Unit 1 Business and Business Environment : Tesco
Added on 2020-10-22
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UNIT 1 BUSINESS &BUSINESS ENVIRONMENT
INTRODUCTIONBusiness is the economic activity that involves buying or selling of goods and services toearn profit. Internal and external factors that has a negative or positive impact on the businessorganization's functioning and operations are called as business environment (Li and et.al.,2011). Suppliers, customers, employees, marketing intermediaries, competitors etc. are somethose factors which have an impact on business of a firm. The assessment on business andbusiness environment is prepared on the cased study conducted of Tesco which is a retailbusiness chain in UK that renders its goods and services in supermarket, hypermarket, superstoreetc. Report will explain the various types, size and scope of organizations and will analysevarious internal and external environment factors that affects Tesco. It will also discuss therelationship between several organizational functions and their interrelatedness withorganizational structure of Tesco. PESTLE and SWOT Analysis of Tesco will be conducted toidentify the internal strengths and weaknesses and investigate external and internalenvironmental factors that have influence on business activities.Introduction of background details of Tesco Tesco Plc is a British multinational retailer of grocery and general merchandise whichhas its headquarter operations in Welwyn garden city. England, UK and it is positioned at thethird largest retailer in all over the world by gross revenues. Tesco is founded by Jack Cohen in1919 and has subsidiaries including Tesco Mobile, bank, booker group etc., and is a listedcompany in the London stock exchange which has 476000 employees.1. Various types of organizations and growth of international business environmentPublic SectorThis are also known as State sector that are owned, controlled and managed by local ornational government bodies. Public sector organizations works or operates with the motive torender services to public rather generating profits. It comprises of departments like public sectorundertakings,public corporations etc., which are controlled by government and financed bydifferent taxes collected from various institutions. Public sector organization's legal structure isgoverned by state or national government bodies of the country and are funded by governmentalinstitutions and the taxes are collected from individuals (Seethamraju, 2012).Private Sector
Private sector organizations are established with the motive of earning hugeprofits by rendering good and services. These organizations are run by private individuals byemploying staff for conducting its operations and business activities. Private sector organizationsoperates outside the control of government and produces various types of goods and services tosell them to customers for generating profits. Sole proprietorships, Small and Medium sizebusiness, partnerships, trade unions etc., are some privet sector organizations. The legal structureof private sector organizations are governed as separate legal entity and identity which aredifferent from owners. These organizations perform several functions and activities to satisfycustomer's needs and wants by rendering them good quality products and services as per theirdemand and market trend (Kang, Lee and Kim, 2010). Voluntary SectorVoluntary or Community Sector organizations are firms that are established to providesocial services to public. These organizations works or operates with the motive of renderingservices to general public to improve the living conditions and status of community rather thancreating profits. Voluntary organizations are work towards the welfare of the society orcommunity which is formed by individuals and are also known as not-profit, non governmentalorganizations, Charitable trusts, NGOs, Community Groups, Social welfare organizations etc.,are some of the voluntary sector organizations. The structure which is law permitted of voluntarysector organizations is governed by rules and norms that are set by a constitution that are adoptedby the voluntary organization that consists of that associations which are unincorporated , a trustand company which is limited by guarantee. Sole proprietorship It is the simplest business form, where the individual can operate business activities.And have freedom to take decisions on its own. It is of limited resources and unlimited liabilitiesthat also have to bare by the owner itself. Sole proprietorship is not a separate legal entity. Andall the debts responsible on the person. It can be used by Tesco for starting business into newmarket. PartnershipIt is a formal type of business where two or more person cooperate and manage thebusiness. They share all the profits and losses according to their ratio with limited liability.Partnership businesses are beneficial because it involves more capital by different partners and
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