Business Environment Report: Analysis of Firms in Business Environment

This report provides an in-depth analysis of the business environment, focusing on different types of firms, including private, public, and voluntary organizations. The report uses Tesco, NHS, and Oxfam as case studies to illustrate the various aspects of these organizations. It examines their legal structures, missions, visions, products, services, stakeholders, and scopes. The report explores the key characteristics of each firm type, comparing their sizes, operations, and the roles they play within their respective sectors. Furthermore, it analyzes the different legal structures of private organizations (sole trader, partnership, private limited company), public organizations (local, state, and central governments), and voluntary organizations (unincorporated association, trust, charitable incorporated organization). The report also discusses the stakeholders of each organization, highlighting their importance in the success and sustainability of each firm. Finally, the report examines the size and scope of the selected organizations, offering insights into their market presence, operations, and future growth strategies.

Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY 1:...................................................................................................................................3
Explaining various kinds of firms..........................................................................................3
Examine the scope and size of various kinds of firms. .........................................................8
Critically analysis...................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business is one of the most important activity for making money or profitability by
producing goods and service by accessing consumers needs and wants in positive manner.
Business environment means a collection of individuals and groups with many other component
that may or not be in under control of an structure. All respective factors or attributes directly
affect on the function of organisation in both direct and indirect manner. In this report, Sainsbury
is going to analyse the investigation report of different size of multinational organisation.
Respective assignment rely on the Tesco which is a international grocer and well known
merchandise at world wide. This assignment is based on the various kinds and their mission of
sectors such as public, private and voluntary and their legal constitution. It also includes the size
and scope of kinds of various organisation for gaining potential outcomes. At last it includes the
kinship in between the structure and functions and their tie up with organisational subjective and
structures in critical manner.
ACTIVITY 1:
Explaining various kinds of firms.
Overview of organisation:
Tesco which is an multinational British groceries and retailer at world wide, headquarters
in England, United Kingdom. It is third sizable retailer in whole world in context of gross
revenue and ninth largest in world measured by revenues. It operates in seven countries such as
in Asia, Europe and kinds of leaders in the marketplace. In business environment there are
various kinds of organisation such as Public, private and voluntary organisation which exist to
serve various purposes in order to remain always competitive in the marketplace.
Various kinds of firms:
Understanding various kinds of administration and their important attributes very much
significant for business personalities to operate in successful style to build different kinds of
investigation reports. In business there are kinds of organisation that are as follows:
Private organisation:
Private organisation refers to the any person, partnership, corporation and association of
various agencies which are not work as an public body serve to earn profitability (Bah and Fang,
2015.). Private administration is the segment of national economy which is owned and controlled

by private individuals or enterprises. Respective section of assignment based on Tesco operated
with the large product portfolio in whole world.
Background details of firm:
Tesco which is established by the Jack Cohen in the year 1919 in the market of UK. It is
the giant chain of various products in sector of groceries and general merchandise at world wide.
Products and services:
Tesco have the large product portfolio by which they are serving the whole world by
accessing their needs and demands in proper manner (Erasmus, Strydom and Rudansky-
Kloppers, 2016. ). They major aim is to provide great taste as per their taste and preference of
consumers which is affordable in nature and healthy also.
Vision and mission of organisation:
Vision of Tesco to guide direction of an organisation and strategic directions to make it
possible. Organisation has the motive to build value by delivering best to consumers,
communities in which organisation operating and for hard-core and pledged association and
investor. Their core mission is to serve best to consumers by conducting research and
development. So their mission “ We make what matters better, together.”
Purpose:
The major purpose behind existence of Tesco is to serve consumers, community,
employees in order to conduct proper research and development.
Types and legal structures of private organisation:
Here are the list of private organisational structures:
Sole trader:
Sole trader is a business type which handles by an individual which required only small
kind of funds to set up and run it. Sole traders often opt waged employees and provide all the
finance by bearing risk factors. The example of sole traders are hairdressing, news agents,
market traders and many more that operate at small scale in initial level of business.
Partnership:
Partnership firm should be formulated to overcome from the concern of sole trader in
which group of association come into practice to practically implement their plans. In it 2 to 20
people work in association and every one accountable for the debts and profits occurs in whole
process.

Private limited company:
respective organisation is a type of joint stock organization in that business possess the
apart legal entity (Ievans and et.al ., 2017..). respective business have majorly small, family run
enterprise that are closely-held and direct by the investor. So all are the very much important
legal structures opt by the private organisation in order to build organisational culture in positive
manner.
Legal structure of Tesco:
Legal structure of Tesco have dynamic organisational structure in that are vary from one
another to make sure that business doing work in appropriate way. Their legal structure is
corporate governance in which they deal or operated through investors by setting goals and
objectives. It is a public limited organisation.
Stakeholders of organisation:
Tesco has a great list of stakeholders that are customers, suppliers, employees,
employers, local community, government that are majorly important deliverables in their
profitability and sustainability into the marketplace.
Public organisation:
Public sector is an organisation which usually comprised of firms that are operated or
owned by the government to provide services to masses (Hamilton and Webster, 2018.). The
public sector organisation chosen in respective project is NHS which were established in 1948 as
one of most social reformer and affiliated with health and social care. It majorly serves as the
funded medical and health care services for people who are living in the UK and other countries
too. They provide free services to the non residents of UK to serve people in positive manner.
Products or services:
The major products or services of NHS are Medicines, treatment of various diseases by
providing urgent and emergency care in their hospitals. They operate the NHS app, Gps system
to track the patients status and pharmacies to give proper knowledge to them. They also expertise
in mental and sexual health services and appointed various opticians to serve in best manner to
their patients.
Mission and vision of NHS:

Their mission and vision to provide care and services that patients and their families
actually want to use. Their vision is to give healthier and independent lives by quality services to
treat them well.
Purpose and values:
Their main purpose and values to establish in the marketplace is to serve in best manner
their patients by diagnose disease. Their core values associated with the care, respect and
communication in proper manner.
Legal structure of Public sector:
Public sector organisation have distinctive structure that are as follows:
Local government:
Respective governance is a public kind of structure which related with towns, cities and
nations consisted with both kind of county and municipal structures ( Hillary, 2017). Respective
kind of entities work collaboratively to administrative a specified geographical area or sphere. It
known for functions such as social care, housing and planning and waste collecting.
State government:
Respective governance is a sector of government that helps to create and apply
regulations and legislation. They are responsible for the administration of desires and wants of
consumers to remain always competitive in marketplace. They are majorly accountable for the
control administration in within state borders and modulate in context of local corporation.
Central government:
Central government is the supremacy which holds absolute power over a union territory
which have distinctive power at various authorised levels (Papilaya, Soisa and Akib, 2015.). Its
structure vary from country to country and their working methods. NHS come under the central
government as it possess supremacy power to control all activities.
The major charge of NHS come under England and the government of Scotland,
Northern Ireland and Wales look after them.
National institute for health and care excellence supply indication based knowledge to
organisation in order to maintain the quality of products and services by using the Health and
social care act 2012 for maintaining positive work environment and loyalty of consumers.
Stakeholders:

In their stakeholders includes the Dr., caregiver, operating surgeon, ambulance drivers,
skilled worker, paramedical, nurse, psychologist and all kinds of citizenry who work to make
them healthy.
Voluntary organisation:
Wilful organisation abstraction or union of group of idiosyncratic who come in existence
by a agreement majorly as an volunteers to fulfil a specified purpose. The chosen organisation in
voluntary sector is Oxfam which is a coalition of 19 autonomous beneficent trust that existed to
serve the purpose of alleviation of global poverty, founded in 1942. it is non profit organisation
with extensive range of operations to gain fruitful outcomes.
Products and services:
The Oxfam majorly work for trade justice to promote trade in fair manner, assist for
education, provide debts and healthy livelihoods to people. It also promotes gender equality and
works to resolve conflicts, protector of democracy, human rights and in condition of climate
change in positive manner to serve public at wide level.
Mission and vision of Oxfam:
Vision of Oxfam is world without poverty and build a world healthy place where people
are valued and treated in equal manner. Their purpose to build lasting solutions in regards to
injustice of poverty. They work as global movement to bring changes in positive manner by
empowering people.
Legal structure of voluntary organisation:
Majorly various types of structure in organize that are an unincorporated association, a
trust and a company limited by guarantee.
An unincorporated association:
Respective structure of voluntary organisation is abstract for the little groups with
relationship by setting short duration objectives low income and which not intended to utilize
staff (Prajogo, 2016.). It is very much easy and cheap to adopt.
Trust:
Trust are in general establish to negociate or coordinate wealth or property for a specified
goal or intent. It establish a formal kind of kingship among donor, trustees and beneficiaries to
gain optimum outputs.

Oxfam come under the charitable incorporated organisation which is newest legal forms for a
charity and specifically designed for charities.
Charitable incorporated organisation:
CIO is a new kind of legal format that denotes to a registered charity. The major motive
or objective behind to afford charities limited liability without registration as a limited company
at organisation and registered charity as charity commission (Saleem, 2017.). Oxfam come
under respective kind of legal structure.
Stakeholders:
The major stakeholders of Oxfam are people who are materially affected by the actions
which consider the citizenry in assemblage where they work, partner and coalition, personnel
and volunteers, supporters and suppliers,. Alliances and many more.
Examine the scope and size of various kinds of firms.
Every administration have different size and scope which should be elaborated by their no. of
employees, product portfolio and profitability and many more factors. Here are the sizing and
orbit of different organisations are as follows:
Private sector:
Here are the possibilities and operations of private sector are as follows;
Size:
Tesco operates majorly in 11 countries in the world and 450,000 employees at the year
end. It has over 6800 stores around the whole world (Our business, 2019.). They have chain of
subsidiaries such as Tesco mobile, bank,. Ireland, Booker group, Londis and many more.
Scope:
Scope of an organisation is one of most fundamental activity to build organisational
strategies and tactics. The scope of Tesco related with the extent to which it sells product and
services in market. As they already largest retailer chain with large product portfolio and aimed
to enlarge opportunities in market of US as they already operated in Europe and Asia.
Public sector:
Size:
NHS have hospitals, community and primary care settings with around 1,50,000 doctors
and 3,20,000 nurses and midwives that are serving their patients.

Scope:
In context of NHS they aimed to bring some reforms which work both as an opportunity
and challenge for pharmacy profession (The NHS Workforce in numbers, 2019). The recent shift
or movement in commissioning structure, focusing by integrated care which is helps to improve
patient outcomes from medicines.
Voluntary organisation
Size:
Oxfam is an worldwide coalition of 17 self-directed coordinate which employed together
in 94 nations and answerable for charity governance, assets and activities.
Scope:
Oxfam determined for the change that helps to mobilize the powerlessness of grouping in
against destitution (Oxfam, 2018.). They around the whole globe work to evaluate the practical
and innovative method to escape them from poverty and thrive.
Critically analysis.
Tesco which is an international grocer and retailer of goods and services by follow the
various kinds of structures one of that is Corporate governance in which people deal with the
investor to build effective strategies and tactics for achieving organisational goals.
Complexities while adopting various structures:
While an organisation adopt various kinds of organisational structures in their
organisation which creates chaos in among employees to share knowledge and information with
roles for fulfilling mission and vision (Saleem, 2015). With the not obeying common structures
conflicts arise in organisation as people not able to transmit responsibilities systematic manner.
So it is very much efficacious to accord with organisational goals and objectives by properly
share roles and responsibilities in positive manner.
To sustain in fierce competitive world all departments have to work in a collaborative
manner that are as follows with their advantages and disadvantages:

Relationship with marketing with human resource:
Marketing department has the close relationship with the human resource that they bring
higher productivity and innovation with their collaboration. With the help of marketing
department that devoted to reach at large no. of consumers by build brand value which
simultaneously enables to recruit and select potential candidates (Wood and Logsdon, 2017).
As it is very much important for an organisation to recruit and select one of most competent and
potential workforce.
Disadvantages:
In case if both the department not working properly by sharing the knowledge and
information to one another then it create hindrances in build brand value and in selection of
potential candidates. Without proper communication organisation can not properly forecast the
required no. of workforce to obtain potential outcomes.
Illustration 1: Organisational chart Tescon stores, 2019.

Relationship in Finance and marketing department:
Finance and marketing department work with the collaboration by sharing roles and
responsibilities for relating with business goals. Finance department permit to marketing
department regarding their budget to opt promotional activities and on other hand marketing
department gives information regarding best source to raise funds. So they both contribute in
organisational profitability (Hamilton and Webster, 2018.).. Interrelationship between different
departments assist an organisation to enhance flow of communication through which firm can
develop a positive working environment. These kind of practices aid in building a positive
relation between employees of different departments.
Disadvantages:
Any kind of discrepancy hinders the self interest of organisation, so it is very much
necessary that Tesco adopts organisational structure which should be transparent in nature.
Various kinds of conflicts arise in organisation that create a bottleneck in order for gaining
sustainability in competitive world.
Impact on organisational structure:
With the help of mutual working in different departments which directly influence
organisational works and activities by sharing knowledge and information, distributing roles and
responsibilities and managing resources that are very much important for Tesco for gaining
potential outcomes. The close relationship in various department directly impact on
organisational structure.
CONCLUSION
from the above report it has been concluded that business environment is very much
crucial for an organisation and needed to evaluate in order to achieve organisational goals and
verifiable. In enterprise environment there are kinds of organisations existed to serve various
mission and purposes. Every organisation has different size and scope in order to achieve target
they put efforts to remain always competitive. To effectively operate activities and actions within
organisation all departments serve in collaboration of one another by sharing roles and
responsibilities in order to remain competitive.

REFERENCES
Books and journals:
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.
Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Evans, S. and et.al ., 2017. Business model innovation for sustainability: Towards a unified
perspective for creation of sustainable business models. Business Strategy and the
Environment. 26(5). pp.597-608.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hillary, R., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Papilaya, J., Soisa, T.R. and Akib, H., 2015. The influence of implementing the strategic policy
in creating business climate, business environment and providing support facilities
towards business empowerment on small medium craft enterprises in Ambon
Indonesia. International Review of Management and Marketing. 5(2). pp.85-93.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Saleem, M.A., 2017. The impact of socio-economic factors on small business
success. Geografia-Malaysian Journal of society and space. 8(1).
Saleem, S., 2015. BUSINESS ENVIRONMENT, 3/e. Pearson Education India.
Wood, D.J. and Logsdon, J.M., 2017. Theorising business citizenship. In Perspectives on
corporate citizenship (pp. 83-103). Routledge.
Online:
Our business, 2019. [Online]. Available through. <https://www.tescoplc.com/about/our-
businesses/>.
Oxfam, 2018. [Online]. Available through. <https://www.oxfam.org.uk/>.
The NHS Workforce in numbers, 2019. [Online]. Available through.
<https://www.nuffieldtrust.org.uk/resource/the-nhs-workforce-in-numbers#references-and-
notes>.
Organisational chart Tescon stores, 2019. [Online]. Available through.
<https://www.slideserve.com/tosca/organisational-chart-tesco-stores>.