Business and the Business Environment

Business And The
Business Environment
TASK 1

Introduction
 The complete knowledge about an organisation starts
from knowing about the type or category to which it
belongs.
 Organisation is considered as that functioning body that
works for a defined aim and objective. This can be profit
oriented or vice versa.

Tesco
 Tesco PLC is a multinational
organisation that deals in
groceries and general items
that are required in day to day
life.
 Founded in 1919.
 Headquarters are in England.

1.1 Types of organisation
There are three types of organisations:
 Public sector
 Private sector
 Non profit or voluntary

Purpose
 Private sector: Runs with the purpose of earning maximum profits.
 Public sector: Its sole purpose is to provide services to the citizens
and add up to the country’s economic development.
 Non profit segment: They do not work for earning any sort of
profit but for the welfare of the society.

Legal structures
 Private sector: The company has no intervention from the
government. It is solely the responsibility of the founders and the
operators.
 Public sector: The complete functioning and regulations are carried
out by the government of the country.
 Voluntary sector: The non voluntary sector has no interventions
from public or private unless they are the sole founders of the same.

1.2 Size

Scope

1.3 Effects of structure, size and scope on
objectives, products and services
 The structure, size and scope has a great impact on the
objectives, products and services provided by the
company.
 TESCO has an organised structure which helps it to
attain its objectives and function smoothly
internationally.

2.1 Link between objectives and other
functions of organisations
 The objectives of an organisation are defined so that it gets a
direction for performing its operations.
 If all the functioning department of a company are to be
brought together then, objectives is the key link. A mission
and vision gives the company a reason and spirit to work
better and fuller.

2.2 Advantages of interrelationships
 The functionality of the organisation will increase ass all
the different sections will work in rhythm.
 Interrelationships also help the company to innovate and
have better internal environment as compared to those
where the different functioning departments do not have
communication.

2.2 Disadvantages
 If communication gap persists in the organisation then
strategies and objectives will not be corresponded.
 The major drawback of such relationships is that due to
different working styles and ego levels conflicts will
arise which is not good for the organisation.

2.3 Different types of business structures
The various kinds of business structures are described
below:
 Flat
 Hierarchical
 Divisional
 Functional

References
Books and Journals
 Ferreira, P. S. and et. al., 2012. Framework for performance
measurement and management in a collaborative business
environment. International Journal of Productivity and
Performance Management. 61(6). pp.672-690.
Online
 About Us. 2016. [Online]. Available Through: <
https://www.google.co.in/webhp?sourceid=chrome-
instant&ion=1&espv=2&ie=UTF-8#q=tesco+about+us>. [Accessed
on 15th December, 2016].