Business Environment Report: UK Supermarket Sector and Macro Factors

This report delves into the intricacies of the business environment, providing a comprehensive analysis of various sectors and organizational structures. It begins by defining the business environment and differentiating between micro and macro factors, setting the stage for an examination of public, private, and voluntary sector enterprises. The report uses Tesco, the Crown Prosecution Service (CPS), and Oxfam as case studies, detailing their legal structures, purposes, and operational scopes. The analysis extends to the relationships between organizational structures and objectives, highlighting the roles of HR, sales, and marketing departments. A case study on the UK supermarket sector then assesses the positive and negative impacts of political, economic, and social macro factors on business operations. Finally, the report emphasizes the importance of internal and external investigations to determine a company's strengths and weaknesses, and how these factors are influenced by the broader macro environment.

Business & The
Business Environment

Table of Contents
INTRODUCTION
............................................................................................................................................................
1
1. Explanation of several kinds and aim of enterprises; public, private and voluntary sectors
and legal structures...................................................................................................................1
2. Analysation the scope and size of a range of various kinds of organisations....................3
TASK 2
............................................................................................................................................................
4
3. Identification the relations between various structure roles and how they link to structure
objectives of organization.........................................................................................................4
TASK 3
............................................................................................................................................................
6
Case Study (The UK Supermarket sector)...............................................................................6
4. Determination of negative and positive treaty of macro situation has upon business
operations, founded by oarticular examples.............................................................................6
TASK 4
............................................................................................................................................................
7
5. Justify the external and internal investigation of particular company in order to determine
weaknesses and strength...........................................................................................................7
6. Explanation of how weaknesses and strengths interrelate with external macro factors.......8
CONCLUSION
............................................................................................................................................................
11

REFERENCE
............................................................................................................................................................
11

INTRODUCTION
Business environment is the set of internal or external factors which commonly affects
the decisions of business in an effective manner. Business environment can be classified in to
two parts micro and macro environment. Whereas, micro environment are the powers which are
interrelated with any kind of firm. Along with this macro environment refers to the all business
external factors which influence the company and its business as well. On the other side business
and the business environment refers to the collection of all individual, entities and so on.
Therefore, every business enterprises operates this environment in order to operate their function
effectively. This present report is based on 2 Tasks in which 1st task will be considered the essay
report which is based on profit or non profit organizations i.e. Tesco and Oxfam. Wherein, task
2nd will describe the case study which is based on UK super market sector so that these topics
will get covered in this report (Bovee, Thill and Raina, 2016).
TASK 1
1. Explanation of several kinds and aim of enterprises; public, private and voluntary sectors and
legal structures.
Private organization: (TESCO plc)
Tesco is a British multinational general merchandise and grocery retailer and
headquartered in Welwyn Garden City UK. This was formed in 1919 by Jack Choen along with
this It is the 3rd largest retailer company which is measured by their gross revenues. This
company has shops in 7 countries across the Europe and Asia. Tesco is listed on the London
Stock Exchange and it is also a constituent of the Financial Time Stock Exchange which is also
called FTSE 100 index. According to this concept it is a private organisation which operates their
business with the specific goals or making profit by partnership, an individual or agency and give
services to its customers surrounding the countries of UK.
Purpose- The main purpose of this company is to provide better services to their
customers in order to gain targeted goals or objectives in an effective manner.
Nature- Tesco is a very good company that always uses several kind of strategies or
techniques in order to build customer loyalty in a better way and reached the billion pound ratio
in 1979. Therefore, this company became the world's largest retailer organisation of UK.

Legal structure- Tesco follows hierarchical organisational structure as per this obligation
and position are classified in two parts that ensures work will complete smoothly or efficiently in
a better way.
Public organisation: (Crown prosecution services)
CPS is the principle public prosecuting agency for conduct the criminal prosecution in
the country of England and Wales. It is formed by the director of public prosecution. This service
is responsible for provide legal advice to the police and another investigation agencies due to the
course of criminal investigations.
Purpose- The main purpose of this public organisation is to provide good culture with
accurate knowledge in order to face difficult challenges in an appropriate way.
Nature- CPS was published in 1981 it is the undesirable for police in order to continue to
investigate or prosecute crime both. So that this organisation found itself occupying a position
between the courts and police.
Legal structure- The legal structure of this organisation is to redefine the role of
headquarters that ensures all senior lawyers including CCps spend more and more time in the
prosecuting that affects the people in an appropriate manner.
Voluntary sectors: (OXFAM)
In this sector Oxfam has been taken as an voluntary sector which is the connection of
twenty independent charitable organisations which is determined the comfort of global poverty
with type of non profit company. It was established in the year of 1942 through Jackson Cole on
England and manage their company's functions worldwide.
Purpose- The main purpose of this organisation is to helps in making accurate solution of
the unfairness of poverty. Whereas, vision is to make happy world so that they can live their life
without any issues (Bovee, Thill and Raina, 2016).
Nature- Oxfam is is a confederation of 20 national companies which are working
together in order to fight poverty so that this company can easily reduce the effects of poverty.
Along with this it focuses on the long term development emergency assistant or programs and
political advocacy as well in an appropriate manner.

Legal structure- This company is a international foundation which is limited by the
guarantee in UK. It has 19 affiliates where, Oxfam is currently supported by public engagement
office their main objectives is that raise money or involve in the public in their work.
2. Analysation the scope and size of a range of various kinds of organisations.
Explanation of different organisations and their size or scope of a range which are given
below:
Private Organisation (TESCO plc)
Size and Scope Product and Services Vision Mission
The scope of Tesco is
based on the level of
market wherein,
company sells their all
item. Size is also very
wide because company
operate their 7,000
retail stores globally.
This company uses its
own products that
includes in the grocery
item or supermarket.
Also give various
services to their
customers like clothes,
food items and so on
(Cai and Yang,
2014).
Tesco's vision is to
make good products as
per the customer
requirements.
Mission is to develop
good customers in
order to gain their
brand loyalty.
Public Organisation: (Crown Prosecution Services)
Size and Scope Product and Services Vision Mission
CPS operates their
800,000 prosecution
and 2,900 solicitors
and also have 600
members in them.
This company provide
several advice to
police departments.
They create few
information and decide
CPS is to become very
independent or provide
different advice to
people in an effective
manner.
CPS strive for
excellence and offer
their advice in a good
manner so that this
public organisation

the criminal charges
on the suspect.
can build trust with
their colleagues in a
specific way.
Voluntary Sectors: (OXFAM)
Size and Scope Product and Services Vision Mission
This is the
combination of 20
independent charitable
companies which are
working together in
order to finish poverty
and provide welfare
economy services in
an effective manner.
This offers
humanitarian services
and drought prone
areas. Along with this
they al;so have main
motive to erase
poverty from all areas
and give happy culture
to every people across
the world in a better
way.
Company's vision is to
ensures that their
product with pride and
stay conscious of all
type of firm actions.
Apart from this
another vision is to
provide affordable
product to its
customers.
Mission is very clear
in order to eradicate
poverty across the
world also protect
human life in an
effective manner.
Main thing is that
company also believes
in the equalities that's
why it gives their
services equally.
TASK 2
3. Identification the relations between various structure roles and how they link to structure
objectives of organization.
In this present world, there are various organisation and plays different role according to
their system and operation in an effective way. Wherein, Tesco has different department in their
functions of organisation. This company also gives better services to their customers in an
attractive way in order to gain customer loyalty or valuable feedback in a better way. These type
of units have several kind of roles and responsibilities and have common aim to achieve the

goals or objectives of business (Chavis, Klapper and Love, 2011). There are different different
organisational functions and they link to organisational objectives or structure, which are given
below:
Human resource department:
HR department is a important component of employees in the any kind of business. In
this, Human resource is responsible for benefits, hiring, payroll and keeping upto date with the
federal or state tax laws in a good manner. The HR sources mainly includes in the few
categories that is PEOs, BPO an so on. In regards with Tesco this company also operate their
function efficiently and recruit good candidate for suitable job in their workplace. Therefore it
shows the interrelation of company's functions and their market function with the respect of
organisational objectives in an effective manner.
Sales department:
This is the direct link between a company's service or product and its customers. Good
sales is very helpful in order to create good relations with the customers in a respective way.
Sales also helps in identifying the customer's requirement or needs and make sure that those need
are fulfil in short period of time. In context of Tesco, they create strong relationship with their
colleague or employees in order to make good product for customers in an attractive manner. So
that this function is interrelated with organisation structure or their objectives because mostly
company uses these function with the help of this any company can make good customers.
Marketing department:
It is very important term or department of any kind of business, it includes in different
types of product and services in a good manner. It offers important research in order to justify the
customer target or audience as well. As per this Tesco is based on hierarchical situation whereas,
this company deals with various kind of product according to the customer requirement in the
marketplace as a retailer company it has lot of value and image at market that cam make them
valuable in front of the customers. So that these elements or functions are interrelated with the
organisation objectives or structures (Erasmus, Strydom and Rudansky-Kloppers, 2016).

TASK 3
Case Study (The UK Supermarket sector)
4. Determination of negative and positive treaty of macro situation has upon business operations,
founded by oarticular examples.
There are several factors of macro environment which affect UK supermarket sector
positively or negatively which are given below:
Political factor: It is one of the important or huge factor which mostly affect the UK
supermarket in an effective manner. This is because there are several firms which has different
aspects or target in the UK market. For example Tesco has announced plans to simplify their
business that will be result in 1,700 jobs so that it can be effect positively or negatively.
Positive- The positive side is that political factor can helps UK market in order to operate
their functions or operations in a better way.
Negative- This create by the changes in policies or different functions so that this
situation can develop conflicts between the company or market.
Economical factor: In this factor UK super market is responsible in order to their environment
or nation free so that firms can easily exist in UK. For example M&S prepare a plan to close
their 14 shops so that company can exist in the market according to the employee scope.
Negative: Rate of interest and taxation can increase and it can affect the functionality of
UK supermarket.
Positive: There are several policies or rules which is good for running business smoothly.
Social factor: This factor includes in the different type of cultures, beliefs, rules, norms, values
and so on. In which UK supermarket can directly increase their profitability because this is very
helpful sector which impact positively. For example Sainsbury's has announced several plan in
order to putting 1000 jobs for candidates.
Positive- By this factor UK supermarket can easily build their customer relationship form
different cultures. This is because few firms which are providing better services to their
employees in an effective way.
Negative- This can be impact negatively on macro environment because of lot rules and
legislations (Hilton and Platt, 2013).

Technological factor: In the modern scenario, technology is very famous element of every
organisation that improves the quality of their systems. UK supermarket follow unique or
different technologies in order to make their services effectively. For example UK supermarket
deals with Asda that has prepared 28 job vacancies in the UK so that people can easily get job
opportunities so its impact positively.
Positive- It will helps UK supermarket in order to make their services better in a
attractive way. Also helps to change their technologies according to the present world's demand.
Negative- It can be difficult for company in order to follow new techniques every time
because it can be the high cost where company has to pay.
Therefore, UK supermarket can get Affected by several environment aspects but
somewhere, it is benefits for every firms so that they can easily learn the rules and regulation of
UK market in an appropriate manner (Hunter, Saunders and Constance, 2016).
TASK 4
5. Justify the external and internal investigation of particular company in order to determine
weaknesses and strength.
UK supermarket has largest structure that exist in the various type of factor like
oligopoly, monopoly or a perfect competition. For example Tesco, it is a third largest retail store
across the world so that these all are the important aspect in order to analyse the SWOT analysis
of an organization which are given below:
Strength Weakness
 Tesco is the grocery retailer and
number one supermarket in the UK. It
also has high sales and revenue as
compared to the other supermarkets in
UK.
 It has also launched several kind of
stores that includes in different aspects
like Tesco home plus, metro, express
etc. these all are strength of the UK
 Tesco had to exit from the Japanese
market in 2012. it was also failed in the
operations which is forced by the
company in order to close stores in
Japan so that it was the weakness of
UK market.
 Due to higher debts there are lot of
financial errors which impact UK
supermarket negatively.

supermarket that create good customers
and manage their business globally.
 There is low cost strategy where Tesco
is the leader in the UK market that can
reduce the profit.
Opportunities Threats
 Tesco has recently formed Jacks, this is
also a new discount store which shows
the importance of growth. It has an
opportunities to develop business
successfully.
 There is an opportunities of joint
venture in which Tesco performing
under them effectively so that it can
improve the working efficiency of
people.
 Emerging market is also a good
opportunities for UK supermarket in
order to develop lot of stores of Tesco
in South korea, Turkey and so on that
can be the profitable opportunities for
UK supermarket sector (Karagiorgos,
Drogalas and Giovanis, 2011).
 Brexit referendum is no longer than
European union but in this deals and
cost have the matter a lot that can be
the treat for Tesco.
 Economic charges or credit crunches
can affect the UK supermarket
performance or efficiency of Tesco
because of critical reason.
6. Explanation of how weaknesses and strengths interrelate with external macro factors.
At present time, every company has lot of strength, weakness, opportunities or threats in
order to analyse their situation to achieve business goals and objectives in an effective manner.
There are several kind of external factors which influence the company's management and their
operations. In context of UK supermarket has been selected a big example of Tesco because this
firm expanding their business internationally easily. So that there is a interrelation of strength
and weakness of macro environment which has been listed below:

Political: In this Tesco manages their
functions globally. It directly influence the
company performance. It is essential for UK
supermarket in order to design their market
activities according to the customer needs.
Interrelation in the strength or weakness
with external factors:
Both term are interconnected with the political
factor because there negative or positive
impact as well in the form of strength it is easy
for company to follow all legislations where is
the weakness shows the UK supermarket's
situation that they are not follow their rules
which is govern by UK government.
Economical: This factor is very important for
the Tesco or UK super market because in this
company can put their cost or demand as per
the consumer needs in an effective manner.
Interrelation in the strength or weakness
with external factors:
These are interrelated because in this Tesco is
able to gain lot of profit within the UK
supermarket in a good way or weakness factor
shows the mismanagement in the companies
functions so that these all are interconnected
with external factors.
Social: With the help of social changes Tesco
has enhance their number of items or product
in order to increase the sales of UK
supermarket in a good way.
Interrelation in the strength or weakness
with external factors:
As per interrelation company can attain the
satisfaction of customers or in the term of
weakness it is tough fo an organisation that
operate their business easily because of lot of
issues. Therefore both situation can get
affected by macro environment factor in an
appropriate way (Kew and Stredwick, 2017).
Technological: This is very important factor
of any organisation in which Tesco from UK
market can expand their business easily by
using unique or different technologies in an
effective manner.
Interrelation in the strength or weakness
with external factors:
According to the interrelation concept both
term strength or weakness can get influenced
because of external macro environment that
heavily impacted on the company or UK
supermarket in a effective manner.

Porter's five forces model of Tesco
Threat of new entrants: As Tesco has leading as well as profitable retail chains which
exist for long period of time. Due to which the risk of new entrant is low as company can take
the advantage of its economies of scale.
Threat of substitution: Although Tesco has maintained its goodwill due to which
customer recognise it with its name and service. Still the threat of substitution is high because
other competitors of Tesco cut their prices and match their services with it
Bargaining power of supplier: As selected company perform their operations
worldwide due to which they form good supplier management relationship. This helps the
company to receive quality raw material and make sure customer do not find shortage of
inventory in store.
Bargaining power of buyer: The bargaining power of buyer within Tesco is low
because already company is fulfilling the requirement of customer by providing with quality
services at reasonable price due to which buyer are not in state to bargain.
Industry Rivalries: The competition in retail sector is intense due to which Tesco
concentrate to provide optimum services to customer that does not affect the profitability of
business.

CONCLUSION
According to the above representative report it has been analysed that business and
business environment is the combination of external or internal factors which affects the any of
firm positively or negatively as well. This concept mainly includes in the culture or environment
of an organisation. Furthermore, respective report has been analysed the different impacts of
macro environment along with the lot examples of several organisations like Tesco, Sainsbury's,
Asda and M&S has been covered in this report. Apart from this SWOT and PESTEL analysis
also defined in regards with UK supermarket also covered. At last respective report covered the
strength or weakness of interrelation in regards with external macro factors in an appropriate
manner.
REFERENCE
Books and Journal
Bovee, C. L., Thill, J. V. and Raina, R. L., 2016. Business communication today. Pearson
Education India.
Cai, S. and Yang, Z., 2014. On the relationship between business environment and competitive
priorities: The role of performance frontiers. International Journal of Production
Economics.151. pp.131-145.
Chavis, L. W., Klapper, L. F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp.486-507.
Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Halbert, T. and Ingulli, E., 2011. Law and ethics in the business environment. Cengage Learning.
Hilton, R.W. and Platt, D.E., 2013. Managerial accounting: creating value in a dynamic business
environment. McGraw-Hill Education.
Hunter, I., Saunders, J. and Constance, S., 2016. HR business partners. Routledge.

Karagiorgos, T., Drogalas, G. and Giovanis, N., 2011. Evaluation of the effectiveness of internal
audit in Greek Hotel Business.
Kew, J. and Stredwick, J., 2017. Business environment: managing in a strategic context. Kogan
Page Publishers.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Reed, O. L. and et. al., 2013. The legal and regulatory environment of business (p. 328).
McGraw-Hill/Irwin.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150. pp.35-
45.
Weiss, J.W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.
Zur Muehlen, M. and Shapiro, R., 2015. Business process analytics. In Handbook on Business
Process Management 2(pp. 243-263). Springer, Berlin, Heidelberg.