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..................................................................................................................................................7
P3: Relationship between functions of organisations..................................................................7
LO3..................................................................................................................................................9
P4: Macro environment impacts on business...............................................................................9
LO4................................................................................................................................................10
P5: SWOT analysis....................................................................................................................10
P6: Strength and weakness of Tesco with external macro factors.............................................12
CONCLUSION..............................................................................................................................14
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.
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. Currently British Petroleum is the best example of a public organisation,
because this oil and gas organisation which always offers its shares publicly.
Goal: Achieve huge profit is main goal of company.
Purpose: Provide excellent and quality retail products and services to customers is the main
purpose of company.
Legal structure: The company was registered itself in companies’ house of the UK in public
category to be legally formed. There are a lot of investors and stakeholders which are associated
with the organization and this is going to get in a more legal aspect which would be required so
that there can be higher performance.
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.
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. Stakeholders of the organization have to be involved in the
decision making of the organization so that there are going to be higher competitive advantage
which the company can have. There are Iceland foods limited company is very appropriate
example of a private company.
Goal: Gain large markets share in the UK’s food retail industry is the main goal of this private
venture.
Purpose: Generate excellent revenue through proving quality food products in the main purpose
of company.
Legal structure: The management of this business was also registered itself in the companies’
house to be legally formed. 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. Sole proprietors, partnership, etc. are the form of legal structure which an