Business and The Business environment Unit 1

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
P1) Elaborate differences between various types of organizations ............................................3
P2) Discuss the size as well as scope of different types of organizations...................................5
TASK 2............................................................................................................................................7
P3) Discuss how different organizational functions are interrelate with each other along with
their link to organizational objectives and structure...................................................................7
TASK 3............................................................................................................................................9
P4) Analyse the positive negative impacts of macro environment upon business operations....9
TASK 4..........................................................................................................................................10
P5 )Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses..........................................................................................................10
P6) Explain how strengths and weaknesses interrelate with external macro factors................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment refers to the internal as well as external environment that
significantly affect the overall performance and efficiency of an organisation. It comprises
various factors such as customers needs, suppliers, employees, government and many more that
influences and get affected with business functions (Akben, 2020). The report is about TESCO
that is multinational company and offer a range of groceries and general merchandise in
different countries. It is based on UK & owns various retail outlets globally. The report
comprise discussion regarding different type of organizations along with their scope, size and
legal structure. Further interrelation between different departments, internal analysis and external
analysis using effective tools of have been elaborated in report. At end, it comprises the positive
as well as negative impact of macro environment factors on organisation efficiency.
TASK1
P1) Elaborate differences between various types of organizations
Public Organization: It is a type of organization that is owned by government of a
country. Under this 51 % or more shares is he4ld by government whether state, federal and union
and city agencies. The main aim of these companies is to serve the people of a nation. It is not
operated to earn profit margins rather for the upliftment and well being of society. There are a lot
of public sector organizations has been undertake by the government of UK for societal. For
instance Ministry of Defence is a public sector entity within UK that takes care for the safety and
security of citizens of country. It is analysed that TESCO is highly affected with public
organizations that are operating in UK for the betterment and upliftment of people. In addition,
they are providing necessary goods and services at lower price so that people easily get attracted
towards the product and services offered by them. So, it is essential for managers of respective
company to prepare appropriate strategies in order to maintain higher level of profit and sales.
Private Organization: It refers to those companies who held by private owners for their
own benefit. Under this, more than 51 % shares are owned by general public. These are not
operated or regulated by government authorities ( Dan-Cohen, 2016). It may be formulated as a
sole proprietor, partnership firm, company and so on. It is undertake with the aim to earn high

profit margins. For illustration, TESCO, is a retail giant and multinational company based on UK
that offers a range of groceries and non-food products to customers. There are several other
private organizations such as Sainsbury, ASDA and more that are also working within retail
sector. So, it is vital for administration of TESCO to formulate effective plans in order to face
competition in better manner.
Voluntary Organization: The organization that has a different aim rather earning higher
profit margins for business owners are known as voluntary organizations. It is also termed as non
profit companies or NGO's, third sector and so on. The main purpose of theses entities is to
provide better services to society rather earn profits. It is held by people without any intervention
of government agencies. As these entities has autonomous status and they do not need to follow
the guidelines, rules, regulations of higher authorities of country. It may be undertake by
professionals who have enthusiasm to serve the society and nation. For instance British heart
foundation, is a charity organization of UK that has started with a vision to free the country
from the panic of heart related diseases. In context of TESCO, it is monitored that business of
organization is highly affected with the presence of these companies as they are providing goods
and services to customers at minimum possible price. So, managers are required to make
effective promotional as well as advertisement plans so that customers get attracted towards their
products and services.
Basis Public Private Voluntary
Meaning It is owned by state,
union government
agencies
Company held by
private owners is
known as private
entity.
It is an association that
voluntarily initiated
by some people to
create social impact.
Purpose Main aim of these
entities is societal well
being and upliftment
It is started to earn
higher profit margins
Whereas the objective
of these organizations
is to serve the society
and create a positive
impact.
Scope It has a wide scope to These entities are It includes a huge