Business Environment Report: Analysis of TESCO, NHS, and Oxfam

This report provides a comprehensive analysis of the business environments of three organizations: TESCO (a private organization), the National Health Service (NHS) (a public organization), and Oxfam (a voluntary organization). The report begins with an introduction to the business environment and the chosen organizations. Task 1 delves into the purpose, types, legal structures, size, and scope of each organization, highlighting their products and services. Task 2 examines the functional differences within a company, specifically TESCO, and how these functions interlink with organizational structure and objectives. Task 3 explores the positive and negative impacts of the macro-environment, using PESTEL analysis. Task 4 focuses on a SWOT analysis of TESCO and the interrelation between its strengths, weaknesses, and external macro factors. The report concludes with a summary of findings and a list of references.

Business Environment
Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3

TASK 1............................................................................................................................................3
P1 Explanation of Purpose & types of organisation: private, public and voluntary organisation
................................................................................................................................................3
P2 Explain the Size & scope of various forms of organisation..............................................4
TASK 2............................................................................................................................................6
P3 Explain the difference among different function of company & his they link to
Organisation Structure & objectives......................................................................................6
TASK 3............................................................................................................................................8
P4 Positive and negative impact of the macro environment..................................................8
TASK 4..........................................................................................................................................10
P5 SWOT analysis of TESCO..............................................................................................10
P6 Interrelation of strength & weakness with macro factors...............................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment is mainly a collection of both external and internal factors that is
employees, customer, government, customer expectations, technology, suppliers, market trends
& so on. All this factors assist a business entity to maximize the use of resources & attain higher
growth and success that impact positively on its performance (Barr, 2018). In order to gain
knowledge about business environment & its concepts, TESCO is chosen as a base company. It
was founded in year 1919 and is the largest supermarket chain of UK. The voluntary
organisation that is chosen is Oxfam. The main objective of these organisation is to reduce
poverty & enhance conditions of societies. For the public organisation, National Health service is
considered that was founded in year 1948 & is performing to provide health care service to
people who cannot afford it. The report consist of different types of organisation along with their
legal structure, size, scope and purpose as well. Along with this, internal and external analysis of
respective organisation is conducted. In the last, there is interrelation among strength &
weakness with external macro factors.
MAIN BODY
TASK 1
P1 Explanation of Purpose & types of organisation: private, public and voluntary organisation
Public organisation: This form of company is totally in controlled and owned by
government of a particular country. NHS is a public organisation which was founded in year
1948 with an objective to provide best and free health service to people who cannot afford it.
Purpose: The major drive of National Health Service is to provide health service to
people so that overall health condition is improved.
Legal Structure: In relation to NHS, all the decisions is mainly taken by central & state
government. Therefore, all the decisions is followed by managers & employees of NHS for
performing activities in an effective and smooth manner.
Product & services : National Health Service provide various forms of health service to
the people prevailing in country. It involve primary care, emergency care, cancer, mental health
and many more (Falkner, 2017).
Private organisation: It consist of sole proprietorship, agency, partnership that is established
with an objective to gain higher profits (Chukhray and Mrykhina, 2018). TESCO is one of the

largest supermarket of United Kingdom that offer its product and service in more than 14
countries.
Purpose: The objective of the company is to provide high quality grocery and other
products in market at an affordable price that help company to enhance level of profitability.
` Legal structure: In private companies, legal structure is highly depend on managers and
higher authorities of organisation. In addition to this, it is determined that TESCO follow its
legal structure which impact positively in its operations and functions of respective company.
Products & Service: TESCO provide wide range of products and service through
superstore, hypermarket, convenience shops and so on. The main product consist of food and
beverages, clothing etc.
Voluntary organisation: It is defined as group of people who coming together to attain common
objective. Oxfam is a voluntary organisation that has 20 independent charitable trust associated
with the organisation.
Purpose: The main purpose of Oxfam is to decline poverty level from the country. In
addition to this, the organisation want to enhance living standard of people in an effective
manner.
Legal Structure: Oxfam is a voluntary organisation and herein all the decisions about
some policies and laws is in the hands of trustees of company. they take decision by considering
the objective of organisation.
Products & Service: It is analysed that the organisation have volunteers that assist into
decline poverty level & increase their living standards.
P2 Explain the Size & scope of various forms of organisation
Private organisation- TESCO
Size & Scope: TESCO have a wide scope as it provide quality grocery and other products
to customer. In the present time period, the organisation operates in around 15 countries & have
6,400 stores in all over the world (Crowley and Jordan, 2017). One of the main reason of its
higher growth and success is its skilful & talented 1,00,000 staff members that perform activities
in a proper manner. The operating profit of respective organisation is 2.20 billion pounds that is
7% higher as previous year. It provide goods at low price which attract large number of customer
and enhance its profitability level.

Mission and vision: The mission statement of TESCO is “ To provide best experience to
customers through offering high quality goods & services. The vision statement of TESCO is “
To be the first preference of customer & to attain leading position in this industry.”.
Private organisation- National Health Service
Size & Scope: National Health Service have a big scope as company is decided to
enhance the number of medical employers which is from 7000 to 14000 in 2023 year. In the
present the organisation have around 17,000 employees & its global revenue of the last year is
$540 billion. It is determined that NHS give its services in around 7 countries & is planning to
expand its activities as well as operations in other countries effectively.
Vision & Mission: The vision statement of NHS is “To enhance health condition &
lifestyle of people in an effective manner. The mission of organisation is “ To give on time and
quality service to every patient prevailing at hospital.
Voluntary organisation- Oxfam
Size & Scope: It is determined that Oxfam consist of wide scope as it focuses on
improving the conditions of people. In addition to this, it is related with more than 20 charitable
trust & is also plan to increase its number (Escaleras and Chiang, 2017). The top level authorities
develop strategies in order to take decision in a way that benefit poor people and enhance their
living standard as well.
Vision & Mission: The vision of respective organisation is “ To make world free from
poverty”. The mission of Oxfam is to help people in getting justice so that they can fairly &
equally treated in context to their gender, colour and many more. The top level authorities of
Oxfam is align with local & global partners in order to fight against discrimination & enhance
living standard of people.
Differences among Micro, small and large enterprises
Basis Small Enterprises Medium Enterprises Large Enterprises
Number of employees This enterprises
involve of less than 1o
members that perform
activities properly.
The total number of
employees vary in
medium enterprises is
between 50 to 249
staff members.
In this type of
enterprises, there is
more than 250 staff
members working in
the organisation.

Decision making The decision making
of such enterprises is
in the hands of higher
authorities.
Herein, the decision is
in the hands of
managers and some
stakeholders as well.
BOD, higher
authorities, CEO take
decision regarding
enterprises & they take
time in order to take
better decision.
Purpose The main purpose of
small enterprise is to
satisfy their basic
requirements & the
needs of family too.
The major purpose of
such enterprises is to
rise their living
standard & to gain or
earn profits.
The purpose of large
enterprise is to enlarge
their operations &
develop higher profits.
TASK 2
P3 Explain the difference among different function of company & his they link to Organisation
Structure & objectives
In the aim to sell their product or service every organisation partakes various activities
which are indirectly involved in the process of producing the firm's product or service such as
human resource IT marketing and many others. These operations do no cultivate the product but
rather help the company efficiently present the product to their target consumers, and grow the
company amid serious competition. In context of the largest British retailer TESCO various
departments help the company achieve maximum profitability at the subsidiaries all across the
globe. These departments are dependent on each other for smooth working of the organisation.
The functions and relations of these departments is mentioned below:

Illustration 1: Organisational Structure
(Source: Organisational Structure, 2019)
Sales and Marketing:
The sales operation of the organisation conducts various exercises to understand the
immediate interests and preferences of the consumers. As the sales department is deals directly
with the customers, their thorough observations about the consumers likes and dislikes help the
marketing division formulate accurate and efficient marketing strategies (Gandhi, 2017). These
strategies help grab the attention of the customer in the competitive retail industry. With the help
of coordination between sales and marketing division TESCO is able to attract many consumers.
HR and IT departments:
The HR division plays a significant role of hiring and sustaining talented employees for
the company. They also help the employees in increasing their production by performing various
development exercises the IT division provides the HR latest software for the efficient storage
and management of the employee and company data, in return the HR department hires the best
candidates and manages their skills so that the IT department has the most talented employees
available. This related work done by the IT and HR divisions helps the company hire and sustain

the most skilled workforce and give them best technology for their jobs. This advantage is
indicated in the organisations exponential growth as consumers are attracted towards the
company for their excellent digital and customer service.
Marketing and finance departments:
The marketing division is responsible for formulating various rewards policies that
effectively increase customers. The finance division of TESCO contacts the marketing division
to arrange the capital required to apply these policies in a way that ensures maximum success.
This helps the company cost effectively attract new customers and thus increase net income.
In the view of the above mentioned information, the inter relation between various
divisions of TESCO is evident. The company needs to guarantee that the various departments
associated with the company interact efficiently so the organisation creates a productive and
talented workforce and achieve exponential growth.
TASK 3
P4 Positive and negative impact of the macro environment
PESTEL analysis is a tool used by individuals to asses the macro economic factors
(external factors) faced by their enterprise country or organisation (Hamilton and Webster,
2018). PESTEL analysis is useful in making strategies for future endeavours. It's result is also
helpful in conducting SWOT analysis as it presents anyone with an in depth picture of the
environment. The result of this analysis will tell us about the external factors which have worked
in its favour or ceased its growth and is discussed below:
Political Factors
Political Factors are the factors which are influenced by government operations and
policies which include bureaucracy, tax policies, tariffs, corruption level, trade control etc.
Political factors play a distinguished role in the development and expansion of a company. In
relation to TESCO the forthcoming brexit deal is matter of serious concern for the compony as it
most most likely impose higher tarrifs on fineshed goods and change in trade policy with EU
members .FDI relaxations in India have allowed TESCO to expand its stores in Gujrat and Tamil
Nadu by forming 50:50 alliance with a retail unit of Tata group.
Positive impact: The political stability of UK is quite well that help organisation to
expand its operations and attain higher profitability in an effective manner.

Negative impact: Due to Brexit, the government of UK is facing many challenges that
affect on activities and performance of TESCO.
Economical Factors
Economic Factors such as intrests rate, exchange rate, inflation rates are very important
in forming tactical policies for a corporate. Covid-19 pandemic has globaly reduce consumer's
disposable income and decreased its growth. The 20009 recession has encouraged consumers to
eat at home more and buy more groceries.
Positive impact: It is determined that people living in UK has high buying power that
leads to increase in sales & profitability of company.
Negative impact: Increase in the labour cost affect on the profit margin of TESCO in a
negative manner.
Social Factors
Social factors include lifestyles, family structures, religion, beliefs and help a company
better understand their consumer base. The international rise in nuclear family structure has
provided TESCO with more buyers. TESCO has started selling halal and kosher products for
Muslim and Jewish communities increasing its consumer base and also enhances brand image.
Positive impact: These factors assist in fulfilling requirements of customers due to which
there is increase in brand image of TESCO at marketplace.
Negative impact: Increase in the use of organic and healthy products by people is
considered as negative factor for TESCO as it is not able to offer such products yet.
Technological Factors
Technological factors consists of infrastructure, technological changes, access to new
technology influence a compony's future. RIFD technology used by TESCO provides it with
customer data and easier administration of inventory which gives it competitive edge from its
bussines rivals. TESCO introduced its loyalty card service club card in the 90's which gave it
customer data before the emergence of online shopping and a loyal consumer base which still
uses it today (Hillary, 2017). TESCO's expenditure on machinery to keep up with ever
changing technology has decreased its revenues.
Positive impact: The company make use of innovative technology in order to ensure on
time delivery and service that attract customer and enhance number loyal customers of company.

Negative impact: On the other side, using of new and innovative technology on
continuous basis arise high cost and decline revenue level of respective organisation.
Environmental Factors
Climate change, waste management are some environmental factors used in PESTEL
analysis. TESCO faces presure from citizens and government around the world to reduce its
carbon emissions. TESCO has responded to these concerns by investing in renewable energy and
lessen plastic packaging.
Positive impact: TESCO provides secure environment and also decline use of carbon
emission that impact positively on its brand image
Negative impact: The cost of implementation of Eco friendly technology is high and
therefore affect negatively on profitability of company.
Legal Factors
Legal factors such as discrimination employment and data protection law influence a
company’s costs and its regulation with its workforce and buyers. TESCO's strict regulations
regarding privacy of their customers data create a trustworthy perception of the company in
consumers mind and may also shield it from any legal trouble after implementation of new data
bill in UK. In 2007 .
Positive impact: The company follow all legal policies in order to implement activities in
a proper manner which strengthen its market performance.
Negative impact: Legal restrictions arise complexities for TESCO and impact on its
performance and image in a negative way.
TASK 4
P5 SWOT analysis of TESCO
Strength Weaknesses
 TESCO serves to customers around
Asia and Europe and has the biggest
market share in retail groceries in
Thailand Ireland UK Hungary.
 TESCO is a globally recognized brand
 TESCO has declined in quality as in
2013 the company was found selling
horse meat in some of its products
 Lack of market research before entering
Japanese market led to its closing in

with excellent growth and loyal
customer base in UK .
 TESCO has huge amount of customer
data through their easily accessible
loyalty card and online services
 TESCO provides services and products
to a large number of consumers from
different industries and is not
dependent on a single demographic for
its profits.
after only 9 years.
 One of TESCO biggest competitors
ASDA has is cheaper than TESCO by 6
% which resulted in TESCO losing its
customers to ASDA
 TESCO opened some of its aspiration
grocery stores in low income areas in
US and ended up failing in the country
Opportunities Threats
 TESCO can venture into online retail
market and increase its profit
significantly.
 As eco-friendly culture is spreading
around the world TESCO can add
vegan options in its grocery items and
increase its consumer base.
 TESCO can open its stores in
developing countries like India which
hold great potential for expansion.
 They can form alliances with other
companies
 COVID-19 pandemic has posed a threat
to major industries like retail because of
decrease in economic activities globally
and decrease in public's purchasing
power.
 TESCO faces threat from its
competitive rivals ASDA and
discounters Aldi and Lidl.
 After Brexit change in tax policy
between Britain and EU can pose a
threat to TESCO.
 Demand for increased labor wadges
and benefits around the world deceases
companies profits.

P6 Interrelation of strength & weakness with macro factors.
Basis Political Economical Social
Strength The managers of
TESCO ensures that
they follow all the
laws & policies
developed by
government which in
turn help in systematic
and proper execution
of activities
(Shageeva, 2017).
It is analysed that
TESCO pay fair salary
to its employees
because of which they
work with full
potential and meet
with its set targets.
TESCO has started
offering organic and
natural product a per
the requirements of
society which help in
enhancing bran image
in an effective manner.
Weakness Change in policies
arise cost to respective
company that impact
negatively on its
profitability and
revenue level.
It is determined
economic conditions
of United Kingdom
negatively impact on
overall performance of
TESCO.
In the present time,
people are more
conscious towards
their health and lack of
offering of healthy
product is undertaken
as weakness of
TESCO.
Basis Technological Environmental Legal
Strength The company make
use of new and
innovative technology
in order to give on
time service to
customer that impact
positively on their
min-set and enhance
its performance and
The respective
organisation adopt
Eco-friendly
techniques so that it
can contribute towards
protecting the
environment.
It is determined that
the company follows
all laws as well as
policies which
increases its brand
image in marketplace.

profitability level.
Weakness Change in the
technology in rapid
manner occur high
cost to company that
affect on its revenue in
a negative manner.
The company is facing
some of issues because
of not following
environmental issues
that impact negatively
on its brand image.
Change in legislations
affect on the overall
functions and activities
of TESCO in a
negative manner
(Uluskan and Godfrey,
2018).
CONCLUSION
From the above discussion, it has been concluded that business environment factors
directly affect on the performance and operations of an organisation so it is important to analyse
all this factors with the help of different frameworks such as SWOT analysis, PESTLE analysis
and so on. It is determined that all the functions of an organisation are interlinked with each other
so it is significant for higher authorities to focus on marinating good relationship between them
as it help in attaining objectives within stipulated time period.

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