Business and the Business Environment

Business and the
business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 various purpose & type of diverse organizations..............................................................3
P2 : Size and Scope of this types of organization..................................................................4
M1 Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by The organisation.........................................6
TASK 2............................................................................................................................................6
P3 Interrelationship among different organizational functions..............................................6
M2 Analyse the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have upon organisational structure...................................9
D1 Provide a critical analysis of the complexities of different types of business structures and
the interrelationships of the different organisational functions..............................................9
TASK 3..........................................................................................................................................10
P4) PESTLE analysis of company with their negative and positive impact........................10
M3) Apply PESTLE model to undertake a detailed analysis of macro environment within an
organisation..........................................................................................................................12
TASK 4..........................................................................................................................................12
P5) Internal analysis of company.........................................................................................12
P6: Interrelation of strength & weakness with the external macro factors...........................14
M4) Analyse effect of SWOT analysis over decision-making.............................................16
D2) Evaluate the impact of micro and macro environment over business decision-making16
CONCLUSION..............................................................................................................................17
REFERENCES .............................................................................................................................18

INTRODUCTION
Business environment includes both micro and macro environment factors that are posing
a impact on the functioning of a organisations. Present report based on analysis of a private
sector organisation TESCO by consideration of different factors that are posing a impact on the
way external and internal environment posses a impact on the business functioning (Okeyo,
Gathungu and K’Obonyo, 2016). There is analysis of PESTLE analysis, SWOT analysis to
evaluate the relationship with the macro environment so that further conclusions can be drawn.
TASK 1
P1 various purpose & type of diverse organizations
Organisations are classified in different categories according to their overall laid objectives.
Private organisation:
These are the organisations owned by private entities that can be individual, partnerships. Funds
are managed by use of personal resources. TESCO is a example of private organisation
(Gaganis, Pasiourasand Voulgari, 2019).
Purpose : The main objective of these organizations to maximize profitability so that higher
value can be created for organizations according to achievement of high market share.
Legal Structure of Private Organization :
Sole Proprietorship :
It is business set up that is owned and managed by sole proprietor. These are held liable for all
losses and liabilities, they have to comply with regulations (Explain the different types, size and
scope of organizations, 2020).
Partnerships : These are the business that are managed and controlled by one or more than
partners. In the decision are taken by mutual consideration of all the partners and all future
decisions are taken according to the clause that are part of the partnership deed.
Limited Companies : These organizations posses status of separate legal entity from the owners.
The capital is procured by issue of shares and there it is limited according to respective holding.
TESCO is a example of a limited company.

Public organization : Public companies are the ones that are managed by government in order
to maximize the sales and social welfare (Šoltés and Štofková, , 2016). In the organizations
taxes are collected out of the public contribution. Goods and services are offered to work towards
ensuring equality among the people living in society.
Purpose : The main objective of NHS is to offer all the medial services to the underprivileged
section of the society:
Legal structure: The overall legal structure of national health services is based on government
exercising control over all the decisions that are taken ion these organizations.
Example: NHS is a public sector organizations where the main objective is to provide all the
health services at reasonable cost or at negligible cost to all the people who are below te poverty
line.
C) Voluntary organization:
Meaning: Voluntary organization are the ones which may and may not posses a government
control. In this all the activities and functions are carried on by volunteers according to
prevailing social conditions (Batocchio, Ghezzi and Rangone, 2016).
Features: Voluntary organization have a vision to work towards enchaining livings standards of
people or dealing with some of the common social issues that are faced by people in society.
Purpose: The main objective of this organizations is to make society a better place for people.
Legal structure: the overall legal structure has to be managed in such a way that there is
execution of functions according to laid objectives of the organist.
P2 : Size and Scope of this types of organization
Private Public Voluntary
Size TESCO is a private
organisation that is
one of the largest
private employer as it
is having a global
presence and is one of
NHS is a public sector
organisation that has
employed 1.6 million
of people and posses a
workforce of
2,165,043 across UK.
Oxfam is a example of
voluntary organisation
that is a independent
confederation of 19
charitable independent
institutions that posses

the popular
supermarket brand.
They are employing
around 2,50,000
people and have a
workforce of 367,000
staff members in all
their 2365 stores
across UK (Bland and
Osterwalder, 2019).
a focus on poverty
alleviation and it was
started in the year
1942.
Scope TECSO is focussing
on achieving the laid
mission and vision
statement so that they
are able to create a
loyal base of
customers. It will
assist in long run
functioning of the
organisation.
National health
services has a wide
scope as presently they
are able to
successfully cater to
approx a number of
one million patients in
a duration of 24 hours.
In four countries
England, Scotland and
northern Ireland they
have able to achieve a
social reform.
Oxfam has a belief
that the poverty
situation is
unavoidable so there
is need to deal with
human actions. The
main aim is to work
towards sustainable
livelihood and deal
with future
uncertainties.
Purpose The main objective of
TESCO is increase the
market share to earn
higher profitability
ratio. TECSO is
willing to achieve
higher markets hare by
NHS consist of
multiple organisations
where each
organisation has their
own recruitment teams
and vacancy list.
Oxfam has major
objective to work
towards injustice that
is caused because of
inequality that is part
of society where many
people are not able to

achievement of a cost
leadership position.
afford basic health
care services.
Legal structure TESCO has a legal
structure that is
operating as company
arises out of legal
structure. In this they
are also having a
corporate governance
model that is related to
all their functions
(Foss and Saebi,
2018).
NHS is willing to enter
in acute services
contracts to provide all
the hospitality
services. The present
planning of
government health
services is to develop
foundation trust that is
assisting the society
and individuals in
Oxfam trustees are
responsible for
activities and charities
that is the governing
body for Oxfam.
M1 Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by The organisation.
TASK 2
P3 Interrelationship among different organizational functions
Different functional departments:
There are different functional departments that are part of a organization:
Production function: It is a function that is related to production of goods & services according
to specif customer requirements. In TESCO production function has a relationship with the
marketing and the finance department has it provides insights of the quantity of production thatr
is required to be done in the organization. (Saleh and Watson, 2017).
Finance department: In this every business organization requires some of the specified
financial resources for their proper functioning. Finance department has to provide all the
required financial resources so that overall business organization can function in a more effective
manner and there is optimum utilization of resources.
Human resource department: