Macro Environmental Influence on Tesco

UNIT 1 Macro Environmental
Influence

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Different types of organisations and their distinct purpose and forms..................................1
P2.Scope and size of various kinds of entities............................................................................2
LO2..................................................................................................................................................6
P3 Interrelationship between departments within organisation..................................................6
LO 3.................................................................................................................................................8
P4 Macro environment positive as well as negative aspects.......................................................8
LO 4...............................................................................................................................................10
P5. Weaknesses and Strength with the assistance of internal and external analysis.................10
P6 Weaknesses and Strength interrelation with external macro elements...............................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business environment is inclusive of various internal and external factors that are
affecting organisational aspects like customer, employees, demand and supply, management and
business regulations. This makes every organisation irrespective of their size and scope to have
proper understanding of all the factors in order to gain significant opportunities for growth
(Moraes, Daskalopoulou and Szmigin, 2020). Present report is made on Tesco, entity is
operating their business operations in retail industrial sector as British multinational grocery and
general merchandise firm. Company was founded in the year 1919 and headquartered in
England, United Kingdom. Entity is offering their products and services via convenience shop,
supermarket, superstore and hypermarket.
In this report formative discussion has been conducted on various forms of organisations
operating in different sector with distinguished size and scope. In addition to this report also
include Pestle and Swot analysis through which entity can evaluate conditions prevailing in
external as well as internal environment. Further this report include relationship between various
organisational functions along with their link to structure and objectives of company. Lastly,
report includes weaknesses and strengths interrelate with external macro factors.
LO1
P1 Different types of organisations and their distinct purpose and forms
There are different forms of organisations those who are performing their roles and
responsibilities in different segments such as public, private and voluntary (Goldacre and
MacKenna, 2020). They have different purpose and legal structure of operations which is further
being elaborated in descriptive way:
Private sector: Organisations within this sector are managed and owned by private individuals
who conduct business operations with an aim of earning huge profitability. These entities mainly
acquire their funds from investors, financial institutions, bank loans and more.
For example: TESCO operate their functioning in retail sector with an aim to gain high
profitability while accomplishing consumer needs.
Purpose:
Main purpose of Tesco is to maintain their leading position retail market in UK while
offering high quality services and products to customers in competitive price range.
1

Legal Structure:
Sole proprietorship: In this business owner operates their business operations while
having sole responsibility of profitability and losses borne by company.
Partnership: In this two or more than individuals agreed upon initiating a business and
they are liable for profit and loss according to partnership agreement.
Company:In this, entities offer their share to public via IPO and have main objective
related to profit earning.
Public sector: Entities within this sector are partially and wholly owned and managed by
government authorities. These entities mainly operate their functions with an aim to offer high
satisfaction to customers rather than earning high profitability.
For example: NHS is operating their business in service in UK and offers extensive range of
high quality healthcare services to communities.
Purpose: Main purpose of NHS is to satisfy consumers with qualitative services in affordable
price range.
Voluntary organisation: These organisations performs their roles and responsibilities with an
aim to serve individuals with their humanitarian services. These entities acquired funds from
private entities those who willingly make charity.
For example: Oxfam is a combination of 20 charitable organisations who provide humanitarian
services in famine drought prone and other affected areas.
Purpose: Main purpose of firm is to enhance individuals living standards and poverty.
Legal Structure: Legal structure is discussed below:
Unincorporated Organisation:It is mainly a agreement within which some individuals
with a combination hold responsibility to earn profitability with a common goal.
Trust:This is basically formed as a formal agreement within two individuals those who
provide rights that are associated with property.
Limited Organisation:Within this, only limited individuals posses rights in company.
P2.Scope and size of various kinds of entities
Different organisations in different segments perform their roles and responsibilities with
different size and scope. In addition to this, they have different set of business objectives and
conduct business operations towards vision, aim or mission.
2