Business Environment and Stakeholder Analysis: Tesco vs Petrolimex

This report provides a comprehensive analysis of two companies: Tesco, a UK-based supermarket group, and Petrolimex, a Vietnamese petroleum company. The report delves into the legal forms, sizes, levels of activity, and ownership structures of both companies. It examines their business models, including their visions, goals, and values, and explores the impact of each company on its stakeholders. The analysis further investigates the organizational structures and cultures of Tesco and Petrolimex, along with the factors affecting employee behavior. The report also addresses the macroeconomic environments of the UK and Vietnam, including fiscal and monetary policies, and their influence on Tesco and Petrolimex. Furthermore, it assesses the impact of competition policies, anti-dumping, and anti-monopoly regulations on Tesco's activities, as well as the broader regulatory mechanisms affecting the company. The report concludes by referencing relevant sources and providing a bibliography.

TABLE Ò CONTENTS
Table of Contents
 Company introduction................................................................................2
 Analysis......................................................................................................2
 Legal form:.............................................................................................2
 Size.........................................................................................................3
 Level of activity......................................................................................4
 Ownership..............................................................................................4
 Petrolimex and Tesco.................................................................................5
 Show the impact of tow chosen company to their stakeholders.................9
 Organization’s structure and culture and how it effects to business
performance. Analyze the factors which have impact to behavior of
employee at work...................................................................................9
How did the structure affected Tesco.........................................................10
 Extent to which Tesco Plc meets the objectives of different
stakeholders..........................................................................................11
 Responsibility of Tesco........................................................................12
 Nature of Vietnam and UK environment.................................................14
 Key macroeconomic features of Vietnam and UK..............................14
 Define fiscal and monetary policy and impact of them to Vietnam and
UK........................................................................................................17
 Impact of fiscal and monetary policy on Tesco and Petrolimex..........19
 Impact of competition policy anti-dumping and anti-monopoly on
Tesco:...................................................................................................22
Impact of competition policy on the activities of Tesco PLC....................22
Impact of regulatory mechanisms on the activities of Tesco Plc...............22
 References................................................................................................23
 Bibliography.............................................................................................23

Company introduction
After researching and finding out information, we decided to choose
two companies, one in Vietnam and another one in England. In
Vietnam, we chose Petrolimex and in England we aim to Tesco, this
report of organization will show you information of business model
and business environment in Vietnam and England.
Analysis
Before we begin report about two company were selected, we will
identify the difference type of organization:
Legal form:
o Sole trader: sole trader is kind of individual business or in
other word a person carry on individual business, because
they have own business so they can make decision by them
self and they can self-ruling in their organization they made.
In this business can have some advantages and disadvantage,
advantage is you can hold all the sales profit with your
business and easy to respond quickly to the market and easy
to change the trend of social. For example, a grocery store,
clothing store or repair-electronic shop, etc. Not only have
advantages, but also have some disadvantage like difficult for
market expansion, income isn’t much and hard to enhance
financial.
o Partnership: this type always have more than one person, it
has from two or more people who have the same goal and
work together to make business. The financial will rise more
than sole trader for sure, but the responsible, they have to

share together to do task. Absolutely have advantages, more
people, more ideas, experience and skills. Moreover, do
partnership easy to make customer have more believe, bring a
high credibility to supplier. Besides, about managing and
share profit are disadvantage, if they don’t give reasonable
agreement, debating about profit and control power will
happen. Linux, Microsoft, Apple are example for this type.
o Companies (Corporation): Is a person who can take all legal
responsibility for the owner of company. Specifically,
company have 2 types, Ltd and Plc, both of them are limited
liability company, but about Ltd just have less people know
and only have the member inside like a member in family, in
class. Plc is opposite, it is known by many people outside,
can be sold and traded to the public.
o Franchise: it was sold by using business model of a company
or individual organization. In the simplest form, a franchisor
has the right to the name or brand of their own and can sell
the rights to a branch (a franchisee) that. It is considered to be
the name brand or product name. In a more complex form,
franchising build a broader relationship development and
always exist between the two sides. Franchisees usually
require a full-service format, including: site selection,
training, provide product, marketing plan, capital investment.
( http://www.investorwords.com/2078/franchise.html)
Level of activity
 Primary sector: this activity is the most important to commodity
development, although begin produce raw material like wood,

minerals, crop. But it is resources contribute to industrial
development. ( BPP Learning media 2013 p.12 )
 Secondary sector: using material in primary sector to make
products like using wood pulp to make papers and develop many
other industries.
 Tertiary sector: this sector mostly are service like teaching, media
or trading product from distributor to consumer.
Ownership
 Private sector: this is individual organization established for
personal profit, this type usually invested by donors, or the bank
loans, for example, A want to open trading company, he doesn’t
has sufficient financial resources, so he loans from the bank. (BPP
Learning Media 2013 p.19)
 Public sector: this is a state company and are fully funding from
government and it completely controlled and owned by the
government. The task of it usually aim to social purpose and
people like airport, railway, gas plant, etc.
 Non-governmental organization (NGOs): non-governmental
organization is an organization formed to bring independence
relative to the government, is the competent authority for licensed
or recognized under state management ( Professor Tang 2014,
HCMC bar)
Petrolimex and Tesco
 Petrolimex: this is Vietnam National Petroleum Group (Plc), it
formed from the equitization. The main field of business is import
and export petrolimex and oil trading, oil refinery - petrochemical,
investments in other enterprises to business sectors that are
Petrolimex business and other business sectors in accordance with
law. Besides the areas related to petroleum, Petrolimex investment
business in the industry: design, construction, mechanical and
petroleum equipment; insurance, banking and commercial
activities other services; which, many brands is considered as PLCs
leader in Vietnam, PGC, VIPCO, VITACO, PJICO, ...
o Structure of Petrolimex

 Tesco: Tesco Plc is a supermarket group, it have many kind of
product like food, drink, cosmetics, household items, clothing and
many things. That is one of the world’s largest retailers with over
500,000 colleagues, they serve millions of customers a week in
their stores and online.( TescoPlc 2014).
o Structure
http://tescoplc.webdev.merchant.co.uk/investors/governance/board-process/
Petrolimex Tesco
Size Including 62/63 provinces
and cities in Vietnam with
42/68 units members of
Petrolimex do business gas.
Besides, with retailers,
Petrolimex owns 2170 gas
stations across Vietnam, out of
about 13,500 service stations by
Tesco has 75 millions
shopping trip every weekend in
12 countries with over 500000
colleagues.
Besides, Tesco is a growing
group in the UK, they have
over 3,000 stores and more
than 300,000 colleagues

all economic
sectors(Petrolimex vice
director general and Mr.
Nam Tran)
around the world, therefore
they have to develop and
strengthen the business base in
the UK. (Tesco 2014)
Vision Petrolimex create a new
environment, helping to
cultivate more knowledge, not
only business petroleum but
also develop ability to service
have no petroleum. That is
opportunity to develop personal
skill and creativity
(Petrolimex)
Tesco has a panoramic view
and spacious. They set out
what they want to be:
- Wanted and needed
around the world
- A growing business, full
opportunity
- Modern, innovative and
full of ideas
(Tesco 2014)
Goals and
Objectives
To become a biggest gas
company in particular and
petroleum corporation in
general in the coming year.
Petrolimex promoted the
position, role and function of
trade union organization, the
organization continues to
innovate, content and method
of operation for team building
CNVC-Labor unions and
stronger, making it strong
changes in the actions of each
employee Petrolimex gas
Corporation, contributing to the
development corporation
grows, job security, living
standards for workers.
Before become Britain’s
leading food retailers, Tesco
was performed some strategy
for the objectives like:
- Offering to customers
the best value and the
most competitive price
value for money
- meet the needs of
customers by constantly
searching and collecting
opinion innovation
- providing shareholders
with progressive
- developing talents of
people by management
practices
http://www.tesco.com/
investorInformation/
report95/corpobj.html
Mission Providing to people energy in
general and gas for vehicles in
particular.
To be acknowledged by
customer as the premier
drilling services company:
- Move from being a top
drive only AMSS
company to a full rig
maintenance company.

- Move from a call-
out CDS™ Service
Company to a full
offering, broad based
tubular services
company.
- Move from a top drive
only product sales
company to a full rig
mechanization products
company.
(Tesco Corporation 2014)
Value - Firstly, proud of being
legacy in Vietnam and
Vietnam development
- Secondly, putting the
human is central of the
action, show respect,
protective to people in
Vietnam
- Thirdly, dream of
innovation to complete,
constantly evolving to
change itself
- Lastly, developing new
ideas, respect people
ideas and appreciate the
differences and richness
Quality and variety for
everyday cooking, eating and
living
- No one tries harder for
customer: we have to
understand customers
and then meet their
needs
- Treating people how
they want to be treated
- Using our scale for good
Product - Petroleum (gas), oils
- Petroleum jelly
- Insurance
- Construction
The products of Tesco
includes:
- Food
- Wine
- Clothing
- Clubcard
- Tesco bank
- Phone
Form Petrolimex is a state own
corporation (PLC) with large
business in primary sectors and
Tesco is a private own
corporation (PLC) with large
business too and focus in

tertiary sectors tertiary sectors.
Through a comparison chart of the two companies, we can see the difference
forms of this two companies. About Tesco, they just focus on the customers,
produce products in accordance with customer satisfaction but profitable and
beneficial for individuals because this is private. Petrolimex is opposite, they
aim to customer but their goals are serving the community. Value of Tesco
simply is everyday-value, it just for customers need and that will bring out
relationship, customers loyalty and satisfaction, but value of Petrolimex was not
so, their value is diversity, is the legacy of national, people and economics. It
not only focus to develop the group, but also is the obligation for national by
traditional history . However, Tesco development is successful because they just
aim to customer and only find out how profitable to themselves instead of have
to attention to public, to country.
Show the impact of tow chosen company to their stakeholders
Organization’s structure and culture and how it effects to business
performance. Analyze the factors which have impact to behavior of
employee at work
Through this chart, you can see here is the organizational chart of
TescoPlc company, headed by Managing Director, this position take
responsibility for the all part and find how to develop the company, it given
the necessary strategies, how to manage personnel and maintain the
company's machines, then give way research and development. Under
Managing Director have 5 other sections as: Human resources, finance,

Administration ICT support, marketing and sales, customer service For the
role of Human Resources, take responsible to train staff to enhance the
skills, knowledge and experience in dealing with customers in trade,
especially with this role, how to recruit new members are also important. In
finance positions, primarily the Tesco bank, equip customers or loyal
customers an account, then took money from the money sent by the
customer, this activity can help customers saving with a fixed interest rate of
3%, while for card purchases, there will also be incentives like free money
transfer fees. About administration ICT support, they do the office work
such as collecting and distributing mail, record keeping, organizing
meetings, suppose, for customers in TescoPlc members and today has
chapters Tesco promotions to customers, IT will send mail about the specific
information to customers.Identify and describe ways in which the business
stakeholders of contrasting organizational meet stated business purposes.
Marketing and sales, market research, learn about customer psychology is
the need to create customer satisfaction and customer loyalty, the role of
marketing and sales, actually Tesco is a group retail very large supermarkets,
so attracting customers that are more focused on the promotion than
products, because it as a gift to a customer wants to purchase.It may sound
strange coming from a big business, but at Tesco we really care about doing
the right thing. And the reason we are making such a big deal of it on the site
of our recruitment is simple: you will need to bring a passion for the business
is responsible. Finally, customer services, through what the role of human
resource personnel were well trained, the service issues will be an advantage
for Tesco customers want to buy the phone, staff specializing in IT sector
will take care of the customer and help maintenance.
How did the structure affected Tesco
Tesco is one of the few organizations who have adopted the mode of
having two organizational structures. Both for a different purpose so that the
system is clean, transparent and less complex for the employees. Today Tesco
have two organizational structures. One organizational structure is for the
company as a whole, which includes board of directors and the managing
directors, and the other one is the structure that is commonly used within each
of Tesco’s stores all across the globe. The traditional structures are followed in
Tesco also that is that starting from the board of directors; move along to the
segment of subordinates. On the other hand the structure for each store is simple
one as Tesco uses it because it is very easy to understand with each level of

control shown clearly. There are not lot of layers simple the Store managers and
under them the workers working within the store. One of the major advantages
of this simple structure is that by having a very effective and not so technically
complex, in other words a simple store structure is that it allows employees to
see easily who is in charge of each department or who their department manager
is and whom to report in time of urgency.( Tesco 2014) (123helpme.com)
 Organization culture:
When Tesco started a business culture of a company cheap products
affordable. The reason for this is because Jack Cohen (founder of Tesco)
as he will always buy products in bulk as well as the box that Sainsbury
has been removed because it was his vision to be "piled high and sell it
cheap ".
In Tesco today the company has been recognized by the motto "piled
high and sell it cheap", but the company has introduced into the quality of
their products by providing three main areas of different products. The
first area consists of very high quality products as organic products are
usually the most expensive. Group between products is often a collection
of Tesco and branded company product and includes a wide price
bracket. The third group is the product of the Tesco value range, which
includes the cheapest products as toilet rolls, bin liners and ready meals.
The product category is all about value for money and have no equal
level of quality. As well as offering their customers more choice, in the
way of groceries, Tesco now offer their customers the chance to buy
clothes, electronic goods, DVD, CD, etc. By providing visitors their
every other Tesco products are changing their culture to become a "one
stop shop", which offers customers the chance to buy almost anything
they need at the same time. (Tesco PLC 2014)
 For changing the organization culture of the Tesco is not a huge
task since it has multicultural and diversified labor force operating
in numerous branches all across the UK. Organization culture of
Tesco was formed over years of interaction between the
participants in the organization.
 An organization culture of Tesco has formed for a reason. The
current organizational culture of Tesco is matching the company

founder’s style and comfort zone. Their cultures often demonstrate
the style of management that is practiced by the Tesco top brains.
The hiring process is very much influenced by the organizational
culture of Tesco as they hire people who have the flexibility to
adjust. (case study of Tesco. Doc)
Extent to which Tesco Plc meets the objectives of different stakeholders.
Everyone related to the organization is called the stakeholders. Different
stakeholders have need and expectation from the organization considering that
extent the organization has to meet all the need and expectation of these
stakeholders (Preston & Steel, 2011). The major extents that Tesco PLC
considers to meet the objectives of the stakeholders are discussed below;
 Customers: Customer is the key player of the organization who
expects quality products, reliable services, good customer care
services and fair and rational prices, among other factors in return
of their payment. This is the first extent or sector that Tesco has to
consider before meeting objectives of other stakeholders as if
customers are not satisfied then the organization will suffer in the
long run.
 Shareholders or investors: shareholders are the real owner of the
organization where management works for the interest of the
shareholders. Shareholders demand is to have a good capital gain,
handsome dividend amount and growth in the value of the shares
but these expectations are not limited to these. They want a rational
return against the risk they are taking investing in the organization
(Gitman & McDaniel, 2012).
 Employees: Tesco has more than 537,000 employees all over the
world. This large number of employees expects a good
opportunities and remuneration from the company. Besides that
employees are interested in the free flow of information to assess
the prospect of the organization considering the remuneration,
retirement benefits and employment opportunities (Gitman &
McDaniel, 2012).
 Government: Government provides specific rules and guidelines
regarding tax payment, licensing, standardization and protection of

consumer welfare that Tesco has to abide by. So, here Tesco has
these responsibilities to meet the objectives of the government.
 Suppliers and other trade creditors: Tesco has many suppliers as
the company has diversified products for the customers. These
suppliers want good payment systems, flexible terms of credit and
business agreement and the behaviour of the organization.
So, these are the major fields or extent that Tesco has to consider to meet the
objectives of the stakeholders. Every stakeholder should be given priority
regarding their position and expectation from the organization.
Responsibility of Tesco
through "chart" has displayed what Tesco have done, which is responsible for
community, the people, the environment, health:
 Environment: Environment contributes important in life, and now
is the Tesco production, therefore, lose a large part of energy also.
So they have reduced Their Environmental to Impact save their
Tesc
o
Environment
People
Health
Community