How Business Operates

This presentation discusses the types of organisations found in both public and private sectors, along with their structures. It also explores the impact of local, national, and economic environments on Tesco through a Pestle analysis.

HOW BUSINESS OPERATES
TASK 1

INTRODUCTION
Business is that term which is defined as the activity in order to make one's living or making
money with help of producing and selling products and services. In the following presentation
types of organisations that is found in both private and public sectors has been discussed. Also
introduction of business and different structures has been discussed.

Describing different types of organisations found in public and private sectors.
Organisation is defined as an entity that comprise multiple people as an institution or
association that has some particular purpose. Thus, there are various type of
organisations that are found in both public and private sectors. This has been discussed
as per below context-

1.2 Explaining different structures within business by suggesting reasons for variation.
Structure within business is that system that basically leads in outlining the direction of certain
activities in order to achieve particular targeted objectives of an organisation. It also aims in
determining information that flows from one level to another within a particular company.Thus,
they are been set up in a particular way so that they can easily accomplish particular goals and
objectives

CONTINUE..
There are different types of structures which has been
discussed as per below context-
• Functional structure - Functional structure is that set
up in which each and every particular portion of an
organisation is grouped as per the purpose.
• Divisional structure - This structure is used in large
scale organisations in typical manner that operates in
wider geographic area or which has separate small
scale organisations that covers various types of goods.
• Matrix structure - This is also one of the most
important type of structure that is used in organisation.
This is hybrid of both functional and divisional
structure

1.3 identifying named business.
Tesco is a leading merchandise retailer in United Kingdom. It has been expanded globally since
1990s by operating in 11 other countries in the world. It has been measured as third largest retailer
in world in terms of gross revenue and also measures as ninth largest retailer in the world in terms
of revenues. Thus, impact of local, national and economic environments on Tesco has been
discussed in below context with help of Pestle analysis.
• Political factors- Tesco is one of the most leading company that operates in 12 countries. Thus,
it has been exposed with majority of political factors that may affect the operations. The factors
that are involved includes tax rates, current and impending legislation.
• Economic factors- These factors also affects Tesco to large extent. Therefore, cited company
must be aware of any changes that may take place in terms of policies.
• Social factors- Types of goods and services that has been demanded by customers of United
kingdom mainly depends on beliefs and attitudes that in turn is influenced by social
conditioning

CONTINUE..
• Technological factors- Tesco has been met with number of new trending opportunities as
because there is huge advancement in technology.
• Legal factors- Tesco has also been affected due to government policies and legislations. As
food retailing commission suggested a code of practice that has to be introduced which ban
practices of many countries
• Environmental factors- Tesco has been committed towards reduction of carbon footprint by
50% by year 2020 due to increased pressure on companies that leads in addressing
environmental issues.

CONCLUSION
In the following presentation, types of organisations that is found in public and private
sector has been discussed along with examples and also with their structures.
Further, Pestle analysis has been used in order to identify impact of local,
national and global economies on organisation.

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Dcosta, A. and McDonough, M., 2015. Components of a PESTLE Analysis.

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