Business Environment Project 1: Purposes, Size, and Relationships

This project analyzes the business environment, focusing on the purposes, sizes, and scopes of various organizations, including private (Tesco), public (BBC), and voluntary (Oxfam) sectors. It examines the relationships between different organizational functions, such as marketing and sales, finance, consumer service, and legal, and how these functions relate to the goals and structure of the organizations. The project also discusses the advantages and disadvantages of different organizational structures, such as functional and matrix structures. The analysis covers key aspects like stakeholders, vision, and the impact of the business environment on productivity and profitability. The report highlights the roles of different organizational types and how they contribute to the economic landscape. The project provides an in-depth understanding of how organizations operate within their specific environments, emphasizing strategic management and the importance of aligning functions with overall business objectives.

Business Environment
(Project 1)

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Purposes of various organisation in the business environment........................................1
P2. Size and Scope of different kinds of organisation............................................................3
M1...........................................................................................................................................4
TASK 2............................................................................................................................................5
P3. Relationship between different functions of the organisation and their relation with the
goals and structure..................................................................................................................5
M2...........................................................................................................................................6
D1...........................................................................................................................................6
CONCLUSION ..............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business has lots of activities in which exchange of goods and services takes place and in
return the person who has sold the good gets some profit. In the business environment there is
existence of different kinds of organisation and they are differentiated on the basis of their
nature, size and the activities which they perform (Welford, 2013). There are also different
factors which are part of this can impact the operations of the organisation and these elements are
either available internally or externally. To ensure that thy does not get the negative impact of
these factors it is the responsibility of the management to frame a strategy top deal with them but
in this case they have to first gain knowledge about this. They can carry out SWOT and PESTLE
analysis to examine the internal as well as the external environment respectively (Trkman,
2010) . This all report will be highlighting the effectiveness of business in the current situation
and how the organisation can increase their productivity and profitability. For this whole report
the case scenario of Tesco, BBC and Oxfam will be considered which is a private, public and
voluntary organisation respectively.
TASK 1
P1. Purposes of various organisation in the business environment.
Business environment composed of different kinds of firms and these organisations are
categorised into different sub group based on various criteria. Normally, the division is done on
the basis of products , services, legal structure, aims of the formation and etc. are some of the
elements. It is the private organisations who has aim of making the profit through their business
activities. On the other side there are also companies who ensure that there is stability in the
economy (Moutinho, 2011). They try to offer their services at low prices as compared to the
market rate. The business environment is affected by a lot of reason so to resolve the issues it is
necessary that there should some organisation who could work for the social well being. Each of
the organisation holds key value and has there own importance at their place and segment. Such
kind of organisation is defined as the voluntary organisation. If the current business scenario it is
analysed that there are more of the private companies as compared to the other segment firms.
Private Firms:- These are kind of companies whose ownership is with the normal
people. The shares of these companies are traded in the stock market and can be brought and sold
buy the normal people (Hamilton and Webster, 2015). The percentage share of these kind of
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companies are maximum and they play a crucial role in the growth of the economy. Private
organisation can be either small or large depending upon the number of employees working,
capital, production capability and size. For carrying out the business operations it is necessary
that there should be funds available with them and for they look for the loans from the banks,
personal saving, subsidies from the national or state government and the stakeholder (Fernando,
2011). They carry out the activities so that they can earn more and more profit thus doubling
there productivity. They need to abide all they laws and legislation framed by the government
and for this they have the legal body who takes care of these. Tesco can be one of the example of
private sector organisation.
Public Firms:- These are categorised on the basis of there ownership as all the working
and operating rights are with the government. Those organisation who comes in this segment
have to provide the quality products and services at suitable prices. The existence of these kind
of companies are necessary in the economy as they fulfil the demands and at the same time they
also try to bring a balance in the economic environment (Robbins, Judge and Campbell, 2010).
Most of the organisation who are traded as public organisation deals with the banking sector,
health and education segment, defence, oil and etc. are some of them. Services which are
concerned with these types of organisation are the basic amenities which are necessary for the
population of the nation. It is the public funds with the help of which they support their
businesses. The companies coming in this category can be either the producer, buyer of some
kind of goods and services (De Jonge, 2011). Although the number of public companies are very
few in the United Kingdom and but still the one who exists are of great significance. BBC i.e.,
British Broadcasting Company is one of the organisation who are part of this sector.
Voluntary Sector:- These kind of organisation was came into the existence for the social
welfare of the society. The ownership of these firms are with the people who believes in doing
any kind of philanthropist work and shares the same kind of intentions. They don't believe in
profit making and they want to resolve the issues which are disturbing the social harmony of the
nation in which they are existing. NGO's, charitable trust and social groups are different kinds of
organisation which are part of this sector (Iskanius, Page and Anbuudayasankar, 2010). The
sources of the funds are the private corporate people and the products which they sell in the
marketplace. They invest into the programs or campaigns which are aimed at doing welfare of
the society. The best example of this kind of organisation can be Oxfam.
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Sole Trader:- It can be refereed as a business structure in which a individual takes care
of all the business or they have all the rights from decision making to the profit sharing.
Partnership:- This kind of business enterprise is shared between the two individuals who
come together to own a business and all the debts and profits are shared with both the partners.
Private Limited Company:- It is a kind of entity and limits the owner to their shares and
limits the number of shareholders to 50. It also restricts the shareholders from publicly trading
shares.
Public Liability Companies:- Those firms whose shares may freely sold and traded to
the public.
P2. Size and Scope of different kinds of organisation.
Public, private and voluntary organisation has important role in development of the
economic condition of any country. They all work in a way that they fulfil all the demands of the
citizens thus bring wellness in the society. They produce good and create services so that the
people can avail it and can live a better life this increasing their living standards. On the other
hand they also give individuals opportunities of the employment and add value to their lifestyle
which they are living right now. Different aspects from goods, services they deliver, scope,
vision, legal structure and stakeholders details will be highlighted.
Details of Tesco:- They are also one of the biggest multinational grocery market and also
a general merchandise retailer. It was founded way back in year 1919 at Hackney, London. The
founder name of the organisation is Jack Cohen and analysing its today's market share they have
been successful in reaching the position of 3rd largest retailer when it is analysed on the basis of
profit organisation make. When companies are checked on the behalf of the revenue they stand
on the 9th position in the organisation. They have 6,550 stores in 13 nations and currently they
acquire 28% of the retail market in UK (Chow and et. al., 2012). The employees number has also
reached to a great figures of 470000 and it is the efforts of the staff which is giving them
competitive advantage over their rivals. In an average day they cater to approx. 50 million
individuals. Right now they are focusing on increasing their market share in the nations where
they have no existence and by doing this they will able to increase their productivity and
profitability.
There stakeholders are as follows:-
 Shareholders
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 Employees
 Suppliers
 Government
 Consumers
 Investors
 Local Community
They have the vision of looking for more opportunities thus expanding the business. Tesco wants
to bring modern technology, innovation and ideas at their stores.
Overview of BBC:- Considered as one of the biggest media organisation in the world
and provide services through radio, TV and online platform. They are able to generate almost
€165 million income. They deliver the services in 28 various languages and with their services
they inform, educate and entertain the audiences. Objectives of BBC are as follows:-
 Content should be developed according to the requirement of the individuals.
 To deliver content for every kind of audience (Erving and et. al., 2011).
 To generate more revenues from their services.
Details of Oxfam:- They are known fro their poverty eradicating programs and is the
third largest organisation in UK. They also ensure that individuals are aware of the human rights
and other than this they also give their services in the disaster hit areas. For the fund raising they
sell the donated goods.
M1.
It is necessary that the structure, size and scope of different organisation should be based
on their objectives and products and services. In the voluntary organisation which is normally
small in size believes in following the flat structure as all the members working are volunteers.
In private organisation like Tesco adapts a hierarchical structure and divides the operations
according to the functions as sometimes it becomes difficult to manage and handle such big
organisation.
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TASK 2
P3. Relationship between different functions of the organisation and their relation with the goals
and structure.
By analysing the objectives of the company its operations are created thus bringing an
efficiency in the workplace. The structure followed by Tesco is a matrix structure because they
adopt a hybrid strategy. All their functions needs to aligned in a way that each area and products
of Tesco are focused. Following are the details description of all the department with their
functions:-
Marketing and Sales:- It is the marketing and sales department who has all the
information of the consumers demands as they have analysed the markets where they have to sell
or deliver their products. They ask the departments that what all changes needs to done to take a
steady position in the market (Commander and Svejnar, 2011).
Financial:- They have to inspect and monitor all the expenses which has been brought in
the Tesco during any financial year. They give organisation full detail about the expenses which
needs to be done and what are the wastage activities.
Illustration 1: Tesco Organisational Structure
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Consumer Service:- They have the key responsibility of handling the queries of the
consumer concerned with their products and services. They look at the loopholes and after that
implement the changes so that consumer again don't compliment about that particular thing.
Legal:- They ensure that Tesco follows the rules and regulations imposed by the
government.
M2.
There are various advantages of the interrelationships are as follows:-
 Employees are managed by a individual with the experiences in their same speciality
who can understand and review the work.
 Staff have the opportunity to move up with the functional areas which gives them the
reason to stay for long (Laumer, Eckhardt and Weitzel, 2010).
Talking about the disadvantages is that the functional organisational structure is that it can bring
a challenge to the higher management to keep control as the company expands.
D1.
Functional strategy advantage and disadvantage:- In this structure the decisions taken
by the top level management which makes sure that they have the full control over the the
company. Thus kind of structure brings poor communication between the departments.
Matrix advantages and disadvantage:- The kind of structure increases the employees
skills and involvement but there can be great confusion and frustration because of the reporting
lines are unclear (Siewiorek and et. al., 2012)..
Divisional Structure:- Following this structure the organisation includes accounting
team, sales, R&D and HR team and all they have to report to the division's head thus making the
decision making a quick process. The disadvantage of this is that there can be be lot of
competition between the divisions.
CONCLUSION
From the above part it can be stated that for the development of any economy it is
necessary that there should be all kinds of organisation from public to private and voluntary.
Company like Tesco needs to ensure that there organisation structure is framed by looking at the
objectives which they have to achieve.
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REFERENCES
Books and Journal
Trkman, P., 2010. The critical success factors of business process management. International
journal of information management. 30(2). pp.125-134.international business activity:
The co-evolution of MNEs and the institutional environment. Journal of International
Business Studies. 41(4). pp.567-586.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
Hamilton, L and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Fernando, A.C., 2011. Business environment. Pearson Education India.
Robbins, S.P., Judge, T and Campbell, T.T., 2010. Organizational behaviour. Financial Times
Prentice Hall.
De Jonge, A., 2011. Transnational corporations and international law: accountability in the
global business environment. Edward Elgar Publishing.
Iskanius, P., Page, T and Anbuudayasankar, S.P., 2010. The traditional industry sector in the
changing business environment–a case study of the Finnish steel product
industry. International Journal of Electronic Customer Relationship Management. 4(4).
pp.395-414.
Chow, A.T and et. al., 2012. Computer readable medium with embedded instructions for
providing communication services between a broadband network and an enterprise
wireless communication platform within a residential or business environment. U.S.
Patent 8.155.155.
Siewiorek, A and et. al., 2012. Learning leadership skills in a simulated business
environment. Computers & Education. 58(1). pp.121-135.
Erving, R.H and et. al., 2011. Broadband network with enterprise wireless communication
system for residential and business environment. U.S. Patent 7.944.948.
Commander, S and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Laumer, S., Eckhardt, A and Weitzel, T., 2010. Electronic human resources management in an e-
business environment. Journal of Electronic Commerce Research. 11(4). p.240.
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