Understanding the UK Business Environment: Types of Organizations, Macro Analysis, and Tesco's Internal Analysis

This document provides an overview of the UK business environment, including the types and purposes of organizations (public, private, and voluntary), legal structures, and the size and scope of different organizations. It also discusses the relationship between company functions and business objectives, conducts a macro environment analysis, and analyzes Tesco's internal environment. The document aims to provide a comprehensive understanding of the business environment for better strategic planning.

The UK Business Environment

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................4
P1 Different types and purposes of organisations; public, private and voluntary and legal
structure.......................................................................................................................................4
P2 Size and scope of different types of organisations.................................................................5
LO2..................................................................................................................................................7
P3 Relationship with company functions with link to business objectives and structures..........7
LO3..................................................................................................................................................8
P4 Macro environment analysis...................................................................................................8
LO4................................................................................................................................................10
P5 Internal environment analysis...............................................................................................10
P 6 Strengths and weakness interrelation with external macro factors....................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment can be defined collection of all those factors affecting and
influencing business organisation and its functioning. There are several types of organisations
that operate in an economy and are divided on the basis of sectors in which they operate. On this
basis organisations are primarily differentiated on the basis of public, private and voluntary
sector. Further they are also differentiated on the basis of their size and scope of operations. This
report will discuss about different types of organisation and different functions and
interrelationship between different functional organisations. Further, will involve analysis of
internal and external environment for this purpose Tesco will be contextualised in this report.

Tesco, British multinational groceries and general merchandise retailer founded in 1919 and is
headquartered at Hertfordshire, England, UK.
LO1
P1 Different types and purposes of organisations; public, private and voluntary and legal
structure
Public Organisation
Public organisations are those that operate in public sector. These organisations are
owned and operated by government. Organisations are operated for the purpose of providing
elementary and required services to public and society in a country. Public organisations are
operated by local, state and national government and on the basis of government size and scope
of organisation differs. Finance of such organisation is done through funds raised by general
taxes.
Concerned with legal structure these organisations are owned and operated by
government and hence 51% more shares are owned by government (Patro, 2017). Organisations
are accountable to government by which they have been founded and are operated. NHS is an
example of such organisation that are under category of public organisations.
Private Organisations
Private organisations are those that are owned and operated by private people. Purpose of
these organisations is to generate and increase profit through their business activities. Businesses
are accountable for their owners.
Concerned with legal structure, organisations are differentiated on several basis and these
are as follows-
Sole proprietorship- These are organisations that are owned and operated by individual who
takes responsibility of organisation and these businesses are not separated from their owners.
Partnerships- These businesses are those that are owned and operated by two or more
individuals collectively and share profit and loss of the organisation.

Limited companies- Limited companies are those that are owned on the basis of shareholding.
These are limited companies because owners of these companies are separated from the
company are not accountable for liabilities of the company. Tesco is example of this type of
organisation.
Cooperatives- These are association of people that are owned collectively and operated
democratically. Purpose of these is to fulfil social and economic benefits for the members.
Voluntary Organisations
Voluntary organisations also known as third sector organisation are non-governmental
and non-profit organisations. These organisations are created and operated with the purpose to
serve society and make a social impact (Wo, Hipp and Boessen, 2016). These organisations often
work for welfare of the people and work with the purpose of making society a better place.
British Red Cross is example of voluntary organisation.
Concerned with legal structure, these organisations are operated by volunteers and these
volunteers enter into agreement to work for fulfilment of the organisational purpose. Voluntary
organisations are of different types that are-
For-profit Organisation- Earn profit through organisational activities and invest back for
realising organisational purpose
Not-for-profit Organisation - Do not earn any kind of profit from its organisational activities and
are financed through charity and donations and sometimes through membership fee that is
collected from members and volunteers
P2 Size and scope of different types of organisations
Basis Micro Small Medium Large
Size These are
organisations that
are smallest in
size and in terms
of employees of
these
These
organisations are
bigger compared
to micro but are
also small.
Employees of such
On the basis of size
these organisations
are bigger in terms
of size, employees
as well as profit
volume. On the
As the name
indicates these are
biggest
organisations that
are large in their
size, number of

organisations are
less than 10
organisations are
less than 50 (Fauzi
and Sheng, 2020).
basis of employees,
these organisations
employs less than
250 employees
employees as well
as profit generated
by organisations.
Scope
Scope of these
organisations is
limited in
activities and in
terms of
operations scope
limits to locality
and city.
Scope of these in
terms of activities
is bigger and
expansion of these
is to their city and
sometimes more
than one city
These organisations
are those that
employs more
activities concerned
with scope of
expansion, it has
significant scope of
expansion that can
be done through
investment in
organisation
These
organisations
operate at big scale
and activities
involved are also
large in number.
Objective
s
Objectives of
these
organisations is to
earn substantial
profit with limited
investment
Objectives of
small
organisations is to
earn money and
maintain lifestyle
and also involving
family and friends
in business
Medium
organisations seek
to earn and increase
profit in their
investment by
increasing sales and
customers
Large
organisations has
objectives for
sustainability, long
term competitive
advantage
Product
and
service
offered
Often basic
products and
services are
offered by these
organisations,
small cafe is
example of this.
Services and
products of these
are of
differentiated
nature that are
required by
customers
Product and
services are based
on capacity
utilisation often that
have been
successful in
market and have a
regular demand
Products and
services are
offered to fill gap
in existing and
required products
and services
(Dobrosavljević
and Urošević,

2019).
Structure
No structure Line structure and
simplified
structure
Functional and line
structure
Functional, matrix,
departmental,
project structure,
team based and flat
structures
LO2
P3 Relationship with company functions with link to business objectives and structures
The relationship of company functions with business objectives can be identified as
larger important role for gaining long term target growth within working domains and new scale
active growth through which overall target growth can be enriched. Tesco company functional
departments have widely been focusing ahead on interrelationship with company goals towards
business horizons, and also to keep up with stronger goodwill.
 The production department within research and development departments are connected
with finance department as role is widely interrelated for evolving on larger investments
for technical productive products, services through which overall growth is boosted.
Tesco aims for connecting on new scale active growth among consumers dynamic
preferences within products, services where there is also wider potential interrelation of
both departments. Production and finance department widely focus to keep evolving new
scale active domains specialisation by analysing new functional demands within evolving
retail industry and how Tesco aims to grow on strategic vision.
 Marketing and promotion department is highly correlated with interrelation of sales
department where Tesco has wide focus to keep yielding diversity within business
horizons, for larger innovative promotion services. It can be also analysed that Tesco as
best brand within retail industry has been also progressing on digital platforms where
sales monitoring is also widely framed on, for keeping targets at frame and also be widely
leveraging new scale active evolving growth. Relation of sales and marketing

departments enables business to widely function on latest digital parameters within
business horizons, also be technically viable on growth arenas and actively be diversified.
 The human resource department has interrelation with all departments where it is widely
one of the most important company functional scenarios focusing to keep skilled
employees within production, marketing and finance departments widely. Tesco widely
focuses on training employees with best skilled efficacy aspects and new scale active
growth within HR practices where focus has been pertained to dynamically bring before
target operational efficacy on major paradigms. It can be analysed that HR interrelation
with various departments keep active growth widely enabled and also keep up
innovation, diversity aspects analysed on wider aspects of active yielding synergy within
higher informative domains.
The detailed analysis enables us to widely analyse new productive growth factors where
interrelationship of various departments play active role to be widely informative and widely
connected on competitive scenarios of new larger innovation. Tesco serves focus on various
departmental correlation to be highly competitive, active to yield synergy on varied goals and
also to promote active diversity among vision services for consumers goodwill.
LO3
P4 Macro environment analysis
The macro environment plays high crucial role for gaining new competitive domains
specialisation metrics and widely be informative on wider parameters of innovative vision and
ups scale target growth in business horizons. Tesco has to focus on macro business
environment for building new functional competitive efficiency aspects, also to be widely
essentially focusing on new quest horizons and also for keeping new scale technical growth
within business scenarios.
Pestle analysis:
 Political factors: Tesco has to widely focus on stable political parameters where Brexit
has changed tax rates for products and services to be imported and exported within EU

and also there is wide scale functional shift demanded among competitive domains for
expansions (Agnihotri, 2016).
 Economic factors: The changed economic rates and policy parameters of varied new
scale evolving synergy among products, services business goals where Tesco shall also
focus on keeping economic policies widely sated at new efficacy paradigms . There is
also wider vision perpetuated at larger economic goals for keeping up with vision target
growth.
 Social factors: Tesco has to also focus on bringing innovative new functional goals by
dynamic shift towards innovation, new creative domains specialisation which will boosts
revenue scenarios and also wider goodwill horizons on keen arenas.
 Technology factors: Technology strength plays high crucial role for keen evolving
competitive growth, new diversity within machinery of goods and services and also to be
widely evolve on new parameters for competitive excellence.
 Legal factors: Tesco as one of the best brand within retail industry has been widely
focusing on technical aspects legal formalities where company widely focuses on legal
aspects functionally development.
 Environmental factors: Tesco also aims to be productively focusing on environmental
analysis paradigms, where CSR activities have been widely growing on new quest
horizons for upgrading goodwill within larger goals for technical goodwill.
The macro environment analysis widely focuses towards upgrading competitive determinants
to be highly evolved on keen arenas, where Tesco aims to be widely one of the best brands
expanding within retail industry (Alsulayhim, 2019).
LO4
P5 Internal environment analysis
SWOT analysis has been widely analysed as one of the best factor within internal
business environment analysis, where internal business culture has been widely competent
building stronger business force to be building new efficiency and also to evolve on lager goal

efficacy aspects. Tesco aims to be one of the best brand within retail industry business scenarios
where internal business factors can be analysed as follows:
 Strengths: Tesco brand has high goodwill availed due to best competitive brand image
goodwill for connecting on new quest horizons, where quality parameters are widely
strong and also actively productively focusing on expansion. The consumer’s goodwill
for brand is one of the competent strength where company has been widely gaining new
functional arenas for technical growth diversity and also varied range of products
portfolio.
 Weaknesses: The brand faces excessive external business environment factors high
competitive domains where brand widely has been facing larger competitive efficiency
form various new brands and companies within retail industry. Tesco faces weakness of
larger profound arenas within which there is technical innovation focused on, also
productively focus has to build on internal competitive diversity goals (Azoulay, Jones,
and Miranda, 2020).
 Opportunities: Internal business competency expansion has to be widely analysed within
business goals competitive domains where there is wider opportunity to enhance and
upgrade innovation, larger investments scenarios and also for goodwill horizons to be
keenly grown. Tesco has to focus on opportunities within competitive arenas for
technical growth arenas, also to be widely competent on new scale productive goodwill.
 Threats: There is threat of new factored on productive areas where tesco faces external
competencies within business horizons where larger active diversity shall be pertained to
build on larger arenas, where new innovative production machinery shall be used on.
Internal competencies such as efficacy among leaders and employees scenarios shall be
actively built on for training employees widely.
Detailed analysis enables us to examine focus on fact that internal factors are
highly viable for gaining commercial efficacy within larger functional domains and be
largely active to gain functional working synergy, on which Tesco widely has to focus
on evolving new strengths (Button, 2019).

P 6 Strengths and weakness interrelation with external macro factors
There are various factors within working scenarios which enable to analyse interrelation
within strengths and weakness paradigms where TESCO as one of the best brand within retail
industry has greater business opportunities to be widely heading towards diverse innovation.
 The strength of brand goodwill shall be actively focused on generating focus towards
external business domains where new scale efficiency shall be attained with bringing on
larger technical growth and also to expand within untapped arenas. The brand goodwill ,
will generate new business competitive synergy for targeting larger new customers based
on varied competitive efficiency paradigms and also to be widely innovative among
commercial excellence. It can be analysed that higher capital structure range widely
evolves as one of the best strength, where Tesco shall further invest on bringing new
functional innovation and larger goals based on competency aspects to be keenly evolved
on new scenarios (Blaug and Towse, 2020).
 Weakness interrelation within external macro factors enables us to analyse that Tesco has
wide business growth synergy for technical growth and diversity among its goods and
services, where brand shall vitally focus to be active on digital platforms. There is wider
innovative growth within business domains in retail industry where there is larger
efficacy analysed, where Tesco has wide competencies analysed to be widely worked on.
The capital investments shall be built on for training employees with strategic vision and
informative leadership, where leveraging focus on new scale efficiencies determines
active growth among new arenas on higher evocative scale.
 Strengths and weakness interrelationship can be widely analysed within relation to macro
business environment as one of the most productive aspect for keeping up with larger
efficacy at frame for longer up scaled growth aspect (Boisjoly, Conine and McDonald,
2020).There are wider active functional scenarios within business horizons where Tesco
as one of the best retail brand aims to be widely having large potentialities to target
growth and also be evolving on new arenas efficiencies. There shall be innovative
diversity enriched within working vision, with technical goal enrichment and also to
productively focus on up scaled target growth within working arenas of high competitive
analytical business frame.

CONCLUSION
On the basis of above discussion, it can be concluded that organisations are of several
types and differentiate on the basis of sector and size and scope. Later report discussed functions
and interrelationship of functions and on the basis of this, it can be concluded that for success of
organisations effective interrelationship in firms’ different departments is crucial. Later report
involved environment analysis of Tesco and discussion outlines that Tesco operates in an
environment that offers several opportunities as well as several threats. Discussion suggests that
linking strength with opportunities can bring effective results for Tesco.

REFERENCES
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