Business Environment Report of Tesco

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of organisations and their purpose................................................................1
P2 Scope and size of various organisations................................................................................3
P3 Relationship between organisational functions and objectives.............................................4
TASK 2............................................................................................................................................6
P4 Various macro environmental factors that make an impact on the business operations.......6
P5 Internal and external analysis of an organisation...................................................................7
P6 Relation of strength and weakness with external macro environment..................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
All the internal and external factors that made a impact on business are cover under
business environment. Customers, suppliers, government, employees, etc. they all have either
direct or indirect connection with an enterprise. Tesco is among table leaders in retail industry,
they have their presence in more than 12 countries across Asia and Europe. They have a clear
vision that they want to grow their business on continuous basis and explore various
opportunities so they can retain their position in market. They firmly believe in innovation and
appreciate new ideas in enterprise (Arastiand et.al, 2014). They want to win local market by
applying their skills globally. Cited company want to earn trust and loyalty from buyers,
workers, and community. Their mission is to make something better by taking complete society
in account. This report will include different types of organisation and sectors, function that are
performed by a firm and their link to objectives of an enterprise will also become part of this file.
Macro and micro factors that made some impact on business operations will be discussed under
this project.
TASK 1
P1 Different types of organisations and their purpose.
Business operation of an organisation highly depend on their size. If a firm is
preset in many countries than their structure will be complicated compare to a company
which is dealing with limited customers. Some types of organisation which exist in
environment are public. Private and voluntary.
Main objective of a private company is to earn profit by providing various goods
and services to the society. They have to follow the legal system of the country or state
where they are operating. If they are dealing in more than one nation than they have to
follow all the rules and regulation that is present in both land. Interesting thing about a
private company is that it can be run by a person or may be by more than thousand
people. Its size has vast scope, government and public do not have much involvement
in management of this type of firms. Their are mainly four kind of business in private
sector, first is sole trader, second is partnership, third is companies and last one is
franchises (Boons and Lüdeke-Freund, 2013). In sole trader, one person or entity is
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operates whole business operation. It is very common as well as easy for an individual
to form this type of private company because it has simple structure and one person is
responsible for taken all the decision. Their is no chances of conflicts which is the main
reason decision can be taken in less time. Some examples of sole traders are electrician,
plumber, house cleaner etc. In partnership there are 2-20 partners who do make an
agreements and do business according to it. They share whatever profit they earn
according to their partnership deed. There was a time when registration of partnership
deed was not compulsory but in current scenario, and according to Partnership Act
2000, some business has to be registered like in case of limited liability. Some partners
do not take profit in share, they take salary and execute the strategies made by
management. Companies are most popular type of business, they are legal body and
their registration is compulsory. They may operate at a small level or may be at a large
level. Franchising is a modern concept, in this system an enterprise or individual take
permission from a corporation in order to use their idea or product so they can sell their
goods or services by paying some amount to that company. Money that is given to the
organisation can be a part of profit or a fixed fund (Cantwell Dunning and Lundan,
2010). They have to make a legal agreement according to law because in some
industries franchising is not allowed.
Main difference between a public and private sector company is involvement of
government. In public company, public and government has their presence in board on
management. They also focus on earning profit but their main aim is not earning
money, their aim is to provide various goods and services to the public at a competitive
rate. Share of this type of organisation can be purchased by general people. They have
very strong legal existence because of involvement of government authorities. They
have to follow all the rules and regulations because they are considered as an example
for other types of business organisations. Their was a time when these types of
companies operates in domestic regions or in a particular country, but in recent time
they have started doing business with private firms of other nation, globalisation is
considered as the main reason for change.
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