Business Environment Analysis of Tesco, Unilever, and Marks & Spencer

Desklib provides past papers and solved assignments for students. This report analyzes the business environments of Tesco, Unilever, and Marks & Spencer.

Business Environment 1
BUSINESS ENVIRONMENTAL ANALYSIS

Table of Contents
1. Introduction............................................................................................................................3
2. Explanation of Organization..................................................................................................6
Organizational Detail of Marks and Spencer.........................................................................6
Organizational Detail of Unilever..........................................................................................8
Organizational Detail of Tesco.............................................................................................11
3. Organizational Functions of Tesco by reflecting the organizational chart.......................13
4. Macro environmental analysis of Tesco...............................................................................17
5. Determine internal strength and weaknesses of Tesco and explain its relationship with
external macro factors..............................................................................................................20
6. Conclusion............................................................................................................................23
References................................................................................................................................24

1. Introduction
Business environment is the total of all internal as well as external factors by which the
business is influenced. The internal and external factors influence each other and work
together to affect the business. According to Adeoye and Elegunde (2012), business
environment can be defined as “the sum total of all institution, individuals, as well as other
forces that are not in the control of other business enterprise but there is a dependency of
business upon those forces. It is because it affects the overall performance as well as business
sustainability”. The forces include suppliers, competitors, consumer groups, media,
government, economic condition, market condition, trends, as well as other institutions.
The aim of the report is to investigate on three different organizations of UK and explain their
size and classification to highlight difference among them. For this report, Unilever, Tesco
and Marks and Spencer organizations of UK is selected. Unilever is the consumer goods
company in the UK and its products are such as food and beverages, cleaning agents, beauty
agents, and personal care products. Tesco is the multinational grocery company that is
located in the UK. It is one of the third largest retail companies in UK. Marks and Spencer is
the retailer company that is located in UK, London. Its products include clothing, home

products, and luxury food products. It also analyzes their legal structure size, scope, and their
stakeholders. The report also analyzes the functions of a selected organization.

2. Explanation of Organization
Organizational Detail of Marks and Spencer
Background: Marks & Spencer Group Plc is identified as the major British multinational
retailer that has it headquarter in Westminster, London. It has the specialization in selling the
clothing, home products, and luxury food products. Marks and Spencer have listed in
London Stock Exchange and similarly, it is determined as the constitution of the FTSE 100
Index (Marks and Spencer, 2018).
Products and Services: The focus area of Marks and Spencer is luxury things and it is
committed to making the each of the people special by its different products such as high
quality and own brand food, luxury clothing, and home products, etc.
Size and scope: As it is defined that Marks and Spencer is a multinational retailer that is
based in the UK. In this, it has around 1036 physical stores situated in the UK and at the same
time, it has approx. 428 other stores which are situated around the world. For these stores,
the company has employed around 81,000 employees in which 72 % are female (Statista,
2018). In addition, while concerning its scope, it is found that the company has a retail
business and the demand for it increasing day by day.

Vision, Mission and Business Objectives: The vision of Mark & Spencer helps it to work in
end congruity. In this, as per its vision, it gives a sense of hereafter and provides the guidance
in determining devising and scheme and at the same time, its vision is to create a platform
along with the same intent. Similarly, the company’s mission statement reflects that what
concern the administration has. At this time, the mission statement of Mark and Spencer is
“to inspirational quality accessible to other”. Apart from this, the key objective of Mark &
Spencer is to improve its leading in vesture and forte nutrient (Artscolumbia, 2018).
Organizational and legal structure: Marks and Spencer adopts the flat organizational
structure in which identified the limited levels of management between front-line employees
and the administrative level. This is used to encourage the employees to take part in the
decision making process. In addition, the legal structure of the company is crucial as it helps
to determine the financial impact of the business on the owner.
About the stakeholders: While concerning about the stakeholders of Mark & Spencer, it is
analyzed that employees, suppliers, government and the pressure groups society are its major
stakeholders who help it to get success within the target market.

Organizational Detail of Unilever
Background: Unilever was found as the British-Dutch transactional consumer goods
company in Sepetember2, 1929 that has its headquarter in London, UK, as well as in
Rotterdam, and the Netherlands (Unilever, 2018). In this, Unilever is considered as the
seventh most valuable company in Europe. Similarly, it is one of the oldest multinational
company and its products are available in more than 190 countries.
Products and Services: Unilever offers different kinds of products in which food and
beverages, cleaning agents, personal care products and beauty products. From these products,
Unilever has its revenue of around €50.982 billion in 2018.
Size and scope: In the context of Unilever, it is determined that the company owns around
more than 400 brands along with the turnover of €53.7 billion in 2017. Similarly, 13 brands
are also there with the sales of more than €1.00 billion. In addition to this, as of 2019, the
company provides employment around 155,000 people in whole the world. At this time,
Unilever owns the huge assets that have the worth of approximately €59.456 billion
according to the statistic report of 2018 (Statista, 2018).
Vision, Mission and Business Objectives: The vision and mission statement of Unilever are
determined as the basic foundation in concern of the success of the company in the area of

consumer goods business. In this way, the vision statement of Unilever is “to make
sustainable living commonplace (Unilever, 2018). We believe this is the best long-term way
for our business to grow.” In addition, the mission statement of Unilever is “to add vitality to
life. We meet everyday needs for nutrition, hygiene and personal care with brands that help
people feel good, look good and get more out of life.”
Apart from this, Unilever also has the blueprint in concern of sustainable growth. In this way,
the company has created the three key objectives that will essentially be achieved by it by
2020 (Young, 2017). These goals are to help around 1 million people for improving their
health and for their wellbeing, to enhance the livelihood of a number of peoples under the
supply chain and decrease the impact of an environmental footprint in context of the group’s
products.
Organizational and legal structure: The organizational structure of Unilever supports its
products development as well as innovation. In addition, it is found that the changes under
the consumer goods industry and the global market are adopted by the organizational
structure of Unilever. In this way, the company leads the structure for its business which
addresses the corporation need in the manner of maintaining the type of products across the

world (Unilever Group, 2018) Apart from this, the legal structure of Unilever has defined in
which it includes several legal aspects that are mentioned below:
(Sourced: Unilever Group, 2018)
About the stakeholders: In concern of the stakeholder of Unilever, it includes many people
such as consumers, employees, its potential investors, its suppliers and the communities of
the UK or other areas. For these stakeholders, the social responsibility strategy and the

corporate citizenship of Unilever prioritize its stakeholders as per their importance in the
context of the business (Thompson, 2017). According to its strategy prioritization, Unilever
keeps its customers on the highest priority.
Organizational Detail of Tesco
Background: Tesco was founded in 1919 by Jack Cohen like a group of a number of market
stalls but later it was converted into the British multinational groceries as well as general
merchandise retailer. Tesco has its headquarter in Welwyn Garden City, Hertfordshire,
England, and the United Kingdom. In addition, the key persons of Tesco are John Allan who
is the Non-Executive Chairman and Mr. Dave Lewis who is the group CEO (Tesco, 2018).
Products and Services: Tesco has the range of supermarket, hypermarket, superstores and
the convenience shop at which it includes several of products related to food, beverages,
household goods, home clothing, and Tesco mobile as well as financial services.
Size and scope: The size of Tesco cab be determined by this as it is considered the third
largest retailer across the world in terms of gross revenues and at the same time, it is also
considered as the ninth- largest retailer in terms of revenue that was £57,491 million in 2018
(Statista, 2018). In addition, Tesco has a number of physical shops in around seven countries

within Asia and Europe that is why it is identified as the market leader who covers 28.4% in
respect of groceries in the UK.
Vision, Mission and Business Objectives: Tesco is the company who enjoys the long term
success of the focused businesses because it has its core vision that remains constant when
the changes adopted by the company in its strategies and practices. In this manner, the vision
statement of Tesco is “to be the most highly valued business by the customers we serve, the
communities in which we operate, our loyal and committed colleagues and of course, our
shareholders” (Tesco, 2018). At the same time, the core mission statement of Tesco is “We
make what matters better, together”. Apart from this, the key objective of Tesco is to develop
the values towards the customers with respect to earn their lifetime loyalty. At the same time,
it also has the aim to become a leading retail supermarket and offer quality in its products.
Organizational and legal structure: As Tesco is the British multinational grocery and
general merchandise seller company so it needs an effective organizational structure that is
why it adopts the hierarchical organizational structure. Under this, the positions and liabilities
are divided into several parts for ensuring work efficiency and smoothness. Similarly, Tesco
is the big retailer so it has a lot of legal structure in which corporate governance, legal

responsibilities, legal services, etc. that serves the society and its stakeholders by different
manner (Meng, 2019).
About the stakeholders: In respect of Tesco’s stakeholders, it is reflected that company has
its key stakeholders such as its potential customers, employees, directors, managers,
suppliers, owner, creditors, government, workers, community, unions, etc. These
stakeholders of Tesco have direct or indirect positions under the organization and these are
affected by the rules and the policies of Tesco.
3. Organizational Functions of Tesco by reflecting the organizational chart
Tesco is a big multinational grocery and general merchandise seller company that needs an
effective organizational structure in order to organize its several different types of operations
effectively and efficiently. Due to its critical functions, Tesco adopts a hierarchical
organizational structure that helps it to operate its organizational functions and make Tesco
more growing. As per this structure, a number of positions and their liabilities are separated
into different pats for making sure about the efficiency of work (Meng, 2019). In this manner,
the person who is at the top of the business pyramid has the highest responsibilities as well as
authorities.