Business Environment Analysis and Company Structure

This assignment provides an in-depth study of different types of organizations (public, private, and voluntary sectors) and their legal structures. It focuses on a private sector company, analyzing its market size, scope, and objective. The study uses PESTLE analysis to examine the positive and negative impacts of external factors on the business. Additionally, it identifies internal and external strengths and weaknesses of the organization and relates them to external micro-factors.

BUSINESS AND THE
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1different types and purposes of organisation public, private and voluntary sector and legal
structure............................................................................................................................................1
P2 Size and scope of different type of organisation. ..................................................................2
P3 Relationship between organisation function .........................................................................3
LO3..................................................................................................................................................5
P4 positive and negative impact on the macro environment.......................................................5
LO4..................................................................................................................................................7
P5 internal and external analysis of organisation strengths and weakness ...............................7
P6 strengths and weakness interrelate with external micro factor..............................................8
CONCLUSION ...............................................................................................................................9
REFERENCE:................................................................................................................................11

INTRODUCTION
In business environment, company include employee, management, consumer and
business regulation. There are two types of business environment i.e. external(micro and macro)
and internal(micro and macro). Business environment change need customer according to
market, technology and nature. UK based super markets like Tesco, Sainsbury's and Asda. Super
market provide household products, fresh product, dairy, baked services. Big super maker
combined with departmental store. Now day’s super market provide bank, cafe, child care centre,
play gone, and other services. Report will analyze about purpose of public, private, and voluntary
sector and its legal structures. It also defines relationship between the origination function and
objective. it also identity impact of positive and negative at the macro environment. How
strength and weakness related with external macro factor.
LO1
P1different types and purposes of organisation public, private and voluntary sector and legal
structure
Three types of organisations are there and their purposes are different which has explained
below-:
PUBLIC SECTOR:
Basically this sector plays a big role in the economy of the world. All the controlling
power of this sector hands on boards and directors of the economy. Three types of organisation
are there in public sector one is which is in the hands of government no one can interfere in this
sector because it is a government controlled based sector. Second type of organisations which are
made by the permissions and under the permissions, rules and regulations and laws of the
company. It financed by government and managed by government. It has direct channel;s for
using money, helpful in implementing government plan. And third types of company which has
at lest 50% share owned by government is called public sectors' government organisation(Gerde
and Michaelson, 2016). This type of organisations has made with the aim of providing the best
qualities of services. This type of organisation thinks about only best quality and services .
Government organisations does not think about profits. Example of this sector is Mark and
Spencer is a super market that provide their customer clotting gift good and services.
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Purpose:
Public Sector Company purpose provide services and goods there customer without
making profit. the public sector organization work for provide consumer better services.
PRIVATE SECTOR-
This type of organisation made by individuals but not by Govt. this type of organisation
purpose of profits. This type of company has not much affect of Govt. compared by gov. sector.
all the company gets profit is texted as an individual income. The private company will be work
for the analysing company development and work for the making profit. The company only
work for improving productivity, company brand image and company employee condition.
Purpose of private sector:
Private sector purpose to make profit and gain market share. Increase sale goods and
services against competitor.
Example of this sector is JAGUAR is an automotive company which comes in private sector.
VOLUNTARY SECTOR-
This type of company does not think about the benefits and profit the company work
provide there customer the best quality and services ((Gerde and Michaelson, 2016). Like there
are many NGO'S which are serving their facilities free of cost. The voluntary sector work for the
customer satisfaction and providing facility in the customer services. Theses types of company
will be work for the company employee and customer development.
Purpose of voluntary sector:
Voluntary sector work only for customer and public welfare these type company want to
provide consumer best services at lower prize.
Example: Red cross. That is a super market work for providing consumer services.
Legal structure of public sector-
 Board of director
 Chief executive officer
 Estates & Trust
 Estate Supervisor
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 Trust Supervisor
 Estates officers
 Trust officers
 Customer service
 Finance and administration
 Accountant Trust
 Accounts clerks – Estates/Trust
 Accounts clerks – Corporation
 Registry clerk
 Messenger / driver
 Legal services
 Legal Assistant
 Conveyance
Legal structure of private sector –
 Private Sector Businesses
 Sole Trader
 Partnership
 Limited Companies
Private Limited Companies(LTD)
Public Limited Companies(PLC)
Cooperatives
Voluntary legal structure-
Board Members
Director
Program Manager
Project Coordinator(Health)
Project Coordinator(Livelihood)
Project Coordinator(Education)
 Administrative officer
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 Accounts Officer
Size and scope of different type of organisation.
Size define organisation structural will make changes of organisation increases and
existing design. The scope will be define combination of objective and requirement need to
achieve company objective. Scope will be define estimate of cost and time for completing work.
Micro and small
organisation
medium organisation large organisation
Market and profit
share
Market share of micro
and small organization
will be increase in
some time mostly time
share will stable.
In that type of
organisation will be
making at small level
organisation.
Market share of
medium level
organisation will be
mostly time increase
because of the
company work only
for profit maximizing.
Large level
organisation market
share will be increase
at big level and that
company work only
for profit making.
Objective These small level
organization main
objectives to survival
short term in business
environment.
(Martínez, 2016)
This type of
organization aim is
growth the business in
the future.
Its main objective is
increase business
process and area. The
company want
improve their products
productivity.
Scope In that business
development and
growth have no scope
and small scope.
In that company have
some scope for
develop there
company.
Company develop
everyday new product
and service so the
company have many
scopes for improve
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there company.
Size It that business size is
the small. In that
micro enterprises have
to 10 employees and
Small up to 50
employees.
In the medium size
employees are 50 to
249.
At large level business
employees are in 250
at that business.
Relationship between different organisation function
In Private sector organisation, company makes different departments for achieving long
and short term goal. TESCO follows flat organisation structure for the employee communication
and easy business running (Suneja, 2017.). The TESCO company makes different department
like Marketing, Human resource, finance, project, Information technology, production that
department the employee work together.
Marketing department:
market department employees providing services of customer. In that employee makes necessary
research for identify customer need and complete company target. According to customer
demand and requirement that information will be provide by the marketing department employee
there company human resource team and production team. The marketing department will be
work for the company development. The marketing department work for the company
development and the want to make benefit for the company production and services. the
company collect data for the customer demand need and requirement for the making better
services. when company employee will be work for improve company employee development
that time the company employee and employee make a marking research and audit for the
analysing company situation and make improve company productivity.
Human resource department:
If TESCO Company need employee that time human Resource team hire candidate
according to need and requirement. Human resource team check employee performance and
provide employees training and development according to employee requirement. In some time
the human resource team conduct training, seminar and other activity for the employee
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development and achieve target. Human resource team play a main role for help to achieve
organisation goal. The human resource team also work for the company development. The
company human resource department give employee training, development and motivation for
improve company employee productivity and profitability. The company TESCO human
research department work for the company will be work for the company development and
employee training.
Finance department
Finance department Manage financial problem and solve the employee financial related
problem. The financial team provide company financial suggestion for control finance. Finance
department include TASCO'S auditing, accounting and controlling finance. Finance team make
company finance statement and profit & loss account or, balance sheet. That help to identify
company growth. The finance team provide finance production department for product there
service and good or purchases row material. Production department product company goods and
services and check there services (Storey, D.J., 2016.). the company finance department work for
the company finance development. Finance department also work Audit for the analysing
company condition. Company finance department provide there employee finance and employee
condition. that employee also work for the find company situation and condition of company
fund.
Production department;
the production department help to turning input into the finish goods. The production
team are responsible for the product material, quality, and services. The production department
also work for the company improve company production and work for the company employee
development. the company uses new technological for improve company production
development the production department also make the company will be work for the company
development
Information technology department:
Team provide information according to market need and requirement. The information
technology department provide the latest technology according to production department need
and improve company production. Information department solve technology related problem in
the organisation. The information department maintain company computer network, product
design, advertisement, and promotion etc. project department make project about the company
production and need of the customer. The company make research know customer need and
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requirement, And prepare a report for the company development and improve company
productivity.
The TESCO Company follow flat organisation structure. Flat organisation structure help
TESCO for achieve goal and objective (Storey, 2016.). When employee are interred connected
with their problem. That make good business environment. In the flat structure employee and
employer direct connect.
It refers management between the staff and employer. At the lower and middle level of
employee and management encourage for the taking decision making. It improves coordination
in the working environment. These structure choose for the complete and achieve organisation
goal and objective. TESCO choosing this type of structure for the firm benefit. That benefits are
lower organisation cost, improve communication cost, reduce micromanaging, improve and
employee motivation or satisfaction. When company apply that structure that help to produce the
company desire result. When employee are feel they are impotent for the company and firm trust
on their employee so the employee are motive for the work that increase productivity (Haddud
2018). the flat structures were help company to develop relationship between company employee
and employer. The company employee will be work for the company development when
company give employee power of take decision. That time the employee will be make a better
working condition. The company employee will be work for the company development.
LO3
positive and negative impact on the macro environment
Macro environment refer to the internal and external business environment that effect on
the business success. The environment helps business for developing market strategy and reduce
risk. The macro environment effect present and future business. Macro environment effect on
TESCO business success, make business strategy and take decision. Factor effect on TESCO that
are demographics, economic, natural or physical forces, technology, political and legal, social
and culture forces factor impact on business success. For Macro environment analysis the
company TESCO fellow PESTLE(political, economic, social, technology, legal and
environment) method(Gerde, V.W. and Michaelson, C., 2016).
Political factor:
The political factor consist government condition, rule and regulation and government
stability. In the political factor on TESCO help to know the threats and opportunities.
Positive impact: in that employee are influences according to current and future work
environment. The company uses political factor for making batter working environment
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Negative impact: Negative impact is the politics create negative business environment.
Politics create partiality with company employee labour or top management team. In that
environment employee are demotivate there work and leave job.
Economic Factor:
Economic factor define TESCO's economic condition and business analysis. The
company identify market share, interest rate, inflation rate, and monetary or fiscal policies.
Positive impact: The economic factor show company growth. It will be define a
particular geography of TESCO company. It will be consider company development and
business analysis.
 Negative impact: Negative impact show the unemployment. That impact on the labour
and material cost and change on the technology cost .
Social Factor:
Social factor can be effect on TESCO. The social factor define company demographics
situation. It will be define company work in social welfare. The social culture define company
location, background, status and trends.
 Positive impact: TESCO work employee health education and develop labour lifestyle.
The company provides social value of employee community, policies plan and process.
 Negative impact: The company work in social welfare some time that will be effect
negative on employee and their work. In that impact lack of emotional connection,
decreases face to face communication.
Technology factor
TESCO use new and latest technology for improve productivity and minimizes cost. The
factor effect the technological product and process.
 Positive impact: TESCO for the improving productivity. The company uses new
technological for the company development, reduce cost, .
 Negative impact: when company apply new technological in the company the
management have to hire new employee for using new technological or provide old
employee training for the using new technological.
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Legal factor:
TESCO work according to laws rule and regulation.
 Positive impact: This factor effecting of business control and set of environment internal
and external condition.
 Negative impact: TESCO work in legal so the company have pay looses for the legal
impact.
Environment factor:
In environmental factor include climate of organization.
 Positive impact: In that environment include organization working environment and
employee working condition.
 Negative impact: that environment effect on the employee are not satisfied company
working condition
LO4
internal and external analysis of organisation strengths and weakness
Internal analyses
Strengthen: It probably address company
project specially company brand attribute and
selling unique proposition at product line. A
strong leadership get a strength for analysing
company challenges.
Weakness: Weakness define organizational
challenges skill in a competitors company in
industry that will be show organization are not
stable to compete their competitor.
Opportunity: Opportunity generate new and
innovative option for firm development and
improve sale or company growth.
Threats: It is a process of analyzing company
risk in a company growth. It will include
emerging challenge competitors risk,
regulatory challenge and company future
growth.
External analyses
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Porters five forces analysis of the TESCO industry- It is a type of the strategic
management tool to find out about the industry and understand the levers of the profitability-in a
industry. The manager of the TESCO understand that how the competitor influence here
profitability and makes a new strategy plan for the development. These are five models which
affects the positions of the today's business and the TESCO-
 Bargaining powers of the suppliers-All the companies in the retail industry buys their
raw materials from the numerous of the supplier. In the consumer markets the powerful
suppliers use their negotiating powers to extract the higher prices from the firms in the
retail fields (Business Environment, 2018), TESCO makes strong and effective suppliers
chain.
 Bargaining power of the buyers – Customer are demanding a lot and they want to buy
the best thing in the fewer prices. In the long term business, this is the reason which
effects the TESCO profitability. Building the large numbers of the customers this will be
help in the give the opportunity to the firm streamline its production and the sales.
 Threats of substitute product and service- When company provide similar services and
the product services for the customer’s needs and satisfaction. By increasing the
switching cost for the customers. The organisation will be try to make much better
product and gives the satisfaction need to the customers (Graja, 2018). TESCO should be
tried out to find the demand and requirement of customer need.
 Rivalry among the existing competitors- Rivalry and existing player in the industry
will decrease the profitability and drive the down the prices to the industry. Merge with
the competitor to increase the markets rather than just competing for the small market.
 Threats of new Entrants- It will be define threat of new entrance in competitor markets
in an industry that will be attract customer for use new entrance services so the company
lose their objective and goals.
strengths and weakness interrelate with external micro factor
External micro environment factor define suppliers, customers, marketing, competitor,
social, intermediaries, technological and political, are defined micro business environment.
Competitor factor: the competitor factor define firm have many competitor product and other
competitor company in the market for sale their goods and services (Saccani, 2014). So the
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company have to stable in the market to make many plans for the sale their products and services
(Business Environment. 2018),
Strengths:
TESCO make strategy plan for monitor competitor’s activity. TESCO make substitute
product for the, make strong strategy for compete competitor. The company makes strong plan
and polices for improve company growth and development.
Weakness:
Weakness defines the company polices are not strong so the company are not able to
stable on competitor market. The company product facilities are not good, services are not
proper, so the customer are not satisfied for using company services.
Technological factor:
These factors define company use the latest technological for improve productivity.
TESCO use advance technological for minimise cost, improve productivity, and develop product
design (Sekaran and Bougie, 2016.).
Strengths:
The company uses the latest technological so the company make new strategy for
develop product and services.
Weakness:
company start use new technological but company provide no training there employee
that time the employee not work proper so the company have loss in production.
Customer behaviour:
TESCO make research for the analysing customer need requirement and satisfaction.
The company check customer behaviour for their services.
Strengths:
customer satisfaction and customer behaviour make strong strengths for the development.
Weakness:
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The customer satisfaction and behaviour are not good for the company services that make
company planning is bad so consumer not uses services (Gerde and Michaelson, 2016).
CONCLUSION
From the above study, it has been summarised that different type of organisation public,
private and voluntary sector and define legal structure of company working process. The study
shows all company's market size, scope, and objective of organisation. . In all study we used
TESCO company in private sector, and identify organisation function, objective and structure.
The company use PESTLE analysing method for the analyses positive and negative impact on
business. In all study we analyse internal and external strength and weakness of an organization.
It will also relate external micro factor. At the study we find company working process and
positive negative impact of private sector organization.
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REFERENCE
Books and Journals
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Haddud, A., McAllen, D. K. and DeSouza, A. R., 2018. Managing Technological Innovation in
Digital Business Environments.
Martínez-Carreras, M. A., García Jimenez, F. J. and Gómez Skarmeta, A.F., 2015. Building
integrated business environments: analysing open-source ESB.
Namvar, M and et. al., 2018. Simplifying sensemaking: Concept, process, strengths,
shortcomings, and ways forward for information systems in contemporary business
environments.
Pye, G., Holt, D. and Salzman, S., 2018. Investigating different patterns of student engagement
with blended learning environments in Australian business education:.
Radu, I. C. and Lindgren, P., 2017, October. Fostering optimal business model innovation
environments" the foodtech challenge case study". In Wireless Summit (GWS), 2017
Global (pp. 215-219). IEEE.6
Saccani, N., Visintin, F. and Rapaccini, M., 2014. Investigating the linkages between service
types and supplier relationships in servitized environments.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Silvestre, B. S., 2015. Sustainable supply chain management in emerging economies:
Environmental turbulence, institutional voids and sustainability trajectories.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Suneja, V., 2017. Co-Ed Understanding Business Environments. Routledge.
Online
Business Environment. 2018. [online] available through
<https://study.com/academy/lesson/what-is-business-environment-definition-factors-
quiz.html>
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Business Environment. 2018. [online] available through
<https://www.worldbank.org/en/topic/investment-climate/brief/business-environment>
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