Business and Environment Report: Tesco, NHS, and Oxfam Analysis

This report provides a comprehensive analysis of the business environment, focusing on three organizations: Tesco (private), NHS (public), and Oxfam (voluntary). It begins with an introduction to the business environment, including external elements like customers, suppliers, and government policies. The report then explores the different sizes and scopes of organizations, examining their purposes, legal structures, and stakeholders. Detailed analyses of Tesco, NHS, and Oxfam are presented, covering their products, services, vision, and mission. The report also explains the relationships between organizational functions and structures, and discusses the positive and negative impacts of the macro environment on business operations. Finally, it examines the legal structures of private, public, and voluntary organizations. This report aims to provide a detailed understanding of the business environment and the factors that influence organizational success.

Unit 1: Business and the Business
Environment

Table of Contents
INTRODUCTION.....................................................................................................................................3
LO1 Different size and scope of organisations..................................................................................4
LO2. Explain relationship of functions with various organisations and their link with instigator
structure. .........................................................................................................................................9
LO3 Positive and negative impact of macro environment on business operations. ......................12

INTRODUCTION
Business environment refers to combination of external elements which have a effect
on every business it includes various element include customers, suppliers, supply, demand
and so on. There are many activities which are implemented and decisions related to those are
taken by government. Such include governmental policies, exchange rate policies,
technological advancements and many others(Ricciardi, Zardini and Rossignoli, , 2016). It is
identified that business environment is very helpful in analysis of available resources and
opportunities in business. In this report Tesco is chosen as a base organisation which is
leading brand of super market in UK. In case of voluntary organisation Oxfam is select and in
public sector BBC has been chosen as base company. Various aspects which has been
discussed in this report are scope & legal structures, interrelation between various
organisation functions. There is negative and positive impact of external environment on
various operations of business. Internal analysis of organisation is done to identify strength
and weakness of organisation and lastly strength & weakness with external factors are
discussed.

LO1 Different size and scope of organisations.
Organisations are categorized in various different structures based on objectives
according to profitability. Different types, scope and purpose is described below:
Public organisation: this is that organisation which is controlled and owned by government
in a country. They are providing best services to customers to enhance their image and
position in market. In this report NHS has been considered as a public sector organisation
(Saleem, 2017). National health service was established in 1948, they have a motive to
increase health service to public.
 Purpose: National health service is a organisation which has been established with a
aim that they will be providing free of cost services of healthcare to individuals of a
country. The major purpose is that they are willing to offer effective and best service
to people so that their health can be improved and taken care.
 Legal structure: In all public organisations major decision have to be taken by
government. In case of NHS, all such decision are taken by state government and
local government. Top authority is government in case of all public organisations.
 Stakeholders: These are those who are related to functions taking place ion
organisation. It includes all individuals who are affecting profitability of a particular
organisation. Various stakeholder are staff members, employees to all levels,
creditors, debtors and many others who are related to organisation directly or
indirectly (Teece,2018).
Voluntary service organisation: It is those organisations which initiate programs and
various projects for a particular objective. Voluntary service overseas is a voluntary
organisations in this report. These refers to group of individuals who are working on
achievement of a common objective. These can be of both types unincorporated or
incorporated. They are providing various services to individuals as a charity organisation
having a aim to reduce and remove poverty in the countries in which they are having
operations.
 Purpose: the main objectives is giving assistance to those who are suffering from
poverty so that various prevailing issues can be solved. These are types of NPO,
which is related to upliftment of people.
 Legal structure: These organisations are operated by trusts and they make use of
funds available with them which are willingly contributed by people. They are having

unincorporated association so that they are bale to initiate projects n a short period of
time.
 Stakeholders: these are those who are interested in overall functionality of
organisation. It includes those individuals who are having association with
profitability. It includes founder, all the employees and others. Additionally, there are
many different types of stakeholders includes project team, project members, sponsors
and others(Trad, , 2015).
Private organisation: It is that organisation which has partners, individuals and agencies.
They are not a public body and hey have a major aim of earning profits. In this report TESCO
has been chosen as company which is a private entity dealing in selling of all types of grocery
pro0duycts. They have employees in organisation so that they rae able to effectively run all
their business operations.
 Purpose: Tesco is a private company which is dealing into sales of groceries across al
parts of world. Its headquarters are present in Garden city, UK and its foundation was
laid down by Jack Cohen. This company was established with a sole motive of
providing best services in a reasonable prices to their customers. they are bale to
create a effective brad image with the quality of products which they are offering.
 Legal structure: Legal structure of all private organisation Private organisations
depends on top authorities which are CEO and board of directors. They are
responsible for taking all major decisions related to legislation and laws of the
organization which govern overall functioning. In Tesco all functions are depend on
top authority which can be communicated to employees & subordinates, all major
decisions affect productivity as well as profitability at same time.
 Stakeholder: These are employees, investors directors, shareholders, customers,
government , employees, trade unions who posses direct or may be indirect effect on
overall functioning of company. Performance of a company is majorly affected by
behaviour of those stakeholders in TESCO(Trad, , 2015).
Organisations have particular business activities which are performed in a particular
way. There are basically three types of organisation such a private, public and voluntary. The
overall size & scope is discussed in detail:
Private organisation TESCO:
This is a British multinational store dealing in various grocery items and is a also a
merchandise retailer. Its headquarters are located in England. It is third largest retail giant
across various countries. There are many functions which are discussed in detail:

Product and service: This company is having a diverse range of products which are
according to requirement of customers. TESCO has a very large customer base and they are
having very high sources of revenue as they are touching various different product segment
such as superstore, supermarket convenience stores. Major products include food &
beverages, beverage, financial services and many others.
Size and scope: There is a very wast scope as Tesco is offering quality products which
is differentiation advantage for this brand. They are having around 7000 stores across globe.
In all their stores Tesco is providing same quality of product and services. At same time they
are believing in having high satisfaction level of their various stakeholders such as customers,
employees, and all other related stakeholders of company.
Vision and mission: TESCO has a mission
vision of TESCO is to be one of world's biggest retail giant in coming years. They are
believing in focussing on modifications accordance with changing preferences of customers.
They want to achieve effective growth in a limited period of time.
Public organisation: NHS
In this report NHS has been considered as a public company which is dealing in
improvement of health and providing health related services to people of society. It was
established in year 1938, in war in England. This means providing effective health care
treatment to this company is controlled by government.
Product and services: According to NHS, they are providing various health care services top
people of society. The main principle of this company is free of cost services to people who
are suffering from various health issues.
Size and scope: The present working staff is around 18,000 in number in the year 2019.
There are many issued which are prevailing in external environment such as BREXIT
because of which employees are leaving country as they are not feeling safe. There is huge
scope as NHS is planning for expansion by hiring more employees and they have to be
provided training so that they can work according to requirement of company (Prajogo and
Oke, 2015).
Vision and mission : Vision statement of company is to make people live a more healthy life
and a better lifestyle. Another vision is to provide coordinated and effective health care to
people who are visiting their hospitals.
Mission of this company is to facilitate customer with excellent level of services
which they can be provided including their families. Company wants to provide their

customers with outstanding services and they want that employees are treated with respect
and dignity along with their customers.
Voluntary organisation: Voluntary service overseas, is a voluntary organisation which is
having a major objective of preventing poverty and helping those who are suffering from
very bad
Product and service: They are providing services related to helping people so that people are
able to learn how to survive in extreme condition of poverty (Pearson, 2017).
Legal structure:
Size and scope: There are around 76000 Volunteers who are part of this company and they
have come together to fight poverty. The gap between rich and poor is increasing with a very
fast pace which means that this company is having a large scope of growth in coming years.
Vision and mission: They are having a mission statement “ to bring people together so that
they are bale to fight with marginalisation and poverty” . The vision statement of this
company is“ To have a world without poverty”(Oriesek and Schwarz, , 2016).
Private organisation
These are organisations in which government
is not having any role and owned by some
private entities.
Public sector organisation
These are those organisation which are
managed and owned by government of a
country and they all come under a separate
ministry.
Profit organisations
These organisation are having major aim to
achieve maximum profit and maximize their
profit percentage.
Not for profit organisations
These are made up for a purpose of not
earning profit but they want to achieve their
other laid objectives which is not to earn
monetary profits.
Voluntary organisations
This is organisation in which all functions are
carried on by volunteers for achievement of
their major objectives.
NGOs
NGO is a non governmental organisation
they raise their funds with help of
government but for their functioning they
don not require government council.

Legal structure in Private sector organisations
Legal structure
meaning
Advantages Disadvantages
Sole trader This is a organisation
which is operated and
all functions are taken
care by a individual.
He is solely
responsible for all
profits, losses, risks
and is sole authority
who is managing and
controlling business
functions.
A single individual
has sole responsibility
of managing business
operation's and
functions. This helps
in smooth functioning
of a sole
proprietorship form
of venture.
A person has to bear
all losses, payment of
taxes and all other
liabilities have to be
borne by a single
individual which
leads to difficult in
management of
functions by sole
proprietor.
Partnership This is a form of
business in which two
or more partners
come together to start
a own business.
Merits of partnership
form of business is
that there is ease in
formation and
flexibility which can
help in smooth of
conducting of
business operations.
There is a
disadvantage that
many times there are
conflicts between
partners which can
impact the business
in a negative manner.
corporations A company is a form
of legal entity which
is formed by a group
of individuals who
are engaged in a
business operation. It
is separate from its
owners and is a
artificial person in
eyes of law.
There is a
diversification which
can be done in
companies, they are
having a list of
objectives which they
have to fulfil which is
beneficial for society
and people working
in the company.
There are many legal
formalities which are
required to be done to
start a company and
various documents
suxch as MOA, AOA
has to be formed
which laeds to lot of
work to be done by a
person who is willing
to start a company.
LO2. Explain relationship of functions with various organisations and their link
with instigator structure.
Organisation has different departments in which all the operations are being
performed in a particular manner. It is a process in which every individual has their own set

of responsibilities. Major functions include human resource, marketing, customer services
and others. Various functional departments such as marketing, finance, human resources are
having high interrelation between them which are described in detail:
 Sales & Marketing: Marketing department makes various strategies to sell goods and
services. The sales department helps and assists marketing department in providing
them feedback and review regarding what all improvements are required to be made
in products or services which organisation is dealing. This interrelationship is helpful
in increasing productivity of these individual functional unions. sales function relies
on marketing department in terms of what are expected sales. According to such
forecast future sales are predicted in company.
 HR & Operations: Human resources and operational department has a strong
interrelation as the operations department analyses operational requirements of their
employees and then according to that they should form various strategies
(Ledgerwood, 2017). Based on requirement and skills of employees for various
operations in company selection and recruitment is done by the human resource
department. Job description and job role is also prepared according to information
being provided by operations department of a company.
 IT and Finance: Every company wants to have updated technology so that they are
able to provide a competitive advantage to their competitors. In case of Tesco also
this company always aims to go ahead with technology so that they are able to
achieve their objectives in a more effective manner in terms of cost and operational
effectiveness which is necessary for increasing profit margin of company. IT
department is always willing to update the organisation with latest technology but this
has a requirement of lot of finance which is always approved by finance department
of company.
The vision and mission of every organisation is common for every department whether it is
finance, human resource, marketing, research and development or any other. Such objectives
can be achieved if there is proper coordination amongst all such departments. In Tesco, sales
and marketing departments helps the production department in analysing customer
requirements and expectations. This will help in formulation of strategies in a more effective

way. Human resource department recruits people according to requirements of various other
functional departments which helps in having right employee according to right job profile.
Organisational structure: This is structure which defines different activities and functions
which employees have to perform. Structure helps in analysing way of flow of information
and understand accountability level. Various authority, roles, duties and responsibilities can
be analysed with help of such structure of organizations. Different structure is adopted by
every organisation according to their suitability (Holotiuk and Beimborn, 2017).
Divisional structure: This is a structure which is divided according to serviced and lines of
product which is being offered by company its operation's and flow of resources takes place.
Matrix structure: This is a type of structure in which a person is accountable to more than
one person. In this overall relationships managers and subordinates in a matrix.

Functional structure: This is a type of structure in which various segments are divided
based on specific functions which are being performed and carried on in the company. Tesco
has adopted this structure in which organisation is divided according to various functional
division p-resent in company. Functional divisions are made based on specific functions such
as human resource, finance, marketing, research and development and others (Grizane and
Jurgelane, 2017).
Pre-bureaucratic structure: It is mostly used by small companies and its structure is wholly
centralized. This structure help companies to solve tasks in an appropriate as well as
effective manner. In this one on one interaction takes place and the decisions is taken by the
leaders of the company.
Bureaucratic: This structure is followed by the large organisations and its structure is
pyramidal. In this the information flow from top to down and the top managers has the
authority to take decisions. In addition to this, the job responsibilities & rules are clearly
defined and written down to the subordinates. The managers know what their rights and
power is to take decisions.
Post-bureaucratic: The standards are developed and the hierarchy is strict in these structure.
It consist of board members. On the basis of consensus & dialogue the decision are taken
rather than command and authorities. It influence employees to make participation and
buildtrust of the subordinates. Post-bureaucratic structure mostly used in non- profit
organisation as well as housing cooperatives.

LO3 Positive and negative impact of macro environment on business
operations.
TESCO is a multinational company which deals in general merchandise and groceries. It
is one of the leading retail chain in UK and operating its stores in more than 13 countries.
Tesco also provide services such as mobile, insurance, finance, hardware services and so on.
The companies operations, functions is affected by the external factors which directly affect
organization objective and success. The factors which is not in control by the managers of the
organization are macro factors. Macro factors include competitors, political, environmental,
social, technological , legal and economical factors etc. These factors are described in detail
below:
Political factor: Political factors consist of tax rates, political stability, government
intervenes, legal aspects and so on. With reference to Tesco, the company is operating
worldwide and other countries affects its performance. The world is facing financial
instability and want retailers to create employment opportunities for domestic population.
The manger of Tesco create opportunities for domestic public which in turns increase its
productivity and leads to high sales(Doh, McGuire and Ozaki, 2015). Positive impact: The political stability of UK is good which positively impact the
working of company. If the Government will make make trade agreement with other
countries will posses a positive impact on sales of Tesco. Negative impact: International wars and relationships impacts negatively the
functions of TESCO.
Economical factor: Economic factors directly affect the economic conditions of the
country. It includes employment rate, exchange rate, inflation rate, interest rate and so on. In
context to TESCO, the company adopt the strategies of diversification and
internationalization which leads company a big success. The income of the citizens get
declined and due to this the company start spending more money on advertising rather then
focusing on luxurious items. Positive impact: Economic conditions of UK is strong which makes TESCO to
generate good revenue. It helps company to increase jobs and uplift the standard of

individuals. Rise in population because of migration will lead to availability of more
skilled labor. Negative impact: The rising labor cost is high which negatively affect the profit of the
company. There may be dissatisfaction among the exiting workforce of new hired
employees are more competent.
Social factor: This factors consist of the value, culture, beliefs, tradition, perception
of an individual. With references to TESCO, the company started producing product
according to thecustomers demand and preferences. For instance, now the people are more
concerned towards their health, TESCO started focusing on producing organic food for its
customers. Positive impact : social factors help company to satisfy their customers and increase
its reputation in the market which makes consumer to remain loyal towards the
company. When there will be increase in trend then it will have a positive impact for
Tesco and this will lead to increase in their overall sales. Negative impact: social factors forces organization to contribute in CSR activities
which sometimes negatively affect the organization(Dimitriu and Matei, 2015).
Technological factor: Innovative and new technologies adopted by the organization
in order to attain the objectives of organization timely. Advancement in technology directly
affect the productivity and performance of the organizations. In context to TESCO, the
company invest in Energy efficiency project in order to reduce carbon footprints. Positive impact: New technology help companies to provide high quality services to
its customers which directly influence the customer and in turns increase profitability
of the company. Growth in e-commerce has lead to saving of time and has result in
increase in effectiveness in functions of a company. Negative impact: Adoption of innovative technologies regularly affect the cost of the
organizations which will reduce the level of revenue and profitability of the
companies. When new technology will be implemented if tesco will start its online
operations then there is lot of financial investment is required.
Legal factor: In this factor there are many legislation and laws which has a major effect on
overall functionality of every business organization. It relates to various laws related to health
& safety, laws related to discrimination have to be compulsorily adopted by Tesco. This leads
to improvement n the way work is being managed and employees are treated in organization.
Adequate safety is provided to staff members because of such laws this leads to positive and
improvement in performance level of employees.

Positive: This will help in creating a positive environment in workplace which will enhance
effectiveness in performance level of employees who are working in company. Goodwill will
increase as adoption of all legal laws will lead to people developing trust on company.
Negative: there are many legal complications in organization and if it is changing very
frequently then this will affect overall level of growth and profitability in company
(Corcoran, and Gillanders, 2015). If there is a new law which is related to restriction on
immigration of people then it will effect the company in a negative manner.
Environmental factor: This is a factor which is related to operations of a company
effecting the external environment in which they are functioning. In respect of TESCO it can
be said that managers are adopting technologies which is changing with time so that they are
able to contribute towards environmental protection and at same time there is smoothness in
overall functioning of company. Positive Impact: Environmental factor has a major positive impact in a way that it
will help in increased contribution towards having a safe environment. With this
factor a sense of responsibility is developed in the whole organization and also among
employees as individuals which helps in increasing a positive contribution towards
saving of environment.
 Negative impact: Whenever a company is willing to adopt Eco friendly techniques it
has a huge impact in terms of increase in overall cost of operations for company. This
leads to decrease in margin of profits (Bashir and Verma, 2017). There are policies
made for reduction in usage of plastic this will lead to lot of changes being made by
manufacturing process in Tesco.