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

This report provides a comprehensive analysis of the business environment, focusing on three organizations: TESCO, NHS, and Oxfam. It explores the different types, purposes, and legal structures of public, private, and voluntary sectors, examining the size and scope of each organization. The report delves into the relationships between various organizational functions and their links to objectives and structure. It assesses the positive and negative impacts of the macro environment on business operations, along with internal and external analyses to identify strengths and weaknesses. The report concludes by explaining the interrelationship between these strengths and weaknesses and external macro factors. The analysis covers various aspects, including the stakeholders, objectives, vision, and mission of each organization, providing a detailed understanding of their operations and environments.

Unit 1: Business and the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types, purposes and legal structures of public, private and voluntary sectors...3
P2 Size and scope of a range of different types of organisations...........................................6
TASK 2............................................................................................................................................7
P3 Relationship among different organisational functions and link to objectives and structure 7
TASK 3............................................................................................................................................8
P4 Positive and negative impacts of macro environment has upon business operations.......8
TASK 4..........................................................................................................................................10
P5 Internal and external analysis in order to identify strengths and weaknesses.................10
P6 Explain how strengths and weaknesses interrelate with external macro factors.............10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business is referred as an activity which focus on making money or living through
manufacturing of goods and services and selling those to users (AGBOLADE, 2014). Similarly,
business environment is defined as combination of both internal as well as external factors which
focus on influencing enterprise and its activity. These has positive as well as negative impact to
running business in an effective and efficient manner. The organisation chosen for report is
TESCO that was founded by Jack Cohen in 1919 at United Kingdom. It is retail organisation
providing products and services worldwide. According to scenario presented in report, three
different organisation are selected that are public, private and voluntary named as NHS, TESCO
and Oxfam. The main aim of report is to explain different types, size and scope of organisations
and interrelationship with various functions and linking to organisational structure. It has
highlight about positive and negative aspect or influence of macro environment and internal
strengths and weaknesses of businesses along with their interrelationship with external macro
factors.
TASK 1
P1 Different types, purposes and legal structures of public, private and voluntary sectors
According to scenario, private, public and voluntary organisation are chosen like TESCO,
NHS and Oxfam. The types, purpose and legal structure are described below:
Private Organisation
It is defined as person, corporation and agency which is not operated by public body with
motive of making profits (Avramenko, 2012).
Background Details- It is private organisation that deals in groceries and retail sector.
More than 6569 shops are located in global market and serving in UK, India, Malaysia and many
more. This is regarded as ninth and third largest retailer in revenue and gross revenues.
Products and Services- The products includes clothing, food, accessories and so on and
services in terms of mobile services, banking. It also deliver home services for users to provide
them comfort.
Objectives- The objectives is to provide electronics, clothing, groceries products and
services online.

Vision- The vision is to make innovation ideas, grabbing opportunities, applying skills at
global level, fulfilling need and demand and earning loyalty, trust and goodwill from consumers.
Mission- The mission is making organisation better and providing what they want in
proper manner.
Type of legal structure: Sole Proprietorship- It is the business that is run by one individual and sharing profits
and risks themselves (Babu, 2012). This includes tailor, grocery, carpenter.
 Joint Stock Companies- It is formed because of limited resources and heavy burden or
risks. The managing person includes CEO, BODs and can be public as well as private
limited.
 Public Limited partnerships: In respective kind of legal structure that build from the
ordinary partners and limited partners. It is their own legal structure that may be freely
sold and traded within the public with the minimum share capital of 50,000 euro.
Legal Structure- TESCO is following public limited as legal structure that includes large
number of working people.
Purpose- Main purpose is serving consumers or shoppers each day in better manner
along with becoming champions for users and helping them in serving high quality products and
services.
Stakeholders- It includes creditors, groups, customers, local communities, government and so
on.
Public Organisation
It is defined as organisation which is funded or controlled publicly as per international
institute of internal auditors (Bah and Fang, 2015). This includes public and government
agencies.
Background Details- NHS (National Health Service) is public organisation which focus
on providing health care service to people founded in 1948 at Northern Ireland. It also provide
free treatment to non UK people in order to improve better health care.
Products and Services- It includes medicine, reasonable or free test, care, facilities in
order to remove disease and making life of people to be better.
Objectives- Its objective is to provide best value for taxpayer money in fair, sustainable
and effective use of resources.

Vision- The vision statement is categorised in three elements like better value, better
health and better care.
Mission- The mission statement is providing quality care to each and every individual
every day to get better health.
Type of the legal structure: Departmental Undertakings- It is department of government that does not have separate
existence from government (Ballard and et. al., 2012). For instance, telephone services,
broadcasting, railway and so on. Government Company- This is defined as company in which 51% of paid up capital is
possessed by central or state or partly by state or central. Each and every activities are
conducted by taking permission of government.
 Public Corporation- It is formed through special act of central or state or parliaments.
Example, state banks, Airlines and so on.
 Legal Structure- NHS follow public corporation as legal structure as formed through act
of parliaments. This is financed through government in order to render services in terms
of medical treatments, test and so on.
Purpose- The purpose includes scholarship for students, leadership promoting,
development of characters for secondary schools and rendering services.
Stakeholders- It includes staff, nurse, doctors, patients and so on.
Voluntary Organisation
This is individual group who enter into agreement such as volunteers in order to form
body for accomplishment of purpose (Belás and et. al ., 2015).
Background Details- Oxfam is charitable firm founded in 1942 which focus on
removing poverty, disaster relief, pro-migration and policy research. It focus on resources like
essential services, right in crisis, economic justices and gender justice.
Products and Services- These included home to disaster people and rebuilding and
saving livelihoods in case of crisis.
Objectives- The objectives are to help people, equal rights, save lives, safeguard
international food suppliers and increasing money for basic services.
Vision- The vision is making world without poverty and treating equally to each and
every people.

Mission- The mission is to helps in developing solutions to injustice of poverty.
Types of the legal structure: Trust- It is formed to perform fiduciary of trust and agencies. This is owned by one out of
three types like law firm, bank and independent partnership. This includes beneficiary
and trustee to manage various activities and operations.
 Unincorporated Association- It is formed with aid of agreement where group of people
comes together rather than profit making. The details are included in agreement that
should be followed by members.
 Legal Structure- Oxfam carry Unincorporated association where agreement is made
among employees. They work on public rather than profit marking.
Purpose- The purpose is to help and create long lasting solutions for injustice of poverty.
Stakeholders- This includes donors, suppliers, governments, academic institutions,
public and so on (Epifanova and et. al., 2015).
P2 Size and scope of a range of different types of organisations
The different organisation has various size and scope which are as follows:
Private Organisation
Size- In TESCO, more than 460,000 employees are working and it has various
subsidiaries like Bank, Stores Ltd, Jack's, booker group and so on. For enhancement of profit and
market share, it has spread business in global market area.
Scope- The activities of TESCO is regarded as fundamental element of strategy (Oriesek
and Schwarz, 2016). Main scope is to enter into those market where it can sale products as well
as services. Being largest retail market at UK planning to expand into US. Respective
organisation can expand market and enhance profit as well as market share.
Public Organisation
Size- NHS focus on providing healthcare and medical service to people. It is large in size
which render free services to UK residents.
Scope- The NHS scope is helping 64.6 and 54.3 million people in UK and England. It
focus on dealing with 1 million patients in every 36 hours that includes treatments, emergency
services, routine screening, antenatal screening and end life care.
Voluntary Organisation

Size- Oxfam is small size organisation that assist individual of United Kingdom by
removing poverty, pro-migration, advocacy, relief from disaster and so on. It has 20 independent
charitable organisations which work for making country free of poverty. Respective organisation
in the year 2017- 18 spent $1.14 billion dollar and reach more than the 22.2 million people for
their long term development and for serving the human assistance programs.
Scope- Oxfam is expanding services in other parts of world. This works with partner
enterprise and try to vulnerable male and female for ending injustices which causes poverty. This
also work to raise voices for poor people in order to influence domestic as well as international
decisions which affect them a lot.
TASK 2
P3 Relationship among different organisational functions and link to objectives and structure
The business performing their activities and operation at marketplace has to maintain
relationship with various departments for positive outcomes (Palepu and Healy, 2013). It is not
possible for one department to run operation and activities in proper manner. Every department
need to work collectively for positive results. The relationship of different departments and their
link to structure and objectives are:
Marketing with Finance- Finance department is liable for handling and managing
funding of organisation which is performed by finance manager. They have to perform various
activities and work like allocation of funds, budgeting to each and every department. Marketing
department has to analysis and evaluate market and requirement of cost for performing various
promotion, branding and so on. Therefore, both department has to perform work together for
doing proper allocation of funds in proper manner. Finance section is managed by skilled,
experienced and knowledgeable person in proper manner. TESCO should possess both
marketing and finance department in their business for running each and every activity in
effectual and efficient manner. For example, if marketing manager is in need of fund for
promotional activity at TESCO, then they have to approach to finance manager and shows their
budget and accordingly money is given to conduct activities and operations. It has been analyze
that organisational various departments remain always connected with one another to serve the
purpose of organisation in that regards they share the roles and responsibilities to one another
and share the hierarchy to reach at definite goal and objective.

Marketing with Research & Development- These both marketing and research &
development department has to work collectively (Savrul, Incekara and Sener, 2014). Marketing
prepare data and information which assist R&D manager for making proper research to attain
positive outcomes. The marketing manager of TESCO conduct market search for their products
and service and inform to R&D manager and they do research and select best technology for
manufacturing as per need and demand of their consumers in appropriate manner. Also if
decisions are already taken then the have to be done modification and development in suitable
manner. in context of Tesco Marketing and department of research share the common goal is to
collect potential kind of information from the market in that regards by sharing knowledge to one
another reach at common goal. To connect internally with in the department the common
medium also plays very much important role as it contributes in developing the level of
understanding in between the both the departments so that they can contribute one of their best
efforts.
TASK 3
P4 Positive and negative impacts of macro environment has upon business operations
It is very important for organisation to analyse external factors in order to run business in
an effective and efficient manner (Sena Ferreira and et. al., 2012). Macro environment is defined
as condition which exist in economy as whole rather than specified region or sector. This helps
in monitoring as well as analysing surrounding with aid of PESTLE which impact on
organisation's performance. Such types of analysis is performed when organisation enters into
new market or start fresh business. The respective organisation has conduct PESTLE analysis in
order to identify positive as well as negative impact to activities and operations of business
which are described below:
Political Factors- This is defined as factors which identify what and how government
intervenes in economy of nations. It includes political stability, government policy, tax policy,
labour law, trade restrictions, environmental laws and so on. With the Brexit, TESCO has to face
various issues as there is rise in food prices which has increased in 2016 September and devalued
pound sterling. Also the food imports has become more expensive for retailers. Positive Impact- Brexit has increase prices that leads to earn high profits from pre Brexit
deflation to post Brexit inflation.

 Negative Impact- It leads to rise in prices for food imports from other country which is
expensive for TESCO.
Economic Factors- It determines performance of economy and company that are
measured in terms of economic growth, inflation rates, disposable income of consumers,
inflation rates, unemployment rates and many more. Brexit has impact on economic growth rate
of TESCO due to several factors. They are as follows: Positive Impact- Due to presence in global market and diversification leads to success of
TESCO at marketplace which helps them to rise 27.7% share in UK grocery market
(PESTLE Analysis of Tesco, 2019).
 Negative Impact- The Brexit leads to slow down consumer spending because of many
factors that leads to decline in profits of TESCO organisation.
Social Factors- It presents demographics norms, value, customs of population within
which organisation operates their business activities and operation. This includes growth rate,
income distribution, career attitudes, health conditions and others. The change in lifestyle of
people leads to change in their buying capacity that impact profits of respective organisation. Positive Impact- The respective organisation can bring innovation and fulfils need and
demand of consumers in proper manner so that they can earn high profit margins.
 Negative Impact- If TESCO fail to fulfils changing requirements of consumers then it has
to face loss and difficult to survive in that place.
Technological Factors- Such factors represents innovations in technology which impact
on operation of industry and create favourable as well as unfavourable market situations
(Sodeyfi, 2016). It includes level of innovation, research and development, automation and so
on. TESCO has adopted technology in their business which create easiness for consumer to buy
product from any parts of the world. Positive Impact- TESCO follows technology in business which includes automated and
superfast delivery for reaching to final consumers which leads to rise in goodwill and
brand value of organisation (PESTLE AND SWOT ANALYSIS OF TESCO 2016-17,
2019).
 Negative Impact- Due to lack of adoption of latest technology in business has impacted
sales of TESCO organisation at marketplace which also decline profits as well as sales of
business.

Environmental Factors- These factors are important because of rise in scarcity of raw
materials, carbon footprints and so on. It includes weather, climatic changes and many more. Positive Impact- TESCO has encourages their consumers for shopping at tesco.com
where drivers will not have to use fuel saving routes as they collect unwanted plastic bags
from user and recycling them.
 Negative Impact- Recently, TESCO is facing demand for zero waste supermarkets as
food waste which is increasing and impacting retail sector. As it has not adopted such
environmental care in their business.
Legal Factors- In order to run business activities and operations, legal laws such as
employment, protection, copyright, patent, antitrust should be followed in business operations
(Swarbrooke and Horner, 2012). The change in such laws affect performance of TESCO for
achievement of objectives. Positive Impact- The positive impact is that TESCO conduct their business operation as
per Food Retailing Commission (FRC) which is strict code of practice.
 Negative Impact- The respective organisation has faced misleading investor and
accounting frauds issues where they have to pay GBP 12 million in order to settle legal
action.
TASK 4
P5 Internal and external analysis in order to identify strengths and weaknesses
In order to identify strengths and weaknesses of business, it is very important for
organisation to conduct SWOT analysis (Yoon, 2012). It is defined as framework of business
that leads to analyse and identify internal as well as external factors that impact on product,
project and operations of organisation. This includes strengths, weaknesses, opportunities and
threats of business and individuals. The SWOT analysis of TESCO are as follows:
Strengths Weaknesses
Biggest Grocery in UK- TESCO is regarded
as leading grocery retail as well as supermarket
organisation in UK. It is earning high revenue
and sales as comparing to others. In 2018,
operating cost rose to 28%.
Failed Operations in Japan and US- TESCO
was exit from market of Japan and US in 2012.
It has failed in export operations that forced to
close stores in US after 5 years and Japan after
9 years (TESCO SWOT Analysis 2019 | SWOT

analysis of TESCO, 2019).
Opportunities Threats
Online Shopping- TESCO has an opportunity
to upgrade and grow online shopping business
and home delivery services. This leads to rise
in profit, success and growth of business in
appropriate manner.
Competition- The main threat which TESCO
is facing is due to performance and growth of
their competitors such as WalMart, Aldi and
so on.
P6 Explain how strengths and weaknesses interrelate with external macro factors
It is very important to analyse strength and weaknesses which are related to macro factors
in an effective and efficient manner. The above discussed macro factors carries strengths and
weaknesses of respective organisation which are given below:
External Macro Factors Interrelation
Political Factors Strengths- Increase in profit margins
Weaknesses- Price increase in food exports and become
expensive for organisation
Economic Factors Strengths- Strategies leads to success business along with rise in
market share.
Weaknesses- Slowdown consumer buying power due to Brexit
Social Factors Strengths- Meeting consumer's requirements
Weaknesses- Failure to meeting demand leads to decline in
profits.
Technological Factors Strengths- Superfast and automated delivery services
Weaknesses- Failure to adopt latest and update technology
Environmental Factors Strengths- Shopping through tesco.com to save environment
Weaknesses- Demand of zero waste impact business.
Legal Factors Strengths- Following of legal laws and regulation
Weaknesses- Misleading activities decline brand value and

goodwill
CONCLUSION
The presented report concluded that business has to analyse market to achieve goal and
objectives. As per scenario, three organisation such as public, private and voluntary has chosen
along with their types, purpose, size, scope and legal structure are discussed. There should
interrelationship with each and every department for positive outcomes. The PESTLE and
SWOT analysis has conducted to know about impact of organisation for knowing positive and
negative impact that leads to improve in best manner. The strengths and weaknesses interrelate
with external macro factors helps to grow and sustain at marketplace.

REFERENCES
Books and Journals
AGBOLADE, O. K., 2014. The impact of business environment on the survival of small scale
businesses in Nigeria.
Avramenko, A., 2012. Enhancing students' employability through business
simulation. Education+ Training. 54(5). Pp. 355-367.
Babu, K. V. S. N., 2012. Business intelligence: Concepts, components, techniques and
benefits. Components, Techniques and Benefits (September 22, 2012).
Bah, E. H. and Fang, L., 2015. Impact of the business environment on output and productivity in
Africa. Journal of Development Economics. 114. pp.159-171.
Ballard, C. and et. al., 2012. Dimensional Modeling: In a Business Intelligence Environment.
IBM Redbooks.
Belás, J., and et. al ., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
Epifanova, T. V. and et. al., 2015. Modernization of institutional environment of
entrepreneurship in Russia for development of innovation initiative in small business
structures.
Oriesek, D. F. and Schwarz, J. O., 2016. Business wargaming: securing corporate value.
Routledge.
Palepu, K. G. and Healy, P. M., 2013. Business analysis and valuation: Using financial
statements, text and cases.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150.
pp.35-45.
Sena Ferreira, P. and et. al., 2012. Framework for performance measurement and management in
a collaborative business environment. International Journal of Productivity and
Performance Management. 61(6). pp.672-690.
Sodeyfi, S., 2016. Review of literature on the nexus of financial leverage, product quality, &
business conditions. Journal of Economic & Management Perspectives. 10(2). pp.146-
150.
Swarbrooke, J. and Horner, S., 2012. Business travel and tourism. Routledge.
Yoon, J., 2012. Detecting weak signals for long-term business opportunities using text mining of
Web news. Expert Systems with Applications. 39(16). pp.12543-12550.
Online
PESTLE Analysis of Tesco. 2019. [Online]. Available through:
<https://www.marketingtutor.net/tesco-pestle-analysis/>.
PESTLE AND SWOT ANALYSIS OF TESCO 2016-17. 2019. [Online]. Available through:
<https://www.123writing.com/sample/pestle-and-swot-analysis-of-tesco-2016-17>.
TESCO SWOT Analysis 2019 | SWOT analysis of TESCO. 2019. [Online]. Available through:
<https://bstrategyhub.com/tesco-swot-analysis-2019swot-analysis-of-tesco/>.

1