Businesses and Business Environment of Tesco

BUSINESSES AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
.........................................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purpose of organisation..........................................................................1
P2 Size and scope of organisation...............................................................................................2
TASK 2............................................................................................................................................6
P3 Interrelation between organisational functions and their link with business objectives and
structure.......................................................................................................................................6
P4 Impact of macro environment on business operations...........................................................9
TASK 4..........................................................................................................................................11
P5 Internal and External analysis to outline strength and weakness.........................................11
P6 Interrelation of strength and weaknesses with macro environmental factors.......................13
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Business Environment means, sum total of all the factors and forces that are outside the
control of an organisation and they affects the functioning and overall performance of the
business. It includes, customers, technology, media, investors etc. The report will outline
different types of organisation that is public, private and voluntary. The assignment is based on
analysis of business environment of Tesco which is UK based multinational retailer deals in wide
range of sectors that is clothing, accessories, grocery, etc. Thus, the report will imply use of Swot
and Pestle analysis to determine influence of macro and micro factors.
TASK 1
P1 Different purpose and types of organisation
PUBLIC ORGANISATION
Public Organisation are the firms which are under government control and they work for
welfare. Their main aim is to serve society and work for the betterment of society and not for
earning profit. Public sectors are state or centrally owned enterprises self-financed organisations
that finance themselves by their own funds (Reim, Parida and Örtqvist, 2015).
National Health Services was founded through taxation where this firm was set up with
an idea of providing good healthcare . It is formed on 5th July in England . It's headquarter is in
London. Department of Health and Social Care is the parent department of National Health
Service. It is the largest healthcare system which is funded by public. It provides many services
like, long term healthcare, dentistry etc. It's core principles are providing free services, fulfilling
the needs of everyone.
The purpose is to provide care and services that society wants and to serve them whatever they
need free of cost. However, the long-term goal of National Health Services is to enable society to
live healthier and secure life. It is regulated by The Secretary of state for Health and Social Care.
Legal structure: Department for Healthcare Services ha the main responsibility of
raising funds for the operations of National Health Services. NHS England is the umbrella body
which has the responsibility to oversee the functions of National Health Services. Clinical
Commissioning Group is responsible for local area.
PRIVATE ORGANISATION
1

Private organisation like ' Tesco' run by individuals and companies those work for profit they are
not having any concern regarding benefit of society they work with motive of gaining profit.
These types of firms include plumbers, sole proprietors, designers, small and medium sized
businesses, etc. Main aim of private based venture is to earn profit.
Tesco is a British multinational retailer which offers groceries and general merchandise.
The purpose of Tesco is to manage customer satisfaction by providing them quality products so,
that the company can earn customers’ loyalty. Tesco includes groceries, cloths, insurance and
general merchandise in its portfolio. Legal structure of Tesco includes Five governance
committee and the company cannot violet this rules & regulation.
Legal structure: Tesco legal structure includes five committees such as audit, corporate
responsibility, nomination, remuneration & discloser committee. Legal structure defines all the
rules & regulation imposed by government which is mandatorily followed by the company.
VOLUNTARY ORGANISATION
Voluntary organisation are the enterprises which serves society with no motive of earning
profit. It is third sector other than private sector and public sector. It is a non-governmental
organisation basically serving benefits to the society which is in the interest of the upliftment of
society.
Oxfam is an international organisation which is working to stop injustice of poverty. It
is a confederation of 20 independent charitable organisations that focus on alleviation of poverty.
Oxfam is founded in 1942. It aim at promoting right to livelihood, services, security, identity and
long-term vision of Oxfam is to make society free from poverty and provide all justice and their
human rights of which they are rightful. Initial concern of Oxfam is to provide food to relieve
feminine. It also provides certain tools to become self-supporting and independent.
Legal structure: Oxfam has a Council of Trustees that has responsibility to govern the
organisation. They are appointed because of their skills and experience that helps them to fulfil
their responsibilities of trusteeship of charity.
P2 Size and scope of organisation
PUBLIC ORGANISATION: ( National Health Services)
2