Business and the Business Environment

BUSINESS AND THE BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Different types and purposes of organizations; public, private and voluntary sectors and legal
structures..........................................................................................................................................3
P2 Size and scope of various type of organizations....................................................................5
LO 2.................................................................................................................................................6
P3- Relationship between varied organizational functions and their connection with objectives
and organizational structure.........................................................................................................6
LO 3.................................................................................................................................................9
P4- Positive & negative impact of macro environment upon venture operations.......................9
LO 4...............................................................................................................................................12
P5- Internal & external analysis of TESCO to identify its strengths and weaknesses..............12
P6- Interrelation between strengths & weakness with external micro factors...........................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Business environment term implies external factors, elements and forces that are beyond
control of a venture and they can affect functioning of business companies. These includes
suppliers, consumers, government, technological, social factors etc. Some of these components
have direct influence over a venture company and other could operate indirectly. The current
assignment will be based on TESCO, which consider in list of leading supermarkets in the UK.
The chosen company has sustained for longer period of time by selling quality items and offering
appropriate services to target customers according to their needs. This study will explain varied
forms of companies such as public, private and voluntary and their purpose as well as legal
structures. It will define size & scope of range of several forms of firms and relation between all
the organizational functions. Furthermore, this report will justify the link of all functions with
structure and objectives of companies. It will clarify negative & positive impact of macro factors
upon each operations of venture, supported by appropriate examples. This assignment will
explain external and internal analysis of specific firm to determine strengths & weaknesses and
will also describe ways that would define strength and weakness interrelation with external
factors.
LO 1
P1 Different types and purposes of organizations; public, private and voluntary sectors and legal
structures
Public Company-
Companies working under this form or nature of business needs to allot their share in the
open market in order to raise money and increase their market capitalization. The shares are sold
to shareholders and investors who are treated as the owners of the business. There are many
companies dealing in this nature of business such as NHS. It is important for the management of
business to meet the rules and regulations so that they can operate legally in the market. For that
they need to have a minimum of 7 members in their company and there is no limit to reach the
maximum point. Apart from this in order to work as this form of business it is important that
they have minimum of 5 lacks invested as paid up capital and after that if they open up or

acquire any other company by buying their shares that company will be treated as their
subsidiary. It is important to form their documents and register under the legalities with members
of associations and articles of association. Also it is important for the companies dealing in this
nature to form up their prospectus with all of their details and future ventures so that they can get
more people to buy their shares which will help them to raise more capital and allocate the funds
in more viable ventures (Möller, Nenonen and Storbacka, 2020).
Private Company-
These types of businesses keep their operations private as they register or work usually in
two forms such as either partnership or sole proprietor. Even on scale of multinational level there
are exceptions as many company do not want to go public and keep their operations private and
that is why they avoid this option. Tesco is a suitable example for this aspect as they maintain
their business in many countries but they have kept their operations private. Mostly businesses
that are maintaining under this nature are small scale business. Other than that in order to register
as private company it is important that management must have minimum of 2 members but in
case of maximum limit for members it is bit different than public company as they have a limit
of 200 members. Also for the aspect of paid up capital they need to invest 1 lacks and they can
set it as per the level of requirement. They are not allowed to raise money through shares this is
because they have kept their operations private which takes their position of not raising money
through this aspect. Other than these directors of the company are not allowed to work
independently and any stored opened up by the company is as per their own selection in the
market (Ključnikov and et.al., 2016).
Voluntary Company-
These companies participate on their own in the line of social work so that they can make
the lives of people easier without any problem with high level of involvement so that they can
provide opportunities to all. This form of business works in the line of charitable donations and
work as per the good and betterment of those people who are underprivileged. The company has
successfully established their name because of their generous activities and support of helpful
members. In order to serve more and cover more areas they have joined their hands with 20 other
companies who were interested in this work. With the help of this they have been able to