Business and the Business Environment

Business and the
business
Environment
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Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
P1 various purpose & type of diverse organizations..............................................................3
P2 : Size and Scope of this types of organisation...................................................................5
M1: analysis of how the structure, size and scope of different organisations link to the
business objectives and product and services offered by the organisation............................8
D1: Complexities of various business structures and interrelationships of different
organisational functions..........................................................................................................8
Task 2...............................................................................................................................................9
P3) Organisational structure and functions............................................................................9
M2) Advantages and disadvantages of inter-relationship between organisational functions11
Task 3.............................................................................................................................................11
P4 Positive and negative impact of macro-environment......................................................11
M3 Explain PESTEL model for macro-environment for an organisation...........................13
TASK 4..........................................................................................................................................14
P5 Internal and external analysis of an organisation............................................................14
P6) Explain how strengths and weaknesses interrelates with external macro factors..........14
M4 Justify how SWOT influence decision making. ...........................................................16
D2) Impact of macro and micro factors have upon business objectives and decision making.16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18
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Introduction
Business environment consist of both macro and micro environment that is affecting the
functioning of a business organisation. It includes the collection of entities, individuals and other
significant internal & external factors that are controlling the overall performance and
productivity of business. Present report is based on TESCO that is a british multinational and a
general merchandise retail brand having its headquarters in England. It is third largest retail
brand of world according to its gross revenues. They are having outlets across Europe and is a
market leader of grocery in UK . The report is based on making an analysis of the different
business structure and interrelationship among various organisational functions. There is study of
sizes, types and scope of organisation that is part of three sectors that is private, public and
voluntary. Further there is analysis of advantages & disadvantages of interrelationships among
different organisational functions and the way it is affecting the structure of organisation. Pestle
analysis is used to make analysis of external environment and SWOT analysis for the purpose of
analysing the way strength and weakness is interrelated with macro environment factors.
TASK 1
P1 various purpose & type of diverse organizations
Organisations are divided in various categories according to their objectives that can be
profitability, social welfare.(Aribawa, D., 2016)
Private Organization :
These organisations are owned by various private entities which can be a person association
partnership or those operating for profits. In this funds have to be arranged from various personal
sources. TESCO is an example of private organisation.
Purpose : the objective of TESCO is to create value for customers in order to maximize the
profitability and enhancement of present market share enhance customer value.
Legal Structure of Private Organization :
Sole Proprietorship :
It is a business type that is owned and controlled by a individual. These are held for all the losses
and liabilities. There is need to focus on compliance in sole proprietorship. (Drucker, P.F., 2017)
Partnerships :
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In this business are managed by two or more than two partners, the decisions related to all
different business transactions are to be made according to the laid partnership deed.
Limited Companies
In these organizations posses separate legal entities than those who are managing the
organsuiation. The capital is procured by issue of shares posses’ limited market share. TESCO is
a private limited company. (Eling, M. and Schaper, P., 2017)
Public organisation : Public limited companies are managed by government the major aim is to
earn higher profitability and also maximisation of social welfare. In the funds are offered by
government from the collected taxes. The main objective is to offer goods & services to enhance
the living standards of people.
Example: British Broadcasting Corporation is an example of public limited organisation.
Purpose : the main objective of British broadcasting company is a service broadcaster that is
oldest national broadcaster. It is funded by the annual television license fee and it is charged to
all British households, organisations and companies using such equipments to record live and rce
the television broadcasts.
Voluntary organization:
Meaning: Voluntary organisations are the ones that are directed and controlled by government.
In this activities have to be managed and volunteered according to the prevailing social scenario.
Features: Voluntary organisation has a vision to enhance the present
Purpose: the main purpose of shelter being a registered charity organisation is to advice and
work towards advocating people to deal with the situation of bad housing by lobbying of
government and local authorities to form new laws.
Example: Shelter is are registered charity organisation that is based on a campaign the need the
situation of homelessness and bad housing across Scotland & England.(Gebauer, H., Haldimann,
M. and Saul, C.J., 2017)It helps people in housing need by providing of the required practical
assistance and are also working towards fighting for better investment in housing sector so that
polices and laws can be further improved for badly housed people.
Legal structure: the legal structure of shelter is based on not for profit. The legal structure of
such organisations are based on the way organisation will be funded, controlling of voting
members, the way organisation has to be incorporated.
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