Business and the Business Environment: Types, Scope, and Relationships

This document provides an analysis of the types and purposes of organizations, the size and scope of organizations, and the relationships between organizational functions within the structure. It also explores the positive and negative impacts of the macro environment and conducts a SWOT analysis of Tesco. The document is relevant for students studying business and the business environment. No specific course code, course name, or college/university is mentioned.

Unit 1: Business & the
Business Environment.

·
Table of Content
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................4
Types and purposes of organizations..........................................................................................4
Size and scope of organizations..................................................................................................5
Relationships between organizational functions within structure...............................................6
PART 2............................................................................................................................................7
Positive and negative impacts of macro environment................................................................7
Internal analysis..........................................................................................................................9
SWOT analysis of Tesco ............................................................................................................9
Strengths and weaknesses interrelation with macro environment............................................10
CONCLUSION..............................................................................................................................11
REFERNCES.................................................................................................................................12
REFERENCES..............................................................................................................................16

·INTRODUCTION
Business and business environment can be understood as wide functional scenario where there
are various types of organizations which can be divided on basis of types and purposes, with
varied segregated scope parameters to gain analysis of their functional networking. Global
business environment has been widely developing competitive pace among various scenarios,
where there are various brands and new companies coming with varied products, services to
form effective place among consumers growing demand structure. The report brings forward
analysis of various scenarios where various companies structural aspects, that can be divided as
private, public and voluntary fundamental space. Report also examine relationships of company
functions within structure, use of positive and negative impact of macro environment and how
internal and external analysis works within company structural aspect. The report shall also
discuss strengths, weaknesses interrelation with macro environment and how they enable
company to form new effective working competitive levels (Gaganis, pasiouras and Voulgari,
2019).
·PART 1
·Types and purposes of organizations
There are various types of organization structures which can be divided based on their types and
varied purposes defining their functional position among consumers market share. The types of
company structure can be understood as public, private and voluntary organization which can be
understood as follows:
Public companies
Public companies can be understood as corporate bodies whose shares are listed within share
market openly for trading which enables people to openly invest in them and also there is large
capital structure involved within it which forms the base for gaining high range of goods,
services for consumer goodwill. Public Companies do not give any right to shareholders
however to take any active decisions and part within management, as there are wide number of

people involved for purchasing of shares. Purpose of public companies can be understood as the
main ability to tap financial markets by selling stock markets and raise capital for expansion and
working efficiency, where it has been widely forming competitive growth goals. Tesco is one of
the biggest public company of UK whose shares are traded among people, for gaining stronger
place among retail industry levels.
Private companies
Private companies can be understood as corporate bodies whose shares are not traded within
open market, but are hold internally within few individuals who are the shareholders and have an
important role among decision-making fundamentals. The main goal of any private company is
solely to earn high profit, bring innovation among company products and services for consumers
and to be diverse with changing competitive structure. Aldi is one of the biggest private
company in UK, where its goals and services among consumers have been widely achieving
high range of profits. Purpose of private company has been understood as solely to earn profits
and to be dynamic by bringing on innovation (Luiz, Ganson and Wennmann, 2019).
Voluntary companies
Voluntary companies have been understood as structural corporate bodies whose vision is to
bring defined change within society among business world by developing new services which
enhance and contribute to living standards. The voluntary companies do not have shareholders in
their operations as limited functional goals are there which also holds wide pace for developing
social standards of living among people. Red cross is one of the biggest voluntary company in
UK which has been bringing on wide changes among global paradigms with wide range of
services through which change is built smoothly within society social standards. The purpose of
voluntary companies have been analysed and known to bring effective wide changes among
people living scenarios by working towards developing new goals for creating long term change.
l壱Size and scope of organizations
The size and scope can be defined as an important parameter which enable to segregate
companies variably and also form working operational scope based on their goals and new
working scenario which develop new goodwill parameters among working operations (Vlados
and Chatzinikolaou, 2019).
Public company

Size of public company can be understood as most advanced, wide and spread among various
shareholders who can invest in open trade share markets. Scope of public companies is wide
where consumers have high opportunities for purchasing various services and products as
company operations are not only spread widely among various working scenarios, but also there
is wide capital investment involved. Tesco for example of public company has wide size and
scope expanded among global scenarios where shares being open for trading in people, also
goodwill standards have been widely raising. Public companies scope is wide and expanded
among varied scenarios which makes their presence widely known among global levels, focus is
towards bringing on new working goals where innovation and diverse working standards are
huge.
Private company
The size and scope of private company can be understood as limited when it comes to offering
investment opportunities in trade market for people, as mainly companies have been widely
operating business services with aim to bring in innovation and commercial diversity for gaining
goodwill. Private companies such as Aldi has limited scope among industry as shares are not
open for trading in open market and also capital can be used as holdings of internal shareholders.
This analyses that scope and size being limited has got withhold with consumers goodwill as
private brands shareholders decisions are also done by taking in mind varied industry
parameters. Private companies scope makes it limited among public as people cannot purchase
shares and also internal shareholders have decision powers, making goals and operations highly
developed with new advanced growth business opportunities (Sinha, 2020).
Voluntary companies
The voluntary companies on other hand have limited scope as size is small and goals also
focusing onto bringing on new functional scenarios, where main aim is to bring change in
society and assist people in bringing on varied changes. The Voluntary companies size is small
which makes operations and capital investments also limited, and variably developed as per
varied scope measures, The Red Cross on other hand being one of the major voluntary company
within global parameters have been widely known as one of the biggest voluntary company
whose services have benefited people worldwide. Voluntary companies are small often, which
makes its spread vitally limited among consumers and with constrained capital structure there is
functional feasibility making scope widely limited for people to function on.

l壱Relationships between organizational functions within structure
There are various organizational functions within departments which are highly linked to
company objectives and structure for developing new working goals efficiency and for
generating new advanced growth goals which enable wide range of company goals to form new
evocative space. Tesco being one of the biggest public company has wide range of services and
products among working goals which enable to form company objectives and structure and
interrelationship of departments can be understood as follows (Cyphert, Holke-Farnam and
Rosol, 2019).
·HR department functions are highly correlated with production departments parameters as
Tesco aims to bring on various new diverse talented, skilled employees as per goals of
production departments, This can be understood as one of the major functional scenario where
varied new recruitment, training and development parameters have strong interrelationship by
analysing various skills which will enable to deliver new potential growth goals. HR department
also has the function to keep record of various training an development which needs to be given
to employees, where goals of production department plays an active role. Tesco company
objectives to form new functional scope among widely growing retail industry has been
developed as one of the major paradigm where skilled employees play an important role for
gaining new competent positional services.
·Marketing department functions are highly correlated with sales management departments, and
promotion services among consumers business services which forms one of the major parameter
for gaining functional synergy. Marketing department has high functional keen goals which has
been focusing onto wide innovation goals and new evocativeness goals by interrelationship with
sales and promotional department objectives for forming strong space within new dynamic
evolving industry goals. Company objectives to be highly innovative towards promotion
operations have wide pace within marketing goals and has been forming new working scenarios,
to functionally deploy creativity in all services, products ( Mustapha, Arogundade and
Maskeliunas, 2020.
·Research and technology department has high correlation with Finance department objectives
within business growth parameters where new evolving innovation can be implemented by
bringing on planned working scenarios. This can be understood as one of the most important
growth working objective for forming new profitable working goals and wider goodwill

functional scenarios which aim to bring on more enhanced working quests. Finance department
has been actively known for yielding focus on new productive scenarios and to be keen
productively aiming for generating larger efficiency among various departments capital
investments.
·PART 2
·Positive and negative impacts of macro environment
The macro environment holds wide importance within growing competitive industry
where positive and negative impacts can be analysed based on their functional scope and new
technical growth goals to generate wider effective company goals. Pestle analysis is one of the
most innovative external analysis tool for forming new working synergy onto which there are
varied new measures analysed. Tesco company pestle analysis can be identified as follows
(Ratten, 2020).·Political factors: Tesco faces high external risk from Brexit decision which has raised price
structures of all products and services has been highly increased, where there has been analysis
developed onto how company management shall be done to achieve optimum price structures.
Political scenarios have negative impact on business operation at Tesco as Brexit decision has
highly enhanced wider price structure of all goods and services.·Economic factors: The UK economy has been widely changing with high rise in taxes and
larger interest rates which are widely increasing and impacting company scale services. The
economic parameters enable us to analyse that price structures of all goods and services have to
be formed by working on major scenarios, which deliver quick keen growth and operational
efficiency for positive strength paradigms (Demir, Turan and Demir, 2019).·Social factors: The UK retail industry is widely growing where changing social factors have to
be reassessed, as per changing consumer demands and innovative goods, services propagated
which enable to gain competent place. Social changing paradigms play a highly important role
where Tesco has positive impact as brand has high goodwill standards.·Technology factor: Changing technology factors have strong impact on business growth, where
externally retail industry of UK is widely growing with various new brands are using high
innovation among production standards and working parameters. Technology factors hold high
space within Tesco goals as brand can further invest capital to bring on new technology for

production as investing on research will enable to form enlarged place within consumer market
structure.·Legal factor: There are various legal factors which retail industry has to focus on where Tesco
has been widely obtaining new productive place for gaining higher effective standards and
variable legal factors which enable to form wider ethical performance paradigms (Paudel, 2019).
·Environment factors: The environment factors such as changing CSR functions hold wide
scope for bringing on varied functional scenarios within Tesco goals as this will positively
enhance working determinants among consumers. The environment factors have been raising as
one of the most important strength within dynamic retail industry where there are high focus
onto company services for bringing change in society.
l壱Internal analysis
l壱SWOT analysis of Tesco
SWOT is an effective tool that helps in identifying internal factors such as strength,
weakness and external factors that is opportunities and threat that affects on operations of
business. Tesco was initially established in 1919 with number of products and services ranging
form home care, personal to financial services. Therefore, SWOT analysis of Tesco will help in
identifying key factors that impact on firm. Such as:
Strength: Tesco is one of the biggest grocery retailers or number one supermarket in United
kingdom as compared to other competitors. It has strong brand image and largest market share
that is 27% which contribute in influencing maximum number of individuals to prefer Tesco
products for fulfilment of their respective requirements. Company have make use of superior
technologies and innovative method in order to meet customer’s expectancy and gain
competitive advantages in market. Therefore, all such strength have contributed in Tesco growth
and expansion in new market and generates strong awareness among people about it products
and service (Brandl, Ström and Jones, 2019).
Weakness: There are key areas in which company needs to make improvements in order to
further grow and survive in competitive environment for longer time frame. Such as Ineffective
management of Tesco have lead to closure of stores in various countries thus it has limited
operations. Another weakness of Tesco is Fraud trial and accounting scandal that have impacted

negatively on brand image of enterprise and caused dissatisfaction among customer’s. Due to
misrepresentation of profit, Tesco have to incurred extra charges and penalty thus management
need to abide to ethical practices in order to retain maximum customer’s satisfaction.
Opportunities:Tesco has high growth business opportunities for entering into new business
scenarios with innovation and creativity to bring on varied new products and services, where
wide functional capital can be invested further for developing higher competencies. This can be
understood as one of the main opportunity to bring on larger new techniques of promotion,
marketing and production goals for gaining (Khodae and Ortt, 2019). With more new companies
coming in within retail industry Tesco has to focus on bringing varied new scale products and
services for developing wider pace for higher consumer goodwill. External business
environment has wide opportunities for gaining larger vision and competitive structural growth
where Tesco can build on wider working effectiveness, which will keenly bring on new
commercial growth.
Threats: Tesco has high threat from Brexit which has not only changed political scenarios but
also impacted price structures of goods, services where higher taxes may widely impact business
goals. There is threat of lacking innovation within production of goods and services, where
commercial competition is highly growing as various new brands are coming in retail industry.
This may be threat for Tesco as it may impact on revenue standards if new diverse standards not
taken within management, further higher shift in consumer preferences also has to be analysed as
one of the most important aspect. There is threat of new entrants within retail industry where
brand has to enter wider new pace scenarios for gaining stringent innovation, larger vision
forming higher demand among consumers.
l壱Strengths and weaknesses interrelation with macro environment
Strengths and weaknesses interrelation with macro environment can be understood as highly
important aspect where Tesco has to focus for gaining effective position within widely growing
competitive retail industry. The internal and external business environment are not only highly
correlated within each other but also there is wide demand for generating higher functional
innovation and form evocative pace within retail industry. Tesco will be able to yearn focus onto
developing stronger dominant position by analysing new performance scenarios, onto which this
will further focus onto gaining wider consumer demands.

·Tesco high capital structure and varied range of consumer goodwill has been analysed as one of
the strength which will enable to form strong place within growing industry paradigms, where it
has to potentially expand onto wider domains. External scenarios has high scope where
innovation of creative services and diverse range of goods can be actively used for gaining larger
profits in revenue paradigms. The wide capital structure and goodwill is internal strength which
will enable to focus on bringing varied new segments of products and services by analysing new
consumer focused services. New varieties of goods shall be developed among industry domains
by Tesco where external and internal business factors hold wide demands for navigating change
among consumers preferences (Zarzycka, Dobroszek, and Moilanen, 2019).
·Tesco has weakness of less innovation within production standards of goods and weakness
where it has been analysed as major impact on working operational efficiency, less commercial
viable paradigms where this is correlated with external business demands to gain wider changing
consumer demands. This weakness has been analysed as one of the major factor which may
widely decline consumer brand goodwill and also potentially lack wider new competitive growth
goals. The Tesco weakness is correlated with interrelationship of changes coming within macro
environment where industry demands are rising with innovation scope and to develop varied
new parameters where consumers preferences are also building pace (Cvetanovic, Nedić and
Despotović, 2019).
·Tesco has also less skilled workforce at present which has been analysed as one of the most
difficult weakness which may impact within external commercial competitive demands in retail
industry where new skilled employees are demand within new domains. This has been also
analysed as one of the most important aspect where external demands among industry
parameters have high scope for gaining wider new goals scenarios, where employees need to be
trained with specialized services for gaining stronger vision. Tesco weakness within internal
scenarios can be understood as major parameter which will leverage new external demands for
gaining new demands among company goals.
·CONCLUSION
The report can ben concluded with analysis of business environment, where new
structural aspects are analysed for forming wider new demands among consumers and for
generating wider effective new functional scenarios. Report has concluded analysis of private,

public and voluntary companies based on their types, sizes and scopes within wide business
industry where consumers focus for larger creativity within products have been actively shifting.
The report concludes Tesco swot and pestle analysis where analysis onto working operations can
be understood as of major importance for gaining functional innovation, which potentially raises
new working horizons and for generating new goodwill demands. Report also concludes
interrelationship of various functional departments in company for forming stronger efficiency,
new vision and broader goodwill standards. The report has also concluded how internal and
external factors have strong correlation with each other when it comes to analyse new productive
growth goals. The report has brought in depth analysis forward where various working domains
are analysed based on new corporate goals, parameters of working innovation and new synergy
for generating wider profit levels.

·REFERNCES
Books and journals
Brandl, K., Ström, P. and Jones, A., 2019. The Characteristics of International Business-to-
business Services: The 4C Framework.
Cvetanović, S., Nedić, V. and Despotović, L., 2019. The analysis of business conditions in
Western Balkan countries. Ekonomika. 65(3). pp.13-19.
Cyphert, D., Holke-Farnam, C. and Rosol, S., 2019. Communication Activities in the 21st
Century Business Environment. Business and Professional Communication
Quarterly. 82(2). pp.169-201.
Demir, K.A., Turan, B., and Demir, S., 2019. Ambient intelligence in business environments
and internet of things transformation guidelines. In Guide to Ambient Intelligence in
the IoT Environment (pp. 39-67). Springer, Cham.
Gaganis, C., Pasiouras, F. and Voulgari, F., 2019. Culture, business environment and SMEs'
profitability: Evidence from European Countries. Economic Modelling. 78. pp.275-
292.
Khodaei, H. and Ortt, R., 2019. Capturing dynamics in business model frameworks. Journal of
Open Innovation: Technology, Market, and Complexity. 5(1). p.8.
Luiz, J. M., Ganson, B. and Wennmann, A., 2019. Business environment reforms in fragile and
conflict-affected states: From a transactions towards a systems approach. Journal of
International Business Policy. 2(3). pp.217-236.
Mustapha, A. M., Arogundade, O. T., . and Maskeliunas, R., 2020. A systematic literature
review on compliance requirements management of business
processes. International Journal of System Assurance Engineering and Management.
11(3). pp.561-576.
Paudel, S., 2019. Entrepreneurial leadership and business performance. South Asian Journal of
Business Studies.
Ratten, V., 2020. Coronavirus and international business: An entrepreneurial ecosystem
perspective. Thunderbird International Business Review. 62(5). pp.629-634.
Sinha, V. C., 2020. Business environment. SBPD Publishing House.
Vlados, C. and Chatzinikolaou, D., 2019. Methodological redirections for an evolutionary
approach of the external business environment. J. Mgmt. & Sustainability. 9. p.25.
Zarzycka, E., Dobroszek, J., and Moilanen, S., 2019. Coexistence of innovation and
standardization: evidence from the lean environment of business process
outsourcing. Journal of Management Control. 30(3). pp.251-286.

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·REFERENCES
Books and Journals