Environmental Sustainability & Legal Compliance: NHS vs Tesco

This assignment involves conducting a PESTEL analysis on two prominent organizations, the National Health Service (NHS) and Tesco, focusing on their interaction with the external business environment. The primary objectives are to assess each organization's response to environmental sustainability efforts, particularly regarding climate change mitigation through initiatives like tree planting by NHS, and legal compliance issues such as agricultural policy reforms affecting Tesco and quality standards for NHS.

The Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P1 Describe the type of business, purpose and ownership of two contrasting businesses..........1
P2. Describe the different stakeholders who influence the purpose of two contrasting
businesses....................................................................................................................................2
P3 Describe how two businesses are organised..........................................................................3
P4: Explain how their style of organisation helps them to fulfill their purposes........................4
P5:Describe the influence of two contrasting economic environments on business activities
within a selected organisation.....................................................................................................4
P6:Describe how political, legal and social factors are impacting upon the business activities
of the selected organizations and their stakeholders...................................................................5
CONCLUSION ...............................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Business environment is the sum total of all external and internal factors that influence a
business. One should keep in mind that external factors and internal factors can influence each
other and work together to affect a business. For example, a health and safety regulation is an
external factor that influences the internal environment of business operations (Linnenluecke,
2017). Additionally, some external factors are beyond the control. These factors are often called
external constraints.
This report will examine the range of different businesses and their ownership,it will also
provide knowledge about how businesses are organised to achieve their purpose. It will
represent the impact of the economic environment on businesses and about how political, legal
factors impact on business.
P1 Describe the type of business, purpose and ownership of two contrasting businesses
The Tesco which a private organization is one of the leading retailer, with 460,000
colleagues and serve millions of customers every week, in the stores and online. Tesco PLC is a
British multinational grocery and general merchandise retailer with headquarters in Welwyn
Garden City, Hertfordshire, England, United Kingdom. It is the third largest retailer in the world
measured by profits and ninth-largest retailer in the world measured by revenues. It has stores in
12 countries across Asia and Europe and is the grocery market leader in the UK, Ireland and
Thailand.
Tesco's main purpose is to create a value for customers to earn their lifetime loyalty.
Tesco offers a wide range of products an d services from groceries,household products,clothing
to insurance .It is retailer so therefore is the tertiary sector. They ensure that every person at
Tesco understands what is important about how we work together as a team and how customers
are at the centre of what we do (Yin, 2017). They are universal values, which have helped guide
our people as Tesco has grown into new markets and new countries.
NHS Patients and the public see the NHS as a single, national, unified service and expect
and want the NHS Identity to be applied in a consistent and uniform way – it reassures them that
they can rely on the quality of healthcare being provided wherever they access it.
There are currently four main types of NHS organisation. They are:
 National NHS organisations
 NHS Clinical Commissioning Groups
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 NHS Foundation Trusts and NHS Trusts
Hosted or non-statutory NHS organisations and entities (e.g. Commissioning Support
Units, Clinical Senates, Strategic Clinical Networks).A standard format has been introduced for
all NHS organisational logos to ensure that patients and the public see the NHS presented in a
consistent, coherent and professional way.
P2. Describe the different stakeholders who influence the purpose of two contrasting businesses
These are the specific people or groups who have an interest or a partial stake in the
products and services an organization provides. Internal stakeholders include management, other
employees, administrators, etc. External stakeholders could include suppliers, investors,
community groups and government organizations. Clients / customers are stakeholders as well.
Tesco mainly operates with following stakeholders those are:
Customers: Customer Question Time meetings are precious like diamond which is cut and
polished. Staff hears customers' views on everything from how they are serving customers in
their stores to their role in the community (Linnenluecke, 2017).
Staff: Staff gives the company their feedback through the Viewpoint staff survey, Staff Question
Time sessions and by Staff Forum process.
Suppliers: Tesco core value is "treat people how we like to be treated", and it's something they
apply firmly to their supplier to grip the relationship
The Health and Social Care Act 2012 says the NHS has a duty to involve people in
decisions about their health care and to consult and involve people when planning or changing
commissioned health services. Identifying the stakeholders will help to make sure they are fully
engaging with everyone who needs to be involved, meeting these legal duties.
 Commissioners: those that pay the organisation to do things
 Customers: those that acquire and use the organisation's products
 Collaborators: those with whom the organisation works to develop and deliver products
 Contributors: those from whom the organisation acquires content for products
 Channels: those who provide the organisation with a route to a market or customer
 Commentators: those whose opinions of the organisation are heard by customers and
others
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P3 Describe how two businesses are organised
Tesco Board of Directors comprises 10 members and there were significant changes in
the Board during the financial year 2014/15. These changes include the appointment of John
Allan as the Chairman of the Board, the appointment of a new CEO Dave Lewis and new Chief
Financial Officer Alan Steward, the retirement of four Non-Executive Directors and the
appointment of three new Non-Executive Directors. In 2015, Mr. Lewis announced the reduction
of costs across head office functions by 30 per cent with direct implications on the management
structure. Tesco organizational structure is highly hierarchical reflecting the large size of the
business. Even in store level, there are as many as four layers of management in some large
stores.
The organisation does not involve itself in any propaganda, but instead lets its artists
speak on their behalf. The artists who release recordings on the organisation’s record label all
have something in common with Tesco. The organisation's members stay neutral and support
their recording artist's views. Tesco has no visible ideology, only that they show a fascination for
other people who are outspoken and direct no matter what politics they follow. They express an
enjoyment of the aesthetics of decay and the decline of the Western world.
The NHS commissioning system was previously made up of primary care trusts and
specialised commissioning groups. Most of the NHS commissioning budget is now managed by
clinical commissioning groups (CCGs). These are groups of general practices which come
together in each area to commission the best services for their patients and population (Lauring
and Bjerregaard, 2017).
 Nationally, NHS England commissions specialised services, primary care, some public
health services, offender healthcare and some services for the armed forces.
 It has four regional teams but is one single organisation operating to a common model
with one board.CCGs and NHS England is supported by commissioning support units
(CSUs). Their role is to carry out:
 Transformational commissioning functions, such as service redesign; and
 Transactional commissioning functions, such as market management, healthcare
procurement, contract negotiation and monitoring, information analysis and risk
stratification.
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P4: Explain how their style of organisation helps them to fulfill their purposes
The purpose of NHS is to collecting and publishing health and care information
 Providing national technology for health and care services
 Producing information standards
 Improving the quality of health and care information and data
 Publishing national indicators for health and care
 Giving advice and support to health and care organizations on information and cyber
security
 Providing the Information Governance Toolkit for care organizations to assess how well
they are handling information and data.
All this objectives can be achieved with the control and coordination of employees and staff
member that are working operate,They work together in groups to achieve these goals.
On the other hand Tesco,achieves the purpose in the following ways-:
No one tries harder for customers
 Understand customers
 Be first to meet their needs
 Act responsibly for our communities
Understanding people – customers, colleagues, communities – and what matters to them,
and then trying to make those things better, is at the heart of Tesco (Kew and Stredwick,, 2017).
We treat people how they want to be treated
 Work as a team
 Trust and respect each other
 Listen, support and say thank you
 Share knowledge and experience
We know that looking after our colleagues in a culture of trust and respect is essential to
the success of Tesco.
P5:Describe the influence of two contrasting economic environments on business activities
within a selected organisation
One of TESCO’s competitive advantages at present relates to their overwhelming
physical presence, there are issues about TESCO driving out the competition from other retailers.
There are policies as well as laws and regulations governing monopolies and competition which
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would be identified though an analysis. This is potentially one of the main issues that TESCO’s
are faced with. Protecting consumers and ensuring that entrepreneurs have the opportunity to
compete in the market economy are important within consumer law. Due to the current state of
the economy, many small businesses are failing and many unable to enter the market. Analysis
has helped to assess where location wise there is a demand for expansion. The situation is in no
way being assisted by the ever expanding TESCO’s chains of store. Under EU law, there is
presumption that an organisation with a large market share is dominant. The concerns with this
are that quality of products and services will slip and there is a risk of paying higher prices.
TESCO to date has not been assessed as posing a risk of exploitation but should bear this in mind
(Jarach, 2017).
The economic factors at NHS may affect it as if new laws and regulation are regulated by
the government need to be imposed at NHS. Proper support and guidance from the government
as it is a public organization and depends heavily on its government. The economic factor can
produce impact on Unemployment and labour supply
 Labour costs
 Levels of disposable income and income distribution
 Impact of globalisation
P6:Describe how political, legal and social factors are impacting upon the business activities of
the selected organizations and their stakeholders.
Pestle analysis of Tesco organization and NHS
Political
The UK government has recently adopted a tax measure that affected Tesco. In 2011 the UK
government increased the VAT rate from 17.5% to 20% with the aim to increase government
revenue by £13 billion per year contend that an increase in the VAT rate leads to lower customer
spending. The rules and regulations of the NHS and the government don’t go hand-in-hand and
this is noticed after the elections which were held in 2010. The funding for certain treatments is
done by the government and their rates are not in sync with the actual rates of the hospital.
Economic
The UK economy is showing positive signs of recovery from the financial crises. Higher
economic growth rate was forecasted and the gross domestic product was estimated to be 2.7%
higher than the pre-crises peak . A growth in economy is a positive sign for Tesco because it
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results in a growth in the supermarket industry, which is the main industry in which Tesco
operates. The movement of money from or to the organization causes a change in the
environment. Few of the changes that have been caused in the NHS due to the economic
environment (Gorur and Mulukutla Jda Software , 2017)
Social
The number of elderly people is increasing in the UK due to the baby boom generation. In the
past years there was a decrease in the birth-rate and an increase in the life expectancy of people.
The NHS should take into consideration, the number of ageing people who are present in the
country. Ageing people require more health care services and hence, it should increase the
capacity of the hospital.
Technology
Technology is critical for the supply chain management of Tesco. Retailers like Tesco develop
supply chain management systems in order to attain competitive advantages and enhance cost
efficiency posit that the most effective competitive advantages are those that are difficult to
imitate by competitors. Technology is improving fast and the NHS should implement it so that
they can stay ahead in the competition.
Environmental
In the press substantial emphasis is made on global warming and the consequences associated
with it. For example, the increase in average temperature is leading to a melting of the Arctic ice
and it is envisaged that by 2040 there will be an ice-free summer. Such facts are leading to
higher emphasis on environmental sustainability. NHS plants trees in their campus and locality
so that they can provide a healthy environment for the patients who are admitted in the hospital
and people who reside in the locality (Ferraro and Briody, 2017).
Legal
There are a number of laws that affect Tesco because the organisation markets a wide number of
products and services. For example, as regards the agricultural products the UK government is
reforming the common agricultural policy. The government is revising the way direct subsidies
will be allocated to farmers . The NHS will have to follow quality issues which have been set
forth by the government. The quality issues are adhered so that the patients in the hospital are
safe.
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CONCLUSION
There is a close and continuous interaction between the business and its environment.
This interaction helps in strengthening the business firm and using its resources more effectively.
The Tesco organization is a private organization whereas NHS is public health care organization.
The purpose of these with organization is customers satisfaction that providing best of their
services. The pestle analysis is conducted on these organization to study the effect of external
environment. The stakeholder play a very important role in both these organization
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REFERENCES
Books and journals
Ferraro, G.P. and Briody, E.K., 2017. The cultural dimension of global business. Taylor &
Francis.
Gorur, C. and Mulukutla, R., Jda Software Group, Inc., 2017. Customizable state machine and
state aggregation technique for processing collaborative and transactional business objects.
U.S. Patent 9,665,893.
Jarach, D., 2017. Airport marketing: Strategies to cope with the new millennium environment.
Routledge.
Kew, J. and Stredwick, J., 2017. Business environment: managing in a strategic context. Kogan
Page Publishers.
Lauring, J. and Bjerregaard, T., 2017. Language use and international business: What can we
learn from anthropology?. HERMES-Journal of Language and Communication in Business,
20(38), pp.105-117.
Linnenluecke, M.K., 2017. Resilience in business and management research: A review of
influential publications and a research agenda. International Journal of Management
Reviews, 19(1), pp.4-30.
Voigt, K.I., Buliga, O. and Michl, K., 2017. Introduction. In Business Model Pioneers (pp. 3-6).
Springer, Cham.
Yin, J., 2017. Institutional drivers for corporate social responsibility in an emerging economy: A
mixed-method study of Chinese business executives. Business & Society, 56(5), pp.672-
704.
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