Business and the Business Environment

Business and the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Purpose and different type of organisations and adoption of legal structure...................3
P2. The size and scope of different type of organisation.......................................................5
Task 2...............................................................................................................................................6
P3. the relationship between different organisation function and their link to organisational
objective and structures..........................................................................................................6
Task 3...............................................................................................................................................8
P4. identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples...........................................................................8
P5. conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses.......................................................................................................9
TASK 4..........................................................................................................................................11
P6. Explain how strengths and weaknesses interrelate with external macro factors............11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment refers to the combination of internal and external factors which
focuses on influencing e a company's operating situation. These factors affect a business
operations and various decisions which they have to take in their regular course of operations.
Various factors include political, environmental, social, legal, suppliers, competitors, customers
and many others (Sodeyfi, 2016). These all factors play a very crucial role in affecting internal
decisions and functions of company.
This report is based on super market company Tesco which is a American multinational
company and its foundation was laid in 1919. Jack cohen founded this company's This report
deals with various topics such as purpose of business environment, different types, their size and
scope, structure, function etc. analysis of external environment of Tesco which affects company
in both negative and positive manner .
TASK 1
P1. Purpose and different type of organisations and adoption of legal structure.
There are some organisations which are used for serving the society and individuals
present there. All companies start their business with a purpose and objective that is generally
maximization of profit earning and creating a brand image in market. This helps in economic
growth of company and country ta same time.
Public Sector: These organisations are those which are regulated and controlled by
government of that country. They don't want to do maximization of profits but instead they want
to serve the society and fulfil requirements of people of society. National Health Service is one
such organisation which is having presence in UK, this company provides employment to
approx 1.6 million people. Main aim of this organization is to improve health of their patients.
This is a public organisation and government is having control on all its operations.
Legal Structure of NHS: NHS is an entity operating under the jurisdiction of and fully
owned as well as managed by the central government of UK. The operations, functioning and
work of this organisations is handled and controlled by the UK government and NHS can not at
any point of time act against the interest of central government.
Private Sector: These are those type of organization which are part of country's economy
and contribute towards growth and development of country & its economy as a whole. They

make up larger share in the economy, and they are always controlled by private individuals and
enterprises. Private sector companies form big part of every economy, they may be in form of
partnerships, groups or individuals. There is legal regulation of government on such companies
but they are not public companies. Tesco is a UK based company they have small convenience
stores and also large hyper markets. There are more than 3000 stores in UK, and they are one of
biggest retailers in UK. This company is listed in London stock exchange and also have stores
present in Asia, Europe. People of UK are able to meet all their requirements from one stop
destination that is Tesco for fulfilment of their grocery requirements. This is a private owned
company and all their profits earned by them are solely owned by company.
Legal Structure of TESCO: TESCO is a private company operating within the confines of
retail sector and being governed under the provisions of Company's Act. This organisation
conducts operations with the assistance of its 450,000 employees.
Voluntary Organisation: there are some organizations which do not aim to earn
monetary profits, instead they aim to achieve other objectives being set by them these are
considered as voluntary organisations. They want to do social service for society or benefit
people living in society. Oxfam is a company which is a charitable organisation and it has
objective of eradicating property in the country which they are working. There are 20 charitable
organizations which are independent and Oxfam is a confederation of these 20 companies. They
work for benefit of people living in society who are below poverty line and don't have any
income source for their survival, fulfilment of basic needs. They try to provide some
employment opportunities, sources of survival to such people. This helps in upliftment of people
living in society and they can benefit from such efforts made by this company.
Legal Structure of Oxfam: Oxfam is a charitable trust whereby its trustees hold its overall
responsibility in relation to its activities as well as assets. The trustees of this firm have formed a
Council of Trustees which governs the Association of Oxfam. The trustees of this entity are
elected by individuals who make the donation. This charity is setup with the sole motive of
raising money for the 3rd world nations that are in need of assistance as well as financial
resources.