Business Environment Analysis: Tesco, BBC, and Oxfam Report

This report provides an in-depth analysis of the business environment, focusing on various organizational types including private, public, and voluntary sectors, exemplified by Tesco, BBC, and Oxfam respectively. The report explores the different purposes and sizes of these organizations, differentiating them based on their legal structures, objectives, and market scopes. Task 1 covers the different types of organizations and their purposes, while also discussing their size and scope. Task 2 examines the relationship between organizational functions and their alignment with objectives and structure. The report uses PESTLE and SWOT analyses to evaluate the macro environment and internal capabilities of Tesco, highlighting the positive and negative impacts of external factors and linking strengths and weaknesses to macro factors. The conclusion summarizes the key findings, emphasizing the importance of understanding and adapting to the business environment for organizational success. The report also includes an introduction and references.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 .......................................................................................................................................1
P1 Different types and purpose of organisation.....................................................................1
P2 Size and scope of different type of organisation...............................................................6
TASK 2..........................................................................................................................................10
P3. Relationship between different organisational functions and their relation with its
objectives and structure........................................................................................................10
P4 Positive and negative impact of macro environment on TESCO operation...................13
P5. SWOT analysis of TESCO.............................................................................................15
P6 Ways in which strengths and weakness are linked with organisation macro factors......17
CONCLUSION..............................................................................................................................18
REFERENCES .............................................................................................................................19

INTRODUCTION
Business environment refers to the surroundings in which a company has to function as
per the changes taking place. It is made up of two words, Business and Environment. Business is
something that involves exchanges of products and services in turn of money. It is established for
earning profit, solving a social issues and serving the targeted population as per their needs and
wants. A business is impacted by various internal as well as external factors which are
collectively called business environment. These factors have indirect as well as direct link to the
organisation effectiveness and profitability (Aula, 2010). PESTLE analysis will be used in this
report as to evaluate the macro factors and SWOT will be used to evaluate overall organisation
capabilities and weakness. Any variations in the factors will bring positive and negative side
effective on organisation capability and effective necessary company need to understand the
importance of assessing these factors and make necessary changes so that it is able to face
uncertainties and issues in future. This report will describe business environment and ways in
which it influences organisation operations. For this report Tesco, BBC and Oxfam will state
about, private, public and voluntary organisation. Various factors and their link with organisation
function will be covered in this report.
TASK 1
P1 Different types and purpose of organisation
There are different types of organisations operating in the business world but they all
differ on varying grounds. Usually they are differentiated on the basis of their field of serving,
legal structure, purpose of business, aims and objectives, etc. some of the organisations are
totally based on the idea of earning profits and maximising its market share in a set period of
time. While there are some companies which are established for serving society and solving
social issues which exist. There are some companies which are run by voluntary members. In
this era, private companies have taken over the market share of government organisations. This
happened due to stagnant structure and slow decision making which hampered the growth of
these publicly funded organisations. Today, private companies are much larger in size and scope
than these government firms. Sole traders is an individual who do not have much resources and
his/her areas of operation of also very limited. Plumber, owner of coffee shop, electrician are
some of the example of sole proprietor. They use their own capital and their main aim is to earn
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livelihood. Sole trader do not need to register their business anywhere. Partnership is another
type of private organisation. In this for, 2-20 people start a partnership business. Their is no legal
binding for registering their partnership but in some special case they have to register their
business from reveal government authority. Private limited company do not have authority to
raise capital from market. Their main aim is to increase their areas of operation along with
revenue. For a private company, it is compulsory for them shows their financial statement to
their shareholder and provide this report to register of companies. Public limit company has
permission of raising capital from market and they have option of paying dividend to the
shareholder if they are more profit.
These companies are run by private individuals who own the rights of making changes
within company and its decision making. The shares of these companies are traded in stock
exchanges and they are registered company. Even government is funding this sector as it knows
that private sector will assist country economy in growing and expanding its influence overseas.
There are different size of organisation which are divided into four parts, micro, small, medium
and Large. It depends on their capacity of production, number of employees and capital. These
companies are regulated by the Companies Act 2006 enacted by parliament of United Kingdom.
The basic aim of private company is to earn maximum amount of profits and achieve market
share which can let it gain more in future. Private sector organisation gets financial assistance
from banks, personal savings on promoter, government packages, and investors. Major
companies such as Tesco sell their shares as to get required funds for developing better
operational capability and continue functioning.
These are the organisations which are controlled by the government of country. They are
established to deliver goods and services as per the needs and requirements of citizens. The basic
aim of these organisations is to assist country in developing basic amenities and act as a core
sector which keep economic stability. They are run by public funds and taxes which are paid by
citizens of the country. The government decides as to how to utilise various funds in developing
better capabilities in the organisation. The aim of these organisations is to provide stability to
country and assist it in delivering qualitative services to the consumers. Government has
different level of interference in these organisation as they are usually liable for their
performance but in case of health care or core public services, government over looks at all the
actions taken by organisations. The public sector organisation can be a producer, buyer or
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provider of various goods and services. There are many companies which are running into public
sector and proved their worth, such as, BBC (British Broadcasting Corporation) which is a
British company operating into world media and broadcasting.
This sector is also known as non profitable as people form these organisations as to
address various social issues that are hampering society and its people. Such type of organisation
are usually owned by private individual or group of people. They are set up for a specified reason
which needs to be addressed by government, authorities or companies. As to achieve the goals
and objectives on which organisation has been set up, they utilise all resources in a very tactful
manner. It involves NGO's, charitable trust, social groups and social enterprises. They might
generate profits but it will not be given to any individual, it will be re invested into the
organisation as to boost its capability and effectiveness. With their initiatives, they assist local
communities in overcoming issues which were hampering their living and causing pain. One of
the example of this type of organisation is Oxfam, which is acting as a charitable trust in
biomedical field.
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P2 Size and scope of different type of organisation
Their is no doubt about size of single trader i.e. one person run complete business.
Objective of their business is to earn money for living. They do not try to earn huge amount of
money because their main target is to use earned money for fulfilling needs of their family. In
partnership, scope of firms are more than sole proprietor because of more availability of
resource. Their aim can be earning livelihood or profit for further expansion of business.
Government, suppliers, buyers, employees etc. can be considered as their stakeholders.
NotOnTheHighStreet is perfect example of partnership firm, their turn over is around 100
million pounds and they almost 200 people are working in this firm. Their vision is promote
creative of small business.
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Tesco, By 1931 It was able to open its first store in the country and by 1940 it has more than 100
stores. Today it is a multinational grocery as well as general merchandise retailer that is
headquartered in Welwyn Garden City, Hertfordshire, England, United Kingdom. It is third
largest retailer in terms of profits while ranks ninth largest in terms of revenue. It has well
established presence in more than 13 countries and it is expanding at a fast speed. Currently it
holds more than 28% market share in United Kingdom alone, making it the market leader. It has
more than has 460,000 employees who are motivated to achieve company goals and objectives.
On an average more than 50 million people use company products and services. In the market
they have floated products which range from being luxurious as well as reasonable. The
company is currently aiming to become world number one retailer, so that it can achieve the
desired level of profits and revenues. There are different companies who wants to put their
products in the shelf of Tesco as to boost their sales.
The vision of company is to achieve a high growth rate while protecting and conserving
environment resources. As to expand their business in future, the company is investing its
resources in developing physical presence in the targeted countries. It will assist it in developing
a good image in eye of consumers. Also it will ensure that all the invested amount is used in a
optimum manner so that higher returns can be achieved.
The company will be using stakeholder analysis as a procedure to identify all the parties
which will be impacted by its decisions and operations. These parties holds a great significance
in the company and its capabilities to achieve goals. By analysing these individuals, organisation
will be able to take quick decisions and adapt to changes in a better way.
It is a public company that is known as British Broadcasting Corporation. It is a British
media broadcaster and the oldest. It has more than twenty one thousand employees who are
permanent and through various programs it is able to develop a force which is not permanent but
dedicated. It was established 94 years ago in the year 1922 by John Reith. It currently operates as
per the agreement under Secretary of State for Culture, Media and Sport. It provides services in
broadcasting, radio, web portals and television. It has a revenue of more than €4 billion and a
net income of more than €166 million. BBC offers its services in more than 28 languages and the
main mission of company is to inform, educate as well as entertain the audience. There are four
main objectives of BBC:
 Audience focused content
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 Value for money in every areas of job
 Targeting all types of audience
 Making world class content.
BBC is a state owned organisation, it is funded by taxpayers money which also makes
them main stakeholders.
It is a international charitable organisation which focuses on reducing poverty from the
whole world. It is the third largest charitable company in United Kindom. It was founded in 1942
in Oxford, England. It works with different organisations as to assist people who are living in
poverty and give them a better life. They want people to live their life with dignity while all
human rights as well as basic amenities are there for them. Basically, this organisation try to
reduce any chances of exploitation that would hurt a poor person. Oxfam also focuses on
providing relief to disaster hit area's, advocates for poor and keep on researching about
improvement in the country polices. They offer their services in every country and believes that
it requires an action to eradicate poverty from the whole world.
Oxfam is a charitable organisation that is by funded by donations from various business
organisations and normal individuals. It sells donated stuff via its online portals. Also it uses
subsidies and various funds provided by government to keep its functionality and operational
capabilities up. They are a voluntary organisation whose main objective is to remove poverty
from this world. They are operating across the world and doing lot of work related to charity.
They have thousands of employee and millions of members.
TASK 2
P3. Relationship between different organisational functions and their relation with its objectives
and structure.
All the functions and other factors are decided on the basis of objectives and structure of
organisation. The employees are given their roles and responsibilities as to achieve company
goals and objectives in a efficient and effective manner (Belás and et. al., 2015). It is important
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