Business Environment: Analysis of Organizations & UK Retail Market

This report provides an analysis of the business environment, focusing on different types of organizations (Tesco, Metropolitan Police Force, and Tate Modern Museum) and the UK retail market. It examines the purpose, legal structure, size, and scope of each organization, along with their functions and objectives. The report also includes a PESTLE and SWOT analysis of the UK retail market, exploring the impact of political, economic, social, technological, legal, and environmental factors on decision-making. The document concludes by highlighting the interrelationship between external macro factors and organizational decision-making within the UK retail context. Desklib offers a variety of study tools, including similar assignments and past papers, to aid students in their academic endeavors.

BUSINESS AND BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...............................................................................................................................2
TASK 1..............................................................................................................................................3
OVERVIEW OF DIFFERENT TYPES OF ORGANIZATION...............................................................3
EXPLANATION OF EACH ORGANIZATION...................................................................................5
FUNCTIONS RELATE TO OVERALL ORGANIZATIONS AND OBJECTIVES.....................................6
TASK 2..............................................................................................................................................8
PESTLE ANALYSIS FOR UK RETAIL MARKET................................................................................8
SWOT ANALYSIS FOR UK RETAIL MARKET...............................................................................11
INTERRELATIONSHIP BETWEEN THE EXTERNAL MACRO FACTORS AND DECISION MAKING 14
CONCLUSION.................................................................................................................................15
REFERENCES...................................................................................................................................16

INTRODUCTION
There are various types of business organization in the business industry. It has been detected
that they all are conducting their business with the different objects. All the organization wants
to achieve their desired goal. There are several kinds of operations and functions which are
conducted by the organization in order to accomplish their business goals. In this assignment,
we will be deliberating various features of business & business environment of the various
organizations. It will be supportive in learning about the aspects which affect the active
functioning of the organization (Teece, 2010). Business environment affects the internal and
external factors of the company such as customers, suppliers, demand & supply. In addition to
this, there are different impacts which are observed on the business environment of an
organization which needs to be effectively managed for gaining effectiveness in the market. The
organization should try to make a good business environment so that the employees feel
productive and work hard for achieving the goal. This report will help in gaining adequate
understanding of the business environment along with the factors that influence the business
functioning.

TASK 1
OVERVIEW OF DIFFERENT TYPES OF ORGANIZATION
The business environment contains different types of organizations. Every organization has
their different goals. An organizational structure describes how actions such as coordination,
motivation, and retailvision are directed for the achievement of organization goals. The
organization need to be very creative and innovative in order to compete with other
organization (Hilton and Platt, 2013). The business environment of an organization should be
very good because employees also need a good environment for work. An organization can be
organized in many different ways it all depends on its objective. Here, the private organization
Tesco, the public organization is Metropolitan Police Force, and the voluntary organization is
Tate modern museum. By observing every type of the organization an effective knowledge &
mind set will be established about business features.
PURPOSE AND LEGAL STRUCTURE
Every organization has their different business objectives and goals according to their desires.
The organizations use various types of organizational structure in order to improve their
business functioning.
Tesco
Tesco is a private organization whose business objective is gaining maximum profit and brand
image in the market so that they could improve and develop their organization at a huge level.
In a private company, there is a limited number of employees so that the communication
structure is effective between the retailiors and employees. In private companies such as Tesco,
they involve their employees in the decision-making process which stimulated them for high
productivity. Tesco follows a hierarchical organizational structure (Barnes, 2011). According to
this structure, the positions of employees divided into different parts to make sure work will be
done properly and effortlessly. The retailior should maintain effective communication with the
employees for development and growth of the organization.

Metropolitan Police Force
There are so many types of the police force in the UK. They have different objectives and duties
according to their functioning of work. Metropolitan police force, informally known as Met. The
Met has the responsibilities of law enforcement. It plays an important role in keeping London's
community safe, they are always ready for their duty. The main resolution of the meeting is to
defend the public from any kind of problems and take required actions about unlawful events.
Protecting the peoples from threat and handle all type of situations is also one of the main
responsibility of metropolitan. The Met works according to the hierarchal organizational
structure. There are various authorities distributed in the Met such as Police Constables, Chief
Inspector, Sergeant, Inspector, Retailintendent, Chief Retailintendent, Commander, Assistant
Commander, Deputy Commissioner, Deputy Assistant Commander, & Assistant Commander.
Tate Modern Museum
Tate modern museum was designed by Sir Giles Gilbert Scott. It is situated in London. The Tate
Modern Museum of London is one of the biggest modern museum in the world. This is one of
the most creative and beautiful museums. The main purpose of the Tate modern museum is to
provide pleasure to the visitors by showing expositions of various kind of art & crafts that
further helps in producing revenue that goes into the charity for helping peoples. The entry
charge occupied by the museum for showing the arts & craft is very small but at the time of
demonstrations and meetings of famous artists, sculptures, etc. they take good charges from
the visitors. It is a voluntary organization and the main objective of this organization is to help
needy peoples.

EXPLANATION OF EACH ORGANIZATION
For analyzing the organization, it is very important to evaluate the size and scope of the specific
organization. With the help of some features we can evaluate the size of organization. In
private organization their size is estimated by calculating their share in the market, profit ratio,
employees, and brand image, etc. further, the public organization can be evaluated on the basis
of their policies, working area, associations, and the facilities distributed by them (Wyllie, 2017).
The size of the voluntary organization is analyzed with the help of their charity funds, relation
with needy peoples, and associations, etc. The size and the scope of the organization have been
discussed below:
Tesco
Tesco was started by Jack Cohen, son of a Polish Jewish tailor. The brand name Tesco first
comes in 1924. The first "retailstore" of Tesco was opened in 1968 in Crawley, West Sussex. The
group began selling petrol in 1974 and at that time its annual turnover reached one billion
pounds in 1979. Tesco follows the strategies as a perspective and focuses on customer
satisfaction (Coelho, et al., 2012). The company is always concerning towards the latest
technology & keeping valuable records of consumers. Tesco believes in long-term planning and
long-term goals. the Tesco adopt a strategy that treats people as we like to be treated.
Metropolitan Police Force
The Metropolitan police force was established by the government of UK in 1829. The
headquarters of the metropolitan police force is currently based in the New Scotland Yard. The
metropolitan police force is responsible for handling the law enforcement & safety of local
public (Stanko, et al., 2012). To keep peoples safe and secure from any threat and problems is
also the main responsibility of metropolitan police force. Around 43,000 employees are working
in the police force the government has provided them with the capability of 3 helicopters, 180
police stations, 22 boats, and 250 dogs.

Tate Modern Museum
The Tate group built the Tate Modern Museum in 2000 and & it was designed by Sir Giles
Gilbert Scott in the beautiful city London. People come from all over the worlds for seeing the
craft and modern art designs (Dean, et al., 2010). It is a voluntary organization and they use the
revenue for charity. The Tate group has the obligation to take care and maintain the museum.
In the present nationwide ranking of a museum, Tate Modem Museum have secured the fourth
situation on the basis of the number of visitors.
FUNCTIONS RELATE TO OVERALL ORGANIZATIONS AND
OBJECTIVES
A business process is a collection of structured activities which is made to attain a particular
business goal. The business functions are the main element of an organization. The business
functions work on the strategies and planning. Every organization apply different business plan
according to their business objective because the business functions relate to the overall
organization. The business functions are helpful in accomplishing the objectives of an
organization. The main functional areas of an organization are management, marketing,
finance, operations, accounting, human resources, and sales. All the areas of the organization
are related to business functioning.
In Tesco, the business objective is to gain effectiveness in the market and attain huge market
share for maintaining peak position in the market. There are different departments of Tesco
that are working together in order to accomplish the business objectives of the organization.
The marketing department conducts attractive marketing and promotional campaigns in order
to gain attention of the customers. In addition, the human resource department of the
organization works as per the business objectives and recruit potentially talented candidates
which further help in delivering efficient services to the customers and also in the functioning of
organization. The operational departments also work together with other departments in
effective functioning and operations. It further helps Tesco in attaining smooth functioning of
their operations and also assists in accomplishing their business objectives.

Metropolitan Police Force of the UK has huge responsibility regarding the safety and security of
the people in the UK along with the Royal family members. The prime objective of Metropolitan
Police Force is to ensure that the people in the UK are away from any kind of threats and
hazards. There are various departments in the Metropolitan Police Force who work as per their
roles and responsibilities. In addition to this, the Metropolitan Police Force is assisted by several
volunteers and scouts in their functioning. Their objective is effectively accomplished by the
adequate collaboration of the departments. In addition, they are provided with the required
support from the government of the UK.
The focus of Tate Modern Museum is on providing information and knowledge of several
artifacts that belong to history of the UK along with the other countries. There are various
employees and staff members that are working with Tate Modern Museum and they are
working on accomplishing the prime objective of Tate Modern Museum. The funds for the
museum are provided under the Tate Modern which helps in their functioning. The employees
and staff members possess adequate knowledge that is helpful in fulfilling their roles and
responsibilities. In addition to this, there are different seminars and exhibitions which are
conducted by the Tate Modern Museum in order to encourage historians and scholars about
the artifacts and monuments from past time. The functioning of the Tate Modern Museum is
helpful in the accomplishment of their goals and objectives.

TASK 2
PESTLE ANALYSIS FOR UK RETAIL MARKET
The business functioning and operations of UK retail market are critically influenced by the
external factors of the environment. It is very important for UK retail market to analyze the
effective aspects and take required actions for improvement. There are various kinds of
organizations that are operating in the retail market of the UK. The PESTLE Analysis is the best
way to analyze the external factors that influences the business functioning of the retail market.
PESTLE ANALYSIS
Political factors
Since, UK retail market is a multinational food retailing company but the global political issues
seriously affect the performance of UK retail market. The political Factors affecting UK retail
market includes acts of legislation, monopoly market, government leadership, trade
restrictions, government stability etc. The new business policies of government might affect
the UK retail market (Neph, et al., 2012). There are various companies and organizations who
are conducting their business functioning in the UK. Every business has been influenced by the
political factors at certain extent. When the area of business is too large the political factors
automatically affects the business.
Economic factors
The economic factors like cost of living, fluctuation in the inflation rate, recession, globalization,
and high-interest rates affect the business operations of UK retail market. There is a continuous
fluctuation in demand and supply. Thus, the retail market of the UK should conscious of any
variations in policies, such as changing pricing techniques which could affect the working
environment and availability of finance (Dietl and Weingaertner, 2011). UK retail market is
seriously reliant on business market of the country, even though global business is growing but
UK retail market is still dependent on the retail industry at huge level. If the demand for UK
retail market gets slow down then it will critically affect the UK retail market performance.

Social factors
The awareness of the customers regarding the products and services increasing day by day. Due
to a variation in social environment, customers in the UK have moved to wholesale shopping
and one-stop shopping. The kind of facilities demanded by the customers is generally affected
by the social conditioning which changes their attitudes and beliefs. Customers are becoming
attentive about the health issues (Low, et al., 2011). Customers are identifying the hygienic
problems and demanding quality products these changes occurred because of social and
cultural changes. UK retail market is adopting these changes and improving their productivity
according to the need of the customers.
Technological factors
The development in technology has brought many new opportunities for UK retail market.
Technological changes are affecting the business environment at the huge level. With the help
of enhancement of technology, UK retail market is enhancing customer satisfaction, for
instance, technological influence in context to UK retail market is the online shopping feature
that helps the company in gaining a huge number of customers (Wiegers and Beatty, 2013).
Technology is also helpful in directing marketing and promotions for any specific product of the
company.
UK retail market is applying these technologies in their outlets.
 Wireless devices
 Electrical labelling
 Electronic billing
 Customers regularity identification by technologies
Legal factors
Legal factors affecting an organization include all the monitoring and law factors that can
positively or negatively affect the organization structure. Government policies directly impact

the performance of UK retail market. Altering laws and policies of UK, import and export,
implementation of the employment laws these are some legal factors by which the functioning
of UK retail market gets affected (Wheelen and Hunger, 2011). UK retail market arranges
appropriate training and development sessions for their employees to motivate them so that
they work with more efficiency.
Environmental factors
Environmental issues such as infrastructure, social implications, disposal of material etc. they
affect the working environment of UK retail market. The material used for production does not
harm the environment because UK retail market chooses the ecological material for
production. Government taxes directly affect the business environment of UK retail market
(Sørensen, 2012). The company is working on maintaining a good working environment in the
company because employee also needs a good working environment for work. In order to
verify that UK retail market cares about society, they need to undoubtedly work about
environmental matters. By identifying this tendency UK retail market has been working on the
environmental matters to prove that it is a caring organization which cares about the society
and environment.

SWOT ANALYSIS FOR UK RETAIL MARKET
It has been observed that the business environment of UK retail market is influenced by both
macro and micro factors of the environment. The strategies of the organization got affected
because of the changing business environment (Griffin and Pustay, 2012). SWOT Analysis is an
appropriate tool for analyzing affecting elements. This will be helpful in developing the new
strategies of the organization according to the business environment.
SWOT ANALYSIS
STRENGTHS WEAKNESS
1) Strong financial position
2) Good public relations
3) A noble brand image in the market of
UK
1) Competitive pressure
2) The high cost of inventory
3) Financial performance is affected
OPPORTUNITIES THREATS
1) Strategic alliance with other brands
2) Availability of human resources
3) Entering online market
1) Changing opinions of customers
2) Competitors in UK market
3) Economic recession
STRENGTHS
Strong financial position
UK retail market is having a strong financial position in the market of UK. UK retail market is
providing their services in different regions of the country. They effectively maintain the good
relationship with the customers and provide the best services and products according to their
needs. UK retail market is having a wide communication network with help of different