Business Environment "TESCO"
Added on 2020-06-03
18 Pages4890 Words95 Views
BUSINESS ENVIRONMENT
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1............................................................................................................................................1P2............................................................................................................................................3TASK 2............................................................................................................................................8P3............................................................................................................................................8TASK 3..........................................................................................................................................11P4..........................................................................................................................................11TASK 4..........................................................................................................................................12P5..........................................................................................................................................12P6..........................................................................................................................................14CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16
INTRODUCTION The concept of Business Environment refers to the combination of all internal an externalfactor that influence company's overall functioning and operation. Internal factors include firm'sproduct or services, assets, employees and marketing whereas External include stockholder,customer, economic condition and competitors (Avramenko, 2012). The environment of businessis different from country to country depending upon the nature of business. It becomes necessaryfor an enterprise to possess great knowledge related to opportunities and threats present in themarket place. According to Keith Davis, Business Environment refers to the sum total of allevents, forces and condition affect and surround it. For running business enterprise smoothly,primary responsibility is to understand the business environment that affects its functioningdirectly or indirectly. This report is based on TESCO which is UK's leading multinationalgrocery and retail organisation. The report covers different types and scope of organisation,PESTLE analysis, SWOT analysis, and impact of micro and macro factors. TASK 1P1 A business enterprise can be organised in one of various ways, and the form chooses byowner will affect the liability of both owner and company. Below mentioned are some of themost common option that can be taken into account by business owner: 1. Public Enterprises: Government bodies run, manage and control this sector. People pay taxesto Government and further, they use this money for the interest and welfare of society only. Theentire functioning and performance of company is dominated by national, local or stategovernment. They produce products keeping in mind the welfare and interest of society. Theyalso take into consideration various factors like waste management, water management, shelterfor homeless people, healthcare, etc. Legal Structure: Generally, there are two types of legal structure: one is Central and other isState. Central Government: They regulate the entire functioning of a nation. All rules andregulations In UK are made by central government for the welfare of both people andcompany (Cheng, Yip and Yeung, 2012). Their main purpose is the collection of taxesfrom the local public and advance utilize it for their own and public benefit.
State Government: State government possess political nature. They share their powerand authorities with national government. The main purpose of state government is tocontrol and monitor the activities of education department so as to provide bettereducation to local resident. Local Government: Local bodies have to control the functioning of small geographicalareas such as a city, state or town (Halbert and Ingulli, 2011). Their main objective is tolook after the interest and welfare of people.AIMS: To give essential public services To use resources in an optimum manner that leads to benefits of the community. Public Sector is also known as producer, provider and buyer. Like TESCO falls into the categoryof public sector. As providers, they open schools for providing learning and education tochildren. As producers, they manufacture some of the product and services like education andhealth care. Lastly, as buyers they purchase products that provide various services like roadbuilding, equipment etc. 2. Private Enterprises: Private individuals own and run these type of organisations. Theseenterprises are considered free in the economy. It is easier for private companies to modifythemselves as per the dynamic changes The main benefit of this sector is to produce goods andservices according to changing demands of their potential buyers. The contribution of privatecompanies in UK is near about 89% i.e. the objective of most of the organisation is to earn profit.The example of private enterprise is Virgin Group. Legal Structure: It's structure is classified as: Sole Trader: These type of businesses are managed by a single individual known asSole-Proprietor. Little amount of capital is required to run such business. Their mainpurpose is to earn profit that satisfies the need and desire of their family members.Partnership: Such type of enterprises are normally run by two people or more than that.Under this, all the partners possess liabilities and equal rights and also share profit andloss in equal proportionate (Hämäläinen, Näyhä and Pesonen, 2011).Private Limited Companies: Such companies run with an aim of earning profit andcapturing large market share. The liability of their member is limited and profits aredivided on the basis of dividend. 2
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