Understanding the Business Environment

This assignment delves into the concept of the business environment, examining both internal and external factors that impact a company's performance. It emphasizes the importance of understanding these elements to effectively set goals and achieve success. The document outlines key considerations within each category, highlighting the need for strategic decision-making based on accurate assessments of the business landscape.

HOW BUSINESS OPERATE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Importance of accounting for business success................................................................1
5.1 Different functions of HR department in business...........................................................2
5.2 Key features of employment legislation...........................................................................2
TASK 3............................................................................................................................................3
3.1 Profit & Loss Account for TESCO..................................................................................3
TASK 4............................................................................................................................................4
4.1 Role of team-members and own.......................................................................................4
4.2 Team Development..........................................................................................................4
4.3 Role of leadership and motivational style in context with different situations................5
4.4 The way leadership style and motivational skills are used to influence workers.............6
TASK 5............................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
There are two types of factors presents in business environment that needs to be
considered in proper way through firms which are willing to earn heavy profit. External and
internal elements can be stated that may put impact on business organisation. It has been
analysed that technology, legislations, political forces, social affairs are some components that
are present under external and internal environment (Weiss, 2014). TESCO which is a
multinational brand has been taken under this report. Jack Cohen is the founder of this
organisation and 1919 was the year when it was introduced in United Kingdoms market.
Assignment is enclosed with different sorts of public and private companies that are present in
UK industry. Away with, various business functions which is being included that may aid firm in
gaining competitive advantages at workplace.
TASK 1
Covered in PPT
TASK 2
2.1 Importance of accounting for business success
Enough capital is must for every single organisation to have at marketplace of United
Kingdom so that to run business in successful manner and to attain goals and objectives in
effective and efficient manner. Along with this, it is fundamental for them to keep on making
alterations in their products and services as per the requirements of consumers so that to sustain
at marketplace for a longer period of time. Away with this, optimised use of various things like
raw materials, capital and limited resources can help a firm in maintaining its business in an
appropriate sort of manner (Bernstein, 2015). It has been located that there are ample number of
things which needs to be considered in business accounting process by TESCO if it is willing
gain heavy competitive advantages:
 Financial department of an organisation prepares a budget and keeps on monitoring it so
that firm do not faces any sort of issue that are related to monitory.
 This section also maintains various financial reports like balance sheet, trail balance and
other sort of stuff so that to make plans in near future.
 This is main take of management to determine operational revenues which will be earned
by them through operations activities of firm.
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 Along with this, it has been examined that TESCO financial section also stays
interrelated with other departments of it like with marketing sector. Proper funds are
being provided by financial sub-section so that plans can be properly executed in an
appropriate manner which are related to promoting products and services which are being
made by them (Mackey and Sisodia, 2014).
5.1 Different functions of HR department in business
HR department plays an important role in an organisation so that to resolve issues that are
being faced by company that are related to manpower. HR management is consist with various
functions and these are:
Staffing: HR managers has various sort of responsibilities where staffing is one of the
main duty which needs to be fulfilled by them so that company can have good and talented
workforce. For an example: TESCO's managers keeps on maintaining and filling vacant seats
that they have by conducting interviews.
Training and development: This is something which helps an organisation in attaining its
goals and objectives right on time as managers conducts T&D programmes so that skills and
knowledge can be resolved in a specific period.
Recruitment: Filling blank seats at correct moment with right people may help
organisation in hitting their targets and to gain competitive advantages at marketplace of United
Kingdom. This can be done through various ways interviews are being conducted in various
ways like face to face, online and telephonic as well.
Employee relations: HR managers of TESCO in different areas where they are doing
business try to maintain a healthy environment so that conflicts can be reduced to zero so that
problems can be resolved in effective and in appropriate way as well. Here, policies are being
formulated by HR department and also follows legislations which are being set by government
so that to consider workers or staff members equally (Warner, 2018).
5.2 Key features of employment legislation
Government of United Kingdom has made various legislations so that to give equal
opportunities and rights to employees that are working with great efforts with in an organisation.
Some laws like anti-discrimination act, health and safety act, equal wages are being developed
by governmental agencies in order to bettering the experiences of staff workers of different
organisations. Differences can be seen when trade union got demised and HR department took
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place and when companies started considering all the needs and wants of staff members which
has helped them in building up a great environment at workplace (Doppelt, 2017).
TASK 3
3.1 Profit & Loss Account for TESCO
Profit and Loss Statement for TESCO for the year 2017 are given below:
Income Statement
All numbers in thousands
Revenue 1/31/2017
Total Revenue 485873000
Gross Profit 124617000
Cost of Revenue 361256000
Operating Expenses
Research Development -
Selling General and Administrative 101853000
Operating Income or Loss 22764000
Income from Continuing Operations
Total Other Income/Expenses Net 100000
Interest Expense 2367000
Earnings Before Interest and Taxes 22864000
Income Before Tax 20497000
Income Tax Expense 6204000
Minority Interest 2737000
Net Income 13643000
Dividend charges -
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Net Income Applicable To Common
Shares 13643000
Interpretation: With the help of above mentioned statement of TESCO of 2017, it has
been computed that firm is growing in a continuous manner. Investments of this firm are going
in a right way where they are gaining high rate of returns of investments they have done.
TASK 4
4.1 Role of team-members and own
It has been examined that if working or performing tasks is being done while staying in a
team may aid organisations in hitting their targets in much more effective ways. Suggestions can
be given and taken by and individual to other team members which directly puts positive impact
on their working styles as skills and knowledge can be enhanced through adopting this process in
continuation. I have located that through working in a team, me and my team mates can improve
working abilities where we can start hitting our own targets in much more effective and in
efficient ways. I have learnt working style of other team mates and vice versa. Along with this, it
has been examined by me that performance can be maintained or is being increased through
giving training and development programmes to me and my team members and this can be
conducted by managers of an organisation (Palattella and et. al., 2016).
4.2 Team Development
It is fundamental for every single organisation and for TESCO as well to rapidly build
different sorts of team with talented candidates in order to gain competitive advantages at
marketplace of United Kingdom. In Tuckman's theory some of steps are being taken under while
formulating a talented team and these are given below:
Stages of team development: Few of stages under Tuckman theory are given beneath which
needs to be considered by managers while applying theory.
Forming: This can be stated as initial stage where staff members meets with each other
and understands about their behaviour so that to reduce conflicts among them as much as they
can.
Storming: This is the stage where team members know about each others talent and
consist of chances of high competition where they can get motivation as well.
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Norming: Under this step, efforts that are being given by team members can be
appreciated by others which will directly improve their working styles and strong bonding can be
seen (Adjei and et. al., 2014).
Performing: This stage is enclosed where team mates get to know about their own roles
and responsibilities and start working with capabilities that they have. Disturbance is being
reduced to zero while performing the task.
Different types of Motivational theory
Motivational theories: Motivation to employees in TESCO can be given by both
managers and leader through using various approaches that are being given by different great
people. Some of motivational theories are being comprehended beneath:
Maslow's Need hierarchy theory: Theory is much enclosed with various elements like,
physiological, safety, social, esteem and self actualisation needs. Along with this, hypothesis was
being made while keeping eye on needs of workers that are working in organisation.
Herzberg's motivation hygiene theory: Another name of this hypothesis is two factor
theory that can help a manager in considering all the aspects that are related to wages, manpower
and so on. Applying this can help managers to use various resources in optimised manner.
McClelland's Need Theory: Another theory which is also concerned with needs and
wants of employees so that they can work with full of good experiences and can attain their own
goals and objectives in much more effective and appropriate way.
Various kinds of leadership styles:
It is mandatory for an effective leader to have various sort of leadership styles and some
of these are:
 Democratic leadership style- Decisions are being taken by leaders with considering
suggestions that are being given by subordinates.
 Autocratic- Under this, leaders makes determinations by their own.
 Laissez-faire style- This is one kind of style where leaders do not take any sort of
decisions and asks to staff members to do so (Omar, Leach and March, 2014).
4.3 Role of leadership and motivational style in context with different situations
It has been examined that leaders plays an important role in an organisation where his
responsibility is to resolve all the issues which are being faced by both company and employees
so that barriers can be reduced to zero. Leaders supports and gives suggestions to subordinates so
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that they can hit their targets in effective way. With the help of this, workers gets motivated and
starts improvising at workplace which directly puts positive impact on their productivity while
performing task. On the other hand, motivational styles may aid leaders of TESCO in bringing
up positivity among employees in different situations. For an example: Updated technology has
been adopted by TESCO which raised conflicts among workers as they do not know how to
work with it. Therefore, leaders can conduct training sessions in which he/she can direct them
through which they can use it (Reim, Parida and Örtqvist, 2015).
4.4 The way leadership style and motivational skills are used to influence workers
Leadership styles like autocratic, democratic and so on are much helpful in bringing up
workers with full of enthusiasm. Democratic style which is of leaders gives, opportunities to
employees which may aid them in making familiar so that they can take determinations by their
own. Along with this, autocratic styles is mostly concerned with decisions that are being taken
by leader which directly demotivate workers. But, this statement is not accurate as leaders have
to take determinations by their own for betterment of company (Petro and Gardiner, 2015).
TASK 5
Covered in PPT
CONCLUSION
From the above report, it has been concluded that business environment is consist of two
factors and these are external and internal which needs to be taken care by company in an
appropriate manner. Effective measurements of these elements may aid in hitting their targets in
much more effective and appropriate ways.
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REFERENCES
Books and Journals
Weiss, J. W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.
Bernstein, M. H., 2015. Regulating business by independent commission. Princeton University
Press.
Mackey, J. and Sisodia, R., 2014. Conscious capitalism, with a new preface by the authors:
Liberating the heroic spirit of business. Harvard Business Review Press.
Warner, K., 2018. Building rules: How local controls shape community environments and
economies. Routledge.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Palattella, M. R. and et. al., 2016. Internet of things in the 5G era: Enablers, architecture, and
business models. IEEE Journal on Selected Areas in Communications. 34(3). pp.510-
527.
Adjei, H. and et. al., 2014. Assessing the Corporate Social Responsibility Activities of Atwima
Kwawoman Rural Bank Limited and its Impact on the Communities it Operates.
European Journal of Business and Innovation Research. 2(4). pp.36-47.
Omar, A.T., Leach, D. and March, J., 2014. Collaboration between nonprofit and business
sectors: A framework to guide strategy development for nonprofit organizations.
VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations. 25(3).
pp.657-678.
Petro, Y. and Gardiner, P., 2015. An investigation of the influence of organizational design on
project portfolio success, effectiveness and business efficiency for project-based
organizations. International Journal of Project Management. 33(8). pp.1717-1729.
Reim, W., Parida, V. and Örtqvist, D., 2015. Product–Service Systems (PSS) business models
and tactics–a systematic literature review. Journal of Cleaner Production. 97. pp.61-75.
Online
Organizational structure, 2018. [Online]. Available
through<https://www.heflo.com/blog/business-management/small-business-
organizational-structure-examples/>.
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