Understanding the Business Environment - Tesco and HSBC Bank

Understanding the
Business Environment

Table of Contents
INTRODUCTION.....................................................................................................................................3
TASK 1.......................................................................................................................................................3
Legal structure, operation and objectives of the organization..................................................................3
Market structure of chosen organization and how this structure impact behavior of company in looking
to attain competitive advantages..............................................................................................................5
TASK 2.......................................................................................................................................................5
Apply the stakeholder analysis process to identify organizational stakeholders’ group...........................5
TASK 3.......................................................................................................................................................7
Why it is imperative to analysis the business environment and critically evaluate the PESTEL analysis
for the chosen organization......................................................................................................................7
Importance of the porter's five forces model............................................................................................8
TASK 4.......................................................................................................................................................9
Key performance indicator in annual report of the organization and evaluate the development of short-
and long-term performance......................................................................................................................9
CONCLUSION........................................................................................................................................11
REFERENCES........................................................................................................................................12

INTRODUCTION
Business Environment refers to the all the activities which aggregate of all the condition,
factors, situation which is derived from the environment and affect the business organization
directly. It is the total of all the factors include internal and external which includes customers
demands and wants, demand and supply, expectation, employees, suppliers, current trends,
economy growth, technology etc. All the internal and external factors can affect the working
condition of business directly. It is help to analysis the opportunities, resources, growth and also
improves the overall condition performance of business (Basak, and et.al., 2020). It plays a vital
role in every business. There are two types of business environment which includes Micro
environment and Macro environment. For Task one and two Tesco has been chosen topic where
the Tesco is a multinational British Groceries which is founded in 1919 by Jack Cohen in United
Kingdom. This report will cover the company organization according to business organization
types and also help to analysis the company sector. It will analysis the market structure. This
report also defines the shareholder and stakeholder analysis. For task three and four HSBC bank
has been taken topic which is the British universal Bank in United Kingdom. This report will
cover the HSBC current Macro environment influence with PESTEL analysis and also cover the
market environment with the help of Porter’s five model. The report will cover the short- and
long-term annual report of HSBC Bank.
TASK 1
Legal structure, operation and objectives of the organization
Overview of the organization: TESCO Plc is a multinational British retailer company which is
the third largest company in the world. It was founded in 1919 by John Cohen in United
Kingdom. It is a groceries and merchandise retailer which is the public limited company. Its
headquarters in Welwyn Garden City, England UK. They also provide online services to their
customer by introduce their own website www.tescoplc.com. It is the one of most leading
retailers which is measured by gross revenue. They introduce many products such as
supermarkets, superstore, hypermarket, convenience shops. Their shops in Europe around 5
countries. Tesco aims to serve their customers better services to provide good quality food
(Boone, Kurtz, and Berston, 2019).

Legal Structure: It is playing a vital role for any business because it is the term of legal
areas such as tax payment, business control, legal assets. It is also known as the ownership
business structure. It is referring to the company entity which has legal responsibilities. It is also
defining the company structure. The Legal structure of TESCO, it is a Public limited company
(plc). Public limited company has many advantages like shares can be sale, and sell it to public
through stock exchange. As per research, it has flat hierarchical structure which has six levels
between staff and executive chief.
Operations/Purpose: It is referring to the system which integrates the units in the business to
introduce the final goods and services. Operation management of Tesco, it is a retailer company,
the main key activities at company are; logistics inbound, marketing and sales, customers
services, logistics outbound (Chen, Jin, and Huo, 2020). Tesco investing more in technology
day-by-day to develop the customer experience. Tesco has a leading in supermarket positions.
The future data records of Tesco depend on operation management. The aim of Tesco to become
a leading market in the world by providing better and good quality products and services to their
customers at low price which helps to attract more customers and increase the sales. Tesco
understand the customers needs and wants So, they provide services and product according to
their customers which helps to satisfy the customers and fulfilled their desires.
Objective: Tesco set their objectives to achieve them, they aim to produce better goods
and services to increase the customers loyalty and customer’s value which help them to earn the
lifetime value. There are more certain aims of Tesco which are as follow-
 To analysis the customer needs and wants and fulfilled their demands as per they want.
 To become a leading retailer supermarket by produce good product and services at low
price.
 To maintain the employee, engage and improve their performance for achieve the future
goals.
 To earn lifetime loyalty with customers by understand them.
 To create the better environment for customer satisfaction.
 Provide the product and services according to customers which helps to gain more
customers and sales.