Business and the Business Environment

Business and the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Explain the type and purpose of public, private and voluntary sector.............................3
P2: Explain the size as well as scope of different organisation type......................................5
TASK 2............................................................................................................................................6
P3: Interrelationship between different organisation functions..............................................6
TASK 3............................................................................................................................................7
P4: Positive and negative impact of macro environment upon business................................7
TASK 4............................................................................................................................................9
P5: Internal and external analysis in order to identify strength and weakness of Tesco........9
P6: Strength and weakness of macro factors........................................................................10
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Business environment encompasses the various business activities that help the firm to
gain opportunity and lead to effective functioning by enhancing the overall growth and
development. It involve the role of an individual as well as business entity that cannot control the
functioning of an external environment irrespective of that it affect the long term growth and
profitability (Ambler, , Witzel and Xi, 2016). For the better understanding of report Tesco
company has been selected which is one of the largest multinational retail stores which serve in
various developing and developed part of economy to build the brand positioning. The
headquarter of company is in United Kingdom and deals in various products like grocery item,
electronics, clothing, financial services and so on. This report cover topic like different types and
purpose of public, private and voluntary organisation. Demonstrate the interrelationship among
different functions of an organisation. Moreover, analyse the impact of macro environment
within the operation of business. Further, analyses of internal strength and weakness and its
interrelationship with external factor are covered in this report.
TASK 1
P1: Explain the type and purpose of public, private and voluntary sector
Organisation comprises of the group of people that function together in order to maintain
the structure and operate successfully within dynamic environment. It basically includes the role
of various individuals that function together with the objective to ascertain the objective
successfully. Thus, the explanation of each type is stated below:
Private sector exists with the objective to gain huge amount of profitability and focuses
on wealth creation by expanding the operation of business within various geographical areas.
Here, the ownership of the business rests in the hand of single entity without any interference of
government or any other external party (Charter, 2017). There are various types of public sector
like sole proprietor where the business owner run their family business and take effort to gain
adequate amount of profitability in order to lead their livelihood successfully instead of
expanding the business as they are less liked to take the risk. Along with that amongst various
types the other type is limited liability company where the company has distinct or separate
identity that help to create unique image of the company and the owner is not personally liable to

pay back their debts. In relation to the Tesco which is privately owned company are liable to take
all the internal decision and analyse the external condition in order to expand the business.
The primary purpose of respective company is to make the use of advance technology
and technique in order to remain competitive and survive in the huge competitive environment.
For which the company provide the huge place to the customer where they can get huge amount
of day to day products and cater their requirement by charging reasonable prices. Tesco exhibits
the corporate legal structure where the company has its own legal authority and has separate
legal entity.
Public sector within this type the company perform its functioning on the basis of
decision made by the government or local authority. The role of such organisation is to made
tremendous improvement within the society. Herein, NICE which is the acronym for National
Institute for health and care excellence is the public body that look after the clinic practices and
health promotion.
The main purpose of such organisation is to maintain the quality standard for the proper
functioning of social care system by adequate allocation of resources (Eifert, Gelb and
Ramachandran, 2015). Along with that there are various type of legal structure that exist in
public sector like local government, corporation or central government. Thus, NICE corporate
has adopted Central government structure in order to perform its functioning.
Voluntary Organisation is also referred as non-profit organisation which focuses on the
specific area in order to enhance the living status of the community by making special
programme and take action in order to eradicate problem from grass-root level. Oxfam is the
charitable organisation that focuses on the specific issue which is global poverty.
The purpose of such institution is to help the unprivileged section to enhance their
condition and rebuild their livelihood by making poor section aware of their rights as well as
responsibilities (Sun and Richardson, 2016). Herein, Oxfam organisation adopts the trust legal
structure where the trustee carries the business and take voluntary action in order to be legally
liable to meet the objective of non-governing organisation.