Business and the Business Environment

Business and the
Business Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
Part 1- Essay ...................................................................................................................................3
Explain the different types, size and scope of organisations..................................................3
Demonstrate the interrelationship of the various functions within an organisation and how
they link to organisational structure.......................................................................................6
Part 2- Report...................................................................................................................................9
INTRODUCTION...........................................................................................................................9
The impacts that both macro and micro factors have upon business objectives and decision-
making by appropriately applying a PESTLE analysis..........................................................9
Apply appropriately SWOT analysis and justify how they influence decision-making......12
Explain how strengths and weaknesses interrelate with macro factors................................13
CONCLUSION..............................................................................................................................14
REFRENCES.................................................................................................................................16
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INTRODUCTION
Business environment is considered as collection of different internal as well as external
factors related to an organisation such as customer need and demand, management, owner,
clients, government activities, social trends, supply and demand, employees, market trends,
change in economy and many more (Amankwah-Amoah and Wang, 2019). Organisation
selected for this report is TESCO which is public limited company operating in retail industry. It
is founded by Jack Cohen in year 1919. Respective company operate their business operation
and functions at global level. Topics included in this report are explanation of scope, size, legal
structure, purpose, types, vision and other factors of private, public and voluntary sector as well
as it include relationship among the different organisational function.
Part 1- Essay
Explain the different types, size and scope of organisations
An individual can established their business unit in three types i.e. private, public and
voluntary sectors. Private sector is considered as those business unit which is a part of country
economic system which run by an individual or companies, instead of government bodies.
Generally private sector companies are operating with intentions of earning profit. Example of
private sector is TESCO. TESCO is private limited company which is conducting their business
at retail sector (Aydiner and et. al., 2019). It is founded by Jack Cohen in they year 1919. Its
head office is located at Welwyn Garden City, England, United Kingdom and they operate at the
multinational level such as United Kingdom, India, Thailand, Republic, Poland, Malaysia and so
on. Respective company offer their products through supermarkets, super stores, hypermarket
and convenience shop. TESCO offer their products and services through several divisions such
as groceries, Tesco Clubcard, Tesco Bank, Clothing, Tesco magazine, Tesco mobile and many
more.
TESCO vision is to become most high value retail business brand who serve high quality
products to their loyal and potential customers as well as their mission is to develop value for
customers in order to earn lifetime loyalty from potential customers. Moreover there are different
types of Private sector such as Sole Proprietorship which refers to those companies which are
operate by an individual and in this risk as well as profit are share by owner itself (Belas and
Rozsa, 2019). This mode of private sector is simplest and oldest form that are generally used
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today. In respective type of business there are minimum restriction as well as it can be dissolve
easily. Such as Carpenter, Local Grocery store, Tailor and so on. Another types is Partnership
which is considered as agreement among the two or more people who conduct business
operations together as well as shares profitability and liabilities. Generally in partnership
companies members share both liabilities as well as profit. This is normally agreement is based
on shares, authorised capital, ownership and many other factors.
Third type is Joint Stock Companies those venture have limited financial resources as
well as this business include heavy load of risk while forming business. In this capital can be
upraised by selling shares of different values. In this business managing bodies of company are
Board of Director, CEO, Shareholders and many others. Along with this purpose of TESCO is
to become biggest retail brand by serving quality products and services to customers to make
their every day better. The legal structure of TESCO is corporate governance, in which company
deal along with shareholders (Tesco Legal Structure, 2020). Moreover in this respective
company want to attain that strategy which their shareholders want to attain.
Furthermore, Public sector is also known as state sector which is considered as part of
economy composed by public sector as well as public sector enterprise. There are several
industries which are include in public sector such as school, electricity, emergency service, fire
services, gas, healthcare and many more. Example of public sector enterprise is NHS (National
Health Service). NHS is publicly funded healthcare system established at United Kingdom. It is
developed with four separate systems i.e. NHS England, NHS Wales, Health and Social Care in
Northern Ireland and NHS Scotland (Bratianu, Hadad and Bejinaru, 2020). It is considered as
one of the largest single payer healthcare system around the world. It is founded in 1948 by
Aneurin Bevan. National Health Service offer wide range of products and services related to
medicine and test as well as they offer their products and services at reasonable cost.
National Health Service's Vision is based on three factors i.e. to develop and promote
better care, better health as well as better value as well as their mission is to provide quality
health care services to society so that they can leave their life happily and disease free. There are
different types of Public sector, first is Departmental Undertakings which is one of the oldest
type of public enterprise that is also a part of governance department. These firm didn't have any
apart existence from government bodies for example railways, telephone service, broadcasting
and so on. Second type is Public Corporation/ Statutory Corporation which is a companies are
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