Business Organisations and Environments in a Global Context (Doc)

Added on - 21 Jul 2020

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Business Organisationsand Environments in aGlobal Context
Table of ContentsINTRODUCTION...........................................................................................................................1Background information............................................................................................................1Organisational scope, specialisation & size................................................................................1Legal form or ownership structure.............................................................................................2Financial performance & existing international operations........................................................2Business environment.................................................................................................................3Porter five forces model..............................................................................................................4Analysation of the business scene..............................................................................................6RECOMMENDATION..................................................................................................................7CONCLUSION................................................................................................................................8REFERENCES...............................................................................................................................9
INTRODUCTIONBusiness organisation can be simply defined as an individual or collection of persons thatwork together in order to acquire specific mutual organisational targets. The main intention ofdoing this is to earn high amount of profits in return (Sheng, Zhou, and Li, 2011).Entrepreneurs try to establish their commerces in some another nations so as to make their strongpresence and gain powerful customer base. The present report is designed in this contextwhereby a famous firm named Tesco is going to set its business in a completely new countryknown as Austria. It is a British company which is dealing in retail sector at international level. Ithas been found that they are falling under third largest retailer across world on the ground ofprofitability. Along with this, it also secured ninth position in terms of revenues. The mainreason of starting business activities in Austria is nothing but the golden opportunity of FDI(Foreign direct investment). In order to carry out this action, it is important to examine thesituation of macro environmental factors of the similar place. This project is highlighting suchkinds of prospects in detail.Background informationTesco is a public limited enterprise whose headquarter is situated in Welwyn GardenCity, Hertfordshire, England, United Kingdom. They are having a large number of stores orgroceries in various nations of Europe & Asia. In addition to this, they are treated as a greatleader in the field of grocery marketplace especially in Hungary, Thailand and Ireland since theycomprise of nearly 28.5 % market sharing at these places. Tesco was set up by sir Jack Cohen inthe year of 1919 in the form of integration of market stalls. Afterwards, his commercial actionshad attained a continuous enlargement by 1939 as more than hundred outlets has opened acrossall over nation.Organisational scope, specialisation & sizeThis has been observed that currently in 2017, they are including above 6,553 retailstores. In addition to this, Tesco are offering employment to numerous of people. They hasengaged approx. 476,000 plus employees in similar time frame. Hence, it can be stated thatscope of referred company is too good as they are serving with varieties of goods and services tonot only those people who are living in United Kingdom but to all other civilians who exists in1
another section of globe. Some of the key merchandises designed and delivered by them in arediscussed below :In its supermarket, they are giving wider varieties of domestic appliances such as kitchenitems, home appliances, crockery items and food items in an attractive way by organisingthe similar commodities into aisles. Foodstuffs includes dairy commodities, meats, freshproduces,In addition to this, different other services catered by them are cafes, banking, insurancepolicies or fiscal services, petrol stations, mobile phones, photo processing, video rentals,apothecary's or medical shops, and many more to their expected clients (Ball, Lizieri andMacGregor, 2012).Legal form or ownership structureTesco comprised of sole possession since it is being run as well as controlled by singleentity. In context to legal structure following data is supposed to be suitable :One of the main or key members which are playing certain role are John Allan who isNon-Executive Chairman and Dave Lewis , Group Chief Executive Officer. All otheremployers along with workers performing in Tesco are obligated to report to them asevery important decisions are taken by them only.It includes some internal and internal stakeholders such as customers, workers, banks,investors, government, other communities or intermediaries affiliated with business, etc.Financial performance & existing international operationsThis has been identified after doing deep research that Tesco current fiscal presentation isvery impressive. They are having handsome turnover in the year of 2017 which is observed to be£(54) million. In addition to this, Operative financial gain is determined as £1,280 million insimilar time frame. This is treated as a fruitful result of its global business as they are running orowning more than 6,553 stores in all over world (Closs, Speier and Meacham, 2011). They aremainly working in UAE, Japan, Korea, Poland, Dubai & many more territories. Hence, it can besaid that Tesco is having global presence and could also move to Austria as it is considered asone of the best place for doing foreign direct investment. For doing the similar, they have to takesurvey of identical country so as to find out current traditions, culture, preferences, living style,taste and some other eminent aspects as this will help them in taking right judgement regardinginvestment.2
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