Business And the Business Environment - Tesco Assignment

Business and the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Purpose and different type of organisations and adoption of legal structure........................1
P2. The size and scope of different type of organisation............................................................2
Task 2...............................................................................................................................................4
P3. the relationship between different organisation function and their link to organisational
objective and structures...............................................................................................................4
Task 3...............................................................................................................................................5
P4. identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................5
P5. conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses............................................................................................................7
TASK 4............................................................................................................................................9
P6. Explain how strengths and weaknesses interrelate with external macro factors..................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment refers to the combination of internal and external factors which focuses on
influencing e a company's operating situation. These factors affect a business operations and
various decisions which they have to take in their regular course of operations. Various factors
include political, environmental, social, legal, suppliers, competitors, customers and many
others. These all factors play a very crucial role in affecting internal decisions and functions of
company.
This report is based on super market company Tesco which is a American multinational
company and its foundation was laid in 1919. Jack cohen founded this company's This report
deals with various topics such as purpose of business environment, different types, their size and
scope, structure, function etc. analysis of external environment of Tesco which affects company
in both negative and positive manner(Sodeyfi, 2016)..
TASK 1
P1. Purpose and different type of organisations and adoption of legal structure.
There are some organisations which are used for serving the society and individuals
present there. All companies start their business with a purpose and objective that is generally
maximization of profit earning and creating a brand image in market. This helps in economic
growth of company and country ta same time.
Public Sector: These organisations are those which are regulated and controlled by
government of that country. They don't want to do maximization of profits but instead they want
to serve the society and fulfil requirements of people of society. National health service is one
such organisation which is having presence in UK, this company provides employment to
approx 1.6 million people. Main aim of this organization is to improve health of their patients.
This is a public organisation and government is having control on all its operations.
Private Sector: These are those type of organization which are part of country's
economy and contribute towards growth and development of country & its economy as a whole.
They make up larger share in the economy, and they are always controlled by private individuals

and enterprises. Private sector companies form big part of every economy, they may be in form
of partnerships, groups or individuals. There is legal regulation of government on such
companies but they are not public companies. Tesco is a UK based company they have small
convenience stores and also large hyper markets. There are more than 3000 stores in UK, and
they are one of biggest retailers in UK. This company is listed in London stock exchange and
also have stores present in Asia, Europe. People of UK are able to meet all their requirements
from one stop destination that is Tesco for fulfilment of their grocery requirements. This is a
private owned company and all their profits earned by them are solely owned by company.
Voluntary Organisation: there are some organizations which do not aim to earn
monetary profits, instead they aim to achieve other objectives being set by them these are
considered as voluntary organisations. They want to do social service for society or benefit
people living in society. Oxfam is a company which is a charitable organisation and it has
objective of eradicating property in the country which they are working. There are 20 charitable
organizations which are independent and Oxfam is a confederation of these 20 companies. They
work for benefit of people living in society who are below poverty line and don't have any
income source for their survival, fulfilment of basic needs. They try to provide some
employment opportunities, sources of survival to such people. This helps in upliftment of people
living in society and they can benefit from such efforts made by this company.
P2. The size and scope of different type of organisation.
There are basically three categories in which organizations are divided that is private,
public and voluntary. Apart from this categorizations there is another differentiation being made
between companies based on their overall turnover & productivity. They are classified into
medium, small and Large enterprises(Virglerová, Dobeš and Vojtovič, 2016). This classification
is very important to put a company in a particular category. This is applies on every company as
size, scope, vision, mission of every company, it structure all are different and they vary
according to their main objectives. Following are some of organizations whose size and scope
has been discussed:
TESCO
Vision & Mission- Vision of a Tesco as one of largest supermarket chain of UK is to
become most highly valued companies in terms of services and pro0ducts they are providing to