Business & The Business Environment - Analysis of Organisations, Macro Environment and SWOT

This report provides an analysis of functions of organisation and their link to organisational structure and on scope and size of a range of dissimilar types of organisation. It also recognizes negative and positive impacts in terms of macro environment upon operations of business and needs to be supported by specific examples. Additionally, it identifies strengths and weaknesses through internal and external analysis of specific organisations.

Business & The Business
Environment

Table of Contents
PART1.............................................................................................................................................3
INTRODUCTION...........................................................................................................................3
P1 Explain about different purposes and types of organisations for particular structures which
include private, public and social sectors and legal structures........................................................3
P2 Explain about the size and scope of a range of dissimilar kinds of organisations.....................5
P3 Describe about the relation between dissimilar functions of organisation and how it should
be linked to organisational structure and objectives........................................................................6
PART 2............................................................................................................................................7
P4 Recognize about negative and positive impacts in terms of macro environment upon
operations of business and needs to be supported by specific examples ........................................7
P5 In order to identify strengths and weaknesses conduct internal and external analysis of
specific organisations.......................................................................................................................9
P6 External macro factors interrelation with strengths and weaknesses........................................9
CONCLUSION..............................................................................................................................11

PART1
INTRODUCTION
Business environment refers to the total of all external and internal factors. These factors
include supply and demand, employees, customer's expectations and needs, suppliers, clients,
owners, management, changes in economy, trends in market, innovation in technology and
activities by government. All particular factors affect the function of organisation and it also
depends on that how a company works directly. Business environment main role in identifying
opportunities with respect to business, useful resources which needs to be tapped, assists in
planning and improves the overall performance, profitability and growth in the business(Jones,
R., 2015). In this report, the analysis has been done on functions of organisation and their link to
organisational structure and on scope and size of a range of dissimilar types of organisation. The
analysis has also been done on impact of external macro factors on business operations and on
different types of organisation and macro environment. Research has also been done on their
interrelationship with internal strengths and weaknesses.
P1 Explain about different purposes and types of organisations for particular structures which
include private, public and social sectors and legal structures
There are commonly three types of organisations in business world. It includes public,
private and voluntary organisation. The chosen public organisation is BBC. The chosen private
organisation is TESCO and chosen voluntary organisation is Oxfam.
Purpose of BBC: Their core purpose is that to serve the public, give information, educate and
entertain public in positive manner(Sullivan, R. and Gouldson, A., 2017). From public purposes,
trust is the main framework for the BBC and the executive who is led by Director-General and
also delivers the BBC's services and creative output.
Legal structure of BBC: This is mainly governed and regulated by Ofcom. BBC is a statutory
corporation which is independent from direct government intervention. This issues a framework
of operational parameter and also sets a license which contains the regulatory conditions which is
required to meet.
Stakeholders of BBC: There are majorly two types of stakeholders which includes internal and
external stakeholders.

Internal stakeholders are those which exist in form of groups within a business. For
example: Owners and workers. External stakeholders are those which exist in form of groups
outside a business. For example: Community, manager, employees.
Purpose of TESCO: Their core purpose is that to be the champion for customers which helps
them in enjoying a better quality of life and also an easier way of living (Rezaee, Z., 2017). Their
purpose is also that to provide great products at great value which they can buy on easier terms
and its their job to deliver it in right way for their customers.
Legal structure of TESCO: As TESCO is a big company, the legal structure of this company
has a flat hierarchical structure with just six levels. . The people in this sector majorly deals with
shareholders. This has been done to make sure that TESCO has to achieve those strategies which
their share holders wants them to achieve.
Stakeholders of TESCO: The main stakeholders of company are creditors, suppliers, customers
, government, local communities, pressure groups and competitors. For super market the major
stakeholders are business owners, managers and employees. It includes under category of
retailers in case of supermarkets.
Purpose of Oxfam: Their main purpose is that is to help people in creating the lasting solutions
for purpose of injustice in poverty. They are part of global movement of change and also take
part in empowering people for creating a future which should be in secure nature. And also it
should be free from poverty.
Legal structure of Oxfam: Their global structure is comprised in such a manner that it includes
International Board. It also comprised of four members which are of independent kind of nature
and five members from the boards of national Oxfam affiliates. Generally, affiliates and
stakeholders are the basis of a multi-stakeholder global assembly
Stakeholder of Oxfam: Under this context, the major stakeholders are supporters and donors,
alliances and coalitions, government, private sector, environment and the wider public. This
company falls under category of voluntary.

P2 Explain about the size and scope of a range of dissimilar kinds of organisations
There are three different types of organisation which include public, private and
voluntary organisation(Kathan, and et.al., 2016). Chosen public organisation is BBC and private
organisation is TESCO. The chosen voluntary organisation is Oxfam.
Size of BBC: It is the largest broadcaster in the world in terms of number of employees and the
world's oldest national broadcaster . It has employed over 22000 staff as in total number. Public
sector broadcasting includes of whom more than 19000.
Scope: It covers majorly at national level, as it is a very old broadcaster. In UK country it has
major scope.
Objectives: Their major objective is that to grow membership revenue, attract investment
funding on a large scale. It also focuses on increasing project revenue. It has also objective with
respect to improving communication to media, stakeholders and staff.
Size of TESCO: The company is largest food retailers in world. It operates around 2318 stores
and it employs over 326000 people (Tussyadiah, I. P., 2015). They also provide services through
online mode.
Scope: Their scope is related to that extent in which it sells services and products. They also
planning to expand in US and already largest retailer in UK. Europe and Asia has already wide
markets of it.
Objectives: TESCO has their main objective to provide quality products to their customers at
great value.
Size of Oxfam: On global level, organisation has less than 300 staff members. Oxfam affiliates
have around 10000 staff and there are around 50000 interns and volunteers which are located
around the world.
Scope: This company works with aim of global movement of people. They work on the
worldwide basis for providing best services to their customers. But it majorly working in 90
countries for purpose of ending poverty and injustice and to save lives as well.
Objectives: Their main objective is that to provide lasting solutions for purpose of injustice to
poverty (Todeschini, and et.al., 2017). This is basically concerned with empowerment of people
to create a future which should be in terms of secure manner and also it should be free from
poverty.

All these three organisation have their own objectives, size and scope(Wolmarans, H. P. and
Meintjes, Q., 2015).Reason for having different objectives is that all companies are from
different sectors and have different targets to achieve it.
P3 Describe about the relation between dissimilar functions of organisation and how it should
be linked to organisational structure and objectives
With respect to TESCO company, there are various departments within an organisation.
It includes HR department, Finance, Marketing and sales, operations department. Their
interrelationship has been described into following manner:
Relationship between HR and Finance department: These two departments are interrelated
with each other (Chankova, D., 2019). Finance department allocate amount for purpose of
recruitment and hiring of employees. In this way, HR department is dependent on finance
department for purpose of particular amount (McWilliam, and et.al., 2020).HR department is
only one department who has proper knowledge about their employees and also their aspects
related to it. So for purpose of maintaining data of overall organisation in financial terms then
information can only be provided by HR department.
Relationship between Finance and Marketing department: Both departments have their own
requirements and needs. Finance department wants to control money but marketing department
wants flexibility and have risk taking nature. For purpose of marketing of products and services,
this department needs financial support (Winquist, and et.al., 2019). Under marketing
campaigns, online marketing and structuring of website and also amendment in it requires
support of finance department. Both departments have common objective that to improve
efficiency and also need return on investment. Marketing department main work is to do
promotion of their products and services so that they can be sold out on a larger level. As a result
company earns large amount of money when their products are sold out on a large scale(Hyers,
D., 2019). In this way, finance department supports marketing department by allotting money for
purpose of promotion.
Relationship between HR and Marketing department: Marketing department main work is in
terms of maintaining brand image of company. So for that purpose this department need smart
employees so that company can achieve their daily tasks.

Then marketing department gives their requirement to HR department in terms of recruitment of
some employees(Wu, X. and Gereffi, G., 2018). HR department gives their contribution in
marketing department by maintaining employment branding which ensures the organisation is
perceived properly by internal employees and external candidates.
PART 2
P4 Recognize about negative and positive impacts in terms of macro environment upon
operations of business and needs to be supported by specific examples
With respect to TESCO company which is a British international merchandise retailer. It
is famous in UK market.
Political Factors: These are those factors that how the government intervenes in an economy.
These include tax policy, environmental law, labour law, trade restrictions and tariffs.
Positive impact of political factor: Due to changes in corporation tax policies and improvement
with respect to it leads towards the better growth of a country. There are some laws which is
related to employment perspective. It includes employment rights act 1996, equality act 2010,
health and safety at work act 1974.
Negative impact of political factor: Due to BREXIT issue has its negative impact on an
economy. Due to this condition company is unable to perform in a better manner.
Economic Factors: These factors majorly determines performance of a country that directly
impacts company and also have resonating long term effects.
Positive impact of economic factor: If economic factors have positive impact on country then it
means that sales, distribution and financial performance is in satisfactory manner (Guo, and
et.al., 2018). With respect to TESCO, it is a major player in market then there are maximum
opportunities that it will give positive results to company.
Negative impact of economic factor: With reference to company, due to changes in policies of
country then it leads towards the major change in delivery model of the company and also cost
associated with it.
Social Factors: These factors include cultural trends, population analytics and demographics etc.

Positive impact of social factor: Due to fast pace of life and impact of this particular factor, now
the company has diversified itself into noon-food sector also.
Negative impact of social factor: When company has planned to diversified itself into different
sectors then it becomes challenging to remain on top priority due to which it get famous on an
initial phase.
Technological Factors: Under these factors it has relation with innovation in technology which
affect and also market in favourable and unfavourable way and the operations of industry .
Positive impact of technological factor: TESCO company has worked in context of online
shopping and social media promotions. Due to which it has extend themselves in online mode
also along with modern changes according to current period of time. Use of artificial intelligence
and machine learning also contributes in enhancing way of working.
Negative impact of technological factor: Due to online shopping trend in TESCO company,
customers do not physically visit the stores and due to which the company has to bear certain
kinds of losses and needs to pay extra bill. Extra bill is in terms of electricity and for
maintenance part as well.
Legal Factors: Under this factor, there are some policies that companies need to maintain for
themselves and there are some laws which affect the business environment in a particular
country. Laws related to wage act and health and safety of employees working into an
organisation. National minimum wage act 1998 and health and safety & work act 1974 is very
important from company's perspective.
Positive impact of legal factor: Due to changes in government policies there has been major
impact on company's operations (Economou, F., 2019). Laws related to minimum wage act and
health and safety and work is very important from perspective of customers.
Negative impact of legal factor: Legal factor may also influence business and also affect how
company operates. Legal factors that affect business it includes laws and regulations on taxation ,
employment, contract, securities.
Environmental Factors: These are those factors which are determined or influenced by the
surrounding environment. It includes geographical location, global changes in climate.
Positive impact of environmental factor: TESCO has taken initiative in order to improve
environment by minimizing the waste produced in their stores with support of increasing social
conscience in customers.

Negative impact of environmental factor: Company has to face negative impact of some
particular environmental factors(Rendtorff, J. D., 2019).Waste produced by company within
stores has impacted environment on al large scale.
P5 In order to identify strengths and weaknesses conduct internal and external analysis of
specific organisations
With respect to TESCO company, every organisation has its strengths, weaknesses,
opportunities and threats. SWOT analysis of TESCO has been defined into following manner:
 Strengths: TESCO strength is that it has good financial turnaround and also has good
market share in UK country. It is also good in terms of innovation factor during time of
pandemic for optimizing its delivery scheme.
 Weaknesses: There are some weaknesses of company which is with respect to failure in
the US and Japanese market, sudden club card switching and accounting fraud scandal
and financial errors.
 Opportunities: There has been growth in terms of online grocery sales. It can be
possible due to COVID-19 crisis because people can't go out in market so they go for
online shopping. Due to this pandemic situation, it has been observed that there is high
unemployment rates(Carey, P. J., 2015). That's why there will be higher opportunity for
jobs in TESCO like supermarket.
Supermarket chain has partnered with IT consulting company for purpose of improving
productivity and operations. With this support of AI and machine learning can act as a game
changer for supermarkets.
 Threats: For TESCO company, threats can be in terms of global economic environment,
seasonal variations and risk in oil and gas industry.
P6 External macro factors interrelation with strengths and weaknesses
Interrelation Strengths Weaknesses

Political Factors Political system of UK country
is very strong and stable and it
act as a strong point for
TESCO company. Due to its
rules and regulations and tax
policies, country act as in a
strong way.
Due to its tax policies and
strong rules and regulations,
it's become very challenging
for businesses to work into
result-oriented manner.
Economic Factors As UK country is very strong
in financial parameter and in
terms of GDP their
performance is satisfactory due
to which they act as a strong
country in world
Due to its strong performance
in financial parameter, many
countries become dependant
on them from perspective of
credit part. So country has to
be very smart in terms of pay
back policy.
Social Factors In UK country, mostly people
are from different backgrounds
and culture so company has
opportunity to launch different
kinds of products and services
for meeting out customers
requirements.
While launching different
kinds of products and services,
their focus has been shifted
from food sector due to which
it's become challenging to
maintain that previous level of
standard in terms of food
sector.
Technological Factors As this country is very
advanced in innovation in
technology and also they are
indulging into artificial
intelligence and machine
learning. TESCO company has
also collaborate with TCS
consulting company for
With changing period of time
different type of technology
has been coming in market and
old technology comes in
category of obsolete
technology due to which it's a
challenge for company to
continuously maintain

purpose of better productivity
and operations.
themselves according to
current period of time.
Legal Factors UK government has made
some amendments in laws and
rules and regulations for
purpose of better working of
organisation. TESCO company
has adopted these changes so
that they can enhance their
performance as well as
productivity
In this competitive world, UK
government has cancelled
license of some stores because
they are not properly following
rules and regulations. TESCO
is bound to follow some legal
formalities and frameworks
due to which it affects
performance of company.
Environmental Factors UK country is very specific in
terms of protecting themselves
in sustainable manner. TESCO
company has taken initiative
with respect to save paper and
implement concept of
recycling of waste products.
In context of working into
positive manner for
environment then company has
somewhere shift their focus
and needs to do lots of
expenditure for meeting out
this target.
CONCLUSION
It has been concluded from above report that business environment plays a very
important role. Business environment includes external and internal factors which affects the
operations and productivity of an organisation. There are different types of structures of
companies in this competitive world. So every organisation has different objectives and goals
according to their different intentions. Within the organisation there are different departments
and every department has their own functions but somewhere they are inter related with each
other. So in terms of working part every department is interdependent on each other. In terms of
achieving good results it is required that policies and rules and regulations should be made
according to analysis of external environment. So it's important that decision taken by an
organisation needs to consider all aspects from perspective of internal and external environment.

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