Business Environment - P1 Types and Purpose

Business environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P.1 Types and purpose of different business organization's ......................................................3
P.2 Size and scope of different types of organizations...............................................................5
TASK 2............................................................................................................................................7
P3 Relation among different organisational functions and their link with objectives &
structure.......................................................................................................................................7
TASK 3 .........................................................................................................................................10
P4 Positive and negative influence of macro environment on business operations..................10
TASK 4 .........................................................................................................................................13
P.5 SWOT analysis of Nestle to determine strengths and weakness .......................................13
P.6 Strengths and weakness are related with external macro factors........................................14
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1
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INTRODUCTION
Business environment include internal and external factors which can affect the company.
Internal includes owners, managers and employees etc. and external include customers,
government, media, political, economic, social, technological, environmental and legal etc (Asif,
Searcy and Garvare, 2011). It is important that firm evaluate the environment as then only
company can capture new opportunities and can create strategies to remove the threats.
Organization can also cope with different changes and can develop plans for reducing risk
related to future. Assignment describes about Tesco company which is a retail firm. It was
established in U.K in 1919. Report explains about different types, size and scope of
organizations. It discusses about the interrelationship of various functions in company and their
relation with the structure. This describes about various examples to show positive and negative
impact macro environment has on business operation's. It explains about internal strengths and
weakness of specific business and their relation with external macro factors.
TASK 1
P.1 Types and purpose of different business organization's
Organization is business entity which consists of various individuals who create plans
and polices to accomplish objectives. It has proper legal structure and firm manages the activities
in order to fulfil demand and requirements of all user. Organization starts their business activities
with different purposes according to nature of business. Various companies perform activities in
order to accomplish goals. For example private companies such as Tesco works for earning more
revenues (Business Environment, 2018). Public firm such as Nestle help to fulfil needs and
wants of people. Voluntary firms such as Oxfam works for growth and development of society.
Three type of organizations are private, public and voluntary. Example of these firm's are
described below:
Private company: Private companies are the organization's which is owned and controlled
by many people and there is no interference of Govt. These enterprises provide many
employment opportunities and raise the income level of many people. This results in increasing
the standard of living of different persons. Example is Tesco company which is a retail firm
(Bhaduri and Ha-Brookshire, 2011).
Scope of the company: Tesco is a retail company and it was established in U.K. in 1919.
Firm sells grocery items to all people such as bananas, berries, citrus fruits, coffee, cocoa, cotton,
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milk, palm, oil potatoes, rice, salads, sugar, tea, wood, paper etc. During 1950's, Tesco grew
originally and through acquisition and it has opened more than 800 stores. It has approximately
£57.5 billion in 2017-2018 (Cavusgil, and et. al., 2014). Organization has around more than
476000 staff members and it has 6553 shops. Enterprise operates the activities in many countries
such as Ireland, Malaysia, Thailand, Hungary etc.
Purpose: Tesco's purpose is to create values for customers to earn their lifetime loyalty.
This helps the company to maintain long lasting relationship with all user's. This helps the firm
to maintain positive image in minds of people.
Legal structure:
Sole proprietorship: It is a company which is controlled by a single person. Profits and
losses are shared by a single individual. They are liable to create plans and strategies related to
business and is responsible for losses. For example Kurt Geiger is sole proprietorship and it is
top shoe brand. It is engaged in secondary sector.
Partnership: It is a company which comprises of two or more partners and they share the
profits or losses. It contains all rules, regulations and a partnership deed related with profit
sharing ratio, capital ratio etc. For example Mc Donald is a partnership firm which is fast food
restaurant. It has achieved worldwide growth and success.
Limited liability: It is a company in which liability of members are limited. It may be
limited by shares or by guarantee. It is divided into public and private companies.
Tesco is a private company which creates plans to fulfil the needs and demand of many
people. Hence it create strategies so that it can fulfil requirement of all individuals.
Public company: It is a company which is controlled by Government and private
institutions. These companies perform their activities to follow the rules and legislations created
by Govt. It helps in providing many employment opportunities to many people. For example
Nestle is a food and drink company which was established in U.K.
Scope of the company: Nestle provide drinks and food to all people (Chetwood, and et.
al, 2014). It was established in U.K in 1866. Firm delivers coffee, breakfast cereals, chocolates,
milk products, sauce bottles, oats etc. It has 323000 employees approximately and 89.791 billion
of revenues. It offers products in many countries such as Nigeria, Ghana, Senegal, Cameroon
etc.
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