Business and the Business Environment

BUSINESS AND THE
BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1: Various types & purposes of organisations...........................................................................3
P2: Types of organisations by size and scope wise.....................................................................5
LO2..................................................................................................................................................6
P3: Relationship between functions of organisations..................................................................6
LO3..................................................................................................................................................8
P4: Macro environment impacts on business..............................................................................8
LO4..................................................................................................................................................9
P5: SWOT analysis......................................................................................................................9
P6: Strength and weakness of Tesco with external macro factors.............................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business and business environment refer to the working environment of the company in its
operations and other parts. Business environment refer to the resources a company use in both
the internal and external ways to make the business goal achieved. Business environment is the
most important thing to run a business as it’s important to understand all the aspect of the
business and its environment they are working in. Tesco is a leading retailer company in UK,
With the most of the market share of UK in retail marketing. Tesco provide all food and clothing
items and other household items including majority of brands in its stores and services. The
report will help in understanding the business environment of the Tesco and the internal and
external environment by the analysis of them to help the company in understand its customer and
market knowledge. The report further explains all the positive and negative aspect of the
organization and the industry (Prajogo,2016).
LO1
P1: Various types & purposes of organisations
There are various types of businesses and ventures exists in market place. All
organisation within market works different purposes (Cumming and Zahra, 2016). However,
gaining excellent outcomes in the main objective of these all organisations, but ways which an
organisation has followed to achieve this objective, is completely different from others. There
are organisations within market relates generally with three categories called; public, private and
voluntary. These all types of organisations have been discussed below which their respective
examples and purposes.
Public organisations
Public organisations are generally those organisations which always sells their shares in
market place, so that any person can simply enable to buy shares of these public organisations.
Currently Tesco is the best example of a public organisation, because this retail organisation
always offers its shares publicly. On the other side, businesses or companies which comes under
the category of public organisations mostly runs their business operations internationally. Top-
level management within these organisations always believes in adopting and using very hi-fi

technology within their daily operations. That’s why technology advancement always exists at
the high level in these organisations.
Private organisations
This is the second type of organisations, so that those businesses or ventures commonly
comes under this category which not offers their shares in the market to sell (Bojovic, Genet and
Sabatier, 2018). That’s no any person can get access to buy shares of a private limited company.
There are Iceland foods limited company is very appropriate example of a private company. A
private organisation offers its shares, but only to its close ones, like; relative, friend, family
member etc. Private businesses also believe in using different technological gadgets within its
workplace. Most private organisation within market are able to run their business operations only
at the regional or national level.
Voluntary/social organisations
This is last type of organisations called; voluntary or social. A voluntary organisation
always works in the welfare of society. People within these organisations has no aim of
generating huge profit, because these are only have aim to maintain a healthy and happy
environment within the society. For example; there are public health England is a social
organisation which works for promoting people’s heath and well-being aspects. The aim of this
organisation is making people very healthy. These voluntary organisations also use different
technologies within their business operations. Currently the charity and donation are key sources
of funding to these social or voluntary organisations.
LEGAL STRUCTURE
There are businesses or organisations which came from any type of organisations has
fully responsible to follow different considerations of legality and ethics (Triaa, Gzara and
Verjus, 2016). There are some key laws, standards and regulations has been discussed below;
Partnership act 1890: In this one of key act that every person has to follow and adhere while
running a partnership organisation. This act helps in removing different conflicts between
partners. That’s why role of partnership is necessary in the UK’s business environment.