Business Environment Report - Tesco PLC
Added on 2020-07-22
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Business Environment
Table of ContentsIntroduction........................................................................................................................3Task 1................................................................................................................................3P1 The type of business, purpose and ownership of two contrasting businesses...........3P2 The different stakeholders who influence the purpose of two contrasting businesses......................................................................................................................................4Task 2 ...............................................................................................................................5P3 Describe how two businesses are organised.............................................................5P4 Style of organisation helps them to fulfil their purposes...........................................5Task 3................................................................................................................................6P5 The influence of two contrasting economic environments on business activities.....6Task 4................................................................................................................................7P6 External factors are impacting upon the business activities of organization ............7Conclusion .........................................................................................................................8References ........................................................................................................................9
IntroductionBusiness environment means all of the internal and external factors that affect howthe company functions including employees, customers, management, supply and demandand business regulations. All business enterprises, functions within an environment, called asthe business environment. An individual business firm survives and grows within theperiphery of its environment. A firm is only a part of a big environment, and so there are onlya few factors which are under the control of the firm (Christopher and Holweg, 2011). Thepresent report based on Tesco PLC which is one of the largest retail corporation in the UnitedKingdom. The present report will discuss about the different types of business structure suchas sole proprietorship, company, public and private and also include non-profit unit and itssize, scope. Task 1P1 The type of business, purpose and ownership of two contrasting businessesA business entity is an organization that uses economic resources or inputs to provide goodsor services to customers in exchange for money or other goods and services. Sole Proprietorship: A Sole Proprietorship is one individual or married couple in businessalone. Sole proprietorships are the most common form of business structure. This type ofbusiness is simple to form and operate, and may enjoy greater flexibility of management,fewer legal controls, and fewer taxes (Zott,Amit and Massa, 2011). However, the businessowner is personally liable for all debts incurred by the business.General Partnership: A General Partnership is composed of 2 or more persons (usually nota married couple) who agree to contribute money, labour, or skill to a business. Each partnershares the profits, losses, and management of the business, and each partner is personally andequally liable for debts of the partnership. Formal terms of the partnership are usuallycontained in a written partnership agreement.Limited Partnership: A Limited Partnership is composed of one or more general partnersand one or more limited partners. The general partners manage the business and share fully inits profits and losses. Limited partners share in the profits of the business, but their losses arelimited to the extent of their investment. Limited partners are usually not involved in the day-to-day operations of the business (Othman and Rahman, 2014).Corporation: A Corporation is a more complex business structure. A corporation has certainrights, privileges, and liabilities beyond those of an individual. Doing business as a
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