Business and the Business Environment

Business and the
business
Environment
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Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
P1 various purpose & type of diverse organizations..............................................................3
TASK 2............................................................................................................................................7
P3 Interrelationship among different organizational functions..............................................7
TASK 3..........................................................................................................................................11
P4 Pestle analysis of organization along with their negative and positive impact...............11
TASK 4..........................................................................................................................................13
P5 Internal analysis of the organisation................................................................................13
P6 Interrelation of strength and weakness with the external macro factors.........................15
Conclusion.....................................................................................................................................18
REFERENCES..............................................................................................................................19
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Introduction
Business environment consist of both macro and micro environment that affect the functioning
of a business organisation. Present report is based on Tesco to understand various factors that are
affecting the overall functioning of the retail organisation. It is having presence in UK and was
founded in the year 1934 by jack Cohen. There is discussion about different types of
organisations and their scope and size there is interrelationship between different functions of
organisation and the external environment is understood with the help of pestle analysis and
internal with the help of SWOT analysis (Puurunen, 2020). Further, there is inter-relationship
that is being understood between strength and weakness of each associated factor of macro
environment and on basis of these discussions there is conclusion drawn according to the
business environment affecting functioning of retail organisations.
TASK 1
P1 various purpose & type of diverse organizations
There a different scenario of each business activity according to the type of business like profit
making not for profit making and type of other businesses can be public sector or private sector
and voluntary sector (Yashkova, and et. al., 2016). There is a discussion of this differentiation of
different types of business according to the aspects they possess.
Type of business:
A) Profit making:
These are the type of businesses who are solely working for earning profits and monetary profits
are the major mission and objectives of the business. Examples are Regent College, Ibis hotel,
Tesco supermarket, Mercedes Benz.
B) Not for profit:
These what does resources that are set up as charities or organisations and willing to provide
services to the community according to improving the circumstances for social good. Examples
are Oxfam, British Heart Foundation, save the children, world food program.
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Types of other business:
A) Private sector:
Private sector or those Enterprises who do not possess any governmental control or interference
and they are solely on by any private entity there are different types of private sector enterprises
as mentioned below.
Sole trader:
Meaning: Sole trader is describing a business that is controlled and owned by a single person
they may employ other workers (Saura., Palos-Sanchez and Correia, 2019)
Features: These organisations there are no separate legal existence according to the law and the
business and the owner or considered same.
Goal: Goal of this organisation is to achieve the lid on business objective by the sole trader.
Purpose: Sole traders are formed for the purpose of earning monetary profit.
Legal features: In this type of business owner is personally liable for all the debts and has to pay
losses to the business out of their own pocket this type of liability is referred to as unlimited
liability.
Examples: services like Columbus photographers there is no differentiation between the
business Example specialist and the owner or considered same and they are liable for all the
losses and profits that are taking place in business.
Partnership:
Meaning: Partnership Act 1890 defines partnership as the basic relation that forms between
persons who are dealing in the similar business with a view of earning profit.
Features: It is formed when there is more than one person involved in a particular type of
business.
Goal: The overall goal in all partnership form of business is to earn profit.
Purpose: Partnership form of business organisations will always formed with a purpose of
sharing the roles and responsibilities in order to achieve their down business objectives.
Objectives: Partnership form of business organisations is to maximize the profits and minimise
the liability according to the partnership deed.
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Legal features: Partnership Act 2002 has made it legal that there is requirement of sharing skills
and workload among all the partnerships.
Examples: Solicitors doctors are examples of professionals who are always up for partnership
type of business by sharing the expertise they possess.
Private limited company:
Meaning: A private limited company is a business or organisation that is independent retailer in
a particular market. There’s not reading on the stock exchange.
Features: Limited companies are always independent and government not possess any control
on the functioning of these companies.
Goal: The main goal of private limited company is laid down in the mission and vision objective
of the business organisation that they are willing to achieve apart from the monetary profit.
Purpose: Usually large scale Private Limited organisations are form for the purpose of providing
Employment to people and contributing towards the development of economy (Barrand et. al.,
2018).
Objectives: Every Private Limited organisation is to work as a independent retailer and do not
posses liability of all their decisions to be made in the organisation.
Legal features: There are certain legal features that are part of private Enterprises are all the
rules according to memorandum of association that have been formed in these companies and
there are written rules that help in governing the overall functioning.
Examples: Sainsbury and Tesco are retail organisation of UK. The main objective of retail
organisations is to enhance their sales and increase the profitability by offering quality products
to the target market.
B) Public sector
Meaning: A public limited organisation is that in which there is a well known Business and Its
shares are always traded on stock exchange.
Features: Organisations are controlled by government institutions trustees and local authorities.
All the stakeholders can possess a complete influence on overall work in performance and
conditions of public organisation.
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Goals: The goal of public sector organisation is to maximize the Welfare towards people of the
society and apart from monetary profit to achieve some non-monetary objective.
Objectives: Public sector organisation is to contribute positively towards development of the
society.
Purpose: Main purpose of public sector like NHS organisation is to provide Medical Services to
poor people so that they are able to improve their living standards.
Legal structure: Legal structure of public organisation is related with all activities been in the
control of government. Central government has the power to take the session and they have to
follow proper regulations and rules without any delay. Also, it has a limitation related to
participation of staff members and making some efforts to maximize their contribution
(Viriyasitavat, Da Xu, Bi, and Sapsomboon, 2018).
Example: National Health Services is a public organisation that is having a main objective and
purpose to provide Healthcare services to people who are belonging to the below poverty line.
C) Voluntary organization:
Meaning: Voluntary organization are controlled or directed by government. These are activities
that have to be implemented by volunteers according to improving the social conditions.
Features: Voluntary organisations are made up with a vision to enhance the living standards of
the people were living in society.
Goals: They have a goal to take initiative that can help in improving the conditions of people
living in extreme conditions of poverty.
Objectives: The main objective of voluntary organisations is that they are willing to implement
activity according to Welfare of people.
Purpose: The main purpose for voluntary organisations are from is to make society a better place
to live.
Legal structure: The legal structure of these is managing by top level and there are for the
trustees who are responsible for executing different functions and providing the financial
resources.
Example: Oxfam is a Voluntary organisation that is formed with the objective motor and
purpose to work towards reduction of poverty and helping people who are living below the
poverty line.
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