Assignment on Business Environment 2022

Running Head: BUSINESS AND BUSINESS EVIRONMENT 0
Business and
Business Environment
Student details:

BUSINESS AND BUSINESS EVIRONMENT 1
Contents
Introduction......................................................................................................................................2
Organization....................................................................................................................................2
Types of organization...................................................................................................................2
Scope and size of organization.....................................................................................................7
Organizational Functioning.............................................................................................................9
Relationship between different organizational functions.............................................................9
Effect of the organizational functions over objectives and structure of Tesco............................9
Reform in Tesco.........................................................................................................................10
Advantages and disadvantages of interrelationship between organizational functions.............10
Complexities faced by different types of business structures....................................................11
Macro Environment.......................................................................................................................11
PESTEL.....................................................................................................................................12
PESTEL analysis on Tesco........................................................................................................13
Micro Environment........................................................................................................................16
SWOT analysis over Tesco (UK)..............................................................................................16
SWOT Analysis of Shell Energy (UK)......................................................................................17
Similarities and difference between the both SWOT analysis...................................................17
Recommendation for SWOT and PESTEL...............................................................................18
Application of SWOT analysis and justification to its influence over decision making...........18
SWOT analysis of British Petroleum.........................................................................................19
SWOT analysis of Engie (UK)..................................................................................................19
Similarities and difference between SWOT analysis of BP and Engie.....................................20
Relationship between Structural Design and the factors determining size of an organization..20
Influence of macro and micro factors over the objectives and decision making process in an
organization................................................................................................................................21
Conclusion.....................................................................................................................................22
Bibliography..................................................................................................................................23

BUSINESS AND BUSINESS EVIRONMENT 2
Introduction
The following report is a detailed analysis of public, private and voluntary organizations. It
includes scope and working of these organizations along with their organizational functions. The
report gives brief of relationship between the organizational functions of these organizations and
the effect of organizational functions make over the objectives and structure of an organization.
In this report detailed study is made over macro environment factors affecting business of an
organization. Herein a SWOT analysis is made over Tesco and Shell Energy. Later a comparison
is also made over the dissimilarities and similarities faced by both of them. Lastly a critical
evaluation of macro and micro economic factors how they influence the performance of business
organization.
Organization
An organization refers to an entity where different people work to achieve particular objective or
various objectives. The word organization is derived from Greek word organon which means
tools or an instrument. An organization can also be known as company, firm, corporation,
institution or group (Tolbert & Hall, 2015).
Types of organization
Public organization- Public organizations include those organizations and entities which are
controlled by government. These are the organizations which deliver public programs, goods &
services. For example: - British Armed Force, British council etc.
Features-

BUSINESS AND BUSINESS EVIRONMENT 3
 Ownership of State- These organizations are owned by a central, state or local
government.
 Accountable to public- As these organizations are funded by public money they are
answerable to people about their actions and its consequences.
 Autonomous- These organizations are autonomous in nature which means no other
organization can interfere in their functioning (Andersen, et al., 2016).
Objectives of Public organization-
 The main objective of public organization is maximization of social welfare.
 It helps in preventing the growth of public economies.
 Focuses over equal distribution of goods and services at affordable rates.
 These are some of the legal forms of public organizations- the Royal Air Force and The
British Army holds objective of public safety and security at cost of their own life.
(Steiss, 2019).
Private Organization- These are those organizations which are not owned by government rather
it is owned by an individual or by a group of individual and their main motive is profit
maximization. For example: - Unilever, Aviva and TESCO (Haufler, 2013).
Objective of Private Organizations
 The primary objective of private organization is improving its profits
 Constructing an organizational structure to restrict the liabilities
 Building an economic strategy which will help them in sustaining in the market
(Christenson & Reschly, 2012)

BUSINESS AND BUSINESS EVIRONMENT 4
Types of Private Sector Organizations
There are different types of public sector organizations some of them are mentioned below:-
Sole traders- It is type of business organization where a single individual is liable to all profits,
losses and other issues of an organization as he is the only owner of the company like dust &
dance and Adnil creations are the most popular sole trading organizations of UK. The legal
structure of sole is similar to that of the business. The owner is personally liable to every loss and
profit.
Partnership- According to this type of business structure, two or more individuals forms a legal
relationship in order to carry on a business. All the partners have a share in the business as all of
them have made investment in the business. For example whatsapp and mumsnet were founded
in partnership.
The partnership is further divided into 3 sub parts- general partnership, limited partnership and
limited liability partnership. The general partnership gives equal rights and opportunities to all
the owners. All of them are liable to each profit and loss faced by the company. As per the
‘Partnership Act 1890’ a partnership remains in between people who have a common view point
and the partners have unlimited liability in the firm (Legislation, 2019).The limited partnership
allows every partner to limit his/ her personal liability to the ratio made by them in business
investment. Lastly Limited Liability Partnership is slightly different from the general partnership
because of the legal structure states that every partner has a limited or reduced financial liability.
(Legislation, 2019).

BUSINESS AND BUSINESS EVIRONMENT 5
Company – A company is legal entity which can be owned by an individual or group of
individuals. A company can be defined as an artificial person who functions in accordance with
laws. (Legislation, 2019).
There are various types of companies which includes Private limited companies, Public limited
companies, Companies limited by guarantee, Unlimited Company, Limited Liability Partnership,
community interest company, industrial and provident society, Royal charter. All these
companies have different functioning and legal structure.
Franchising- The franchising refers to running a commercial operation using the brand name of
some other organization. The franchising was started by franchise agreement, as per this
agreement there is a contract between the owner of organization franchiser and the franchisee.
These partnerships are contractual over Law of Contract.
Licensing – It refers to the agreement between two firms where one company permits another
company to produce or manufacture its product for either a specific period of time or a specific
payment. For example various clothing brands use cartoon characters like Mickey Mouse on
their clothes. These companies have made an agreement with the company which owns the
patient over cartoon character.
Voluntary Organization
A voluntary organization refers to an organization where people from different background come
together to accomplish a common interest. These organizations are non-profit organizations
whose main objective is social welfare. It includes both Non-profit organization and Non-
governmental organization. For example charities like Red Cross society and YCWA, social