(Doc) Internal and External Analysis of Tesco

BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART-1 ...........................................................................................................................................3
P1: Explain different types and purpose of organisations; public, private and voluntary sectors
and legal structures.................................................................................................................3
P2: Explain the size and scope of range of different type of organisations...........................4
P3:Explain the relationship between different organisational functions and how they link to
organisational objectives and structures.................................................................................5
PART-2............................................................................................................................................7
P4: Identify the positive and negative impacts the macro environment on the company......7
P5: Conduct internal and external analysis of Tesco..............................................................8
P6: Explain how strength and weaknesses interrelate with external macro factors...............9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business are one of the integral part of economy. It can be defined as an activity of
making money by conducting various activities such as production, buying and selling of
products and different types of services that are offered by the organization for profit earning
and various other motives. There are many kinds of companies such as private organisation,
public organisations and voluntary organisations (Hilton and Platt, 2013). This file will discuss
about the operations and structure of various types of organisations and their objectives.
Additionally, the report will focus on various micro and macro environmental factors that
influence the decision making and operations of Tesco. The micro environmental factors can be
analysed using SWOT analysis which helps identifying strength, weaknesses, opportunities and
strength of the respective organisation. However, the impact of macro environmental factors of
Tesco can be measured using PESTLE analysis which is consist of political, economical, social,
technological, legal and environmental factors that can influence the decision making of the
company.
PART-1
P1: Explain different types and purpose of organisations; public, private and voluntary sectors
and legal structures.
There are various types of organisations which have different objectives to run the
company. Along with this, every sector have different legal structures which makes them
authentic and helps the organisations to operate its functions effeciently. These are discussed
below:
Public sector organisations are the type of companies that are owned and managed by
the governing bodies of the country. However, these organisations are responsible for providing
many employment opportunities for the employees. Funding of these public organisations are
raised through taxes, fees and funds transfer from other level of government (Ebert, 2011). These
organisations operate in various field such as health care, defence, gas and oil, and many more.
Purpose- The aim of these organisations is to provide quality services to the citizens of
the country. For example, National health service also known as NHS which is the healthcare
system provides medical services for the citizens of UK free of cost.

Private Sector organisations are the type of companies that are operated by an
individual or group of people. Private companies are usually run by board of directors and
chairman of the company. The funding is raised by shareholders, bank loans and personal means.
There are various legal documents that are required to start the company such as Memorandum
of association and Articles of Association. Furthermore, the company is issued a certificate of
Incorporation from Registrar of companies which enables the respective firms to trade as Private
Limited Company. These companies deals in various types of goods and services such as food
items, hospitals, etc.
Purpose- These companies are engaged in providing products and services in order to
earn profit for themselves. One of the examples of of private companies is Tesco plc which is a
multi-national retail and groceries company.
Voluntary associations are the type of companies which provides services and products
for the benefit of the society. These organisation does not focus on earning profits and usually
have little or no involvement of the government. The volunteer associations are operated by
group of individuals who sign accord to form a firm in order to attain the common objective of
welfare of the society. Some of these associations have volunteers and paid staff such as
charities. However, other organisations work completely through volunteers. The volunteer
sector of UK contributes £11.7 billion to UK GVA which is almost equal to 0.8% of the UK
GVA (Deasy and Meyer, 2016). One of the examples of these volunteering associations is
Oxfam. It is one of the non governmental aid organisation which operates throughout the globe
in various sectors such as human rights, natural disaster, gender quality, etc.
Purpose- These associations are formed to serve the people in difficult needs or simply
fulfil their basic needs to survive.
P2: Explain the size and scope of range of different type of organisations.
Micro enterprises are the small companies which have less than nine employees having
less than approx £2 million turnover. Nomtek Limited is one of the examples of micro
companies. The respective firm is an IT company which deals in automation, database design
and many other engineering products. The profit share of the respective company is less than £ 2
million. The director of the company is Colin Thomas Cleobury. The company helps building
products which consumes less energy in order to attain less wastage of the resources.