Analysis of Business Types, Environment, and Organizational Functions

This report delves into the multifaceted world of business and its environment, examining various organizational types, including private, public, and voluntary entities. It explores the internal and external components that influence business operations, highlighting the significance of environmental factors in shaping policies and procedures. The report uses Tesco, a leading retail enterprise, and the National Health Service (NHS), a public sector organization, as case studies to illustrate these concepts. It analyzes the relationship between organizational functions and objectives, emphasizing how businesses like Tesco set short, medium, and long-term goals to achieve their vision and mission. The report also discusses the impact of environmental factors on business operations, the role of globalization, and the importance of stakeholders. The analysis covers various business structures such as sole proprietorships, partnerships, and companies, and their respective characteristics, objectives, and scopes, providing a comprehensive overview of the business landscape.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION:..........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Explain the different types of organisation and their purposes,............................................1
P2. Explain the sizes and scope of range of different type of organisation................................3
Task 2...............................................................................................................................................5
P3. Relationship between organisational functions and objectives............................................5
P4 Explain impact of environmental factors on the business operations ...................................6
P5 Internal and external analysis of Tesco and national health services....................................8
P6 Impact of strength and weaknesses on external macro environment...................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION:
Today, all the private and public sectors organisation are affected its environment.
Basically, its means that all the business operations are exist in this environment. This consist the
various internal and external component which have influences the activities of organisation. All
the private and public organisation have consider these factors in order to make effective policies
and procedures. In this report, there are two organisation one is private that is Tesco and other is
public that is NHS (Arastiand et.al,. 2014). Tesco is a leading enterprise in retailing sectors, they
are operating in more than 12 countries and around approx. 6553 stores in European and Asian
regions. The main goal of this organisation is to make product that helps to fulfil the needs and
wants of large number of customers. Their vision is they want to retain and achieve top spot in
retail industry. On the other hand, NHS is to provide the various kind of services to massive
amount of people such as medical , diagnosis treatment etc.
TASK 1
P1. Explain the different types of organisation and their purposes,
There are different kinds of organisation that are operated in large geographical area. If
organisation activities are operated in different countries then their constitution will be complex
in nature. The private organisation have limited consumers buying power compared to that of
public sectors , so this sector has their management working get simpler. Basically there are
three type of enterprises that is public, private and voluntary organisation.
Tesco is the private company their main objective and goal is that they mainly worked in
order to accomplish high profits and success. This cited company want to work in large part of
country where they follow different countries policies and procedures. Every nation have their
own rules and regulation which are different from other countries. So every private company has
worked according to this legislations. In Tesco ,it employed the thousand of persons in every
year. Different kind of persons are established this organisation namely as sole proprietor,
partnership, companies and franchises (Boons and Lüdeke, 2013). IN sole proprietorship
business, a single person established their whole organisation. The main target and objectives of
this entrepreneur is that they work mainly to achieve their needs and wants and provide a better
livelihood to heir family members. A sole entrepreneur is make the decision process fastly
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without any disturbance of any other persons. This entrepreneur has not right to take any
suggestions or advices from other persons because they are the owner of that company.
The second kind of private enterprise is partnership business. More than two persons are
formed the partnership firm. All partners are working together for accomplish their targets and
objectives. This type of partnership business are not registered but sometimes the regulatory
bodies imposed some legislations. At the time of formation of partnership firm, partnership deed
are formed, so all the partners are instructed to working according to this deed. There are various
kind of partners in partnership firm such as nominal partner, managing partner, dormant partners,
some partners are worked only to their payroll emoluments over their profits, some take part of
revenue etc. Managing partners are those persons who take the active part in manage of business
firm. Nominal partners are those persons who have no real interest in activities of firm but they
allot their name to the firm without any capital contribution (Cantwell, Dunning and Lundan,
2010). In case of limited liability, it is necessary that all the organisation are registered because
all these are mentioned in partnership act 2000.
The third type of private organisation is company. Tesco are come under this sector. This
type of private organisation is to provide the various employment opportunities to large number
of people. This sector are working in large level. This kind of organisation are operated by
promoters , they are those who incorporated this enterprises. they have rights and duties to
incorporate it. Every company made some type of policies and procedures. It is necessary for
company are registered in ROC. The company sizes are small, medium, and large, these all
depends on capital that are investing in company. The company has right to start their franchises
in different part of country.
All government companies are known as public companies. The national health services
are under this sector. This cited company provides the various kind of health services to large
number of public. The role played by government are important for development of economy.
NHS are mainly works to provide the better services to whole society. They are not work for
making profits. They mainly works for welfare of society. The globalisation played important
role for development and improvement of this sector. All public companies are right to operate in
national level not only a domestic region. NHS are worked to facilitate the medical facilities to
public with least cost or no any other cost (Carroll and Shabana, 2010).
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Voluntary organisation are those companies which mainly works for society welfare.
Large number of persons are established this type of organisation. The main target and objective
of this company is that they focus various areas such as culture, political, social, technological,
demographical. Voluntary organisation are not worked only for making profits but they do the
work in order to fulfil the society changes.
Sometimes Globalisation has adversely impact of various countries because of different
reasons. This part helps various countries in number of factors like the country has increase their
foreign exchanges and foreign reserves with other host country. The government of all countries
want that their domestic country works to improve their export and import mechanism
(Cavalcante, Kesting and Ulhøi, 2011).
P2. Explain the sizes and scope of range of different type of organisation.
There are four types of enterprise which are established in private sector organisation , all
these are discussed above. The sole proprietorship firm is the first business of private sector. The
entrepreneur of sole proprietorship business has uses their knowledge and skills to earn better
livelihood. This firm has no right to adopt any kind of restrictions that are imposed by regulatory
bodies such as certain kind of policies and procedures made by government. This firm mainly
works in order to earn better livelihood. This firm has a limited number of resources so they are
not produce products and services in large number. They are not prepared any kind of mission
and vision statements.
The second type of private sector is partnership firm. Two or more persons are made
partnership firm who works together in order to achieve profits. This partnership firm generates
the better quality of commodities and services in order to achieve mutual gain or profits. This
partnership firm sizes and scope are limited. Government has no right to imposed any restrictions
in term of registration because it is not necessary hat the firm get registration but if they
registered then their goodwill will enhanced (Chen, Chiang and Storey, 2012). IN this firm, the
role played by stakeholder is important, it consists customers, employees, suppliers and other
investors. At a time, less than hundred persons are employed in this kind of firm, so they provide
the less employment opportunities to massive kind of people.
The group of people are operated a company, who need to produce various commodities
and services to large part of geographical area. But company main goal and objectives to earn
high profitability and get success in near future. Tesco is private company mainly dealing with
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retailing businesses. This company are registered and considered as stakeholder of private
company. Different companies made different missions and objectives that are vary according to
their targets and missions. Some need to get high profitability in near future while some need to
earn good reputation. There are many organisation that invested their resources and capital in
society welfare while many other invested in retained earning, this helps to increase business.
This factor get high profitability in near future. Promoters are the owners who are incorporated
the company. These company are working on the basis of such documents namely, memorandum
of association and article of association, IN MOA this explains the charters of company whereas
the AOA, this includes the rules and regulations. When the company are incorporated they used
these documents (Christopher and Holweg, 2011).
The public sector organisation are mainly founded by regulatory bodies. National health
services are public sector organisation that largely works for provide better services to large
number of public. Board of management of this NHS have various kind of representatives. This
company generate the commodities and services at low rate so large number of public can
purchase their products. This public sector company provide various health care facilities to their
massive amount of people. Such facilities are medical, in this they provided in very low rate
charges to public. This organisation are not worked for making profits. The main target and
objective of this cited organisation is to provide large number of public services and work for
welfare of society. Government imposed the various policies, procedures, rules and regulations
which this cited company has follows all this restrictions. Customers, investors, suppliers and
employees all are stakeholders of company. This public sector firm usually deals in those
industries where the private firm are not operated because in this government held company need
more resources and capital that are not existed for every organisation. Globalisation has play
very crucial role in this sector (Haidar, 2012).
Voluntary organisation are different from the public sector, private sector, and sole
proprietorship firm. They are differ in various fields. This corporate are mainly deal various
issues which are relate to social, culture, demographics, political and technological. This type of
organisation mainly works to resolve any conflicts or grievances that are exist in society. This
organisation are not work for making profits. This company is so important to existence because
various kinds of groups of people need to see various changes in society.
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Task 2
P3. Relationship between organisational functions and objectives.
Both the public and private company are operated in different countries , this is main
problem for their composition is complex in nature. Tesco is operate in all over the part of
country. this problems or hurdles are existed in long duration of time so both these companies
have worked according to that policies and procedures. These sectors make the short term,
medium term, and long term objectives and targets that accomplish the vision and mission of
both organisation. Tesco is divide into two parts that is food segments and non food segments
such as clothing, electronics items. This cited company is so successful for deliver the food items
but they are not get any experienced for other sectors of company so this works for set short term
and medium term objectives and goals to improvement and development of this sector. This
company has set their target that before 2020, they establish their markets share approx6.5%.
This company has employ more persons so target fix by that company are completed before the
end of current year (Harrison, 2011). The accounting department also helped for this department
so they pay the salaries and wages on fixed time duration. This department also helps to research
and development department so this will hep to innovate the technologies in order to achieve
profits of organisation. They also works for training and development programme so large
number of personnel get leadership skills. All this helps to this cited organisation , they get a
skilful leader that gives a great wealth to a business in order to accomplish the mission and
vision of company.
NHS are also provide various health services to large number of people.
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IN tesco company, this retail industry are operated at store level. One of the manager that are
responsible for all activities that are present in organisation. IN organisational hierarchy, the
store top level manager are made various instructions and responsibilities that are allocated to
different level in organisational hierarchy. There are three type of managers has worked that is
food trading market, non-food trading manager and personnel manager .But this company earn
more profitability in this food segment (Kian, Shafaghi and Leing, 2011).
Today , more number of persons are serious about their health, so from this reason this
company give attempt mainly to organic products. Now this company target is that in next five
year, sale more organic products. They also invested more resources mainly in term of money.
This company has introduce the noon food segment mainly consist clothing, electronic
goods etc. So this company are not much dependent on this food segment because sometime they
give less benefit to company .All personnel department play a crucial role in order to grt
profitability. NHS also provide various facilities to welfare of public.
P4 Explain impact of environmental factors on the business operations
There are many factors which are existing in the environment and directly or indirectly
affect the operations of the organisation. Macro environment can positively or negatively affect
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the functions and activities of the company. If environment influence positively than
organisation can increases their profits but if it is negative than so that company has faces
financial crises. There is PESTEL analysis of Tesco and NHS are mentioned below:
pestle is stands for political, economical, social, technological,environmental and legal (Klapper
and Parker, 2011).
1. Political factors: According to this factor political environment is affecting operations of
company like NHS and Tesco. The impact of political factors on given company is going
very difficult. The main problem in organisation that supervisors are not able to focus on
long term strategy and reason behind that continually changing political environment. It
includes that political party will be changed and rules and regulations are different which
affect the operations of both of organisation. It also includes taxation policy which is very
difficult to follow properly because these policies are different in various states.
Company have to hire accountants which control the cost.
2. Economical factors: These factors are includes change in interest rate, inflation rate,
foreign exchange rate which are influencing activities and management of the
organisation. The reason of affecting is that NHS requires labour and staff and the cost of
labour is changing so the company can not spend more in this criteria. Economy of a
country is affect business of different organisations, if economical condition of a country
is healthy than company can achieve good revenue but if economy is lower than
performance of all organisation fall down. Tesco performance is so much affected
because of demand of customers is very low in UK. The organisations is adopt two
strategies for overcome from this condition first is internationalisation and
diversification. For gaining high revenue organisations are investing in Asian region and
resulted positive effect on cited companies (Lee Olson and Trimi, 2012).
3. Social factors: These factors include change in taste and preferences of people and
mobility of peoples from place to another which are also affect the functions of NHS and
Tesco. Customers and clients are affecting revenue of the the company and it is very
important for the organisation to consider location of people so they can reach easily and
get services and products from enterprise. Tesco has to understand needs and wants of
their customer and for this purpose company is started one stop shopping so it will helps
to increasing growth of the organisation. According to some customers that they are
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providing harm to the environment which is affect the image of the organisation. Cited
company can focuses on production of organic products so they can increase their sales.
Technological factors: Today technology has power to attract lots of new customers so cited
organisation is investing in this area. Company is staring online shopping which is very popular
form of increasing sales of enterprises (Moutinho, 2011). National health services has to develop
their operation in terms of technology. It consider surgical equipments which have to be changed
according to changes in technological factors. These helps to increase the profits of the company
by technological development such as computer system should be developed so every visitors
tracked in the system. Organisation is giving more attention to the technological area because it
has power to getting success in the business. They also setting self services checkout points
which is getting lots of appreciation from different clients. According to some expertise that
theses changes are negative effect on the company because it increase cost of production (Palo
and Tähtinen, 2011).
5. Environmental factors: It includes external and internal factors which directly and indirectly
affect the business of organisation. Every enterprise is legally and ethically responsible to the
environment. For this purpose national health services starting a campaign for plant trees so that
they can provide healthy environment to the society. Company can also contributing
economically by creating disposable equipments for operations. Tesco is contributing to make
healthy environment by reduce carbon foot prints by approx 50% and decreasing utilisation of
green houses. According to some people that Tesco is increasing pollution in environment. This
affect image of the cited company. If cited company is give environmental benefit to society it
helps to create positive image of the company (Pikka, Iskanius and Page, 2011).
6. Legal factors: Government change its agriculture policy which affect operations of Tesco.
Level of financial assistance provide by the government became low so company may not
provide quality services and products to their clients.
P5 Internal and external analysis of Tesco and national health services
When a organisation is use SWOT analysis they get know their key strength,
weaknesses, opportunities which are available in the market and threats of a company. Tesco is
one of largest retailer store in UK, it maintain its image by providing better services and goods to
the customers. National health services is largest government organisation which provide
medical services to society. There are many ways by which a organisation control its resources
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so that they faces minimum losses. The main objective of the company is to achive targets if
internal and external factors analysed properly. Internal factors of the organisation is helps to
development of new ideas so the target can achieved effectively (Pingali and Roger, 2012)
1. Strengths: Tesco is a largest supermarket and retail format in the world with approx
27.9% market share. and won various awards for its customer service and retail
excellence. The financial position of the company is good because they have sufficient
cash reserves and they provide quality products to the customer so it increase its brand
image. National health services provide their best services to patients such as transport
services and give best treatment so it helps to create good image in the minds of different
clients. Marketing is another strength that are available for every organisation of the
country (Reed and et. Al ., 2013).
2. Weaknesses: It includes some important things which has to be avoided by the
enterprises. The problem arising when company can not coordinate with various
department and one another weakness is that there is less modification in products.
sometimes services of NHS is provided to their patients it affect adverse to their patients
so it is the main weaknesses for the organisation.
3. Opportunities: Tesco has opportunity to grow by online shopping and also offer home
delivery of products to their customers. Company have also market opportunity by which
they can provide better western products according to the demand. There is opportunity
for national health services is that provide best services by investing in their surgical
equipments and technological development in their operations. Apart from that if
increasing awareness among the people for their health so it directly increasing revenue
of NHS (Trkman, 2010).
4. Threats: Economic recession is one of threat which affect profits and market share of the
company. Competitive threats in terms of other organisation offer better prices, supply
chain which move the goods from place to another and know how technology can used
most effectively. Prices of food products are also increasing so it reduce demand of
customers. Another threat is labour in terms of increasing wages rate and raw material
cost so it will increase the cost of production of the company. Threat for national health
services is come from competitors in term of providing better medical services to their
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