Business & the Business Environment: Investigating NHS and Tesco

This report investigates the overall business environment for NHS and Tesco, their structure, size, and scope, and how they link to business objectives and products. It also analyzes the interrelationship among various organizational functions and their connection to objectives and organizational structure.

1 Business & the Business
Environment

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Investigate into the overall business environment for NHS and Tesco.......................................1
TASK 2............................................................................................................................................6
Relationship between the organisation purposes and the manners to link the organisational
objectives and cognition..............................................................................................................6
The advantages and disadvantages of inter relation and their impacts on organisation
composition..................................................................................................................................7
Analysis over the complexness of various types of businesses structures and their relation with
various organisational role...........................................................................................................7
TASK 3............................................................................................................................................8
Positively and negatively influence upon the macro environment..............................................8
TASK 4..........................................................................................................................................11
Internal and external analysation...............................................................................................11
Inter relation of the strength and weaknesses with the extraneous macro factors.....................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Tesco is popular multinational groceries together with general merchandise retailed whose
headquarters are established at England, UK. It was founded in 1919 as group of market stalls in
hackney, UK. The company works with mission of serving its customers, plant and communities
a little better each and every day. It engages in business of retailing along with associated
practices, retail banking addition to insurance services. On other hand, NHS is publicly funded
healthcare system that lead to deliver high quality of services for all citizen s of globe. It was
founded in 1948 to provide healthcare facilities to all residents of England and other regions of
UK. In Tesco, key stakeholders are suppliers, government, customers, competitors, local
communities and so on that impacts decisions making along with practices of company. All the
stakeholders ensure that business work environment remain stimulating, rewarding along with
dynamic so that determined goals are attained promptly. Organisational structure followed in
Tesco is hierarchical structure that comprise ample number of control range together with layers.
Tesco is hierarchical due to the its considerable size. There are ample number of authorities
working, each with own ideas, responsibilities and duties within hierarchical structure of Tesco.
This report covers the various business organisation and their significance, this involves
public, private and voluntary together along with their legal formulation, size and scope.
Furthermore, the interrelationship among the various organisation functions and their connection
to objectives and organisational structure. Moreover, there is an internal and external factors
discussed which affect the businesses operational and how the strengths and weaknesses gets
connected with the macro components.
TASK 1
Investigate into the overall business environment for NHS and Tesco.
Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisations
In a company, structure, size and scope are linked with its objectives, products and services
offered in the market. For instance, being a private sector organisation, Tesco follows tall
structure in order to manage employee size of approximate 354,744 people at different locations
across Asia and Europe. The business objectives are linked with the scope and size of company
as it plans to advance the manufacturing in cost effective products with the minimal wastage.
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Likewise, Within NHS, Hierarchy and bureaucracy structure are adopted to operate in UK with
employee around 1370991 Headcount. With this, the company is planning to attain objective of
rendering services to a wide range of people as per the preferences and requirements of the
population.
The two organisations in different sectors, formation and retail. The table is a comparison
of the two selected and researched organisation.
Areas of comparison Tesco NHS
Business sector Tesco operates in private sector
as grocery retailer along with
general merchandise.
NHS operates in public sector
so to provide ample number of
health services for local and
global residents.
Sizes There are almost 354,744
people present in the
organisation who manages the
businesses operations in order
to enhance the profits (Tesco,
2022).
This includes almost 1370991
Headcount in their functioning
who contributes in attainment
of aims and objectives (NHS,
2022).
Structure Tall structure is followed in
Tesco wherein there are ample
number of leaders along with
layers of management. In this
structure, managers have a
narrow span of control and
follows long chain of command.
Hierarchy and bureaucracy
structure fits well at NHS as
there are needs for equity,
uniformity as well as
accountability. It provides a
mechanism for population to
assess value for money from
NHS.
Scope Scope available with Tesco is
concerned with extent of market
in which it sells its offerings.
Tesco already has wide markets
in Asia, Europe and hence forth.
In NHS, scope is wide as it
offers healthcare facilities to
people belonging to England
and other regions of UK.
Being a public company, it
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The company also provides
online services through its
subsidiary that is Tesco.com
supports disabled people along
with their families.
Objectives The only focus of the company
is to advance the manufacturing
in cost effective products along
with the minimal wastage.
The major goal of this service
is to render their services to a
wide range of people as per
the preferences and
requirements of the
population.
Product/Services Clothing, Furniture, toys,
books, electronics, telecoms,
software, internet services.
The offering of this services
include accidents and crucial
care services, intimate well-
being services and several
more.
Plan B
Contrasting differences between organisation on the basis of business sector and Sizes
Business sector
Differences between Tesco and NHS on the basis of business sector:
Tesco: Tesco is private sector enterprise that works with purpose of making money and
enhance the maximum profit. The company achieve the objective by developing a balance
among the sales volume, price and cost. sells items directly to customers for their consumption.
Tesco mainly have store for selling these items but it also operates online services which allow
people to order online. Retail sales provide with greater inventory options because it has every
merchandise available with it. Retail stores can provide customers with those items which they
even did not know.
NHS: The National Health Service is public sector company that is owned, controlled
and funded by the government in form of taxes. NHS does not aim to earn profits rather than
providing services to the public for their benefit. NHS is totally focused primarily on
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infrastructure and essential service for society to provide them better health care system. This
health system is able to reduce management cost of multiple private providers.
Sizes
Tesco: In Tesco employee size performing variant practices includes approximate of
354,744 people. The company performs in different divisions that are Tesco Stores Ltd, Booker
Group, Tesco Bank, Tesco Ireland, Tesco Family Dining Ltd and many more. In the year 2021,
net income earned by Tesco includes £6.147 billion, total assets available includes
£10.807 billion and total equity entails £1 2.325 billion. At stores of Tesco, hierarchical structure
is followed wherein obligations along with positions are divided into ample number of parts for
ensuring that work is performed efficiently as well as smoothly (Tesco organizational structure
at store level, 2022). Organisational structure of Tesco at store level is as produced:
Figure 1 Tesco organizational structure at store level. 2022
(Source: Tesco organizational structure at store level. 2022)
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NHS: Within NHS, 1370991 Headcount carry out different healthcare services. In the
public sector company, around 835000 people visits their GP practices or practice nurse.
Moreover, approximate of 50000 people visits emergency addition to accidental departments.
Within NHS, divisional structure is adopted in which each unit has divisional manager with
responsibility to perform and authority over division (Divisional structure of NHS, 2022). With
this structure, managers of NHS establish clear patterns related to accountability and delegate
powers properly.
Figure 2 Divisional structure of NHS. 2022
(Source: Divisional structure of NHS. 2022)
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TASK 2
Relationship between the organisation purposes and the manners to link the organisational
objectives and cognition
Organisational structure can be said to a system wherein work flows through a company.
In context to Tesco, hierarchical structure is adopted that follows proper chain of command from
senior executives to regular workforce. Hierarchical structure in Tesco resembles a pyramid as
well as people with most authority occupies individual senior most position above pyramid while
subordinate people occupy positions at bottom. Using the structure, managers of Tesco provide
employees with ample opportunities related to development and promotion that results in driving
motivation for better performances addition to enhance job satisfaction.
The working of various organisation comprises of the several departments which
functions separately and conjointly to attains the mutual settled objectives of the company. These
sectors are interlinked and dependents on each-other to accomplish the company objectives.
Tesco is a Publicized organisation occupied in several functions for giving the best quality of
offering to their consumers. In context to the Tesco, the inter relationship of several business
functions within hierarchical structure are as follows: -
 Research and production and Development department: - The Tesco Production
department is committed over the responsibility of manufacturing of the quality products
for their consumers in order to maintain their consumer loyalty base. The research and
development team are committed over the responsibility of doing the market research so
as to acknowledge the consumers demand and requirements so there they can offer the
services accordingly. These both operations should coordinate among themselves thus the
valuable products can be provided to the people and attains the company aims and goals. The Commercialism and Human Resource department: - The commercialism unit is
committed over the communicating and promoting function offered by the Tesco
company in order to aware the people about the services and pull in the consumers to
purchase the offerings. The Role of HR department is recruit the skilled and creative
staffs within the organisation so that they can functions for the attainment of the company
goal and objectives. These two units have to work cooperatively so that recruitment is
done for the creative staffs for the creative communication among the people.
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 Finance and Information and Technology department- The finance section is
committed over the allocating finds of each division and fixed the budget accordingly as
per the revenue created. The information and technology department of Tesco working
for finding the new IT solutions so that new concepts are provided for the working.
These two units have to work cooperatively so that finance department allocates the
sufficient funds in order to find the suitable solutions and technologies for the company
for making the company work easier (Shamir and Howell, 2018).
The advantages and disadvantages of inter relation and their impacts on organisation
composition.
Tesco is worldwide operating company with their expanded operations. Several
departments are there in Tesco and they work separately and jointly for the attainment of the
structural goals. All the sections are working jointly and are connected with each other. This will
render advantages as well as disadvantage to the company this are discussed below: -
Advantages- The inter linkage between the several units benefited the company as it
develops a healthy and positive environment for working as the ideas gets flourished from
everywhere which gives the wider scope to the supervisors or the manager for taking the
decision.
Disadvantages- The inter linkage between the several units, creates the disturbance at
the workplace sometimes as every division as hindrance in each other units. The departments are
completely interdependent over the others operatives and this may sometimes delay the
determination and affects the total functioning of the company (Al Issa, 2020).
Analysis over the complexness of various types of businesses structures and their relation with
various organisational role.
While operating the business, every business structure has various complexities, for
example, the public companies are controlled by the government authorities thus there will be
interference of the government which make the working complex for the company and make the
organisation more accountable towards the stakeholders when compared to the private
organisation. These private working company gets indirectly influenced by the laws and
legislation implemented by the government affect and complex the working of the organisation.
The working and the purpose gets affected as the voluntary association are finding hard to raise
the funds.
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The Tesco company departments are interconnected within themselves which makes the
functioning difficult as they are interdependent on each other. On the other side this interlinkage
develops the flourishing environment and make the work effortless for the worker (Wagire,
Joshi, Rathore and Jain 2021). Sample organisational structure of Tesco is as follows:
Figure 3 Sample organisational structure of Tesco. 2022
(Source: Sample organisational structure of Tesco. 2022)
TASK 3
Positively and negatively influence upon the macro environment.
Macro environment impacts decision making of a company in terms of spending, investing
along with borrowing. In context to Tesco, macro environment impacts on the ways the company
operates, perform, devise action together with form strategies simultaneously. Managers od
Tesco are required to constantly track changes in the macro environment in order to make
successful operational decisions. To analyse influences of macro environment, PESTLE Analysis
is conducted by strategists of Tesco. The model helps managers of Tesco to keep check or
component of strategic management. Mentioned below are positive and negative influences of
factors of macro environment on Tesco:
Political factor: This factor comprises of taxation policy, government insurance,
international trade insurance policy and the environmental jurisprudence. The organisation is
operating over the twelve countries and have leading impacts. In UK, political leaders have
devised decisions related to trade regulations that are standardisation, licenses, subsidies, quotas
and tariffs to encourage businesses performance (Trade Barriers UK, 2022). Impacts of decision
making of political leaders on Tesco are as follows:
 Positive impacts- The government is stable in the UK which facilitate the Tesco
operations efficiently. Decision making by political leaders of UK for trade regulations
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impacts positively on Tesco as it decreases prices of imported commodities that enhances
demand in the country contributing to more sales volume and revenue generation.
 Negative impacts- In UK, trade regulations including tariffs raise price by government
and reduce available product quantities impacts negatively on Tesco in form of lowering
income, lowering output and increasing staff turnover.
Economical factor: These factor have important effects over the company. The company
profiles and the organisational profitability are defined by this which include the interest rates,
rising price and the rate of exchange etc. In UK, employment rate includes wages for people
between 16-17 years olds is £4.81 with a 4.1% increase, 18-20 years old is (£6.83 with a 4.1%
increase as well as 21-22 years olds is (£9.18 with a 9.8% increase (UK Minimum Wage in 2022,
2022). For Tesco, employment rate is a significant indicator to study developments in labour
markets. Mentioned below are positive and negative impacts of economic factor on Tesco:
 Positive impact- The Yearly wages in UK are amounted for 4.7 billion and enhanced by
4.5% for 25 years aged and onwards. In Tesco, hiring people belonging to age of 16 to 22
years old as per Minimum Wages motivates employees to higher standards of
performance. Managers of Tesco hires people as per minimum wages that impacts
positively in decreasing various costs such as paying high salary to workers and many
more.
 Negative impact- When there is the revocation in the UK country, the company
workflow gets affected because it affects the high working cost and lower the
profitability of the company. Inflation rates are rising in UK that impacts negatively on
company, such as Tesco resulting in issues in supply chain because of continual rise of
gas prices and business striving to source materials at lowest possible costs.
Social factor: These factors determine the mutual content and knowledge of the people
and also includes health consciousness, population growth and age distribution. In UK,
population are changing their attitudes for retail products that impacts positively on sales and
functioning of retailers, for example, Tesco. Below are positive and negative impacts of social
factors on Tesco:
 Positive impacts- Tesco is rendering accelerating and negotiable bringing to their
consumers so as to realise and meet the contents of poor delivery. In case with Tesco,
positive customer perception impacts positively on generating pleasant interaction with
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business and target audiences. It contributes in building sustainable, growing and loyal
relationship among customers and Tesco.
 Negative impacts- Tesco also trade in the electronics and many such things which
required licencing and this licences should be renewed after few years which includes the
huge pricing which affect the overall company profitability. In UK, when Tesco fails to
meet needs of target customers, it results in organisational reputation damage, loss of
profits and complexity to attract as well as retain customers.
Technological factor: The Technological aspects are included in this factors which gives
the new ways of production and distributions of the goods. In UK, technology is expanding
around 2.6 faster times against other economies (UK tech expanding faster than the rest of the
economy, 2022). In Tesco, technological advancement develops ability for innovative
approaches, new sales avenues, more efficient stock management and so on. Positive impact- Tesco opted the advance technology and develop it as opportunities for
manufacturing advance products and offerings to the consumers. Tesco managers has
opened a frictionless store using computer vision technology that impacts positively in
handling transactions without requiring people to visit a checkout counter (Tesco opens
frictionless store in London using tech, 2022). Negative impact- Due to utilising the advance technologies, Tesco is facing high
production cost thus developing less earnings from the processed products. The old and
out-of-date applications affects the marketplace competition.
Legal factor: This comprises the regulation and legislation implemented by the
authorities which affects the manufacturing process within the organisation. In UK, there are
various laws governed for each business to carry out operations. Tesco follows laws including
Data Protection Act 2018, Equality Act 2010, Health and Safety at Work etc. Act 1974 and so on
to complete workings effectively. Below are negative and positive impacts of legal factors on
Tesco:
 Positive impact- Tesco is following all the rules and legislation which builds the loyal
consumers. This organisation makes it sure that all the activities are according to the legal
norms.
 Negative impact- Tesco is facing issues in implementation of the rules as it interferes
and affect the working. When Tesco fails to adhere working in accordance to laws
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governed in UK, it impacts negatively in business image as the company
face reputational damage, loss of customers as well as financial losses.
Environmental factor: - This factor comprises the unavailability of the raw resources,
the pollution targets etc. which the company have to perform in favour of the society. In UK,
various initiatives are implemented to protect environment of the country. Impacts of
environmental factors on Tesco are as follows:
 Positive impact- Tesco have powerful social strategies which ease them in redeeming the
environment and precedes the human activity which has minimal impacts on the
environment. The company is encouraging consumers to buy from tesco.com and uses
fuel-saving routes for Tesco Van Drivers as well as collects unwanted plastic bags from
customers for recycling purpose that impacts positively on business image.
 Negative impact- Tesco is operative globally so it is difficult to follow the rules
sometimes and thus have to face consequences due to not implementing the environment
laws that impacts on its operations negatively (Chen and Lin, 2021).
TASK 4
Internal and external analysation
SWOT ANALYSIS
This factor ease the analysation of the internal factor involved such as strength,
weakness, opportunities, threats. This facilitate the performance and improve the work
performance. It also helps in developing and implementing the strategies for the company and
attainment of the goals.
Strengths Weaknesses
 Tesco is multinational company which
is biggest strengths.
 The company has good suppliers
network which them in fulfilling the
demand in market.
 Tesco has brilliant research and
development team which are doing the
market research so the company can
 Due to high debit and credit liability,
Tesco is facing the financial error
which affects its profit.
 Due to its high quality, the company
has expensive products which is
weakness.
 Tesco has supplying few products
which are not doing well in the market
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produce the product of high quality.
 Tesco is huge job provider on global
level.
place thus decreasing the operational
performance
Opportunities Threats
 Tesco can create the strategic alliance
by the help of strategies. This will
develop partnership with reputed firm.
It will also make a helps in attracting
the new customers.
 In order to serve the customer, the
company can also go with the online
servings.
 The company can contentiously serve
the customer with their issue which
develop the trust and confidence.
 The company has many competitors
which making it hard to develop the
loyal customer base.
 Internationally, the cost of labour is
high which will increase the expense
margin of the company
 The currency fluctuation will affect the
business as the business is performing
globally (Kreutzer, 2019).
Inter relation of the strength and weaknesses with the extraneous macro factors.
To get through the external factor which is affecting the company's working, it is
mandatory to evaluate the internal and external factors of the company so as to remove the
roadblocks present in the macro environment. In context to the Tesco, the inter relation of
strength and weakness within the macro surroundings is obdurate below: -
The extraneous components comprise of political, economic, social and technological,
the relative discussion are below: -
Political factor – It include the governmental hindrance by the government within the
organisation.
 Strength- The governmental stableness enables the company to get the strengths for the
expansion of their operation in all over the world.
 Weakness- The company is finding it hard to get familiarise with the other company
laws and legislation during their worldwide expansion.
12

Economical Factor – This factor focuses the economic condition within the country where
the company wants to expands. This may involve the rising in the process, the rate of exchange
and many more.
 Strength- The Tesco organisation is a huge job provider for the local regional people
where the company is desired to make the expansion. This decrease the chances of rising
products price of business offerings.
 Weakness- The high cost strategies fails to attract the consumers and enhance the
profitability of the company as the consumers are not easily pulled in.
Social factor - This factor focuses on the socio-cultural components which included the
company performance and the consumer’s demands.
 Strength- the company is offering various range of products which satisfy the consumers
condition and the requirements which increase the market share and the company profit.
 Weakness- the loyalty of the consumers gets hindered due to high price as the company
is not able to provide the high quality products in minimal costing.
Technological factor- This focuses on the technological advancement within the company.
 Strength- Through this component, the company utilizes the technological advancement
in expansion of their functioning or operations to perform on online platform to facilitate
the convenience of buying to their consumers.
 Weakness- The cost and profit of the Tesco company gets affected as the company is
investing in the new technology installations (Nair, Singh, Bhattacharya and Pal, 2021).
The impacts of macro and micro factors
The political, legal, social, technological, economic and environmental factors are
included under macro factors which are greatly impacting the working of Tesco company. The
analysation is mandatory for the company so as to take the appropriate decision after evaluating
these factors. Furthermore, the micro factor facilitates the understanding of the inner strength and
weakness of the organisation for the reason that the company can use their strengths and fight
with their weaknesses while operating (Lunde, 2018).
CONCLUSION
This can be concluded from the above report discussion that the commercial enterprise
has an important part in the maintaining the economic system. There are majorly three
categorization of the business organisation which involve voluntary, private and public,
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organisation which works for various purposes and legitimate structures. Within the
organisation, the businesses function is interconnected with each-other and work conjointly for
the attainment of the communal goals of the company. Moreover, the business concern
environment also includes the extraneous component which affects the company’s operatives.
PESTLE framework can ease the Tesco company in analysation of the macro environment so
that the companies can get up by with these elements and proceeds the decisions according to it.
With the help of SWOT analysis, the Tesco company can analyse their strengths and weakness
on order to work for the achievement of the desired goals. At last, it is discussed these strengths
and weaknesses are inter related with the extraneous component and the determination of the
company gets affected.
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