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Business & Business Environment of TESCO : Assignment

   

Added on  2020-10-22

19 Pages4577 Words281 Views
BUSINESS &BUSINESSENVIRONMENT

INTRODUCTIONBusiness involves activities which are conducted by group of people in order to attainsame goals and objectives. They have main objective of long term sustainability and earninggood profits. In order to achieve this goals and objectives, managers of association has to makealterations in their plans and policies. Business organisation runs in society hence it is essentialto make policies according to external environment. When there is change in external factor,enterprise has to accept it (Bah and Fang, 2015). This helps to maintain long term sustainabilityin industry. This report is based on TESCO which has good name in retail sector. Thisorganisation is a British Multinational Groceries and general merchandise retailer in England.This report covers different types, size and scope of organisations, interrelationship amongdifferent departments, positive and negative impact of macro environment, internal strength andweakness in relation to external macro factors.Background of TESCOTESCO was established in 1919. This is an international largest grocery and generalmerchandising retail retail chain. This organisation has business in North America, EasternEurope, Asia. Founder of TESCO was Jack Cohen who had idea to create grocery store chain.He began business with small stall at Well Street Market. Jack Cohen opened the first TESCOshop in September 1931 at 54 Watling Street, Burnt Oak, Edgware, Middlesex. In 1947, it waslisted in London Stock Exchange. Business politics of TESCO is to purchase small outlet andthen sale product at cheaper rate. This leads to instant success to business. LO 11 Different types and purpose of association and legal structuresIn society, there are different types of organisation. They have different purpose andreason behind it. Hence employees have in order to attain their goals and objectives,. There aremainly three types of organisation i.e. private, public and voluntary organisations. Private organisationPrivate associations are the bodies which have main aim to earn profits. Thisorganisations are run by individual or number of individuals. They have their own sources offunds such as ploughing back of funds, bank loan, etc. In UK, these organisations plays aimportant role in developing economy of country. TESCO is example of private organisation.1

TESCO is the organisation which is largest international grocery store. This organisation waslisted in London stock exchange in 1949. they have plans to diversify their services and expandbusiness in all over world. TESCO deals in food, clothing, electronics, financial services etc.Benefits of private organisation is that there is more growth and development prospectswhich helps to increase workforce and this helps to provide satisfaction to consumers.Drawbacks of private business, there is division of ownership, profits which makes division ofdecision making power also. This is the organisation which deals in retail industry. Legal structure of private organisationsare as under-Sole proprietor- Sole proprietorship is an business enterprise which is run by singleperson. This is the association which requires less amount of money and aims to earn livelihood.These organisations are run by family members (Belás and et. al., 2015). Advantage of someproprietor is that individual is responsible for profits and has decision making power. Whiledisadvantage is that in case of lack of funds, it is tough to raise from external sources. Partnership- Partnership is the business which is run by two or more people. These arethe members which run business in order to attain same goals and objectives. There is pre-determined ratio of profits, losses, capital, etc. These partners have unlimited liability on closureand setting off liabilities. Partnership form is established under legal laws. Advantage of partnership is that there is sharing of losses and capital. While disadvantage is thatthere is requirement of consent of all partners. Company- Company is a legal body which incorporated under legal law. They have mainobjectives to attain good profits. They works according to external market trends and hence theyare able to attain long term sustainability. Advantage of company is limited liability. Hence in case of TESCO managers are notliable for debts personally. Whiled is advantage is due to change in market trend TESCO has toalter their working style. Public organisationThese are the organisations which works in order to serve society. In these organisations,there is interference of government because they work for social benefit. Governmentdepartments such as water, electricity department, etc. The Child support agency is example ofpublic limited company. Child support agency has different names in other countries such as2

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