Unit 1 - Business and the Business Environment

Business and the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Types of company..................................................................................................................3
P 2 Size and scope of various type of organizations...................................................................4
P3- Interrelationships between organizational function and their roles in organization...........5
P4 – Identify the positive and negative impact of micro environment on business
environment.................................................................................................................................7
P5- Internal and external analysis of organization to find out strength and weakness..............9
P6- interrelation of strength and weakness with the External Macro factors.........................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business Environment is sum or collection of all internal and external factors such as
employees, customers needs and expectations, supply and demand, management, clients,
suppliers, owners, activities by government, innovation in technology, social trends, market
trends, economic changes, etc.
This report will cover the case study of Tesco company, It is British multinational
company. This report will explain the types and purpose of the companies such as private,
public and legal structures and voluntary. It will also explain the size and scope of different
type of organizations. This report will provide the relationship between organizational
function and how they help- company to provide objectives and goals of the business. It will
also identify the negative and positive impact of the micro environment has upon the operation
of the business. This report will analyses he internal and external environment of the company
which will help to find out strength and weakness of the TESCO company. IN the end of this
report will analyses how the strength and weakness interrelate with the external macro
factors.
MAIN BODY
P1 Types of company
Public Company-
Companies who are categorized under this sector distributes their shares between the
public who are known as shareholders of the company. These people tend to invest in the
company. NHS is an example of public company as NHS has sell parts of his ownership into the
market of trade to people who are ready to buy the shares of the company. In order to establish
these type of companies there is a criteria or specific conditions which needs to be taken care of.
A minimum of 7 people is required and the limit for maximum has no extent. Other than this a
minimum of 5 lacks as a paid up capital is required and if any private company which is a
subsidiary of NHS will also be considered as a public company. In order to classified as a public
company NHS needs to meet every criteria under the legal guidelines. Documents such as
members of association and articles of association with the prospectus of the company in order to
invite and take the funds from public.
Private Company-

These type of companies are usually owned by an individual or registered as a
partnership. There are exceptional cases such as Tesco whose scale is large otherwise it is small.
Tesco commenced its operations as a private company with minimum of 2 members but they had
a option up to 200 members. For private companies the minimum paid up capital is 1 lacks and
the limit can go up to the requirement of the business. Tesco is a private company which restricts
them to transfer their shares in the market. In order to keep the interests of the company safe they
have put a void so that there can be no takeovers by their competitors. This states that company
does not have to deal with the issue of raising money through the market. The directors of the
company are not independent. They do not take deposits they open their stores as per their own
will and preference (Veselovsky and et.al., 2017).
Voluntary Company-
One of the most renowned voluntary companies is Oxfam. The company has able to
maintained its operations in the market for a long period of time and they have partnered up with
19 other organizations who also serves in the same area of operations such as charity and work
for reducing the poverty on a global level. Oxfam and other companies like it serves as non profit
organization. The company commenced its operations in 1942 in Kenya and the executive
director of the company is Winnie Byanyima. Other than this company has some NGOs which
provides education to those children who are underprivileged. Oxfam has a aim that is to give
equal opportunities to the community of poor people such as having equal rights like everyone so
that they can deal with their day to day issues. The legal structure of the company binds their
trustees responsible for the act of law of charity and their assets (Deasy, S., and et.al., 2016).
P 2 Size and scope of various type of organizations
Size of NHS is an extent to where the company has made their services reached. There are
countries such as England, Scotland and Wales where the company is successfully maintaining
their operations. Other than that the company has also affiliated in North Ireland to provide
social and healthcare services. The company commenced their operations 72 years ago which
was around at the time of second world war. The company employs over 1,70,000 employees
and for the citizens of UK they provide their services at no charge except for services and cases
which needs expertise of dentist and optician. The company even exempts the charges of
prescription from the patient and the delivery made to the patients is also non chargeable. Scope