regulations and customers (Business Environment. 2019). Each and every business entity
operates their functions in different environment that involve wide range of internal and external
factors that impact upon their operation (Andersson, Forsgren and Holm, 2015). It is essential for
an organisation to have proper understanding of all the factors prevailing in business
environment as to gain more competitive advancements from them. Above mentioned project
has been done on, Tesco, company operate their functioning as British multinational grocery and
general merchandise while performing their operation in retailing sector. Organisation offers
their products through supermarket, hypermarket, Convenience shop and superstore. Present
report has been made on different types of organisation with their size and scope. Swot and
Pestle analysis is being done as to evaluate organization weakness and strength as to overcome
challenges and ensure more growth developing opportunities. Further, in this project
interrelationship among different organisation is being defined.
TASK 1
P1 Various forms and purpose of voluntary, private and public organisation
Various forms of entities operations within business environment these organisations
conduct their functioning in public, private and voluntary sectors. Main motive of these
organisations is to satisfy customers need and help country to increase its economic growth and
revenue. It has been identified that, these entire organisational sector have different role,
responsibilities, scope and legal structure which is being further defined below:
Private sector: Entities operating in private organisation are managed and owned by firm,
private group of individuals and any other legal authority. They have main motive to earn a
large amount of profitability while satisfying needs of customers. These entities allocate their
funds from business entities, financial institutions, investors, bank loans etc.
For example Tesco performing operations within private sector as the company have their own
set of working structure and consumer regulation.
Purpose:
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Tesco operate the functioning as leading retailer in UK with the purpose to satisfy
customer need with qualitative products and services as to expand their business other
geographical locations.
Legal Structure:
Sole proprietorship: Entities who perform their operations within sole proprietorship are
managed, closely-held and contained by a single person who held the responsibility for the profit
and risk which is associated with organisational functioning.
Partnership: Partnership is being formed when more than two individual initiate business
with a written agreement in which they are liable for the profit and loss as per the legal
agreement which was duly signed by them.
Company: In this form, shares are mainly offered to general public via initial public offer.
These organisations have main motive to gain maximum profitability.
Public sector Organisation within public sector are fully and partially owned and
managed by government authorities and Institutions (Apăvăloaie, 2014). Main motive of these
organisations is to offer welfare to society while satisfying their needs rather than to generate
profitability. In this sector every business organisation have authorised with democratic role in
which they are entitled to undertake their own decisions. Along with this company’s within
public sector have influence and control of government regulations on their functioning.
For example NHS performs their functioning within U.K. This entity offer comprehensive range
of Healthcare services to individuals.
Purpose:
National Health Service (NHS) operates their functioning with a purpose to provide
health care services to citizens in United Kingdom along with high quality care for all
individuals.
Legal Structure: Organisations operate their operations in public sector or owned and duly
managed by government authorities.
State Government: Organisation those who perform their functioning in state government
segment are partially as well as wholly managed and owned by State government authorities or
institutions.
Local Government: Entities within this segment are managed and administered by local
government institutions.
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