Different types of Organizations

Running head: Management
BUSINESS ENVIRONMENT
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Management 2
Table of Contents
Introduction...............................................................................................................................................2
LO1 Different types of Organizations......................................................................................................3
1.1 Tesco PLC description........................................................................................................................4
1.2 Asda Stores Ltd............................................................................................................................5
1.3 Barclaysbank......................................................................................................................................6
1.4 Sainsbury’s.........................................................................................................................................7
LO2 Organizational structure and organizational functions.................................................................8
LO3 Tesco microenvironment analysis..................................................................................................10
3.1 PESTLE Analysis of Tesco..................................................................................................................10
3.1.1 Political.....................................................................................................................................10
3.1.2 Economic..................................................................................................................................11
3.1.3 Social.........................................................................................................................................11
3.1.4 Technological............................................................................................................................12
3.1.5 Environmental..........................................................................................................................12
3.1.6 Legal..........................................................................................................................................13
3.2 Tesco SWOT Analysis.......................................................................................................................13
3.2.1 The strength of Tesco...............................................................................................................13
3.2.2 Weaknesses of Tesco................................................................................................................14
3.2.3 Opportunities............................................................................................................................14
3.2.4 Threats......................................................................................................................................14
LO4 The impact of micro and macro environment on Tesco...............................................................15
4.1 Microenvironment impact on Tesco................................................................................................15
4.2 Impact of the macro environment on the Tesco strategic direction................................................16
Conclusion................................................................................................................................................17
References................................................................................................................................................18
Introduction
Business within the UK market has attracted the growth of various companies within the
market and this is also spread across the international business market platform. There are many

Management 3
different types of organization within the UK market operating within different industries. Tesco
Limited is one of the largest companies in the UK market will larger operation revenue. In
addition, the organization has a larger number of employees and stores spread across the
international business environment. The company operates within the retail market, online
business and financial market. Some of the competitors of Tesco are Sainsbury's, Barclay's bank,
and Asda stores. Asda stores are primarily a retail store and compete with Tesco on the retail
category and the second largest store after Tesco. Sainsbury's is a diversified organization that
competes with Tesco at the retail industry and at the financial category through its Sainsbury’s
Bank. Lastly, Barclays Bank is a financial institution and majorly competitor of Tesco in the
banking industry. The organizational structure show interrelationwith the organizational
functions and position that performs these functions. Another area that has influence in the
operation of the company is the macro and microenvironment that affects performance leading to
the achievement of strategic objectives. The following paper analyses operations of Tesco
Limited incomparison with its three competitors.
LO1 Different types of Organizations
There are different types of competitors that operate different types of businesses that
range from banking, retail and many other types of businesses. The three competitors are Asda
Store Ltd, Barclays Bank and Sainsbury’s.

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Figure 1: Market share for major retailers
1.1 Tesco PLC description
Tesco is a Britishretailer that deals in different types of general merchandise and
groceries that are based at Welwyn Garden City. Many reports have ranked Tesco as the third
largest retail company within the country. The size of the company is considerably large
reaching seven Asian and Europe countries despite being the largest grocery within the UK. The
company has a market share of 30.6 percent making it leads other organizations in the category
of groceries (Tesco PLC 2019).
The background of the organization can be traced back to 1919 when the company was
founded as a group of a market stall. The organization opened its first shop in 1931 from where it
has expanded to reach more than 100 retail shops across the country. The company has also
reached more than eleven countries throughout the world and is currently selling more products

Management 5
under the portfolio of clothes, books, electronics, furniture, software and telecoms among many
other products (Kelly 2013).
The company is currently ranked the largest company within the company after
suppressingAsda and Sainsbury’s stores. The size of the company is large with 6569 shops found
in different locations and with many different headquarters (Ryle 2013). Currently, the company
has more than 460, 000 employees and operating under the income of £1,644 million, a total of
£57, 491 million revenue making a net income of approximately, £1,208 as at 2018. Tesco has
more than nine subsidiaries operating under different business portfolios but under the Tesco
brand.Some of the common subsidiaries include Tesco Stores Ltd, Tesco Bank, Tesco Family
Dining Ltd and Tesco Mobile among others. Some products that are sold under the Tesco brand
are superstores, supermarket, convenience store and hypermarket (Mason & Barry 2015).
The strategic plan of Tescoincludes vision, mission and business objectives. The mission
of the Tesco is anchored on the statement “We make what matters better together”. The core
value of the company is based on the need to treat everyone the way one needs to be treated
(Wood 2010). This implies that customers are treated as they expect to be treated well. The
vision of the organization is based on what is needed, a growing business, modern and
innovative, winning locally and globally, and inspiring and earning at the same time from the
loyalty of customers (Euromonitor 2012).
1.2 Asda Stores Ltd
Asda is another UK based retail store that has its headquarter at Leeds, West Yorkshire
UK. The company was founded in 1949 through merger of supermarket and Associated Dairies

Management 6
company within Yorkshire. The company was ranked the second largest retailer in the UK in
2003 and 2014. The company is currently the second largest company after Tesco since 2019
where it has regained its growth momentum.The company was acquired by Walmart and has
remained within the second position interchangeably with Sainsbury’s in the UK market. Since
the acquisition of the company, Asda has remained operational on its brand name thereby
gaining a brand position within the market (Ruddick 2014).
Size of the company is equally large being the second largest retail store as of 2019 in the
UK. The company has more than 633 stores located across the country and is operating four
common products. These products are grocery, general merchandise and financial services
leading to total revenue of £21,666 million as of 2016. The operating income of £791.7 million
and a total of 165,000 employees. The company is a subsidiary of Walmart and also has two
main subsidiaries called Asda Mobile and Asda Money (Smithers 2018).
1.3 Barclaysbank
Barclays Bank is another competitor of Tesco under the financial categories and has been
a financial institution for many years.Barclays bank is a financial and investment organization
that offer various financial services to customers in the country. The bank is based in London
from where it offers services such as personal banking, corporate banking, investment
management, and wealth management services. The company traces its background to 1690
when it started financial services to goldsmiths in London. The bank has since been able to
spread to other parts of the country and is currently multinational bank with more than 79000
employees (Yan 2014).