Business and the Business Environment: Tesco Report and Analysis

This report delves into the intricacies of the business environment, exploring different organizational types, their structures, sizes, and legal frameworks. It analyzes the interdependencies between various functional units within an organization, highlighting their roles in achieving business objectives. The report further examines the positive and negative impacts of the macro environment using PESTLE analysis, and conducts an internal and external analysis of Tesco, employing SWOT and TOWS methodologies to evaluate its strengths, weaknesses, opportunities, and threats. The analysis links organizational structure, size, and scope to business objectives and product offerings, while also assessing the advantages and disadvantages of inter-functional relationships and their impact on organizational structure, ultimately providing a comprehensive understanding of the business environment and strategic decision-making.

BUSINESS AND THE
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.Different types and purposes of various organisations...........................................................1
P2. Size and Scope of the organisations.......................................................................................3
TASK 2............................................................................................................................................5
P3. Interdependencies of various functional units of the organisation on each other..................5
TASK 3............................................................................................................................................7
P4. Positive and negative impact of the Macro Environment......................................................7
TASK 4..........................................................................................................................................10
P5.internal and external analysis of TESCO..............................................................................10
P6. Explain how strengths and weaknesses interrelate with external macro factors.................13
M1. Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation...............................................13
M2. Analyse the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have upon organisational structure.......................................14
M3 Apply appropriately the PESTLE model to support a detailed analysis of the macro
environment within an organisation...........................................................................................14
M4 Apply appropriately SWOT/TOWS analysis and justify how they influence decision
making........................................................................................................................................14
CONCUSION................................................................................................................................15
REFERENCES..............................................................................................................................15

INTRODUCTION
Business environment plays an important role for the every firm as it helps to determine
the impact of various changes that an organisation faces in the path of conducting successful
business activities. Every company has to cope up with these dynamic changes that lead to create
an impactful resultant in the form of quality product and services which is required to satisfy the
needs and wants of the customer and to create profit in the investment which was done for the
production (Armstrong and et.al.,2015). The following report includes the description of the
types of the organisation their scope and size along with the legal structure of them. It also
includes determination of the dependency of various functional department of the organisation
along with the external and internal analysis of TESCO which is PESTLE and SWOT for
determining the impact of various aspects on the operations of the company. With this one can
get deep analysis of the organisational structure of the company.
Organisation can be categorised according to their ownership and sizes. According to
their ownership they can be categorised as private, public and voluntary along with that in
accordance with the size they can be small, micro, medium and large enterprises.
TASK 1
P1.Different types and purposes of various organisations.
There are various organisations which are public private and voluntary firms. They have
different aims and objectives and also have. The firms which are private have the basic aim of
earning profit and expanding their business so that they can generate lot of profit which not only
provides advantages to them but also give them opportunities for flourishing their business in
many aspects which are considered for the successful business. For them fulfilling the needs,
wants and requirements of the customer is the primary goal which provides the direction for
producing goods and services that are quality approved and provides a lot of satisfaction to the
customer. They seek for various opportunities for increasing their market share in the economy.
They have to compete with the customers in order to sustain in the market and continuously
work for the improvement of the firm in many aspects such as functional, operational and many
more.
Private Organisation
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The private organisation are owned by the individual or the group of individual who are
the stakeholders and take various important decision for the company (Botha, Kourie and
Snyman, 2014).
Public Organisation
The public organisation provides services to the people so that they can do the work for
various services that can provide quality services to the natives. These companies are owned by
the government or public bodies or has the maximum shares of the company along with some
private individual. The aim of these companies is to provide quality goods and services to the
customers. They does not have greed for earning profit or even expansion. They are strong
independent bodies which gets fund from the government for the process of production.
Voluntary Organisation
Whereas the voluntary organisation are just opposite as their aim is to do voluntary work
for the society which is very important for them as they have major goals for performing social
work to benefit the society by giving them something in return. They normally runs the business
performs every related activities but the profit which is earned from the business is not used for
them rather they so some charity or some donation so that thy can make the surrounding better.
The legal structure of these organisation is very different as the private company can be
owned and run by the individual . can be the sole trader or can have the company in partnership
or in private limited as the public organizations uses public limited. One can recognise these
companies through the owners and the type of limited after the name of the company. Under the
private organisation franchise also comes in which the company allows other individual to use
their brand name and provides various product and service to the customer under their name and
divide whatever the profit they earn. The individual by the company for using their band name
which is very important for the company. The voluntary organisations can be various non
governmental bodies or the charity houses which uses the donation provided them for the
running of business that benefits those who are in need. The advantages of the company is that it
works for the betterment of the society and provides opportunities of development to the people
who belong to those communities who seek for voluntary help for their survivals such as minors
(Epifanova and et. al.,2015).
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P2. Size and Scope of the organisations
The size and scope of the organisation which comes under the category of private , public
and voluntary can vary
The Medium Business
The medium business can run by the individual and the groups of individuals up to not
more than fifty individuals who can own the shares of the company. They does not have
employees more than two fifty. Also they can have companies on equal shares which is known
as the partnership or the variations in the amount of shares among the individuals. In the
organisation which is private limited has individuals less than two hundred fifty. These are very
important to know as it can create disputes among the shareholders so they their shares has been
concluded in the document which determines the status of the share amount whereas in the
private company which can all own the various government bodies or both the private individual
person where the government has more shares as compared to the private one. The number of
share holders can be more than fifty in the public firm and the voluntary organisation can be own
by the single individual as it is a small firm which is mostly a small scale business or a
nongovernmental organisations .The scope of all the organisation is very different which
completely depends upon the aims and objectives of the organisation. The private organisation
has the widest scope as they aim to expand their business not only in the country but across the
world. They have the global approach and tries to do business across the borders in order to in
more profit and recognition in order to increase the base of the customer and becomes a brand in
the mindset of all consumers so that they can get promoted very well.
The Large Business
The large business have wide scope as compared to the private firm as they mostly
operates across the political boundaries and tries to provide benefit to the native of the state or
the country and does not aim to reach across the border as they have aim to provide quality
services and products to their own people so that they can avail quality services (Epifanova and
et. al.,2015). These firms are mostly operated as the public limited who provides maximum
shares to the government so that they take funds from the investment from the public in order to
provide them several services.
Small Businesses
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The small businesses are those who have limited scope as they are mostly small scale
organisation which have people who belongs to the local community and promotes their culture
and them in order to provide benefit to them conducting various social services for their
betterment. Their scope is limited as they concentrate on the particular area where they operates
and provides employment opportunity to the people who lives there. But they also provides the
charity work to them , their funding is mostly operated though the donation and charity amount
which are given to them by the government or the individuals who wants to do some contribution
to the society as these organisation provides goods and services to the local level and earns he
respective profit from them for the use of the work which is related to the upliftment of the
society. Example for micro businesses can be beauty parlours, grocery stores.
Micro Businesses
These are that type of business which are set up by the individual and that operates in
local areas. These businesses are just carried in order to fulfil the living aspect and to earn
money. For example local vendors and small shops.
LEGAL STRUCTURE
1.sole trader
It is the type of enterprise which is run by a single entity who is the natural person, there
is no legal difference between the owner and the entity. For example micro firms.
2.Partnership
These companies are lead by two individuals or group of individuals which have equal
shares for example large firms who have various stakeholders
3.public
These companies are mostly run by government or , it has largest shares. For example
railways
4.Private
These companies are completely owned by the individuals such as big multinational
companies. For example Apple
5.Cooperative
These are the companies which are formed due to mergers that can be any two companies
who are working in a collaborative manner.
6.Franchises
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They are the subsidiaries in which other owner just uses the name of the brand in several
markets for example Burger King
7.Voluntary
These organisation are those which aims to provide social work such as NGOs.
TASK 2
P3. Interdependencies of various functional units of the organisation on each other.
Every organisation has several functional units which are related to each other and their
coordinative interrelationship lead to the effective functioning of the organisation in order to
accomplish the goals and objectives of the organisation.
There are several functional departments such as human resource, marketing and sales,
operations and financial department which together work for the successful conduction for day to
day business activities.
Human Resource Department
The human resource department works for the recruitment and selection of the right
candidate for the particular production that provides the individual who has complete calibre to
provide extra ordinary efforts for the company. They helps to make the working environment
peaceful and productive by establishing the efforts for the development of good relationship with
the employees. These individuals are the person who provides the one the opportunity for
accomplishing the objectives of the business. Human resource department works on the
continuous development of the skills of the worker by conducting various sessions for the
enhancement of their kills which are required for increasing the efficiency and effectiveness of
the work. Human resource basically think upon the aspect which provides employees to various
departments on right time and makes sure that there is no shortage of workers and even the
surplus which can lead to the wastage of the resources which are to be used.
Marketing And Sales Department
The marketing and sales department works on the making of the strategies for the
promotional as well as the selling of the bulk of products to the customer by attracting them
through various promotions and making tactics for the sales plan which includes the team of
individual which is provided by the human resource department (Savrul, Incekara and
Sener,2014). They provide various marketing plan which decide that lead to the generation of
the profit in the organisation and also provide the opportunity for the company to grow till the
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maturity stage and then sustain in the market by increasing the share in the economy of market
and compete with the rivals.
Operational Department
The operational department works on the production and operation where it includes all
the processes stating form the procurement of the resources, to their storage and transportation
along with the production with great efficiency. The number of lots of the product is decided by
the amount of demand which is decided by the marketing department for the production team of
the company. They work with the quality aspect of the services and goods which are provide on
time to the customers.
Financial Department
The most important department is the financial department which handles all the financial
aspect related to company in which they provide the calculate value of the success f the project
and the investment plan that requires some amount of investment which is provided by this
department and makes sure that company bear no losses and get complete profit in order to
flourish their business in the economy . The financial department is the building block of the
organisation as it provides the whole plan for the work in the financial term and is the basis for
the decision making of the board members of the company whose aim is to complete expand the
business in future aspect
inter relationship of departments 1
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TASK 3
P4. Positive and negative impact of the Macro Environment
There are several factors in the internal environment of the company which can be
Strength, Weaknesses, opportunities and the threat which can be impacted through the various
factor of macro environment for determining these factors one has to perform the pestle
analysis . The internal analysis is considered as the micro environment which is affected by the
macro environment simultaneously. A micro environment consist of its employees, suppliers,
customers who together constitute the environment of the firm.
Micro Environment
Micro environment consist of all the internal factors that affects the intenral surrounding
of a company.Some of them are discussed below:
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1. Customers
Providing satisfaction to the needs and wants of customers is the ultimate goal of an
organisation but their requirements change with time to time therefore affects production of a
company. For example product is made keeping in concern the needs and wants of the customer.
2. Suppliers
Suppliers plays dominant role as they facilitate to supply the raw materials which are
required in a process, along with that they have the negotiation power which sometimes leads to
delay in various operations. For example they can be transporters
3. Competitors
Competitors affects the position of a firm in a market and also lead to formation of
strategies which are needed to be implemented to improve the company's position in a market.
For example for a Apple company their competitors can be Samsung etc.
4. Distributors
They are responsible to distribute the final product from manufacturer to the end user
through various marketing channels. For example distributors can be retailers and whole sellers
There are several factors in the Marco environment which affects Tesco in every aspects
which can be positive as well as negative. After the conduction of Pestle Analysis one can
acknowledge the impacts of macro environment as below:
Political
The political factor can provide a great expansion to the business of the company f the
scenario is stable otherwise it can create worst impact on the company and even can lead to the
end of it.
Economic
The favourable economics factor can make the organisation financially strong which is an
important aspect of the company to be strong enough to hold any crisis in case of emergency.
The various aspect of the economy can lead to increase the share of the company in the market
making them the most leading company in the economy. Also the unfavourable economic factor
such as recession or deflation can lead to minimise the money floatation form the market making
the business very hard to run even can face liquidation which can lead to bear many losses to
company. The economy lead to the proper nourishment of the various organisation.
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Social
The societal aspects of the macro environment plays a very crucial role as the employees
belong to different social class who have varied economic status which lead to different needs
and requirements and also several cultural beliefs and thought that can provide hindrance o
various decision of the company on the basis of this it can led to tension by in the environment.
Also if the communities work together they can lead to effective adoption of various business
tactics which can lead to the formation of the impactful aspect on the society and the company as
well (Cull and et. al., 2015).
Technological
The technological updating is very necessary for every organisation in order to reduce the
human effort in the company. This lead to the effective check on the various transaction of the
company and reduces the human error but with the adoption of various technologies which are
completely advanced can led to the complexity in the working structure of the organisation.
Various innovative ideas for the processing of the goods can be adopted which can be reason for
producing goods which is very efficient in terms of quality and quantity as well but the main
problem with the adoption of advance technology can be the disagreement of the employee to
adopt these strategies which are very much effective .
Legal
The legal factors leads to the control for all the activities at the cost of following of
various rules under the regulating body such as courts. They makes sure that there is no
conduction of illegal activities that can harm the economy and provide various punishment to
those who breaks these policies and rules. Therefore a country were it has strict rules lead to
decrease in the business activities
Environmental
Also various environmental aspects can affect the working of the firm as the favourable
atmospheric events helps to conduct the various business activities successfully otherwise in the
unfavourable environmental condition can lead to disturbance in the activities of the business.
The worst climatic condition can lead to various ill effects on the company as the employees
would not get ready to working such environment where the conditioned are not appropriate for
the working. Also procuring various resources and sending them as the final product requires a
lot of efforts which has to be taken care. The more far the organisation that would lead to the
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development of various problems associated with the transportation that would lead to rise in the
price of the product thus affecting the consumer on the basis of these kind Of strategies that can
create harm to the good will of the company.
TASK 4
P5.internal and external analysis of TESCO
The PESTLE analysis is the external analysis of the organisation which is done to
determine the impact of the external factors on the working of the company. As the external
world is full of dynamic changes company has to make various strategies that cope up with the
these changes for the effective business management of the organisation. The PESTLE analysis
is discussed below:
pestle analysis 1
Political factor
Political aspect impact the organisation adversely which lead to the halt in the various
functions and operations of the company that provides them an opportunity to gain profit. The
political scenario of the company leads to the facilitation of various operations of the production
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