Business and the Business Environment

BUSINESS AND THE
BUSINESS
ENVIRONMENT
1

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain different types and purposes of organisations..........................................................3
P2 Explain the size and scope of a range of different types of organisations.............................4
TASK 2............................................................................................................................................6
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................6
TASK 3 ...........................................................................................................................................7
P4 Identify the positive and negative impacts the macro environment has upon business
operations....................................................................................................................................7
TASK 4............................................................................................................................................9
P5 Explain internal and external analysis of organisation in order to identify strengths and
weaknesses..................................................................................................................................9
P6 Interrelation of strength and weakness with the external macro factors..............................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
2

INTRODUCTION
Business Environment is a combination of the external and internal environmental factors
like customers, suppliers, stakeholders, government and economic conditions and all the factors
affected directly by business decisions. Business Environment helps in assessing and analysing
the market and helps them in making strategies. TESCO is chosen as a base organisation for this
report as the operations of the company are vast and have a global business (Gaganis, Pasiouras,
and Voulgari, 2019). They have functions in different markets so little alteration is required for
the business to operates and it will impact the profits of the business. The report focuses on
different type and purposes of the organisations like private, public, voluntary and legal and the
relationship of different functions and structure of the organisation. It also helps to identity the
size and scope of a range of different types of organisations. The internal and external analysis
will further help in understanding the strength and weaknesses and their impact on businesses.
TASK 1
P1 Explain different types and purposes of organisations.
To help organisations defines the role of responsibilities, it is important that companies
understand what type of organisations is best to achieve the business objective.
Types of organisations
Private Sector Organisation- The companies in private sector run for profits and they
are owned and operated by individuals, partners or agencies. TESCO is the private organisation
of UK and they are operating in the retail sector (Eling and Schaper, 2017).
 Sole Proprietor- The organisation is owned and operated by the owner and he will have
the profits.
 Partnership- The organisation is owned by two or more people and they will divide the
work.
 Private limited- The organisation is a having a board of people and they are have limited
operations.
 Public limited- The organisation has a limited liability and the people are included and
they have shares.
 Purpose- TESCO is the biggest private sector organisation of UK where they focus on
providing groceries at affordable prices and giving customers experience in the retail.
3

In the context of TESCO, it is a limited company owned and operated by investors and
shareholders.
Public Sector Organisation- The companies in public sector are owned by government,
agencies and organisations who focus on serving the societies. Profits are not there main
objectives. NHS (National Health Services) are owned by government and they provide free
health services to the people.
 Purpose- NHS (National Health Services) are funded by welfare department of UK.
They focus on providing good healthcare to the people who cannot afford it.
NHS(National Health Service) is owned and operated by the heath and welfare department of
UK and headed by the Secretory of State of health and social care. It is a statutory corporation
which is operated by government.
Voluntary Organisations- These organisations do not have a hierarchy and are non-
profit organisations or civil societies which are formed to help the society. OXFAM, is a non-
profitable organisation of UK which is formed by 20 charitable organisations to remove poverty.
 Purpose- OXFAM is working to help the people in meeting their basic needs. Their
main focus is making the society poverty free.
Oxfam is a limited liability company, formed by trustees. They have a staff who is
responsible to remove the poverty. They have a management under sub management (Huang-
Horowitz, 2015).
P2 Explain the size and scope of a range of different types of organisations.
TESCO was founded in 1919 in London (Prajogo and Oke, 2016). It is a multinational
company which is in private sector and have stores in various countries.
 Vision of Tesco- Tesco aims to become the most valued organisation to its customers,
stakeholders and the communities it serve to.
 Mission of Tesco- They want to maintain the long term relationship with its customers
by focussing on value propositions.
 Size of Tesco- Tesco has stores in many countries and the size of the operations depends
on the number of employees and the stores they have. There are more than 7000 stores of
Tesco which are operated by 5 lakh employee (11 astonishing facts and figures that show
how Tesco dominates Britain and the world, 2020).
4