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

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.