Report On Business And Business Environment - Tesco

BUSINESS AND BUSINESS
ENVIRONMENT

INTRODUCTION
Business environment is the sum or total of all activities related to external and internal
factors that affects a business. The forces that build business environment are suppliers,
competitors and media with government are important to build environment and affect to it even
external factors are out of control. This report is based on TESCO which is an British
multinational grocery and general merchandise retailer in the whole world and its headquarter is
in England , UK. It is third largest retailer in the world in context of gross revenue and ninth
retailer in the whole world. This report is based on different kinds of organisations in which
public, private and voluntary with their legal structures, size and scope to enhance understanding.
In public sector organisation in which BBC and in voluntary organisation is Wellcome trust that
are playing crucial role in economy. It also includes interrelationship in various functions of an
organisation and their link with organisational structure. Further it elaborates about macro
environment that affect organisation with its positive and negative effects on organisational
proceedings and internal analysis of an organisation and their interrelation. For an organisation
internal and external environment are very much important to remain always competitive by
finding out major spheres in which improvement is very much crucial. All these organisation
contributes in growth and enhancement of an economy.
TASK 1
P1 Elaborate various kinds and purposes of organisations and their legal structure.
In an business environment there are various kinds of organisations that builds product
and services after evaluating needs and wants of consumers in proper way and contributes in
economic development (Al-Saleh and Mahroum, 2015). For that report the chosen organisation
of private sector is TESCO, for public organisation BBC and for voluntary organisation
Wellcome trust that all contributes in economic development. In different types of organisation
consist of Private, Public and Voluntary organisation here are the description of these
organisations and various factors:
Types of business:
There are majorly two kinds of business that are
Profit:

Profit businesses are those enterprises that builds product and services by satisfying needs
and wants as per the need of consumers to maximise profit. It also contributes in economic
development and growth.
Non profit business:
Non profit businesses are those that establish in market with the purpose of public
welfare and their main goal is not to earn profit but to build advance products and services as per
the need of consumers.
Private organisation:
Private sector is a part of economy that run or operated by individuals and their main
motive is to earn profit and state not control their works and activities (Azma and Mostafapour,
2012). Hence it included all profit oriented organisations that are not owned and operated by
government. In that report chosen organisation for private sector is TESCO which is a British
multinational grocery and general merchandise retailer, headquarter is in England, UK and it is a
third largest retailer in the whole world in context of revenue. Its main objective is to build
products and services as per the needs and wants of consumer by earn profit. Every organisation
operates in economy with an definite objective and follow a legal structure that helps to gain
organisational goals and objectives.
Purpose:
The main objective of TESCO is to enhance living standard of people by giving
enchanted experiences to consumer base to giving values by ensuring consumer satisfaction
(Storey, 2016.. ). It helps to give delighted experience and it ultimately proved beneficial for
organisation to enlarge business opportunities.
Legal structure:
Legal structure is an important attribute for an organisation and for private organisations
there are different kinds of legal structure that are as follows:
 Sole trader: Sole trader is one person organisation, found in trades in which only small
amount of money or finance required to set that kind of businesses.
 Partnership: To overcome from concerns of sole traders, a partnership firm should be
formed that is an association of individuals and have 2 to 20 partners (Cepel and et.al .,
2018).

 Private limited company: That is an kind of joint stock company which has separate
legal identity from their owners and they are small, family runs businesses that owned
and operated by shareholders. In case of TESCO that operated under private limited
company that possess their own identity in market place to remain always in market
place.
Public organisation:
Public sector is an important part of countries economy that effectively or efficiently
controlled by government and main motive is to serve people in better way. For that report
public sector organisation that is BBC (British Broadcasting corporation) which is a British
public service broadcaster. Its headquarter situated in London and one of the oldest national
broadcasting organisation and largest broadcaster in terms of no. of employees.
Purpose:
The main purpose is to ensure by conducting research and development activities to fulfil
mission and promotion of the public purposes and to maintain significance in the whole market.
Legal structure:
To reach at desirable goals and objectives, there are some prescribed form of government
that are as follows:
 State government: State government is an kind of government of a country which
subdivision of federal form of government that shares political power with national
government (Deasy and et.al , 2016). BBC comes under the control of state government
that control each and every activity under state level.
 Central government: Central government that are accountable for accomplishing
important decisions related to operations of an organisation.
 Local government: Local government are accountable for handling and managing all
works and activities related to local authorities by applying various rules and regulations
to get assistance from government.
Voluntary organisation:
Voluntary group or union is an group of individuals that work under a agreement as an
volunteer to accomplish some purpose or objectives (Grover and Kohli, 2013). The common
example of volunteer are trade associations, trade unions and learned societies and many more.
For that report voluntary organisation that is Wellcome trust which is a biomedical research

charity located in London UK. It established in 1936 to improve the health of both human and
animals in better way.
Purpose:
The main purpose of that trust is to provide extraordinary achievements in health by
finding or supporting the brightest minds. It also conducts biomedical research that supports the
understanding of public in science.
Legal structure:
There are a legal structure that follow by a voluntary organisation that are as follows:
 An unincorporated association: That form of legal structure formed by individuals by
signed a contract in parties to give prosperous life to people (Hockerts, 2015). That
organisation system or structures best for small groups that held short term goals and
objectives and low income. Unincorporated associations are very much quick and cheap
to set up and there is no legal and separate existence in the whole world.
 Trust: In trust consist of three parties in which donors, trustees and beneficiary that are
accountable for welfare of profit and not to earn profit. Trust is an generally a set up to
manage and coordinate money and property to attain specific role and purpose in better
way. They establish a formal relationship in the three parties that are donors, trustees and
beneficiaries that helps to set up all legal obligations in proper manner.
To lead in the market organisation have to spend in current market by enlarge business
opportunities in better way. In context of TESCO primarily they operate at regional level but as
time passes it enlarge business opportunities with the help of various entry strategies and become
global brand name in the market (Hallward-Driemeier and Pritchett, 2015.). It presently work as
an global leader by acquisition other firms and products in better way. Acquisition and merger
are the transactions in which ownership of companies and other business organisation by
consolidating or transferred with other entities in positive manner. In context of TESCO which is
primarily a small business after analyse the current needs and wants of consumers they become
large enterprise and lead in market.
P2 Size and scope of a range of different types of organisations.
There are various kinds of organisations exist in economy such as public, private and
voluntary to provide good and services to consumer. The main aim of these organisation is to