Business & the Business Environment

Business & the Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1 .................................................................................................................................................3
P1 Different types of organization...............................................................................................3
P2 Size and scope of organization...............................................................................................5
LO2..................................................................................................................................................6
P3 Various function within organization.....................................................................................6
LO3..................................................................................................................................................8
P4 Positive and negative impact of macro environment on company.........................................8
LO4..................................................................................................................................................9
P5 Analysis of internal and external factor of environment........................................................9
P6 The way strength and weaknesses are related to macro environment..................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business conduct various activities such buying and selling of products and services for
the purpose of earning money or living. In this report Tesco company has been taken that is
multinational British retailer company with its headquarters in Welwyn Garden city,
Hertfordshire, England, UK. This report analysis different types, size and scope of
organisations. It also describes interrelationship of various function or departments within
organisation and the way they are related to organisational structure. At last, it explains impact
of business environment on Tesco functioning by conducting pestle, porter and swot analysis of
the company.
LO1
P1 Different types of organization
There are various types of organization such as profit, not profit and non government
organisation that are classified on the basis of their objectives and purpose of their functioning in
the market. Various differences between profit, not profit and non government are as follows:
Profit organisation: It includes such organisation that main objectives is to earn money or profit
by selling its products and services to people living in the society. Majority companies in the
world are operating its business function to earn money by selling products and services (Silvis
and Jongeneel, 2019). Restaurant, shop and supermarket are some example that operates its
business to earn profit.
Non-profit organization: Whereas such organisation have goals different from business as it
operates not to earn profit but for helping the community. Thus, it main objectives to exit in the
market is to serve people of the society. Non profit organization does not distributes its income
to its member, directors or officers and follow legal responsibilities.
Non-government organization (NGO): On the other-hand it operates its function separately or
independently from government for welfare of society or to serve specific social and political
purpose (Ahrne, Brunsson and Seidl, 2017). It main responsibilities is to ensure community
health, education and environmental protection.
Organisation can be classified on the basis of micro, small,and medium sized enterprises
Micro enterprise: These are such organization that recruit approx 10 number of employees and
start its operations with small amount of capital. Ice cream parlour and coffee shop are some

examples of micro enterprise that are crucial for economic developments. It main objectives is to
survive in the market by satisfying needs of customers.
Small enterprise: It is owned and managed privately by sole proprietorship, partnerships or
corporation that have less number of capital and can employees less than 50 employees. Due to
small operations of business in the industry and less volume they don't dominate the local market
(Bich, Pradeu and Moreau, 2019). Its aim is to grow and survive in the market by providing
innovative products and services thus earn a living for its family. Real estate, web designing are
some example of small enterprise.
Medium-sized enterprise: Such enterprise employees have employees less than 250 and can
raise its fund by taking loans for establishment and operations of business. Its purpose is to gain
competitive position in the market for achievement of predetermine objectives to maximize its
profit. Verdant leisure and captify are examples of medium-sized companies.
Legal structures of different forms of business:
Sole traders: are those that operates its business individually and there is no distinction between
business and owner of the company. Thus, owner of the company is responsible for all of its
profit, loss and liabilities (Tangvald and Wallhoff, 2019).
Partnerships: It is not separate legal entity thus in it each and every individual partner is
responsible for all debts and liabilities of the company. They also have equal share in profit and
losses of the company. In it owner legal liabilities is limited to number of shares it held so it in
firm can have 50 or fewer shareholders and also sells its shares to public. Thus, it has
independent legal structures when company start its incorporation in the industry.
Public company: It includes company that securities such as debt and equity can be traded to
public for raising of fund thus shares are owned by public. Tesco PLC issue its share to public
by listing it on London stock exchange. It purposes of establishment is to provide benefit to the
public and for smooth operations of function of economy.
Private company: Whereas its operation is restricted to much extend by the government as it is
owned by private individual. It can issue share but cannot trade on public exchange nor it can
issue through initial public offer. Its purpose is to maximize profit and market share for example
ASDA company operates to maximize its profitability and market share.
Voluntary company: Such company purpose is to provide benefit to society thus does' not
establish or for profit motive. Such as charity, social welfare organisation are part of voluntary