The Business Environment of Tesco and Primark : Report
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Added on 2020-09-03
The Business Environment of Tesco and Primark : Report
Added on 2020-09-03
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The Business Environment
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1 Type of business, purpose and ownership of two contrasting businesses.............................3P2 Different stakeholders who influence the purpose of two contrasting businesses.................5P3 How two businesses are organised........................................................................................6P4 How their style of helps them to fulfil their purposes organisation.......................................7P5 Influence of two contrasting economic environments on business activities within aselected organisation...................................................................................................................8P6 Political, legal and social factors are impacting upon the business activities of the selectedorganisations and their stakeholders...........................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10.........................................................................................................................................................1
INTRODUCTIONThe business environment exist of the surrounding factors that either help of prevent theimprovement of enterprise. It needs living person. Natural resources and place and things toexist. There are the five elements in the business environment: economic and legal environment,technological environment, competitive environment and the last is global environment. Microenvironment is the force and institution outside of the organization that can potentially affect theperformance of the organization come under the external environment of business consist of theeconomic demographic, natural, cultural and political forces (business environment). Presentreport is based on the Tesco and Primark which is retail stores that can provide effective serviceand product to their customers in the below mention report is involved the different type ofbusiness and also define purpose of business in appropriate manner. TASK 1P1 Type of business, purpose and ownership of two contrasting businessesThis type of business is owned and managed by one individual. There's no legaldistinction between the owner and the company, meaning that all debts and after-tax profits arepersonally yours - this is called 'unlimited liability'. Specialist service providers such asplumbers, hairdressers and electricians are often sole traders. Sole trader businesses are easy toestablish and discontinue, are subject to relatively few regulations, and typically have relativelylow running costs (Wheelen and Hunger, 2011). The owner is responsible for keeping day-to-dayfinancial records, but hands responsibility for the end-of-year accounts to a professionalaccountant of Tesco and Primark. Other hand the partnerships usually offer the advantages ofshared responsibility, reduced time pressure for each individual, and an increased level offinancial clout and specialisation. A deed of partnership usually states how much capital eachindividual has contributed, how profits and losses are to be shared, and which partner is taskedwith bookkeeping. Each partner pays tax and National Insurance on their individual profit. Intype of business limited company is also a type of enterprise that can be define the privatelimited companies and public limited companies. The former are often small businesses thatdon't trade on the stock exchange, while the latter are usually well-known businesses that do.Limited companies offer limited liability - which means that the business, rather than its owners
or managers, enters into contracts, employs people, takes debts and profits, and is liable toprosecution if criminal offences are committed.The main purpose of Primak to provide good quality products for the public; we want thepublic to realize we are a good company and just because our products are cheap, it doesn't meanthat they are rubbish (Trkman, 2010). To sell goods at reasonable prices; We want the public tohave a wide range of options to them, so we offer them good quality products at reasonableprices; This will be achieved by looking at other stores, selling similar products, and making ourprices lower than other places.Tescos main purpose is to create value for customers to earn their lifetime loyalty. Tescooffers a wide range of products and services from groceries, household products ,clothing toinsurance.Tescos ownership is owned by several partners , Tesco is owned by thousands of peoplethis is because Tesco is a PLC and is owned by shareholders who fund the company .Primark’s owner, Associated British Foods, is the latest company to feel the pain ofrecord low gilt yields. The group’s UK pension scheme has plunged from a small surplus thistime last year to a £200m deficit, which has resulted in “an increased service cost and a higherinterest charge next year”.P2 Different stakeholders who influencethe purpose of two contrasting businessesStakeholders are anyone that is affected by a business or has an interest in it.Stakeholders are affected by certain decisions made by companies, whether it is positively ornegatively. They can influence a company and the decisions that they make. Customers wantgood quality products and services for affordable prices (Pingali and Roger, 2012). They like tosee improvements constantly being made so that they feel they are getting value for money.Quite often, people associate themselves with certain brands they buy. Organisations andbusinesses are dependent upon their customers. If they don?t develop customer loyalty, theycould begin to lose their customers. Customers like to identify with the brands they buy. Tesco?scustomers have a huge influence over the business. They use their customer?s insight to makeany appropriate and needed changes to their business. Customers can give their ideas, views andcomments in order to let Tesco know how they?re doing as a company and what improvementsthey feel need to be made etc. Tesco don?t offer the right services, products and promotions, thentheir customers will end up shopping in alternative stores.
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