The Business Environment

The Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT............................................................................................................................1
TASK 2............................................................................................................................................1
Different organisational structure................................................................................................1
Explanation of functions of different departments in organisational structures and their
relationship...................................................................................................................................4
Evaluation of influence of global factors on organisation structures..........................................5
TASK 3............................................................................................................................................6
Analyse of impact of supply and demand on prices of goods and services in markets...............6
Analysing possible planned interventions in market place as well as their impacts on
organisation..................................................................................................................................8
Assessment of response of chosen company to changes in its market........................................9
TASK 4............................................................................................................................................9
Covered in Leaflet........................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment means sum total of elements or factors which impacts and
influence an organisation. Understanding business environment helps organisational managers to
identify opportunities for making first mover competitive advantage, identifying threats as well
as early warning signals, tapping useful resources, coping with speedy changes, improving
performance and forming policies (Khajeheian, Friedrichsen and Mödinger, 2018). For gaining
insights about business environment, Tesco Plc is considered. It is an international leading
retailer which have headquarters in England, UK. The company was established by Jack Cohen
in the year 1919 as group of market stalls. It have more than 400000 employees and serves
cardinal of targetted population each week from its stores and online website.
The assessment is prepared in four tasks. First task covers distinct organisations types and
their purposes. It also analyse responsibilities of organisations. The second task discusses about
different organisational structures and functions of department in different structures addition to
their inter-relationships. It also evaluates influences of international factors on organisational
structures. Task 3 analyse impacts of supply and demand on prices of products and services in
markets and possible planned interventions in marketplace along with their impacts on
organisations. Task 4 includes importance of national entrepreneurial strategy, role of monetary
and fiscal policy as well as possible impacts on organisation and their activities.
TASK 1
Covered in PPT
TASK 2
Different organisational structure
Organisational structures and interrelationship of functions of distinct departments in
structures
Organisational structure refers to a system which clearly outlines the ways certain activities will
be directed for attaining organisational objectives. Such activities engrosses rules,
responsibilities and roles (Roberts, 2018). It influences actions and provides foundation in
which standards related to operating procedures as well as routines rest are defined. Various
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types organisational structures are as evaluated:
Hierarchical organisational structure
The structure that puts authority along with responsibility on tp authorities of entity and
flows down from top to lowest level is said to hierarchical organisational structure. It works as
pyramid as well as centralises all duties with power on employees which stand on peak of
business. In context to Tesco Plc, the managers follows hierarchical organisational structure in
which positions together with obligations are divided in various parts for ensuring that
operations are done in smooth and efficient manner.
Advantages: The advantages of using hierarchical structure are as follows:
 Hierarchical structure establishes authority for operations and department in clear
manner. Superiors or managers have authority as per level of management and powers
for allocating rewards, resources and giving orders to employees.
 The structure creates clear communication lines and establishes relationship among
managers and employees that gives directions in proper manner about communication.
 Hierarchical structure allows managers to divide roles and responsibilities to employees
logically which creates additional efficiency layers resulting in specialisation
(Chatzoglou and Chatzoudes, 2018).
 The structure encourages decision making through proper exchange of ideas and
thoughts among team which takes out pressure from single authority.
Disadvantages: Disadvantages of hierarchical structure are below:
 It centralises authority addition to power at highest levels that are possible which creates
huge problems in making decisions about big picture and other operational practices.
 Departments working in hierarchical structure become distinct towards areas of
concerns as well as develops tunnel vision. Hierarchical structure reduces internal innovation as when ideas of employees are
rejected by direct managers then it discourages them to share ideas further.
Divisional structure
The structure which groups organisational functions into geographical, service and
product divisions is said to divisional structure (Cohen, 2018). Each divisions have necessary
resources, duties, responsibilities and functions in it that influence product line. The structure is
used in companies when decision making are in cluster at divisional level for reacting quickly
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