Business Environments: A Comparative Study of HSBC and Tesco

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ORGANIZATIONS AND THEIR ENVIRONMENT
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Table of Contents
Introduction......................................................................................................................................3
1. Organizational types and purposes of businesses from a range of sectors..................................4
5. An understanding of the requirements of a variety of stakeholders to the chosen organization. 7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
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Introduction
The term business environment is considered as the sum total of internal and external factors
which can influence any organizational business. Both the internal and external factors are
responsible for influencing one another and working together for affecting a business. Hence, the
particular study focuses upon different organizational culture and their environment. It highlights
the comparison of different types of organizations in terms of the business environment.
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1. Organizational types and purposes of businesses from a range of sectors
Business organizations also influence the management of business process that covers the
lifecycle of many phases. Regarding the conduction of the present study, two types of
organization have been chosen from different sectors. One of the organizations is HSBC Banking
Group from the financial sector and the other organization is Tesco from the retail sector. HSBC
Banking Group and Tesco Plc are both private sector organizations.
Name of the organizations
and its overview
Organizational Types Purpose of Business
HSBC Holdings is considered
as a multinational banking
company of Britain and
provides financial services to
the customers (Hsbc.co.uk.
2019). However, it is
considered as the largest bank
and consists of the 7th
position within Europe. It is
headquartered in London,
UK. The company has 3,900
offices within 67 countries.
Moreover, the particular
organization is organized
between four groups of
business that is commercial
banking, global banking,
wealth management and retail
banking along with global
There are certain major
categories based on the
financial sector organization
(Calabrese et al., 2018). These
categories involves commercial
and central banks, retail banks,
credit unions, loans and savings
associations as well as internet
banks, and similar others.
However, a financial sector is
known to be a section based on
the economy that is made up of
institutions and firms that can
provide financial services to the
retail and commercial
customers.
HSBC is considered as the
largest bank that provides
banking and financial
services within the world. It
operates in 66 countries
along with territories. The
purpose of this particular
organization is to be in a
position wherever the
growth is. It also enables
businesses to thrive the
economies for the reason of
prosperity and also aims to
ultimately help the people
for fulfilling their hopes as
well as realizing the
ambitions.
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private banking. Hence,
mission of the respective
organization is to be valued
through the customers for
providing reliability,
competitive solutions and
comfort. On the other hand,
the vision of the company is
to become an energy firm
associated to world reference
regarding excellence.
Tesco Plc is a retail company
dealing in groceries and
merchandise, headquartered
in United Kingdom and
operating globally
(Tesco.com. 2019). It consists
of the third position within the
world and measured through
the revenues. However, the
organization comprises of
shops within seven countries
around Europe and Asia. It is
also termed as the market
leader based on groceries in
UK. Mission of this
organization is to make
whatever matters better
together. The values, vision
and mission of the particular
A retail sector organization
specifies a part related to the
economy which is made up of
some businesses that are
responsible to sell goods from
stores and internet and similar
other sources to the public
(Goldstein et al., 2019).
However, the share prices
within the retail sector are
known to drive through the
takeover activity. The retail
industry seems to be dominated
by the supermarkets and is
closely followed by the internet
retailers as well.
The businesses of Tesco
have been built along with a
simple mission that is, to be
the champion in context of
the customers and helping
them for enjoying their life
in a better quality so that,
the customers could find an
easier way to live. Hence,
within UK, the particular
organization serves 66
shoppers in every second.
Thus, the purpose of the
present organization is to
ensure each individual from
the customers about their
best experiences through
providing better service for
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organization are interrelated
and also operate for shaping
the company identity.
each visit.
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5. An understanding of the requirements of a variety of stakeholders to the chosen
organization
Stakeholders are the people who can get affected through or can have an effect within an effort.
This involves the individuals who consist of a strong interest for the effort related to the
philosophical, academic and political reasons (Teece, 2018). Hence, different stakeholders have
different requirements from the organization. The requirements of stakeholders for both the
organizations are mentioned below:
Stakeholders HSBC Holdings PLC Tesco PLC
Primary
Stakeholders
Primary stakeholders are termed as
the group of people who are affected
directly whether negatively or
positively through the actions of any
institution, agency or rather
organization (Das and Kundu, 2018).
Hence, the stakeholders of this
particular organization are
community members who consists of
minimum interaction, customers,
competitors, employees, business
customers and similar others.
In many cases, primary stakeholders
within both sides of any equation,
that is a regulation can benefit one
group, which may consist of negative
effect upon another. Hence, the
primary stakeholders of Tesco are the
internal stakeholders such as owners,
employees and the people who can
get affected by the change of rules
and policies within the company.
Secondary
Stakeholders
These stakeholders are the group of
people who can get affected
indirectly (Tallman et al., 2018). The
secondary stakeholders of HSBC are
termed as clients, employees,
Secondary stakeholders never engage
in direct exchange of economy. The
secondary stakeholders of Tesco can
be termed as general public or the
customers, groups of business support
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regulators and other business
customers.
and activists groups and many more.
Key
Stakeholders
Key stakeholders does not belong to
the above two groups, rather these
people can get affected whether in a
negative or in a positive manner. The
key stakeholders of HSBC are termed
as the director of the organization,
line staffs, Investors and similar
others.
In case of Tesco, the key stakeholders
can be termed as market supervisors,
employees, business partners and
many more individuals who are
related to the organization.
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Conclusion
Based on the above discussion, the present study has been focused upon different types of
organizations that belong from financial and retail sector. Types and purposes of the organization
along with both the sectors have been discussed in the above study. However, the types of
stakeholders have also been highlighted for different sector organizations. Hence, it can be
concluded that, the business environment of any organization plays a vital role to make a
company stable and develop for the long run.
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References
Calabrese, M., Iandolo, F., Caputo, F. and Sarno, D., 2018. From mechanical to cognitive view:
The changes of decision making in business environment. In Social Dynamics in a Systems
Perspective (pp. 223-240). Springer, Cham.
Das, S. and Kundu, A., 2018. Individual and business environment: How effective interaction
affects sme development. International Journal of Engineering and Management Research
(IJEMR), 8(4), pp.101-113.
Goldstein, A., Johanndeiter, T. and Frank, U., 2019. Business process runtime models: towards
bridging the gap between design, enactment, and evaluation of business processes. Information
Systems and e-Business Management, 17(1), pp.27-64.
Hsbc.co.uk. (2019). Welcome to HSBC UK banking products including current accounts, loans,
mortgages, credit cards. Also Premier and Advance banking and more…. Available at:
https://www.hsbc.co.uk/ [Accessed 21 May 2019].
Tallman, S., Luo, Y. and Buckley, P.J., 2018. Business models in global competition. Global
Strategy Journal, 8(4), pp.517-535.
Teece, D.J., 2018. Business models and dynamic capabilities. Long Range Planning, 51(1),
pp.40-49.
Tesco.com. (2019). Tesco Groceries | Online Food Shopping & Delivery | Order Food Online -
Tesco Groceries. Available at: https://www.tesco.com/groceries/ [Accessed 21 May 2019].
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