Business and the Business Environment

This document provides an in-depth analysis of the business environment, including the different types, purposes, and legal structures of organizations. It explores the interrelationship between different functions of organizations and analyzes the size, structure, and scope of various organizations. The document also discusses the positive and negative impacts of the macro environment on business operations and conducts an internal analysis of organizations to identify strengths and weaknesses. Additionally, it evaluates the impact of SWOT analysis on decision making.

Business and the
business
Environment

Table of Contents
Introduction......................................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 : Different , purpose, types & legal structure...................................................................3
P2 : Size and Scope of organisations......................................................................................7
M1 : Analysis of Size, structure & scope of various organisations........................................8
TASK 2............................................................................................................................................9
P3 Interrelationship between functions of different organizations.......................................9
M2 : Advantages & disadvantages of interrelationship between functions of organisation 10
D1 : Critical analysis of complexities of different business types.......................................10
TASK 3 .........................................................................................................................................10
P4 & M3 : Positive and Negative impact of macro environment on operations of a business 10
TASK 4 .........................................................................................................................................12
P5 : Internal Analysis of organisation to identify strengths and weaknesses.......................12
P6 interrelation in strength & weakness of external macro factor.......................................14
M4 : Analysis of SWOT and their impact on decision making ..........................................16
D2 : Critical evaluation of both macro and micro factors on decision making....................16
Conclusion.....................................................................................................................................17
REFERENCE.................................................................................................................................18

Introduction
Business environment consist of micro and macro environment factors that are posing a
impact on functions of organisations. According to the motives of organisation there are three
major categories in which organisations are divided that includes private enterprises, public
enterprise and voluntary organisations (Aithal, 2016). The main mission of such organisations to
enhance overall profitability & Productivity. Tesco is a retail organisation of UK that was
founded by Jack Cohen in the year 1934. The operations and functions of every organisation are
affected by various internal & external factors. In Present report there are different organisations
that have to be differentiated based on public, private and voluntary sectors. Further, there is
discussion of relationship between different functions of organisation that are considered to
achieve some specific laid down organisations objectives.
TASK 1
P1 : Different , purpose, types & legal structure
Organisations can be classified in various different categories according to motive of
earning profitability, social objective and in some cases both. According to that their purpose and
scope always varies (Alsaad, Mohamad and Ismail, 2017). Presently there is discussion of
different organisation types:
Private organisation:
Business type:
A) Profit making:
There are some business who are working for a motive of maximisation of revenue and
profits. That is the mission and main objective of such business. It includes Regent college,
Tesco supermarket, Morrisons, Sainsbury's.
B) Not for profit:
There are some organisations that are build up as charities or organisations not working
for earning of profits. These organisations are only focussed towards enhancement of social work
and society's good. Such as British heart foundation, world food program, Oxfam are some
examples of not for profit organisation.
Types of business:
Private sector:

Private sector are enterprises are the ones that posses no Interference or government control.
Some examples of private enterprise are discussed below:
Sole trader:
Meaning: Sole trader can be described as business that are owned and controlled by one single
person.
Goal: Organisation has to focus on achievement of laid objectives by the sole owner that may or
may not be to maximise profitability.
Features: These organisations do not posses separate legal entity as ownership and business are
not different from each other (Bah and Fang, 2015).
Legal features: In these business owners are always liable personally for debts and losses of
business.
Examples: In organisation like Columbus photographer the owner and business are considered
same. In case of winding up or any other case owner is personally liable for all profit and losses.
Partnership:
Meaning: Partnership organisation are defined under partnership act 1890. that consist of people
who are part of same business with a motive of earning profits.
Goal: Goal is to maximise profits.
Features: Partnership is formed with more than two person coming together to start a business
Legal features: All partnership business are governed by Partnership Act 2002.
Examples: Solicitor doctors is a partnership business in UK.
Private limited company:
Meaning: Private limited company is a organization that is independent and can be started as
any form.
Goal: The main objective of private company is to lay down the mission and vision that has to be
achieved in course of business functioning.
Purpose: Core purpose of TESCO is to be champion for their customers so that they can help
them in leading a better quality of life and a easy way of living. Main objective is “Serving
shoppers a little better everyday” (Core Purpose and Values, 2020).

Size: TESCO is third largest retail store across world according to gross revenue. They are
having shops in countries like Europe, Asia and market leaders in UK with 28.4 percent market
share.
Scope: TESCO has diversified in areas like books retailing, electronic, clothing, furniture,
financial services, Internet, telecom, software.
Legal structure: TECSO has a hierarchical structure where board of directors consist of 10
members. John Allan is chairman of board, Dave Lewis is CEO, Alan steward is Chief financial
officer. They have a department of Corporate governance that is dealing with shareholders
(TESCO COMPANY ORGANISATIONAL STRUCTURE CHART EXAMPLE, 2016).
Features: Limited companies are independent and government may not posses any control on
the functioning and decision making aspect of such organisations.
Legal features: There are some legal aspects that a private enterprise has to work according to
their memorandum of association and articles of association that is governing the functioning of
such organisations.
Examples: Tesco and sainsburys are examples of such retail organisation. Major objective of
retail organisation to enhance their Present profitability and sales by dealing in quality of
products.
B) Public sector
Meaning: Public sector organisation are those that are having well known business and are
traded on stock exchange.
Features: Organisations are in control of government institutions, local authorities or trustees.
All stakeholders posses a influence on the working of such public organisation (Belás and et. al.,
2019).
Goals: The goal of public sector organisation is to maximise the welfare of society and work
towards achievement of monetary and non monetary objectives.
Purpose: The main purpose of NHS is to provide medical services to poor segment of society to
work towards improvement of living standards of people and provide them low cost or free of
cost services at times of need. NHS is focussed on “working together for patients”. They
followed principles of dignity & respect, quality of care, compassion core objective is to improve

health and well being of their patients through innovation and professionalism (NHS Values,
2020).
Size: According to data of march 217 NHS has employed 106,430 doctors, 285,893 nurses.
There are 207 clinical commission groups, 135 acute non specialist trusts, 17 acute specialist
trusts, 54 mental health trusts, 35 community providers and 10 ambulance trusts (NHS Values,
2020).
Scope: NHS is based on certain founding principles that includes services to be more
comprehensive, universal and free of cost. It is a health service offered free of cost at point of use
to ordinarily resident of UK (NHS Values, 2020). .
Legal structure: Legal structure of public organisation is related to activities that are in
government control. There is secretary of state that is governing health education England.
Further here are local NHS training and education boards under which there are deaneries and
academic health science networks.
Example: National health services is a public organisation that has a main objective of offering
healthcare services to people who belong to BPL.
C) Voluntary organization:
Meaning: Voluntary organisations are in control and guided by government. Their activities are
performed by volunteers to work towards improvement of social conditions of society. Such as
Oxfam is a voluntary organisation of UK.
Features: Voluntary organisations can work towards enhancement of vision that is to enhance
the living standards of people living in society.
Goals: Main goals is to take timely initiatives that can help in improvement of overall conditions
of people who are living in situations of poverty.
Objectives:The main objectives is to implement activities for welfare of society.
Purpose: Mission of OXFAM is to crate lasting solutions against injustice of poverty. They are
working towards global movement of change. They are empowering people so that a future can
be created that is secure & free of poverty.

Legal structure: Legal structure of such organisations is made according to vertical integration
that is flowing from board of directors to lower level employees. In Oxfam the responsibility of
law for charity activities and assets are with Trustees. There is council of Trustees that is
governing body of Association of Oxfam. Governance is by broad of supervisors and executive
board chaired by Oxfam international executive divorce (The power of people against poverty,
2020).
Size: Size of Oxfam is based on massive reach they are catering to 22.2 million people with their
long term humanitarian and development assistance program. They are having 300 staff
members globally, 50,000 interns & volunteers in 90 countries with a highly diverse workforce
(The power of people against poverty, 2020).
Scope: OXFAM has a wide scope based on their objectives that includes relieving poverty,
alleviate suffering. Informing public about possible solutions and working for international
partnership of goodwill. It is a confederation of 20 independent charitable organisation that is
focussed on alleviation of poverty (The power of people against poverty, 2020).
Example:Oxfam is a voluntary organisation that is having a objective to reduce poverty and
help people who are living below poverty line.

P2 : Size and Scope of organisations
Small Medium Large
Meaning Organisation who are
employing 10-49
employees can be
classified as small
enterprises. UK has
5.6 million of such
enterprises.
Medium enterprise
consist of less than
250 employees.
Large organisation
are employ more
than 250 employees.
Goal These organisations
are started in order to
achieve some specific
objectives. Such as
Bright star is engaged
in life lodging &
residential mortgages.
Smith brother was
started by John smith
in the year 1999 as a
contracting business.
Tesco is a large
private organisation
that is one of largest
grocery stores of
UK.
Market share Such organisations
have a very limited
market share as they
just focus on some
specific products and
were established 10
years before in year
2011.
Smith brothers are in
UK and they have
also planned to
expand their market
by some new launches
in Irish division in
year 2017.
There is presence in
Asia, Europe. Part
from this they are
also having market
share in UK,
Thailand, Ireland
and Hungary.
No. Of products
and services
Services like later life
lending are offered by
this organisation.
Services like
renewable energy and
construction related
are offered.
It consist wide
range of products
such as furnitures,
clothes, financial
services and
network services.
Legal structure These organisations There is top There is matrix

posses a specific
hierarchical structure.
management
according to their
directions whole
organisation are
functioning.
structure that consist
of mix of functional
& divisional
structure.
Stakeholder size Internal stakeholder
consist of founding
directors and size of
internal stakeholder
constitute 100 as total.
Stakeholders size
consist of total 200
employees that
includes owners,
directors and
employees.
The size of
stakeholder is
4,50,000.
Employees
Number
There are 50
employees in total.
There is team of 100
engineers.
7000 employees are
presently working
in different
locations of Tesco.
Profit volume Profitability ratio is
71 percent.
There has been profits
of $15000 dollars
according to data of
September 2020.
Tesco had a profit
amounting to 300
million in the year
2019.
Sales There are earnings of
approximate 35000
pounds each year.
There has been
turnover of 40 million
pounds in year 2017-
18.
Tesco had a
turnover of 63.911
for year ending
2018.
Geographical
location
Presently they are
catering to three
major sites across
UK.
This organisation has
a nationwide client
base.
There is presence
across 3400
locations across
different parts of
world.
M1 : Analysis of Size, structure & scope of various organisations
Each business has to enhance their performance in order to achieve the laid objectives. In
every organisation there is specific scope, size and structure that plays a very crucial part. BBC is

a voluntary organisation that is present in different countries to lunch new channels, websites and
programs to attract youth. Tesco is a private enterprise that has already build up a successful
brand image and can also expand further by using their wide range of products and price
leadership position.
TASK 2
P3 Interrelationship between functions of different organizations
Different functional units:
In every business there are different activities that have to be performed by business
organizations. All such activities have to be aligned together so that there can be achievement of
higher efficiency between all such departments. This interrelation between departments of Tesco
is discussed below:
 Marketing & sales: Marketing & sales are the two departments that are interrelated to
each other. Such as marketing department has the responsibility to create plan according
to the available information and market research (Belás and et. al., 2015).
 Human resource and Operations: HR department and operational departments are the
two departments that are functioning according to the main objectives of the
organization. According to requirement of functions human resource department has to
ensure that there are adequate number of staff.
 Finance and IT: Finance department has to perform all functions relate to fiance such as
arrangement of funds, allocation according to different functional units (Brennan,
Canning and McDowell, 2020). Optimum utilization of available financial resources. In
Tesco there is financial investment for updation of technology such as there has been
recent launching of self automation systems.
Organizations objective are specific goals that have to be achieved by ensuring high
coordination. In Tesco sales department is working towards timely feedback from customers
based on that marketing department has to further form their strategies.
Organizational structure: It is a system that explains the way activities and functions of
organization will be performed. It determines the information flow, authority and responsibility
relationship, duties and roles etc. Different organizations have adopted structures that can be
divisional, functional or matrix.

TESCO board of directors consist of 10 members that consist of appointment of John Allan as
noard chairman. There has been appointment of CEO Dave Lewis & chief financial officer Aln
steward. Further there has been retirement of four non executive directors & there is appointment
of three new non executive directors. In the year 2015 Mr Lewis has announced that there will
be reduction of cost across various head office functions by 30 percent that had a direct
implications on structure of management. Governance structure of TESCO consist of five major
committees who are reporting to TESCO PLC board. There are 11 members in TESCO
executive committee that is lead by Group chief executive Dave Lewis.
Source: Tesco Organizational Structure, 2016
Organizational structure of Tesco is hierarchical that is reflecting a large sized organization. At
store level there are four layers of management in their large stores. Below mentioned figure
discussed the typical organizational structure in their superstores, Metro and extra formats. It is
crucial to understand that TESCO has a flexible structure that is not rigid in all their stores. But
some of stores are operating with a different structure according to its size location and other
specific factors. The functional structure is working in such a way that there are different
committees such as audit committee, corporate social responsibility committee, nomination
committee, remuneration committee and disclosure committee.
Illustration 1: TESCO board structure

Source: Tesco Organizational Structure, 2016
Divisional structure: It is a Structure that is divided according to own division that is
facilitating flow of resources and operations. Division is based on specific product lines. There is
division of organization according to such product lines.
Matrix structure: In this the relationship prevailing between superior and subordinates is
according to matrix and grids. There are generally some specific projects on which there are
report variations with the presence of such grids (Čepel and et. al., 2018).
Functional structure: This structure is adopted in Tesco where there is division of
organization according to functions. Each functional head is responsible for all the functions that
are taking place in the organization. It consist of general manager and then production manager,
marketing manager, finance manager according to particular function. At store level it includes
managers that are divided in categories like food trading manager, non food trading manager and
personnel manager. There is always a interrelationship among all these departments as when
there is requirement of personnel assistance in clothing sections than coordination is established
between non food trading manager and personnel manager.
Illustration 2: store level structure of TESCO

M2 : Advantages & disadvantages of interrelationship between functions of organisation
There is always a interrelationship between different organisational functions that are
helping a organisation in achievement of respective goals. In Tesco different departments are
exchanging information timely so that there are no duplication of efforts. At same time there can
be effectiveness and maximum utilisation of resources available with the organisation.
D1 : Critical analysis of complexities of different business types
Each business has certain complexities with regards to structure and sometimes related to
availability of opportunities. In Tesco being a large organisation there are presence of
complexities because of which problems such as high communication gap, supply chain issues
and authority misuse (Cherunilam, 2016). All this posses direct impact on business and its
operations. Interrelation of these functional departments helps in saving of resources, efforts and
time that can lead to dealing with communication gaps and achievement of higher
competitiveness.
TASK 3
P4 & M3 : Positive and Negative impact of macro environment on operations of a business
Micro environmental factor are those that are affecting business strategy of a
organisation, their overall performance and the process of decision making. There are different
aspects of business that includes identification of resources, utilisation of capacity that can help
in, formation of strategies that are faced by the changes that are prat of external business
environment and are uncontrollable. There are different aspects of micro factors that is
customers being central part of all the stakeholders, competitor who influence the business
strategies, employees that are helping in achievement of specific targets (Demil and et. al.,
2015).
Internal factors are those that are affecting operations of organisation, its culture such as
working structure and leadership position. Employee behaviour is also a micro factors that are
affecting the way organisations will be achieved in future.
Macro environment factors are the external factors that can have both positive &
negative outcome on a organisation. Organisations generally do not posses any control over such
aspects as they are part of external environment. For analysing the impact it is important to

understand whether such factors are leading to positive or negative effect on organisation and is
generating a threat or generation of a opportunity.
For the purpose of making a analysis there is use of PETSLE analysis as a analysing tool:
 Political: Political factors are in relation to government policies and government
intervention. Positive factors: In UK government is having focus for ensuring management of waste,
development of power stations that can lead to enhancement of sustainability. Negative factor: TESCO is operating in many countries such as Ireland, Hungary,
Malaysia, China and other. Their home country is UK where recent BREXT mechanism
has created large number of uncertainties. Economical factors: These factors are concern with unemployment rate, interest rate.
Financial crises has resulted into slow economic growth in many countries. Positive factors: Internationalisation & diversification are two strategies that is adopted
by TESCO according to the conditions of a economy. With increase in personal
disposable income there has been increase in purchasing power of target customers of
TESCO. Negative factors: In case of TESCO this brand is affected by the economic recession and
inflation conditions prevailing in countries (Gebauer, Haldimann and Saul, 2017). There
is need to focus on growth plans for future to deal with changing environmental
conditions. Social factors: There are some social factors that are part of society to which business
organisation are catering. Positive factors: It consist of changing taste, preferences of customers. With the high rate
of urbanisation there is future expectation of growth. It is leading to high demand for
online available grocery products in Tesco. With COVID-19 spread people are preferring
online available sites of TESCO for their purchases. Negative factors: There has been a complete shift of people towards online purchasing
especially because of COVID-19 pandemic there is less preference to visit physical
outlets. So TESCO has to focus on their online availability of products to ensure its
availability for customers.

 Technological: It is one of the factors according to which if a organisation is not able to
adapt to changing technological environment then it may lead to difficulty in survival in
long run. Positive factors: There is requirement of huge investment that has to be done to timely
upgrade with changing technology such as there is recent up-gradation by adoption of
self payment checkout systems in different physical outlets of Tesco. It has resulted into
saving of time by no long queues. Negative factors: TESCO has converted their 20 of its 42 lanes to automatic terminals,
unmanned so that they can cope with large customers but this has resulted in higher
amount of investment. Legal system: There are many legal laws & regulatory framework that have to be
compulsorily followed by organisations (Grewal and et. al., 2015). Positive factors: In Tesco it includes equality Act 2010, Anti discrimination act all these
are part of policies and practices that can help in enhancing the satisfaction level of their
employees, who are ultimately responsible for achievement of all the laid objectives. Negative factors: TESCO has to specifically follow all the provision of sales & goods act
1994, minimum wages act 1998, Anti discrimination act, Equality act 2010 that is leading
to high rigidity in its policy formulation. Ecological: It is the external environment that consist of aspects such as pollution, plastic
usage, sustainability measures. Positive factors: TESCO van drivers are using fuel saving routes and not collecting
unwanted plastic bags from their customers. They are having preferences for renewable
sources & generation of 100 percent electricity by year 2030.
 Negative factors: TESCO has made claims to minimise their carbon footprints to 50
percent by year 2020. COVID-19 situation has resulted into no focus on further
innovations as TESCO is presently focussing on use of online sources.

TASK 4
P5 : Internal Analysis of organisation to identify strengths and weaknesses
Strength Weakness
 Tesco is having
operations in USA, UK
and major countries of
Europe that is why they
are third largest
grocery stores across
world.
 Tesco has a strong
financial position that
is 63.5 billion pounds
revenue with a 7.6
percent average growth
every year.
 There are various
Scheme such as loyalty
cards, club cards.
 Tesco has a wide
online presence by a
large product variety of
non food items and
they have expanded in
financial services also.
 Tecso is depended on
UK market that is
leading to fast
changing macro
economic policies
 Tesco has failed to
adopt a suitable
marketing strategy.
 Tesco has not been able
to form suitable pricing
strategy according to
changes taking place in
market.
Opportunities Strength/opportunities Weakness/Opportunities
 TESCO can enter in
new markers such as
India, China, Asia by
adoption of acquisition,
 TESCO can make use
of their strong financial
position to expand their
Present share of
 TESCO can use the
price leadership
position along with
high quality of

merger or joint
ventures.
 There is opportunity to
invest in UK food
sector incoming time
period of two years to
invest in organic
sectors (Saleem, 2015).
products in organic
food segment.
 Tesco can use their
strength of wide online
presence for expand
themselves in countries
like India, China or use
their brand image as a
way to merge with
existing retail brand.
products for expanding
in new countries.
 Marketing strategy of
digital media sources
can be very helpful in
attracting people and
making them aware in
new target markets of
Tesco.
Threats Strength/Threats Weakness/Threats
 TESCO is much relied
on economy of UK that
can create future issues
as much reliance on
one economy may
create future impact in
a negative manner.
 TESCO is presently
having a leadership
position in grocery
sector of UK but with
emergence of other
competitors with low
cost options there is a
high threat to the
leadership position of
Tesco.
 Tesco can use their
string leadership
position and expand in
other countries by not
relying much heavily
on only one economy.
 TESCO has not been
able to successfully
market their products
and brand name. So
this weakness and
threat of loosing a
leadership position can
be combined together
by using some
innovative and
marketing & pricing
strategies in order to
expand successfully to
other economies apart
from UK (Prajogo,
2016).
SWOT analysis of National health service:

Strength Weakness
 NHS is a public funded healthcare
organisation that is having presence in
England.
 It is one of largest single player
organisation in healthcare sector
 NHS is offering different health care
services to residents of UK and also
from other different locations.
 The strength of NHS is that they are
offering all services free of cost.
 There are issues related to arrangement
of finances as most of services that are
offered by NHS are free of cost so there
is no source of revenue generation for
NHS.
Opportunities Threats
 NHS is a organisation that is funded
publicly. There is presence of
opportunity for further expansion by
approaching to private sources for
generation of funds.
 There are many other institutions that
are leading to a situation of high
competition for NHS as they require
more funds for managing their high
quality of services.
 NHS is making very small contribution
from area such as national insurance
payments.
 There is requirement of frequent
changes that have to be made according
to Immigration Act 2014. this
determines the whole policy structure
on which NHS is based.
P6 interrelation in strength & weakness of external macro factor.
The factor of decision making is affected by macro and micro factor of business
environment and that can be analyse by using PESTEL and SWOT analysis. Both of these
technique helps in decision making and that leads to increase in sale & market share of
organisation (Groşanu and et. al., 2015). The main purpose of all organisations is to deal with

weakness and ensure that there is proper utilisation of resources for this the interrelation between
strength and weakness of external factor of Tesco is discussed below:
Basis Political Economical Social
Strength Tesco operates their
function according to
the rule and regulation
of that country in
which they are
operating. It helps
them to deal with high
competition with the
help of their cost
leadership position and
brand image.
Tesco is operating
their function in those
countries having high
growth. They are able
to make significant
contribution towards
development of
economy of such
countries in form of
paying higher taxes
and GDP contribution.
Tesco provides wide
range of products to
satisfy the needs and
demands of their
customers. They
always try to provide
good quality products
so that they can meet
the expectations and
demands of customer
which helps them to
maintain their brand
image. They are
positively able to
contribute towards
providing best quality
products at reasonable
prices.
Weakness Tesco operates in UK
and due to this they
are facing some issues
related with BREXIT
matter which
somewhere effects the
business of Tesco.
There are lot of
changes in policies of
Tesco operates in
countries having
positive economic
growth but BREXIT
referendum affected
the function of all
retail brands and by
this economic
condition also
Tesco has poor market
strategy which fails to
meet consumers
demands. They always
try to meet customers
needs and demands for
this they need to
change their operating
process which requires

tax rates, the profit
margin of Tesco
decreases (Papilaya,
Soisa and Akib, 2015).
affected. lot of investment.
Basis Technological Environmental Legal
Strength Tesco believes in
adopting new and
advanced technology.
They have adopted is
self checkout system
of payment and this
innovation is advanced
& time saving in
comparison of
traditional payment
method (Makarova
and Polyanin, 2015).
Tesco makes efforts
towards having
sustainability
measures &
development of
friendly products and
also reflects their
efforts towards
reducing the use of
plastic which enable
them to contribute in
sustainable
development.
Tesco is following all
different legal rules
and regulations that
are part of equality,
diversity act and anti
discrimination act
which helps them to
develop a positive and
better image of their
brand .
Weakness For adopting new
technology Tesco has
to provide training to
their employees for
learning new
technology which
leads to cost increment
and also requires lot of
investment to change
their operating
process. Sometime
may lead to a impact
It is very difficult for
Tesco to develop
synchronised between
their goal to maximize
profit and lead a hand
in sustainable
development because
measures to take
environmental friendly
practices also have
many costs, they
effects goal of earning
Tesco is conjugated by
legal formalities that
must adhered to, and
this has a counter
impact on organisation
sometimes their
employees feel that
there is lower
flexibility at
workplace. There are
frequent changes in
policies of

on present financial
condition of
organisation too.
higher profitability. organisation that tends
to create resistance
from employee.
M4 : Analysis of SWOT and their impact on decision making
In every organisation there is a need to make a proper analysis of internal factors that can
help in taking decision related to future course of actions. In Tesco, there can be diversification
of the present range of products and approaching of some new locations that can help in
enhancement of their profitability (Likoko and Kini, 2017). In Oxfam being a voluntary
organisation the social image can be helpful in approaching some new markets.
D2 : Critical evaluation of both macro and micro factors on decision making
For the purpose of decision making it is very critical to develop insight of both internal &
external factors that can posses a impact on long run functioning of the organization. All the
threats and opportunities have to be identified that is based on strengths & weakness. Macro
environment analysis helps in getting insights of local trends, economic trends that can impact
the overall process of decision making. Further micro factors help in identification of decision
related to strategy formulation, implementation, product diversification etc.

Conclusion
From above report it can be concluded that it is curial for organisations to conduct a
analysis of external and internal environment that is affecting every business organisation. Pestle
analysis is a tool that helps in understand the factors that are part of external business
environment. SWOT analysis is also a tool that can help in developing insights of internal
business environment. Every organisation is also affected by structure, size and scope that helps
them in making a detailed analysis of the factors that are posing a negative and positive impact
on the overall organisation functioning and strategy formulation. .

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Online:
Types of business, 2018 [online], Available through<https://www.prospects.ac.uk/jobs-and-
work-experience/self-employment/types-of-business>
TOWS ANALYSIS: TESCO PLC, 2016 [online], Available
through<https://buzzwiz.wordpress.com/2016/03/02/tows-analysis-tesco-plc-2/>
SWOT Analysis of Tesco 2020: Detailed Overview [online], Available through<
https://www.swotanalysistemplate.com/swot-analysis-of-tesco/>
Tesco Organizational Structure, 2016[online], Available through<https://research-
methodology.net/tesco-organizational-structure/>
The power of people against poverty, 2020 [online], Available
through<https://www.oxfam.org/en/what-we-do/about/how-we-are-organized>
NHS Values, 2020 [online], Available through<https://myhealth.london.nhs.uk/faq/nhs-values>
Core Purpose and Values, 2020 [online], Available
through<https://www.tescoplc.com/about/how-we-do-business/core-purpose-and-values/>
TESCO COMPANY ORGANISATIONAL STRUCTURE CHART EXAMPLE, 2016 [online],
Available through<http://www.orgcharting.com/tesco-company-organisational-structure-chart-
example/>
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