UNDERSTANDING THE BUSINESS ENVIRONMENT.

UNDERSTANDING THE BUSINESS ENVIRONMENT

Table of contents
Introduction......................................................................................................................................3
Introducing chosen organization identifying the legal structure along with an outline of the
operations/purpose of the organization and its main objectives, comparing this briefly to a
different organizational type........................................................................................................3
Identifying and explaining the market structure under which the organization operates
including a discussion of how the market structure affects the behaviour of the organization in
seeking out competitive advantage..............................................................................................4
Task 1...............................................................................................................................................5
Explaining the background to stakeholder theory........................................................................5
Identifying the main four stakeholders of the organization and reflecting on internal, external
and connected stakeholders..........................................................................................................6
Using the Power/Interest matrix to assess the importance of these stakeholders to the
organization..................................................................................................................................7
Evaluating potential areas of conflict and suggesting how these might be resolved...................9
Task 2...............................................................................................................................................9
Explaining the national economic system under which the country operates.............................9
Analysing the advantages and disadvantages of such a system and providing appropriate
examples.....................................................................................................................................10
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identifying and discussing how the pursuit of at least one macroeconomic objective by the
Government impacts a chosen organization..................................................................................11
Task 3.............................................................................................................................................12
Investigating the role of the IMF and the World Bank in promoting globalisation and helping
to limit protectionism around the world and does the literature suggest that they are effective in
this..............................................................................................................................................12
References......................................................................................................................................14
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Introduction
Introducing chosen organization identifying the legal structure along with an outline of the
operations/purpose of the organization and its main objectives, comparing this briefly to a
different organizational type
Tesco is the chosen organization for the current evaluation the firm is an multinational grocery
and merchandise retailer and is based in the United Kingdom. The company is a Public limited
company and has legal existence as a PLC in the market. The company is listed on the London
Stock exchange where it's put out its shares to the acquire capital from the investors. Public
limited company is a type of public company recognized by the United Kingdom Company law.
The public limited company is a limited liability company (Schell, 2018). The shares of the
company are free to be traded within the stock market to the public and the company has a
minimum share capital of 50,000. The letter PLC is added as an Suffix to the name of the firm.
Tesco PLC is a public limited company which has market share capital of at least 30%. Now
this shows that the firm is big PLC organization within the market. A plc Company can be
listed or can be unlisted in the market although in case of Tesco the firm is listed on different
stock exchange markets (Lawton, 2017). The company under such legal structure is operated by
the directors of the company. PLC also has a separate legal identity which means it is
representing its operational activities. The company under PLC status can issues shares within
the market which can be ordinary shares, preference shares, cumulative preference shares and
Redeemable shares. A public company is formed by the usage of registration documents such
as Memorandum of association, articles of association, organization 1 and Form 12 (Ragulina,
Stroiteleva and Miller, 2015). The public limited firms have to pay annual dividend to the
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