Business Environment Report: Analyzing Tesco and British Airways

This report provides a comprehensive analysis of the business environments of Tesco and British Airways. It begins with an introduction defining the business environment and outlining the structure of the report. The first assignment evaluates the business activities, purposes, ownership, and key stakeholders of both companies. It also examines the points of view of different stakeholders and assesses their influence. The report then compares and contrasts the organizational structure, strategic planning, and how these elements help the businesses achieve their aims. The second assignment delves into the influence of economic environments, comparing challenges faced by both organizations. Furthermore, the report analyzes the impact of political, legal, and social factors, and discusses how future changes in these factors may impact business strategy. The conclusion summarizes the key findings and provides an overview of the business environment for both companies.

BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
ASSIGNMENT 1.............................................................................................................................3
TASK1 ............................................................................................................................................3
1. describing two contrasting business.........................................................................................3
TASK 2 ...........................................................................................................................................4
1. The different stakeholders who influence the purpose of two businesses...............................4
2. The points of view of different stakeholders seeking to influence the aims and objectives....4
3. Evaluates the influence that different stakeholders exert in one of the organizations.............5
TASK 3............................................................................................................................................5
compare and contrast of Tesco and British airways....................................................................5
TASK 4............................................................................................................................................6
1. How The organizational structure and strategic planning help business achieve their purpose
and aims.......................................................................................................................................6
ASSIGNMENT 2.............................................................................................................................6
TASK 1............................................................................................................................................6
1. influence of two contrasting economic environments on business activities .........................6
2. Comparison of the challenges to business activities in both organization in economic
environment.................................................................................................................................7
TASK 2............................................................................................................................................7
1. analyze how political, legal and social factors are impacting upon the business activities of a
business and their stakeholders....................................................................................................7
2. How future changes in economic, political, legal and social factors may impact on the
strategy of a business...................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Business environment is defined as the set of all internal and external factors which
influence the operation of the business. It includes factor such as customer, clients, suppliers,
government, social and economic trends. The report is based on evaluating the business
environment of Tesco and the British airways company. The firm is a British multinational
grocery and general merchandise retailer in England, UK (A tesco case study, 2016.). On the
other hand, British Airways (BA) is an airline company which was founded in the year 1974. It
flies over 170 destinations and aims at providing their customers with luxury services (British
airways, 2016). This report covers different types of business their purpose and ownership of the
businesses. Further, it covers different stakeholder who influence purpose of Tesco and British
airways. Moreover, it covers the impact of political, legal and social factor on business activities.
Lastly, it includes the future changes in economic, political, legal and social factor impact on
business strategy.
ASSIGNMENT 1
TASK1
1. describing two contrasting business
Business activity of Tesco and British airways: The British airways are the UK's largest
international scheduled airline which provides their services in 300 destinations globally. The
Tesco company serves by providing range of grocery product million of customer through store
or online worldwide. The Tesco operate their store in almost 11 countries.
Business sector: BA is a public limited company which works in the airline sector. It is a
private company which works in the retail sector.
Business purpose: The purpose of Tesco Company is that “to be champion for their
customer and help them to enjoy a better quality of life and provide easier way living. The
purpose of the British airways is to remain the top choice for international flight for premium
customer and provide top- quality services to their passengers. Further, expand the business and
aim to leading position in London and meet customers needs (Haddock-Millar and Rigby, 2015).
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Ownership of the business: The ownership of BA is that the owner of company have
limited liability for debt of its company. Their liability is limited to the paid-up value of the
shares they own and this means that it is limited to the amount they agreed to pay for the shares
when they bought them. The Tesco have a limited liability for their shareholder but they fully
liable for their company debt.
Key stakeholders of the business: The stakeholders of Tesco are employees, customer,
shareholders, suppliers, local community and government. The key stakeholders of the airline
company are employees, customers, shareholders, media, financial institution, competitors,
environmental issue, and government.
TASK 2
1. The different stakeholders who influence the purpose of two businesses
Tesco stakeholder influences the purpose of its business. The shareholders are owners of
company when they have at least one share in company stock. The shareholder is known to be
most important stakeholder who invests money time to time in growth of the business.
Customers are main stakeholder who purchases company’s product and services. Employees are
main resources of company who work and support the organization give efforts to achieve their
purpose. Further, suppliers supply a particular service and product of the company. The local
communities are a group of people who interact within the organization. Lastly, government is a
group of people who set policies and regulation for the company(Yu and Ramanathan, 2012.).
British airways stakeholder influence the purpose of its business. The customers are
passenger for their airline and who purchases their product and services. The BA aims to attract
young customer. The employee stakeholder in BA who works in the company and have the
power of influencing the customer. The competitor’s price can affect the airline company. The
financial institution also influences the BA purpose. Furthermore, the media, environmental issue
and government impact on the purpose of company(Worthington and Britton, 2015).
2. The points of view of different stakeholders seeking to influence the aims and objectives
The Tesco stakeholder’s point of view is to influence the aims and objectives:
The shareholders are the individual who have share in company so they want increasing
share of their profit which is increase when the company earn more profit . The customer wants
Tesco to produce high quality product and services according their needs. This customer views is
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influence the purpose of the company(Wetherly and Otter, 2014). The supplier is that they
represent company with high credibility. The government wants that Tesco should do well as the
business is capable to pay taxes and create and jobs. The employee’s want Tesco should provide
security of employment and opportunity of development (Granger and Schroeder, 2014).
The point of view of British airways stakeholder:
The customer point of view is that BA provides better airline services which are influence the
purpose of business. The competitor’s company cost and decision also influence the BA aims
and objectives. Supplier wants the BA to provide better product and services through them which
enhance their profit and also increase company value. The media has a great impact on image of
company and BA is trying to keep good relationship with the public .
3. Evaluates the influence that different stakeholders exert in one of the organizations.
The influence of different stakeholder in Tesco:
customer: influence of customer in company is that they purchase the goods and services
which is produce by company. Without customer they not earn revenue for its company.
Employees: employees is an individual personal who works in a business or earn revenue
through their efforts.
Government: The government are a group of people that governs an organization. It
sets maintain public policy and set rules also for company which influence through policies and
laws.
Suppliers: supplier is a someone who sale products and services through the company.
The supplier influence the company because the profits and value increase through supplier then
the company value also increase.
Shareholder: A shareholder is any person who have at least one share of a company
stock. The shareholder influence because the shareholder are one of them who invest money in
company(Haddock-Millar and Rigby, 2015).
TASK 3
compare and contrast of Tesco and British airways
Purpose: The purpose of Tesco company to be champion for their customer and helping
them to enjoy a better quality of life and provide easier way living as compared to Tesco the
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British company purpose is remain top choice for international flight for customer , leading
position in London the meet customer needs.
Ownership organizational structure: In Tesco the owner limited liability for their
shareholder but they liable for personal debt for its company as compared in British airways
limited liability for its debt. The organizational structure of Tesco is hierarchical and British
airways have divisional structure.
Strategy planning: The Tesco strategy planning is to grow the UK core, to be creator of
high value brands, to be outstanding international retailer in store and online and to grow retail
services in all our market(A tesco case study, 2016). As compared to Tesco, the strategy of BA is
upgrade customer services, modernize aircraft fleet and offer new services and increase
corporate responsibility.
TASK 4
1. How The organizational structure and strategic planning help business achieve their purpose
and aims
The organizational structure of BA is divisional structure which allow a team to focus
upon a single product or service. This structure is adopt because they mainly focus on customer.
The strategic planning of BA is a upgrade customer service via text and mobile services or
business class customer this strategy increase customer convenience and increase customer
which help to achieve their objectives. Further, it modernize aircraft fleet and offer new services
which attract customer and help to achieve their purpose and aims(Kennerley and Neely, 2013).
The Tesco have hierarchical structure which clear chain of command that is top to
bottom, clarify roles and responsibilities, specialization in their field. This helps to company
achieve their purpose because the Tesco is retail sector company where every employee know
their roles. The strategy planning of Tesco is to be creator of highly value brands where involve
developing its own label brands such as F&F clothing and Tesco provide customer with quality
products at competitive price which helps to achieve its purpose.
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ASSIGNMENT 2
TASK 1
1. influence of two contrasting economic environments on business activities
Economic environment of British airways: In UK economy the factor which influence
British airways business activities is recession, rising fuel price, inflation, increase interest rates
and poor exchange rates. The impact on business activities for example; if raise oil cost then will
turn to increase the production cost. Due to this, increase ticket prices so the passenger are
decrease due to high price tickets.
Economic environment of Tesco: As compared to BA, In UK economy the economic
factors are which impact on business activities of Tesco are leverage cost, price, profit and
demand. Further, the changes is taxation rates and changes in policies also influence the business
activities of Tesco.
2. Comparison of the challenges to business activities in both organization in economic
environment
Challenges : Tesco company faced the main challenges in economic environment is
policies, laws, regulation and competition(Brinkman, Navarro and Harper, 2014). Further, due to
decline in household incomes, company has shifted most of its focus towards advertising its
value brands rather than the more luxuries products. As compared to Tesco, the BA faced main
challenges in UK economy is climate change. Due to this the impact on BA passengers are
decline.
TASK 2
1. analyze how political, legal and social factors are impacting upon the business activities of a
business and their stakeholders
Political factors: The factors are increase or decrease in tax and government influence.
If in UK Economy the tax increase or decrease then the BA and Tesco should pay the tax to
government. The both company should changes in its company according government changes.
Legal factor: The factors are health and safety regulation and employment laws which
are followed by Tesco and British airways. The companies should changes in its business
activities according changes of policies and regulations.
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Social factor: The factors are population, trends and income of people in UK. The
social factor which impact on BA is trend of traveling. The BA company attract young people
because they more involve in traveling trend. The trends also impact on Tesco company. The
population and income also impact on both company. So they changes in its company according
factors of social environment (Richards and et. al, 2012).
The BA and Tesco company adopt its business activities which suit business environment
OF UK. The both company pay tax according UK government taxation policy. According health
and safety regulations the companies are applied those safety measures for its employee or
customer. The new technology used in organization to growth for its business.
2. How future changes in economic, political, legal and social factors may impact on the strategy
of a business
The future changes economic factor is crisis in and increase price of fuel in UK economy.
Due to this the rate of inflate decrease and increase of unemployment. The political factor in
future is increase of taxation rate in UK economy (Welford, 2013). The future changes in The
social factor is which impact on strategy of business is trend. Gradually the people trend are
changes according their needs so the impact of this factor on both company. Legal factors is
employment regulations.
CONCLUSION
From the above report, it is concluded that internal or external factor of business impact
on business performance. The different stakeholder are exist in company which influence the
organization objectives. The economic, social, political and legal factors are impact on company
strategy which they change according different environment changes in UK economy.
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REFERENCES
journals and books
Beaumont, J. R., Whitaker, B. and Pedersen, L., 2013. Managing the environment: Business
opportunity and responsibility. Elsevier.
Brinkman, J., Navarro, I. and Harper, D., 2014. Unlocking the business environment. Routledge.
Granger, M. J. and Schroeder, D. L., 2013. Integrating the Internet into the business
environment. Internet Research.
Haddock-Millar, J. and Rigby, C., 2015. Business Strategy and the Environment: Tesco Plc’S
Declining Financial Performance and Underlying Issues. Review of Business & Finance
Studies. 6(3). pp.91-103.
Kennerley, M. and Neely, A., 2013. Measuring performance in a changing business
environment. International Journal of Operations & Production Management. 23(2).
pp.213-229.
Richards, M. and et. al., 2012. How can we better understand current and future workforce values
in the global business environment?. Thunderbird International Business Review. 54(5).
pp.609-623.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
Wetherly, P. and Otter, D., 2014. The business environment: themes and issues in a globalizing
world. Oxford University Press.
Worthington, I. and Britton, C., 2015. The business environment. Pearson Education Limited.
Yu, W. and Ramanathan, R., 2012. Effects of business environment on international retail
operations: case study evidence from China. International Journal of Retail & Distribution
Management. 40(3). pp.218-234.
Online
A tesco case study. 2016. strategy. [Online]. Available through:
<http://businesscasestudies.co.uk/tesco/vision-values-and-business-strategies/
strategy.html#axzz4GuOeTDjC>. [Accessed on 10 august 2016].
British airways . 2016. About British Airways. [Online]. Available through:
<http://www.britishairways.com/en-in/information/about-ba>. [Accessed on 10 august
2016].
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