Business and the Business Environment Report - Unit 1 Analysis

This report provides a comprehensive analysis of the business environment, focusing on three diverse organizations: Tesco (private sector), NHS (public sector), and Oxfam (voluntary sector). The report begins with an introduction to the business environment, defining its internal and external factors. It then delves into the purpose, legal structure, and stakeholders of each organization, highlighting their respective goals and missions. The report further explores the scope and size of these organizations, comparing their market share, product offerings, number of employees, profit volume, and geographical areas of operation. A key aspect of the report is the examination of interrelationships between different organizational functions, such as marketing and sales, research and development, human resources, and finance, along with an analysis of their organizational structures. The report also includes a PESTLE analysis, evaluating the political, economic, social, technological, legal, and environmental factors impacting Tesco, along with their positive and negative implications. Finally, the report discusses the internal analysis of the organization and the interrelation of strength and weakness factors, culminating in a conclusion that summarizes the key findings. The report offers a detailed understanding of the business environment, its influence on various organizations, and the strategic considerations for success.

Business and the
business
Environment
1

Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Various purpose & type of diverse organizations.............................................................3
P2: Explain the scope and size of organisation......................................................................5
TASK 2............................................................................................................................................8
P3 Interrelationship among different organizational functions..............................................8
TASK 3..........................................................................................................................................14
P4 Pestle analysis of organization along with their negative and positive impact...............14
TASK 4..........................................................................................................................................17
P5 Internal analysis of the organisation................................................................................17
P6 Interrelation of strength & weakness factors...................................................................19
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................23
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Introduction
Business environment can be defined as the factors that consist of internal and external
environment it consists of all those elements that are impacting the functions of a business
organisation. There are many different types of functions such as external environment that
consists of stakeholders like governmental policies, customers creditors etc. All are part of the
external environment and internal environment consists of employees top management board of
directors are part of internal functioning (Chasdi, 2017). The present report is discussing about
different business organisations that have been selected in various sectors like private sector
voluntary sector and the public sector. For the private sector Tesco is selected as the organisation
that is one of the biggest retail stores having presence in UK. In public sector NHS is the
organisation that is performing their functions and have a objective towards reduction of poverty
and providing social services. For, the voluntary organisation of Oxfam has been selected as the
organisation that is working towards enhancing living standards of people. There is discussion
about size of purpose of such business organisations and inter relationship with organisation
function for the there is analysis of macro environment that is done with the help of identifying
the impact on various business functions.
TASK 1
P1 Various purpose & type of diverse organizations
Public organization:
Public organisations are those that are control and owned by a government. It is related with
providing services in effective manner of enhancement of brand image (Eling, and Schaper,
2017). In present scenario there is discussion of National Health Services that is providing
Customer services and was established in 1948.
Objective:
The main purpose of National Health Services is to provide free of cost services of help to
people of a country for improvement of their overall health.
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Legal structure:
All the decisions are taken by government and it consists of state and Central Government.
Stakeholders:
Stakeholders are playing important role for providing all the financial investment and also causes
a impact on the overall working.
Private organisation:
Private organisations are those that consist of agency individuals and partners. In present case
there is a discussion of a private organisation Tesco that is dealing in various grocery items.
Purpose:
Tesco is a organisation which is dealing in various Merchandise and its headquarters are present
in UK and it was founded by jack Cohen (Hamilton,. and Webster, 2018). This organisation is
known for the quality products and the affordable prices that they are offering to their customers.
Legal structure:
Legal structure of Tesco consists of topic Management which is of CEO and the board of
directors. All the major decisions are made only after approval by the top management.
Stakeholders:
There are various different stakeholders that are associated with a business organisation in Tesco
concept of internal stakeholders like employees board of directors and external stakeholders like
customers government.
Voluntary organisation:
Voluntary organisation is told that consists of different set of activities and functions which are
performed by government. Present scenario of different organisation that is working towards
achievement of their objective that is eradication of poverty and it was founded in the year 1942
by Ceicl Jackson.
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Purpose:
The main purpose of voluntary organisation like Oxfam is to enhance the living standard of
people and also reduction of all the situations of poverty (Kasemsap, 2018). They are willing to
set up equality in the society for all citizens.
Legal structure:
Voluntary organisation has a legal structure that is dependent on top authorities and the trust that
are providing them all the funds so any decision is taken according to the approval made by
search authorities and trustees.
Stakeholders:
There are some major stakeholders that are associated with Oxfam that is helping them in
increasing their overall profitability it consists of the Founder, all the staff members and
beneficiaries.
P2: Explain the scope and size of organisation
In every Organisation all the business activities are performed and it consists of three types such
as public private and voluntary such organisations are discussed below:
Private Public Voluntary
Goal Tesco mission
statement is
based on
creating a better
together and
their vision is
based on to be
most highly
valued
organisation and
become one of
the biggest
Vision statement is
based on creating of a
healthy lifestyle of
people and reduces
health related
problems (Rialp-
Criado and
Komochkova, 2017).
The vision of Oxfam
is based on
creation of a
poverty free
world. They ar e
willing to solve
the issues faced
by lower class
segment of
society and help
people in
dealing with
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retailer across
world in coming
time period of
five years.
issues of
discrimination.
Size and scope Tesco has a very wide
scope in coming
future period of time
as they are willing to
provide high quality
services at reasonable
prices to their
customers
(Viriyasitavat, Da Xu,
and Sapsomboon,
2018)
..
.
NHS is a public sector
organisation that
is having
preferences
towards health
related services
and was started
in year 1948.
Oxfam is voluntary
organization
and it was
started in year
1995 by semi
Government and
it is a
independent
organization
Market share They are having
presence in
Europe & Asia
and also a
market share in
UK, Ireland,
Thailand and
Hungary
NHS is having
presence in
Wales, England,
Scotland &
Northern Ireland
Oxfam is dealing
with movement
of change & also
they are
providing
services for
encouragement
of people for
raising their
voices against
injustice.
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No of products and
services
There are different
wide ranges of
products for
example: petrol,
telecoms,
furniture,
financial
services, and
electronics &
internet services.
They are also offering
emergency
Medical
Services &
treatments for
people of the
society. They
have a very wide
scope as
working towards
betterment of
people in
society.
Oxfam working
against practises
of a trade
injustice, fair
trade related
services,
education.
Health,
education and
debt for
escalating
positivity in
society.
Stakeholders size 450, 0000 employees
are part of
Tesco.
1.4 million
Employees are
working in
NHS.
7000 volunteers are
working in
Oxfam.
Employees number They are approx 7000
stores in various
parts across
world where
Tesco is offering
their products.
6,500 employees are
associated and
working in their
50 locations that
are present
across England.
300 employees are
working in
Oxfam as a
international
secretariat and
also across
globe. Apart
from this there
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are 10,000
employees &
50,000 working
in Oxfam as
their affiliates.
Profit volume ROI of Tesco, is
approx 300
million pounds
in the year 2019
it was 1.54
billion
2 billion pounds is
estimated
national income
of NHS
408.6 million in year
16-17
Sales/Turnover 63.911 billion pounds
is average
turnover of
Tesco in the
year 2018.
They are offering free
of cost services
and working for
health
improvement of
people.
Sales in Oxfam are
has a sales
structure of
approx 19.3
million pounds
and it has been
hyped by 7
percent in year
2018.
Geographical area There are
approximately
3400 worldwide.
NHS is offering all
services without
any cost.
Oxfam has 1200
outlets across
globe.
TASK 2
P3 Interrelationship among different organizational functions
Organization functions & structure:
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Figure 1Different functional departments in a organisation
Marketing and sales:
There is always a interrelationship between marketing and sales department. The functional
structure of Organisation like Tesco consists of marketing department, Sales department, HR
department and finance department (Gaganis, Pasiouras, and Voulgari, 2019). In Tesco, there is
high amount of interrelationship between marketing and sales department because sales
department has to be remain updated about the prospective future says and such information is
passed by the marketing department according to the present market scenario.
Research and development & divisional structure:
In divisional structure there is division according to various functions are performed in
organisation according to the product line. In Tesco there is a diversified organisation that is
equipped with various divisional structures and its divisional structure concept of specific
personnel according to specified functions.
Human resources and finance function:
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Human Resource Department is very important department as it performs all the functions
related with employees in a organisation starting from recruitment of employees till the time they
are in the organisation all the activities related to human resources have to be carried on by the
human resource managers in organisation (Barr. and et. al., 2018). Tesco has to perform all such
functions in relation with management of employees’ amount of interrelationship between
finance and human resource function as finance function helps in providing all the financial
resources that are very important to provide budget to such departments in order to carry out all
this function.
Organisation structure: The structure of organisation basically defines how various functions
and activities have been allocated according to different departments. Tamil actor objective of
organisation structure is related with achievement of various functions and they are providing the
foundation of operating procedures (Shukla, and Pattnaik, 2019). There are different types of
organisation functions that are mentioned below:
1) Functional structure:
Functional structure in environment consists of employees who are working together for
similar task. Concept of different departments likes Human Resource Department Production
department Finance Department human resource and so on.
Figure 2Functional organisation structure
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2) Divisional structure:
Divisional structure of organisation is based on division according to various product
lines and there is no division based on functions.Concept of Wholesale Department retail
department product based department and major objective of this type of structure is
achievement of higher efficiency in all the division.
Figure 3: Divisional organisation structure
3) Matrix structure:
Matrix structure of organisation consists of both the combination of functional and
divisional organisation structure. In this there is combination of functional departments based on
the specialisation of the workforce and there is also division of project according to lines of
products and services.
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Figure 4Matrix organisation structure
From the above discuss information it has been analyse that Tesco is organisation that is having
large amount of products and they are also having different functions so they have basically
adopted a matrix organisation structure that consists of combination of both the functional and
divisional department (Saura., Palos-Sanchez. and Correia, 2019). Functional structure is
according to the marketing finance and Human Resource Department on the other hand divisions
are based on the food trading managers not to non food trading managers and the personnel
managers.
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