Business and the Business Environment

This document provides an overview of the business and business environment, focusing on the different types of organizations and their relationships with various departments. It also discusses the importance of PESTLE and SWOT analysis in business decision-making. The case study of TESCO Plc is used to illustrate these concepts.

Business and the Business
Environment

INTRODUCTION
Business and Business Environment is understood as the business process where things
keep changing on regular basis as per the preferences of public at large. It is one of the important
concept because it simply gives the idea that how any of the business decision is needed to be
taken. The chosen Organisation for this respective project is TESCO Plc which is a British
organisation performing at various part of the world. In different topics will be entertain which
are related with types of organisation, relation among various department. Then PESTLE and
SWOT analysis will also be defined which will allow to perform the business activity in specific
manner.
LO1
P1
Organisations are of several types and all of them have different motive in a commercial
ground. It is needed to be understand that at the end of the day all of the organisation perform
their business activity to achieve goals so that they can sustain in the market. To understand
about the concept of different business organisation, it has been discussed below:
Public Sector Organisation: The sector which is governed by the decision of different
government department more then half of the shares are purchased by the government is knowns
as public sector organisation. Here, thinking about profit making is never a main concept. In UK
the company which falls under the category of public sector is Crown Prosecution Services. Purpose: This types of organisation wants to deliver the services at a reasonable price for
public welfare.
 Legal Structures –
◦ Central Government– Here, main source of organising every single activity is
through Income Tax.
◦ Local Government– It is necessary for this types of government to take the help of
council tax for managing the fund (Yeh and et. al., 2015).
◦ State Government – It is needed to be understand that state government is required
to understand that they must make the policies for state level only.
Crown Prosecution Service falls under the category of central government.

Private Sector Organizations– Those business organisation which is needed to be
managed by the general public where they themselves need to develop the new concept. TESCO
Plc is the company which has been commenced privately for the motive of earning profit.
Different form of business in private sector are: Purpose – To earn the better amount of profit by selling the good amount of product and
services in the market.
 Legal Structures –
◦ Sole Proprietorship: The company which is requires only one investor to operates
its activity (Wood and Logsdon, 2017).
◦ Partnership: This types of firm can be managed in the situation where couple of
investor form the agreement to start the business within specific area.
◦ Limited Company: The business organisation where liability of investor is always
limited for the amount of their investment is known as limited company.
TESCO Plc perform its activity under the guidelines of limited company.
Voluntary Organizations– These are the team of an individual which perform their
activity by forming any of the objectives. Cancer Research is one of the example of voluntary
organisations. Purpose: To reduce the cases of Cancer in the world.
 Legal Structure –
◦ Trust – Here, membership is not needed as it just for the work of charity. Any of the
work is needed to be done as per the Trust Act (Quinlan and et. al., 2019).
◦ Association– In this, people work for the common objectives but it is needed to
understand that profit making is never a objective in it.
Cancer Research UK is a Trust where they are needed to work as per the guidelines of
Act.
P2
In present scenario, all of the organisation which are performing their business activity
must understand that they must work as per the guidelines of and objective of the company. To
understand it in detail, scope and size of different company have been mentioned below:
TESCO Plc

 Background: It is one of the private company which are commenced in the year 1919. It
comes in top 5 multinational organisation in retail sector. They have been selling number
of products which is able to attract the customers easily.
 Product or Services offered : They offer cloths, electronics as well as grocery items
which are essential for any of the family.
 Size: There are around 6800 stores of TESCO which is operating in different part of the
world. Number of employees are around 400,000 (Pearson, 2017).
 Scope: Company has the option to expand their business in the market of frozen food.
 Vision: To become of the leading company in the retail sector where they can be easily
recognised in any part of the world.
 Mission: To enhances the profitability ratio and meet out all of the basic needs of people.
Cancer Research UK
 Background- The company was incorporated in 2002. The current head office is located
in London United Kingdom.
 Services- To look after the patient of Cancer.
 Size- The number of employees in the company is approximately 4000 whereas they
have addition 40000 serviceman.
 Scope- They has the option to expand their business to some of the Asian Countries like
China, India and many more
 Vision- To become the brand ambassador of Cancer treatment.
 Mission- Make people believe that they can easily fight against the cancer.
Crown Prosecution Service Background: This organisation was started by the government of UK in 1986. The
main office from all of the activities are being monitored is London. Services: To find out the conclusion on the evidences collected by the legal department
of a government. Size- There are more then 6000 employees are available (Andersson, Forsgren and
Holm, 2015) Scope- As the result which they have obtained is really well due to which government
can easily look for area of UK for effective result.

 Vision- To become the leading department to declare any of the right decision in criminal
proceedings. Mission- To find out the conclusion of any case just after going to the every single step
of case study.
LO2
P3
In any of the company, there are several department but all of them have connection with
each other so that effective results can be obtained. In context of TESCO Plc, if they faces any of
the problem in their working conduction then directly or indirectly they can take the help of other
department so that problem can be sorted out. Relation of various departments are listed below:1. Marketing and Human Resource Department: Both, HR department and Marketing
department has a crucial role within the business organisation where performing the task
with proper co-ordination is very crucial in it. HR department has the rights to hire the
candidate and it is needed to be understand that they are needed hire the skilled and
talented candidate who can perform their work specifically. TESCO Plc is able to
perform any of the work just because of the better communication system (Khan and
Quaddus, 2015).2. Purchasing Department and R & D Department: Company like TESCO will be able
to expand its business activity only in the situation where purchasing and R&D
department have a suitable coordination between each other. R&D department can easily
guide to purchasing department that how they can expand the business at a greater
platform for attaining the goals of a company.3. IT Department and Finance Department : It is needed to be understand that IT is one
of the sector which can allow company to promote their organisation at a greater platform
so that goals can be accomplished. Promotion is only possible if Finance department of
TESCO Plc can distribute the fund for IT department which can allow them to do proper
promotion of the company (Ehret, Kashyap and Wirtz, 2013).
Organisational Structure
It can be explained as the process where work and every single responsibility is allocated
to different department by the organisational for the purpose of accomplishing the goals of a

company. Talking about TESCO Plc, they are needed to understand that use of suitable form of
organisation structure can guide that how work can be done. TESCO Plc uses Hierarchical
organisation Structure.
Hierarchical Organisational Structure - This is the organisational structure where top
level management has the maximum power to take any of the organisational decision through
which goals of a company can be accomplished easily in future period of time (Golovnev and et.
al. 2013). The hierarchical structure of TESCO Plc is divided into different groups where people
departmental heads are at the top level who carries the maximum responsibility to conduct any of
the business activity.
LO3
P4
Covered in PPT
LO4
P5
Covered in PPT
P6
Covered in PPT

CONCLUSION
The concept which can be developed from the above discussion is that commercial sector
is one of the sector which frequent changes occurs on daily basis due to which it is necessary to
for companies to keep themselves updated. Secondly, business organisation required the
appropriate relationship with several other department which can allow them to understand that
how any of the situation can be handled. Then, PESTLE is the analysing model which can give
idea to business organisation that how they can improve their performance to meet out the goals.
SWOT analysis can guide company that how they are overcome the problem of threats and
weaknesses.

RERERENCES
Books & Journals