Business Environment and Competitive Priorities

Business and the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Different types of organisation and its purpose................................................................3
P2 Size and scope of different types of organisation.............................................................5
P3: Interrelation among different organisational department and their link..........................7
P4: Positive and negative impact of macro environment upon business operations ............9
P5: Internal and External analysis of Tesco to identify its strength and weakness..............10
P6: Interrelation of strength and weakness with macro environmental factor.....................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business is the function that includes carried out activities by an organisation in order to
generate income and profits (Avramenko, 2012.). Each businessman requires a perfect
environment, some form of investment and enough customers for selling its output to clients
according to their demands. Business environment is collection and total of all internal and
external factors like as employees, supply and demand, management, suppliers, clients, customer
needs and expectations etc.
To understand the concept of business and its environment Tesco has taken. It is a British
multinational general merchandise retailer and groceries company. Its aim to develop the online
shopping experience and increase in number of customer.
In this report some topics are covered such as types and purpose of different
organisations, their size and scope, relations between organisational functions and link to
objectives and structure, positive and negative impact of macro environment on business,
internal and external analysis of specific enterprises and interrelation of strength and weaknesses
with external macro factors.
P1 Different types of organisation and its purpose
Organisation is a collection of people or organised group with particular intention, like
government or business department. It also involves association and institution that is structured
and managed to meet a demand and work together to achieve goals. It states the relationship
between the different activities and employees and assign roles and responsibilities. It includes
three types of organisation such as public, private and voluntary organisation which is discussed
as below-
Public company- This means an enterprise is able to raise amount of capital by issuing
securities publicly. Shares and debentures of a public organisation are freely traded on stock
exchange and distributed at wide range. As per Securities and exchange commission (SEC), any
organisation that has more than $10 million in assets and 500 shareholders would be required to
register with SEC (Bovee, Thill and Raina, 2016). Its purpose is to sell its shares to the public
through a stock exchange and give benefits to public. For instance, National health
services(NHS) is public funded company that arrange its capital by issuing shares publicly. It is
the biggest single payer health care system worldwide. It provides health care in England, patient

care, long term attention, dentistry and medical speciality. The UK government is responsible
and accountable for NHS department that provides social care, health security, controlled by the
secretary of state for Health and social care.
Purpose:
Its main purpose of NHS is to improve the productivity and quality and to stop confusing
all clinical disciplines with non-care manufacturing activity.
Legal structure:
 State government: This is a federal form of that shares its political power with national
or federal government.
 Central government: It states regulation and control on united states for holding
absolute supremacy.
Private company: This means an enterprise who raise its capital by its own sources
instead of issuing securities publicly. Private company can issue its shares and securities to their
shareholders within the organisation. Private organisation cannot issue shares as initial public
offer(IPO) and cannot trade on public exchange. Tesco is a private company that is dealing in
grocery store, clothing, electronic goods and online services. It is a multinational company that
focuses on customer demand and help to meet their needs. The main Goal of Tesco is to serve
good quality of product at great value and take social responsibility which provides good return
on investment to shareholders. Its purpose is to create a brand demand and make solid strategy
that helps to meet profitable organisation. It is profit making organisation that increases its
earnings by providing or serving their products or services in a large number.
Purpose:
The main purpose of Tesco is to create values for customer, create lifetime loyalty,
increase in number of sale, introducing new product, and reach at global level. In addition, to
seeks market requirements and changes in customers taste and try to bring new innovation for
their clients. (Cai and Yang, 2014).
Legal structure:
 Partnership: This means when two or more person work collectively as per
contract in order to achieve organisation's goals. Under this type of legal structure
every partner would be liable for gains and debts of firm.