Business Environment and Organizational Performance

The assignment provided is a comprehensive study on the business environment and its impact on organizational performance. It discusses how different legal structures within an organization can lead to differences in their performance of tasks. Effective communication between departments is also highlighted as a key factor in achieving organizational goals. The study draws from various research papers and books, including 'Business Process Management Systems: Strategy and Implementation' by Chang (2016), 'The International Business Environment' by Hamilton and Webster (2018), and 'Controlling Use of a Business Environment on a Mobile Device' by Deasy et al. (2016).

Organizational Types,
Functions and Structures

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types and purpose of organization, public, private and voluntary sectors and
legal structures............................................................................................................................3
P2. The size and scope of a range of different types of organizations........................................8
TASK 2............................................................................................................................................9
P3. The relationship between different organizational functions and the ways to link it with
organizational objectives and structure.......................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1
.........................................................................................................................................................1

INTRODUCTION
Business Environment consist of all total of internal and external factors that plays a
major role in influencing company's business operations. It includes factors such as customers,
suppliers, competitors, business owners, government and many more. While taking vital
decisions it is necessary for the organisation to consider the internal as well as external factors it
order to sustain effectively in this competitive market place (Aithal, 2016). The chosen
organisation under the report is Tesco which is a British multinational groceries retailer
headquartered in England, UK. The project will throw lights on different types of scopes, size
and structures of the different organisation. It will also determine interrelationship among
different functions within the organisation.
TASK 1
P1. Different types and purpose of organization, public, private and voluntary sectors and legal
structures.
There are different types of organisation such as Private, public and voluntary which have
different. Structure, size and their scope. In context to this different organisations taken are
TESCO as a private organisation, NHS as public and Oxfam as voluntary organisation. These are
described as follows-
Private Organisation-
These are the companies which are owned and controlled by the individuals by the
individuals in the form of partnership and sole proprietorship and is not a public body. Private
organisation here is TESCO whose legal structure, size and scope are described as follows-
Background details of the company- TESCO is a multinational organisation which is
the third largest retailer in the world and headquartered in England. It came into existence in the
year 1919 and has largely expanded its business in various countries such as Ireland, Poland,
Malaysia and many more. Respective organisation by providing providing products according to

the demand of the consumer has attained ninth largest position in the world by its revenues
(Bahand and Fang, 2015.).
Products and Services- Tesco being the largest retailer provides goods in various sectors
such as retail products in groceries sector, deals in retailing of books, clothing, electronic,
furniture, toys, petrol and many other items. Main purpose of the organisation is to provide
goods and services under one roof to all its customers. Wide variety of products available under
one roof assist the consumers to purchase the products without any difficulty. Moreover the
company has greatly expanded its business and maintained its sustainability in the foreign
countries.
Vision Statement- Vision for Tesco is to provide goods which are highly innovative and
meet consumer needs. Moreover there main vision is to earn trust and loyalty from customers
and the communities and survive effectively in competitive market place. This will assist the
company to effectively conduct its business operations.
Mission Statement- Tesco mission is to to provide goods that care according to the
needs of the customers and meet up their satisfaction level. “As their mission statement includes
We make what matters better together”.
Legal Structure- Legal Structure of Tesco being a private organisation is described as
follows-
 Sole Proprietorship- Under this type of legal structure which the respective organisation
has is based on the company which is run by a single individual who has the
responsibility to share all the profits and the losses. This types of legal structure is
followed by many companies in which all the business decisions are taken by business
owner. This assist them to perform business operations in timely manner. This is the
effective style of operating business with less of conflicts and issues (Chang, 2016).
 Partnership- Under this type of legal structure, partnership is a form of business which
is carried by two or more individuals and leads to collaborative working in which
business partners have the equal responsibly to share profits and losses. In order to start
this form of business contract is signed between two or more parties where partners have
equal responsibility towards the business and their proportion to company' share are
equally mentioned. Decision is taken jointly by both the partners so that conflicts can be
minimised and partners works effectively for the success of the organisation.

 Joint Stock Companies- In this type of legal structure, organisations are formed when
they have limited resources and high level of risk. Joints stock companies is formed
between the two organisations such as private limited and a public limited company. In
case of private limited there should be 2 or more than 2 individuals but not more
than 50 but in case of public limited company it has minimum 7 members.
From all the above legal structures, Tesco which is a private company is following public
limited joint stock legal structure which are having many members and hare equally working
effectively towards the success of the organisation. Moreover all the employees are involved in
decision making process of the company.
Purpose of the company-The major aim or purpose of the company is to provide quality
products to the customer so as to meet up their satisfaction level (Charter, 2017).
Objectives- Objective of TESCO being a private organisation is to maximise sales and
profitability of the business. This will ensure sustainability of the business for a long time period.
Stakeholders- Stakeholders for the company include customers, suppliers, competitors
and many other organisation which affects the operations of the company and has a major
involvement towards the company business activities.
Public Organisation- Public Sector are those organisations which are owned and operated by
the government of the country by providing services to the citizens of the country. They exist to
provide services not for generating profit for the company. Under the public sector organisation
NHS has been taken.
Background details of the company- NHS which stands for National Health Service
which is a public sector organisation deals in health and social care field came into existence in
the year 1948 with the purpose of providing universal free services to the citizens of the country.
The respective provides its services in various countries such as England, Scotland and Wales to
provide satisfactory services to the customers excluding dental and optical health care facilities.
Products and Services- Respective organisation is providing health care and medical
services to all the individuals and the patients at a free of cost. These facilities provided to the
customers are for providing them a standard of living and a healthy lifestyle to each and every
individual(Hamilton,and Webster ,2018).
Vision Statement- The main vision of the company is to provide health and medical care
facilities to the customers by providing them standard of living.

Mission Statement- Mission of the company is to provide quality health services to the
individual which ensures healthy living to each and every individual.
Legal Structure- Following is the legal structure of the respective public sector
organisation.
 Central Government- Under this form of legal structure central government has the
major responsibility towards operatives the business activities centrally and the decision
are taken up the central government.
 State Government- Under this form of legal structure state government has the
responsibility to perform business activities effectively. Government provides various
funds and other resources to the organisations for their effective functioning.
 Local Government- Under this form of legal structure, local government within the
state is responsible for handling all the local authority of work and conducts its
functioning with the assistance of central and state government.
From all the above legal structures, NHS being a public sector organisation is operated
and controlled by the central government. Government is responsible for handling all the
business activities and is accountable to set all the policies and procedures for working (Hillary,
2017).
Purpose- The main purpose of NHS is to provide quality health care and medical
facilities to all it customers by provides medicines, facilities for medical test at a free or at a
reasonable cost.
Objective- The main objective or aim of NHS is to meet the need of the customers and
providing them medical and health services which meet yup their satisfaction level.
Stakeholders- Major stakeholders for the company includes employees, customers,
government, volunteers, suppliers, citizens and all the local distributors which are engaged
towards providing services to the individuals within the nation.
Voluntary Organisation
Voluntary group or a union is a organisation which is formed by the individuals or a
group of union to accomplish a certain purpose. These organisations are operated for the welfare
of the society. Oxfam is being taken as a voluntary organisation whose details are described as
follows-

Background details of the company- Oxfam which stands for Oxford Committee for
Famine Relief. It is a group of 20 charitable which came into existence in the year 1942, its main
purpose is to reduce poverty within the country and provide socio economic benefits to the
individuals of the country. Moreover it provides relief to the individuals at the time of disaster
and pro migration and provides welfare to the individuals The organization is based in Oxfam
House, John Smith Drive, Oxford, England. Since 2013, the director of the company is Winnie
Byanyima.
Products and Services- Oxfam being a voluntary organisation provides social welfare to
the individuals of the society. It provides services to the individuals at the time of disaster, policy
research and pro migration.
Vision- Vision for the respective company includes to enhance social economic well
being of the individuals by providing effective services and treating all the individuals equal and
provides them a standard of living.
Mission- Mission of the company includes providing services to the individuals in order
to remove poverty and empower them to use their right 'by providing them services which
enhances standard of living.
Types of Legal Structures- There are different types of legal structure for voluntary
organisation which are described as follows-
 Unincorporated Association- This type of association is formed by a group of
individuals to enhance support and welfare to the individuals within the society. In order
to form this association contract is signed between the two parties and doesn't require any
source of funds to start up this association.
 Trust- It is a corporation which is responsible for performing the task of the trust.
Individuals within the structure are the trustees and the managers ans is basically owned
by three agencies which also performs some of the beneficial activities.\
From all the above legal structure OXFAM follows the unincorporated association under which
contract is signed between both the parties and effectively performs all the business activities (
Ji-fan Ren and et. al., 2017).
 Purpose- Purpose of Oxfam is to reduce poverty from the country and to provide
standard of living style to the individuals.

 Objectives- The main objective of Voluntary association is to provide equal rights to the
members of the society by providing them welfare facilities.
 Stakeholders- Major Stakeholders for the company includes customers, suppliers,
volunteers, community and government and many more.
P2. The size and scope of a range of different types of organizations
Their are different types of organisations such as public, private and voluntary which
vary in their size and scope which is described as follows-
Private Organisation- Tesco which is taken as the Private Organisation, describes its size and
scope as follows-
Size- TESCO being the largest retailer from the groceries sector attracts large number of
customers towards it. Moreover there is a greater demand of the grocery items and with this
company has hired approximately 460,000 employees which are effectively working towards
maximising profitability and sales. Apart from this it has many subsidiaries in banks group.
Scope- Scope for the TESCO retail grocery store is very large as the demand of the
grocery product is very huge all around the world. Moreover the company also deals in various
sectors such as toys, electronics , furniture by provides the products to the customer under one
roof. Apart from this company is expanding its business operations in various foreign countries,
thereby maintaining its sustainability and profitability.
Public Organisation- Public Organisation taken under the report is NHS whose size and scope
are discussed as follows-
Size- Size of NHS as a public sector organisation is very large as it is providing the
services of various health care and medical facilities to the individuals within the society.
Therefore it also ensures that individuals should equally enjoy their rights by availing the
services and enhances their standard of living. The respective company majorly operates in
Scotland and Wales and has started working under the different parts of England . Therefore size
of NHS is quite bigger and can enhance its future opportunities (Khanand and Quaddus, 2015).
Scope- Scope of NHS being a public sector organisation is very wide as the medical
facilities are provided to all the individuals within UK and moreover the company is also
providing services in all other countries all across the globe.

Voluntary Organisation- Oxfam is being taken as the Voluntary organisation whose size and
scope are discussed as follows-
Size- Oxfam which is a voluntary organisation consist of 20 individuals which provide
services for the socio economic benefits of the individuals. Moreover respective organisation has
branches all over the globe and thereby enhancing the size of the company to provide more
effective services to the consumers.
Scope- Respective organisation has a wider scope as it provide various services related to
minimising poverty all over the globe as well as providing relief during disaster and in pro
migration. This greatly expand the scope of business organisation and provides effective
standard living life to the individuals.
TASK 2
P3. The relationship between different organizational functions and the ways to link it with
organizational objectives and structure.
There are different types of departments within the organisation which effectively
performs their business activities and enhances growth and success of the company. Moreover
functions of the various departments are linked to each other which assist in effective functioning
within the departments. Moreover effective interaction between the departments of the
organisation helps the organisation to perform its task in effective manner. Various
interrelationship among the fu8njctions of the departments within the TESCO organisation is
described as follows-
Marketing with the HR Department- Marketing department within the TESCO is
responsible for advertising its products and services so as to create brand awareness and attracts
large number of customers for enhancing its profitability and sales. This information should be
shared by the HR department of the TESCO organisation so that it assist the organisation in
hiring the qualified and the prospective candidates towards which roles and responsibilities can
be effectively performed within the respective organisation. Both the functions of the department
are interrelated and effective coordination between the two will assist in effective performance
of their business activities( Prajogo, 2016).
Marketing with Finance Department- Finance department is the backbone of the
company whose major role is provide funds to the different department so that business activities

can be performed effectively. Marketing department needs funds for advertising their products
and services so as to create awareness in the market place. In order to perform this business
activities Marketing department needs effective funds from finance departments so that
advertising functions can be performed effectively by the finance department. Moreover
structure of TESCO is public limited company which consist of various members are equally
responsible for sharing of profits and losses. This assist the members to work effectively and
achieves the objective of the organisation, thereby maintaining its sustainability and profitability.
Thus effective coordination between the finance and the marketing departments will assist in
effective functioning and thereby maintaining its sustainability in the market place.
Marketing with Research and Development- The main function of the Research and
Development departments is to identify various new ways, methods and process of performing
business activities. It is their responsibility to identifies innovative ways and communicate to
different departments so as to enhance their business activities. Therefore Marketing department
requires effective new ways of advertising their products and services so as to attract different
customers and maintains their sustainability in the business. If both the departments effectively
works in coordination between the two it will lead to enhance in the productivity and the
performance of the business operations. This effectively maintains sustainability of the business
(Quinlan and et. al., 2019).
Therefore there is effective relationship between various departments within the
organisation and assist in effective execution of tasks. Apart from this effective collaboration
between the departments will assist in success and profitability of the business for a long time
period. It is necessary for the organisation to communicate effectively and maintains its
sustainability.
CONCLUSION
From the above report it has been concluded that there are different legal structures
within which the different business organisation perform effectively and maintains sustainability
in the business. Moreover there are different departmental functions which are linked to different
organisational functions which leads to effective performance of task. Effective communication
between the departments will assist them in identifying different ways of performing task and
thereby assist in achieving organisational goals and objectives. At last it can be concluded that

different organisations within the different structures and functions leads to difference in their
performance of task.
REFERENCES
Books and Journals
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