Business and the Business Environment Analysis for BTEC Level 4

This report provides a comprehensive analysis of the business environment, focusing on the differences between various organizational types, including private, public, and voluntary organizations, and their respective purposes and legal structures. It examines the size and scope of organizations like Tesco and the National Health Service, highlighting their objectives and operational structures. The report delves into the interrelationships among different organizational functions such as production, finance, human resource management, marketing, and purchasing, emphasizing their coordination and impact on business success. Furthermore, it applies PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors affecting organizations, including both positive and negative impacts. Internal analysis using SWOT is also conducted to evaluate strengths, weaknesses, opportunities, and threats, alongside an examination of how these internal factors interact with external macro factors to influence business strategies and outcomes. The report concludes with a summary of the findings and a list of references.

BUSINESS AND THE
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1) DIFFERENCES PURPOSE AND TYPE OF VARIOUS ORGANISATION................1
P2) SIZE AND SCOPE OF VARIOUS KIND OF ORGANISATION.................................3
TASK 2............................................................................................................................................5
P3) INTERRELATIONSHIP AMONG VARIOUS ORGANISATIONAL FUNCTIONS. .5
TASK 3............................................................................................................................................6
P4) PESTLE ANALYSIS OF ORGANISATION WITH NEGATIVE AND POSITIVE
EFFECTS...............................................................................................................................6
P5) INTERNAL ANALYSIS OF ORGANISATION...........................................................8
P6) INTERRELATION OF STRENGTH AND WEAKNESS WITH EXTERNAL MACRO
FACTOR................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment is the addition or sum of the collection of internal and external
factor include employee, customer needs and what are the expectations, supply and demand,
whole management, customer, owners, activities by government, new innovation plans, new
technology and social trends and many more. These factor usually affect the various function of
company which works directly or indirectly for the organisation and in their growth. Factor are
added then it influence the organisation or company environment and condition which may be in
market and marketplace (Borchers and et. al., 2016). Where the business help in finding the
business opportunities, utilising the useful resources assisted in planing and improve the overall
growth and performance of their organisation which is based on the profitability of the
organisation. In this topic, a brief analysis of external and internal environment by the principle
of PESTLE, SWOT. There are analysis of relationship which are associated with many of factor.
The discussion and conclusion are here.
TASK 1
P1) DIFFERENCES PURPOSE AND TYPE OF VARIOUS ORGANISATION
Whereas, the firm are categories according to their scope and objective that help to gain
profit and social welfare to organisation.
Private organisation:
These type of organisation are generally ruled by the private firm people. It can be
partnership, person coordination and correlation, operating in process of profit. In this funds and
money are collected form the self resources by the owner. It may be start-up or linked up
organisation with any other organisation. TESCO is a private company which have retailer store
in UK (Büyüközkan and Göçer2018).
Purpose: the aim of the organisation to gain more profit, create the worth of company and
increase the consumer reachability.
Legal structure of private company:
sole proprietorship:
These type of organisation is governed by the one person who taken the whole
responsibilities of organisation. They taken the loss and profit responsibility. In sole
proprietorship the compliance of holding regulations is lower.
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Partnership with others:
This type of organisation regulated by one or more partners. The partners are decision-
making power on which they decided the plan and new strategies regarded the profit and loss in
organisation.
Limited organisation:
The organisation of this type have there individual legal entities for those who are the
regulating body of the organisation. In this the share are limited so according to this TESCO is
limited organisation.
Public organisation:
Public organisation is a type of organisation in which the whole organisation is regulated
by the government body. The aim of this organisation is to not earn profit and make money. The
firm believe in the enhancement in the social welfare. In these organisation money and fund are
collected and assemble by government from the tax collected with the public contribution. They
usually distributed product and service to increase the potential and life style of people
(Castrogiovanni and et. al., 2016). And also the purpose to maintain the equality between people
among in various classes.
Purpose: The theme of the organisation is to offer the medical product and services to poor
people who are living in society.
Legal structure of public organisation:
The legal structure of this organisation is usually linked with higher control regulated
body of government. The central government taken all the responsibilities with the power to take
all the decision.
Example: National health services is a type of public firm which help is to provide the quality
health and quality healthcare which based on services who facing issue related to health and have
low income and below the poverty line.
Voluntary organisation:
This type of organisation is generally govern and controlled by the government and
overall the decision and all aspect of new plan is executed by government. In this, new activities
are implemented by the government in the aspect with social situation which help the
organisation to achieve the goals. Whereas, the voluntary organisation have clear vision an
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mission to increase the income of people and create a healthy and standard of people who are
living in the society.
Purpose: The sole purpose of this organisation to create the raise the income level of people and
provide him a better and standard life style for living (Demenet and et. al., 2016).
Legal structures of voluntary organisation:
The legal structure of the voluntary organisation is to regulate the top management
people and trustees which are donating a high level of funds which has been used in various
function and help in the organising new events and new plan for the people.
P2) SIZE AND SCOPE OF VARIOUS KIND OF ORGANISATION
Private Public Voluntary
Size TESCO is a private
organisation which have
largest employer rate in
UK. They hire maximum
employee which is about
250,000 in overall UK.
And approx 367,000 staff.
In UK, they have total 2365
outlet.
National health
services which is an
public firm. The
employee rate of this
public organisation is
approx 1.6 million
people and having a
huge workforce which
is about 2,165,043 in
total UK.
The voluntary
organisation which is
depend on the
charitable institutions.
Oxfam is a type of that
organisation which
focus on the retaliation
of poverty as it was
founded in the 1942
which group in non
profitable segment of
sector.
Scope TESCO is usually focused
on the their vision and
mission. TESCO have their
own objective to earn
maximum profit and
explore the store in world.
They believe in earning of
National health
services had a huge
scope which help one
million patient on a
single time periods of
one day . They usually
deliver of major
Oxfam have a single
scope in this way to
retaliate the poverty
which is done by the
human actions. They
usually do their work
in aspect to reduce the
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higher customer loyalty. It
have a better vision to
scope with various
functioning for long.
services in many
location in single time
like usually in
Scotland, England and
Ireland and Wales
which are located.
the poverty and
provide the higher
standard of living.
Purpose The main objective of
TESCO is to increase the
market share, earn more
profit and expand the
business in global level.
National health
services is made up of
multiple merge firm
with a common
objective to provide
the quality of health
and service to those
who is not able to
affords it.
The main theme of
Oxfam is to retaliate
the poverty and they
usually arise the step
in such a way to
improve the
betterment of human
life who is facing the
unnecessary action of
poverty.
Legal structures One of the important legal
structure under which the
TESCO is operating
process such as the
corporate governance
indicative mould. In this
type of organisation, the
people are going with their
linked stakeholder and
concentrate on formation of
new plan and new strategies
to deal with change in
converting the macro
environment conditions. As
National health
services are related
with central
government and
government provide
the hospital related
services. The new plan
of the government
towards the services is
to improve the health
and explore a new
terms which focus on
NHS foundations trust.
Oxfam trustees are
responsible for charity
activities and the
formation of new
council trustees
depend on the
governing bodies
which is lined with
Oxfam.
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according to the legal
structure it will also the part
of organisation while
forming legal preferences.
TASK 2
P3) INTERRELATIONSHIP AMONG VARIOUS ORGANISATIONAL FUNCTIONS
Different functional units of organisation
There are various functions followed by the organisation with their units.
Production functions:
As per the context, the production function defined as the production of product and
services, according to the consumer needs and expectations which is in target market. Usually
the production function is prepared in TESCO on the base of market include the demand and
product reliability (Frank and et. al., 2017). In selected firm, production function are linked with
the financial core and marketing which help to define the product availability and demand of the
customer of specific product requirement which is filled in the inventory of organisation.
Finance department:
Every organisation have their finance department and resources for the effectiveness in
aspect with organisation. In TESCO the finance team is help in the provide the knowledge bout
the resource and function that help them in maintain the effective functioning of organisation.
Human resource management:
The role of human resource management is to select the competent candidate which
follow the objective of organisation and also there is coordination between various department.
Maintain the flow of human resource and control the workforce of employee and time to time
provide bonus and salary which all is taken drive by human resource management department.
They perform various function by collaboration with marketing, finance, sales and many more.
Marketing and sales team:
The major role of the marketing and sales team is every important for the organisation in
which a way to promote the product and manage the flow of product in market and acknowledge
the product demand from the market. They create the direct contact to customer and the target
market. There is always a interrelationship between various department which help them to
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inform various new plan and new strategies which is implemented in future for the success of
business.
Purchase functions:
It is play the role as in extraction of generic and raw material matter. Which totally
depend on the demand of the sale of product and production department. This function and
department make a proper coordination with various department which help to grow the business
and provide smooth running in business (Hashem and et. al., 2016). As per this, there is no
hindrance in such a way which make a smooth transfer of information between department.
Organisation structure:
The structures of an is termed in such as way where the various set of action and various
major functions are performed by these type of department. So as per this there are various
functional department in TESCO are:
functional structures: It is the kind of structure which have different functions, which is going to
performed by different department include service and other department.
Divisional functions: The type of structures is related to dividing the firm by combining of two
goods in same line. The main aim of this is to just divide the organisations functions according to
various goods types.
Matrix structures: Matrix structures is defined as the operation of collaborative kind of two
structures one is functional and second one is divisional. In the context with TESCO, the use of
matrix structure differentiate the various categories of goods and services that will offer to
customer by organisation.
TASK 3
P4) PESTLE ANALYSIS OF ORGANISATION WITH NEGATIVE AND POSITIVE
EFFECTS
PESTLE analysis is defined as the set of action which is performed to analyse the
organisational macro environment of business, in which study is going on to know the various
factor which affect the process and various function which is regulated in an organisation as well
as the unit of that particular organisation (Lu and et. al., 2018). In which the TESCO is a UK
based brand organisation which is dealing with many of product and called the multinational
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organisation and they work in global level. So this analysis help to observe the total factor which
affect the activities of organisation.
Political factor:
TESCO trading with their product in many of countries. All the countries carry various
political factor like difference in tax rates, legislation, and stability of political parties and also
depend on the situation of that particular country economy.
Positive impact: There are various factor like tax re-bait, various economic factor with various
political parties.
Negative impact: There are various factor which have negative impacts in organisation with this
factor which affect the profitability of TESCO (Jaskiewicz and Dyer 2017) The tax rate and laws
are different. Some of inventory that TESCO dealing like form china to Asia.
Economic factor:
This factor defined the change in economy like economy of nation in various ways such
as foreign exchange, interest rate, gross domestic and many more. All this factor influence the
process and operation of TESCO.
Positive impacts: The borrowing cost of UK is higher so this make an positive impact in the
profit margin of UK.
Negative impacts: TESCO expanding their organisation and the firm is totally depend on the
grocery market. So economic chain mode is not essential for the selected enterprise.
Social factor:
This factor are depend on new trends and preferences for customer. The cultural factor
are related with organisation.
Positive impacts: People now day follow healthy food and trendy product. With this aspect
organisation introduced social changes for increasing the profit by offering healthy and taste
food.
Negative impacts: Adopting new changes, then TESCO must need to invest in strategies and
research which helpful for the organisation for long term. If in any case company not follow the
new challenges and follow the old tradition then it difficult for TESCO to gain profit.
Technological factor:
Advancement in arising new technology affect the process of company. As according to
this organisation changes the old pattern and follow new one which is technically relevant.
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Positive impacts: TESCO launch RFID technology into their stores for increasing the experience
of customer. Which help the organisation for the maximize the profit and revenue.
Negative impacts: Introduced new technology must invest vast money to make the thing
advance.
Legal factor:
The factor include the legislation of government that can adhere the performance of
employee along with organisation(Okafor and et. al., 2020).
Positive impacts: By formulating the law, TESCO make maximum profits.
Negative impacts: TESCO faces so many legal sets due to the fraud. And to cover this, the
selected firm faces so much huge loss to down the actions.
Environmental factors:
This factor is about how to clean our surroundings and responsibilities are on various
organisation. Government have their own guidelines which must followed by organisation to
make the surroundings clean.
Positive impacts: TESCO uses the recyclable resource which minimize the carbon flow that help
to maintain the environmental sustainability.
Negative impacts: Use of many non-biodegradable plastic bags cause negative impact in
environment.
P5) INTERNAL ANALYSIS OF ORGANISATION
TESCO SWOT analysis
STRENGTH
 Second largest retail store in UK.
 They have various line of product and
they acquire new technology such as
RFID (Seaman, C., 2020).
WEAKNESS
 They have very bad process of
operation performance which create the
weakness point on the base of target
market.
 The selected firm following the cost
leadership strategy and due to this
create negative impact in profit of
organisation.
OPPORTUNITY THREAT
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 For development of TESCO,
diversification is the great opportunity.
 The partnership provide the opportunity
to TESCO firm for grabbing number of
customer in target market.
 They have number of competition in
market like ALDI, walmart which is
threat for the TESCO.
NHS SWOT analysis
STRENGTH
 National health service provide the
service approx million of patient, they
provide free service to need one in free
of cost (Song and et. al., 2016).
WEAKNESS
 Sometime due to high number of
people and by integrated care
partnership is not even to manage of
the functions by NHS.
OPPORTUNITY
 NHS based on the health care which
help other without any cost. Also they
plan their services according to long
term plan for local and rural channel of
communities.
 The quality commission is to register in
way to provider and monitor which
inspect the rate of services.
THREAT
 Threat is arises form the primary care
network with general practise with
local sector, voluntary sector and social
care.
P6) INTERRELATION OF STRENGTH AND WEAKNESS WITH EXTERNAL MACRO
FACTOR
BASIS POLITICAL SOCIAL ECONOMICAL
STRENGTH TESCO is follow the legal
rules and norm which is
regulated by the
government in their
country. It help to provide
In the context with
TESCO, the main aim to
fulfil the need and
expectations of the
customers (Tchamyou,
TESCO provide a
huge revenue for the
economic growth and
their development. In
this way the private
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the support of political
parties. So, directly or
indirectly helps the
organisation in aspect of
smoothing of various
function and process or
operations.
V.S., 2017). As per this
the selected firm follow
the low cost leadership in
which they offer many of
product in base cost.
organisation play a
vital role in the
contribution towards
the development of
country where they are
operating their
business.
WEAKNESS The profit is reduced in a
case where the tax rate of
country is high as
compared to others (Van
and Nafukho 2019).
The various challenges
faced by TESCO one of
them is changing the
need and expectations of
customer. Sometime the
demands are in neutral
and sometime it is high.
The change in
economic situation
create the factor like
Brexit, and Covid
which affect the
economic status of
many of countries.
This factor also
influence the business
economic scene.
BASIS TECHNICALOGICAL ENVIRONMENTAL LEGAL
STRENGTH TESCO also adopting the
new technology which
help to explore the
business and increase the
profitability. For example,
the selected firm have
started the self checkout
system which is part of
adoption of new
technology that driven by
TESCO.
The selected form
produce eco-friendly
product which help in
environment to minimize
the use of plastic.
In the context with
TESCO, the law which
is regulated by
government. There are
equality act, diversity
act, anti discrimination
act, which balance the
overall functions of
organisation.
WEAKNESS Lots of capital is invested While following new The rapid changes in
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