Business & the Business Environment

Unit 1: Business & the Business
Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Difference between Profit, Non-Profit and non government organization............................3
Role of different organizational function and interrelationship between different organization
function...................................................................................................................................6
TASK 2............................................................................................................................................8
Positive and negative impacts of macro environment on operations of business..................8
External and internal analysis of TESCO.............................................................................10
Interrelation of strengths and weaknesses with external factors..........................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
Business environment is one of the most essential aspects of any venture. The forces
which constitute this concept are their competitors, consumers, investors, development of digital
technologies, media, economic conditions and multiple other companies working externally. The
current assignment will be based on TESCO, which falls under category of leading supermarket
chains in the United Kingdom. This study will explain varied forms and purposes of companies
and will define scope & size of firms. Furthermore, the present report will justify relationship
between different function of company and their link to structure and objectives of firm. This
study will describe negative and positive impact on macro factors on venture operations and will
clarify external and internal analysis. Moreover, this assignment will explain strengths, &
weakness interrelation with external macro components.
TASK 1
Difference between Profit, Non-Profit and non government organization.
Profit making organization is the type of the organization who generally used to operate
with the sole motive of making profit from the market. All the Private sector organization are
known as a profit making organization (Wang and et.al., 2016). They generally look to serve the
consumer by the way of the companies offering but in return of same they desire good return
from the consumer end as well. Tesco is one of the example of profit making firm.
Non Profit making organization also regarded as non-business entity is the type of the
organization who also used to offer the product to the consumer but with the motive of satisfying
their need. Rather than making profit out of the same, All the public sector firm are example of
the same. NHS is regarded as biggest non-profit-making organization of the UK in the current
scenario.
Non government organization, Non government organization is the type of the
organization which used to work autonomous of any government. NGO's are also called civil
societies, are organized on national, International and community level to serve the society with
the solution of the problem which are faced by them in current scenario. Amnesty
International UK is one of the example of NGO operating in the UK.
Micro, Small and Medium Size organization and its legal structure
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Basis Micro Small Medium
Number of Employee Micro organization is
the organization who
generally has less than
10 employees working
for them.
There are 11-50
employees who
generally used to work
in the small sized
organization.
In Medium Sized
organization there are
51-250 employees
who generally used to
work at a given point
of time.
Turnover and
Capital Structure
Turnover of Micro
sector organization is
no more than
£632,000
There is no such
restriction in this type
of business
organization
There is no such
restriction in this type
of business
organization
Legal Structure Sole trader is the type
of legal structure
generally suited with
these type of
organization.
Partnership and Sole
trader is the type of
legal structure
generally suited with
this type of
organization (Sharfi and
Rosenblum, 2016).
In the case of Medium
sector organization all
the different type of
legal structure are
found.
Difference Between Large Medium and Small organization
Small Medium Large
Goals Goal of Small sector
organization is to
survive in the market
in front of big
competitor
Medium sector
organization generally
looks to innovate new
things to attract
customer and grow in
size
Large organization
generally looks at
maintaining their
position in the
organization
Market Share Market share is very Market share is not Having good amount
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