Business Environment: Analysis of Organizations and Their Functions

This report provides a comprehensive overview of the business environment, defining it as the collection of internal and external factors impacting business operations. It explores different types of organizations, including public, private, and voluntary sectors, using examples like Tesco, EG Group, and Oxfam. The report details the background, products, size, vision, mission, legal structure, and stakeholders of each organization. Furthermore, it examines the various business functions within Tesco, such as HR, finance, marketing, production, and customer service, analyzing their coordination, pros, cons, and overall impact on the organization. The report concludes that effective coordination between these functions is critical for organizational success, while also highlighting the importance of understanding the business environment for future career development. The report also highlights the importance of overcoming communication barriers within organizations.

Business and Business Environment
INTRODUCTION
Business environment can be defined as the sum or total of all the internal and
external factors which have an impact on the business operations of the firm or industry.
These may include factors such as suppliers, employees, expectations, political, social,
technological, economical, etc. which directly affects the working of an organization
(Contractor And Et. Al., 2020). The concept of business environment is all about the growth
and development of an entity or organization. Business environment helps organizations
identify the goals they actually aspire. Further, it also make an entity achieve these goals in
order to grow and develop for the bright future for the entity and the people working with
the organization. Thus, the concept of business environment is quite wide ans has the ability
to impact the working of the organization on a large scale.
Introduction to provide an overview of different types of organisations and the growth of
the international business environment
An organization can be defined as an entity such as an association, a company or
an institution made up of one or more people working together to achieve a particular or
same objective (Betti and Sarens, 2020). Organization is an organized group of people having
similar objective. An organization is very important for any country as it contributes to the
growth and development of the country. There are various types of organizations and some
of them are narrated below:
 Public Sector – Public sector organizations refers to the commercial ventures
owned by Government where the fees' are being charged for the rendering of
services. It includes all the components of the economy other than private
companies, voluntary organizations and households (Huang And Et. Al., 2022).
For instance, Tesco is a well and one of the leading grocery store in UK.
Purpose – The major aim of public sector is to provide necessities to the citizens,
promote growth and protect interest of weaker sections of society. The aim is fully
concerned about the residents of the country and their well being. Tesco aims and tries to
fulfil or satisfy the utter needs of people all over the globe by establishing stores online too.
Legal structures – Some of the legal structures of public sector are
discussed below:
Federal Government – Federal government covers in its fold three
branches legislative executive and judicial.
State Government – State government is a form of government
which regulates a country's subdivision in a federal form.
Local Government – The government of a particular area where the
representative is elected by the local people residing there and is the lowest
term of public administration.
 Private Sector – Private sector refers to a country's economic part
or system which is operated by individuals and companies instead
of government of the state or country (Gogokhia and Berulava,
2021). For instance, EG Group is one of the most successful private
firms of UK.
Purpose – The aim of private sector is just opposite of public sector and
aims for making money. This is the reason behind the successfulness of EG
Group as it aims to make more and more money.
Legal structures – Some of the legal structures of private sector are
discussed below:
Sole Trader – Under this type of structure, as the name says, there
is only one seller. The single person manages the business operations of the
whole firm and suffers the loss too. While the owner enjoys the whole
profit of the organization and need not share it with anyone else.
Partnership – This is a type of legal structure where the firm is
formed by an agreement between two or more persons who agree to share
the profits and losses of the business operations in the ratio as per the
agreement.
Company – Company is group or association of people and is
different from its owners. It has its own identity, i.e., it can sue and be

 Voluntary organizations – Voluntary organizations are non – profit organizations, run by individuals who do not get a salary for the work of running
and maintaining the operations of the organization (Khajeheian, Friedrichsen and Mödinger, 2018). Oxfam is a renowned charity enterprise in the UK.
Purpose – The aim of voluntary organizations is to remove the problems from the society in general and promote brotherhood, spread love and respect others.
Oxfam tries its best to solve the problems of the society and spread love especially among kids.
Legal structures – The legal structures of voluntary areas include:
Charity – A charity is an organization or an charitable organization who aims to eradicate problems from the society and look after the social well
being of the society. The objective of such organisations is to raise money for the people who need help. Charity is all related to the raising of money and
providing help.
Trust – On the other hand, trust is created to serve the people who are poor or needy in the society. Trust provide help to the citizens other than
money,i.e., in the form of goods or may render services to them in order to make their life better.
An explanation of each of the chosen organisations, including: background details, products, size, vision, mission, legal structure and information about
stakeholders.
Basis Tesco EG Group Oxfam
Background Details Jack Cohen founded
Tesco in 1919 when he
began to sell war
surplus groceries. The
brand, Tesco first
came into existence in
the year 1924 (Tesco
Plc, 2022). Jack
Cohen made the labels
using the initials of his
supplier Thomas and
his surname 'Co' and
turns out to be Tesco.
The private business,
Euro Garages was
founded by brothers
Mohsin Issa and Zuber
Issa in the year, 2001.
Later, they expanded
their business from
single site to a circa
340 in the United
Kingdom and that was
the turning point for
the business.
The organization was
founded at 17 Broad
Street, Oxford, for
famine relief by social
workers. This charity
entity was registered
with UK law in 1943
for famine relief.
Products and services Various grocery Several brands such as Provide services of

Size and scope The organization
contains employees
approximately 367,321
as per the year 2021.
The organization
contains 50000+
employees
approximately as per
the year 2021.
The organization
contains employees
approximately 5000
as per the year
2016/17.
Vision To be one of the most
high valued business.
To be one of the most
high valued business.
To make a society
happy and healthy.
Mission Serving customers
with quality products.
Serving customers
with quality products.
To eradicate stress that
arise due to famine.
Legal structure Federal government,
state government and
local government.
Sole, proprietorship,
partnership, company,
limited liability
partnership (LLP)
Charity, trust
Information about
stakeholders
Customers,
government and
retailers.
Mohsin Issa, Zuber
Issa, TDR Capital
supports the business.
Donors and the ones
who are eager to
support the entity,
government, supplier,
private sector, etc.
Examine the different business functions for one of the
chosen organizations and analyses the pros and cons
of their co-ordination along with their impact on
organization
An organization has its own operations and
performs various functions. From the above organizations,
the functions of Tesco are HR, finance, marketing & sales,
production, administration, customer service, information
technology and much more. These function of the entity
along with its organizational structure, pros, cons and how
they impact an organization are discussed in detail below:
Human Resource and Finance
HR is related to every department and so to the
finance. This is so as the HR hires employees of the
overall organization and that is his duty to look after them,
appoint them, train them, etc. Tesco follows hierarchical
organizational structure and so the orders follow from top
to bottom. Training from HR to finance department
authorities help them to be specialized in their work as HR
is quite knowledgeable and has knowledge about almost
all the functions the company deals with (Sedej, 2019).
But the hierarchical structure makes flexibility poor which
can affect the operations of the company as the employees
do not like this at all.

Finance and Marketing
Finance and marketing are two highly inter related departments. Marketing
needs money which is looked after by the finance department as it is their duty.
Marketing of goods needs travelling to various places which needs huge amount
of funds both for products as well as for travelling. Thus, the finance department
is highly connected to marketing department. Further, the advantage of this
coordination is that the organization gets the best of potential sales through
marketing which could be possible only with the help of finance department. But
if the funds lack, the marketing may stop and the sales may go down resulting in
decrease in revenue for the company (Hu and Kee, 2022). Decreased revenue can
affect the goodwill of the organization in the marketplace and may make its share
price fall down.
Marketing and Production
Another functioning departments of Tesco are marketing and production
which are obviously, inter related. The goods when produced are taken for the
marketing purpose. Thus, it is not wrong if said that marketing is the next step in
the process for selling a product, after its production. Its beneficial for the
company that soon after the goods are produced they are gone for marketing for
the purpose for sale. But sometimes, the defect in the goods cannot be detected
properly due to lack of time which can affect the goodwill in the marketplace.
This fact cannot be over seen (Pînzaru, Zbuchea and Vitelar, 2018). Negative
impact on the goodwill of the organization will definitely affect the business and
can decrease its customer base which would be the reason for the falling revenue.
Production and Customer service
Goods are produced for the consumption of consumers. Thus, it is clear from the
given line that the customer service and production department are interrelated.
Tesco produces various goods in order to satisfy the needs of its customers. The
advantage of this coordination is that the customers are satisfied as the production
department knows them and their needs well. This helps the production
department to satisfy them better and improve organization's prestige (Blachetta
and Kleinaltenkamp, 2018). On the other hand, as the scheduling of production
department and responsibility of customer service department both are quite
complex and hard to deal with. It may not be possible for the departments to co-
ordinate effectively.
CONCLUSION
From the above report, it has been concluded that there are various types
organizations and the factors of business environment can impact them in
several ways. It would be beautiful to examine the surroundings and find out
all the sectors – private, public and voluntary, to make oneself more
knowledgeable and educated. This enhanced knowledge will help in the
future when working for a bright future for the improvement of the career.
The hierarchical structure of the organization leads to several communication
barriers. The root cause of the barriers was that the organization did not let
higher authorities communicate directly to lower authorities due to its typical
structure. The various functions performed in the organization and their
effective co-ordination are the reason behind its success. It is the connection
between production department, customer service department, marketing
department, finance department and HR department which has been explained
above.

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Online:
Tesco Plc, 2022. [Online]:Available through<https://www.tescoplc.com/about/>