Business Environmental Factors of Tesco
Added on 2020-01-23
25 Pages7684 Words77 Views
Business and BusinessEnvironment
Table of ContentsBusiness and Business Environment...........................................................................................................1P1) Different types, objectives and legal requirements of various sector organizations.........................4P2) Size and Scope of different sector organizations...............................................................................7P3Relationship between different organizational functions and their link with objectives and structure...............................................................................................................................................................10P4 Positive and negative impact of Macro environment........................................................................11P5 Internal and external analyses of Tesco............................................................................................14P6 Strengths and weaknesses interrelate with external macro factor.....................................................17CONCLUSION.............................................................................................................................................18REFERENCE................................................................................................................................................19
INTRODUCTIONBusiness environment is composition of two tools as business and environmental factorsthat impact on performance of organization effectively. Therefore, changes in environmentalfactors affect business performance of organization. The present report is based on understandingbusiness environmental factors impact on Tesco. It is retail sector wide spread entity of UK thatprovides groceries and food items t million customers. Different sectors’ organization includingscope, vision, aims and legal requirements are to be determined. In this regard, variousenvironmental determinants that impact on entity’s market position. Moreover, severalenvironmental factors are to be described through this study that affects business performanceand different tools. In addition to this, external environmental factors such as political, socio-cultural, economic, technological and environmental are to be understood. Thus, differentbusiness environmental factors and their impact on performance of organization can be presentedthrough this report.P1) Different types, objectives and legal requirements of various sector organizationsThere are different sectors’ organization in UK that works for enhancement of varioussectors such as retail, tourism, healthcare and several fields. Some of the sector organizations canbe described as below:-Public sector organizations:- Under this sector, government interferes at high level forproduction and distribution of goods including various business performance tools. Inaccordance to this, public sector entities are useful to contribute in nation’s developmenteffectively. Moreover, economic growth of country is analyzed as well other sectors getimpacted (Botha, Kourin and Snyman, 2014). There are several public sector entities in UK thatprovides different kinds of services such as National Health Services (NHS), Sainsbury.Thesefirms are comes under retail sector that provides groceries and food items. Therefore, in briefpublic sector organization can be expressed as;-Objectives:- Public sector aims to gain social welfare at high level. However, for businessoperations in this sector, entity has to follow instructions of government policy. In this regard,several kinds of public projects for example road, water supply and providing social services
(Bah and Fang, 2015). Thus, public limited company aims build up public trust and effectivesocial awareness that is useful to contribute in nation’s growth. However, public sector entityaims to gain following objectives as;-To gain society’s awareness by providing healthy and secured products.To increase business and competitive strategies for long term sustainability of entity.To build up public trust related to goods and services provided by organization.To provide effective contribution in nation’s economic as well other other sectors’development.Legal requirement:- There is high level of government intervention related to businessoperations. For establishment of public sector entities, owner has to get permission and legalevidence. Including this, production and supplement of goods and services are organized byfollowing policies provided by government. Thus, public sector organization has to fulfill legalrequirements for operating business activities. Hence, it is determined that public sectororganization has to follow various legal requirements to follow on government rules andregulations (Kearney and Mareschal, 2014).Private sector organizationThis sector entities focus on increasing profitability of firm at highest level. Inaccordance to this, decisions related to business operations are taken by individual owner andmanager of the company. However, there is less government interfere is determined foroperating business activities. Moreover, private sector entities set target to increase its businessand competitive strategies to make place in market for long time period. Some of the mainprivate sector organizations of UK are Iceland, John and partnership, River islands, Primark etc.These firms work for enhancing retail sector efficiency effectively (Dorsman, Tummers andThaens, 2015). However, different planning procedures are applied by owner and managers ofthe firm. In this regard, some characteristics of private sector organization are:-Objectives:- The most important objective of private sector organization is to gain profitat maximum level. Including this, it sets target to advertise its quality featured products to attract
million people at high level. In this regard, several missions of private sector firm can bedescribed as:-To enhance profit earning capacity of organization at large scale.To increase productivity and profitability of firm To develop strength for facing competition and making place in market for long timeperiodicity.To make relevant decisions regarding business operations.To attract customers by using different advertising tools for expansion of entity.To face cut throat competition and providing company’s products efficiently.Legal requirements:- For operating business activities in private sector organization,there is less government interfere is determined. Under legal requirements of private sectororganization, it is determined that company has to register name and business profile inCompany house of UK. There is less boundation form government to following differentregulations. Therefore, for private sector organization there are less legal obligations to befollowed for operating business activities.Franchise:- Franchising is related to use of property that impacts on profitability oforganization. Therefore, it comes under private limited organization that is useful for safety andsecurity of assets. However, it is useful for investment chain and greater incentive.Voluntary sector organization:- These are non-profit entities that aim to gain socialwelfare at high level. It is one of the greatest tools for social development of country. In additionto this, there is a little government intervention is obtained for providing services. However,these organizations are comes under healthcare, education, employment sector at most thataffects nation’s effectiveness at large scale. Therefore, systematic growth of country is able togain effectively through this way. In accordance to this, voluntary sector organizations are usefulfor public welfare and build up trust of society and community in social and care sector (Noorand Jamil, 2014). Some key elements to understand voluntary sector advantages can bedescribed as:-
Objectives:- Voluntary sector organizations set target to organize nonprofit entities thatimpacts on social development country effectively. In this regard, several objectives ofvoluntary sector organization can be expressed as:-To gain social awareness efficiently.To build up trust of public related to services provided by organization.To increase effectiveness of voluntary sector to gain nation’s social development.To enhance efficiency of nonprofit organizations’ in social and healthcare sector.To contribute adequately in country’s social development.Legal requirements:- There is a little legal requirements and obligations for setting upand operating this sector’s entity. Therefore, for establishing volunatary sector organization,there is no need to follow any rules and regulations. These entities are almost remains free fromboundations and legal requirements (Bah and Fang, 2015). Therefore, no legal requirements areto be fulfilled related to voluntary sector entities for social welfare and getting effective trust ofsociety related to social services.P2) Size and Scope of different sector organizationsPublic sector organizationScope:- Tesco is wide spread organization of UK that has different branches in UK andother countries of the world. For production and supplement of groceries by following rules ofgovernment policies. In addition to this, public trust is gained efficiently. However, social andeconomic development of country is achieved by its proper contribution. Moreover, this entityincreases its profit earning capacity through preparing planning strategy and expansion of entityis obtained. In this regard, company uses different tools and techniques to expand its entitythrough export and import of goods (De Klerk and et.al., 2013). Thus, public sector entitiesscope is large but in comparison to private sector entity, its scope is smaller. It is because ofboudations to follow government rules and regulations for business performance and producinggoods and services.
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