Report on Business Environment: TESCO, UCLH, and Organizational Types

This report provides an in-depth analysis of the business environment, focusing on two organizations: TESCO, a British international retailing company, and UCLH, a charity organization. The report begins with an introduction to the business environment, outlining the internal and external factors affecting organizations. It then categorizes and defines different types of organizations, including public, private, and voluntary sectors, illustrating their purposes and scopes with examples from TESCO and UCLH. The report further examines the relationship between organizational functions, such as designing and production, human resources, and sales and marketing, and how these functions contribute to achieving the overall goals of a business. The analysis includes discussions on financial and human resource functions within both public and private sectors, emphasizing the importance of these functions in achieving organizational objectives. The report highlights key strategies employed by TESCO, such as expansion and innovative use of technology, and contrasts them with the operational model of UCLH, a non-profit entity. Overall, the report offers a comprehensive overview of business environments and organizational structures, using practical examples to illustrate key concepts.

BUSINESS AND BUSINESS
ENVIRONMENT

INTRODUCTION
Business environment is the combination of internal and external environment which
having impact on the existence of organization. Employees, operational functions etc. are
included in internal and government, political etc. are included in external environment.
Various types of organization are incorporated for the stated purpose with the set of goals and
objectives. Organizations are like public, private and voluntary sector which consists various
of functions. The present report is based on TESCO which is international retailing company
(Teece, 2010). It is British supermarket which provide frozen food like meals and vegetables.
There is also mention UCLH organization which is the charity company. The main purpose
of this is providing benefits to people and fulfil their needs as well. UCLH is an non profit
firm which is depends on the donation which is providing by lots of people. Managers and
leaders have to identify their strength and weaknesses which are able to improve their
performance in international market and increase their profit margin as well. They have
maintain relationship between their various functions such as HR, production and sales
department. The basic purpose of this company is providing best quality of goods and
services to their targeted customer and try to meet their expectation with them.
TASK 1
P1 Different types of organisation and there purpose.
Business environment are internal and external factors of a firm which effect the
functions including customer, employees, supply and demand and business entity. Internally
factors including managers, employers, stakeholders etc. External elements are including
suppliers, creditors, investors and competitors. A company is group of people with a
particular purpose and goal such as a government and private department (Cantwell,
Dunning and Lundan, 2010). Different types of organisation and there purposes in
international market;
Public organisation- A public sectors is part of economy to providing government
services. This sectors might be providing to non payers they cannot excluded from and
services which beneficial for society not for individual to use the services. This type of firm
use for social welfare, not for earn profits. Tesco is a type of public organisation to provide
retail service by the super markets. It is retail company providing the shopping services like

super markets, super store and hypermarkets. The purpose of this firm to providing different
services based on markets like home shopping, internet retailing, financial and telecom
services (Ebert and et. al., 2014). This firm made a commitment to corporate social
responsibility to contributing the small part of the profit of company. The corporate strategy
of tesco including expansion strategy innovative use of technology.
Private organisation- This type of firm is a part of economy, refereed to the citizen
and personal sectors run by the individual and group of people to earn the profit. Private
sectors are not controlled by state government, its controlled by a individual person and
partners. This sectors not for social welfare its established to earn profit. Tesco is type of
public sectors, its chain of supermarkets to sale the foods, vegetables and prepared including
meals (Sørensen, 2012). It is a retail company providing frozen food and different types of
groceries. In the market. The pricing strategy of this firm to reduce and replaced the products
offering by the comparing its compositors. This type of sectors are establishing an individual
and group of partners to earn and sharing profit.
Voluntary organisation- This type of firm concerning by the different volunteers.
These sector may be able to operate all activities without any legal formalities, including
informal firms and not depending on any jurisdiction. A voluntary association is a group of
persons to create a agreement including a organisation to accomplish a purpose and goals. In
this sector conduct a membership are not compulsory for a particular associated functions of
company (Xue, Shen and Ren, 2010). Voluntary sectors are incorporated and unincorporated,
profitable or non profitable purpose.
Charity- UCLH is an charity which is incorporated for the interest of people. These
are the non profit organization which are different from other sectors. These types of
organizations are depends on the donation through which comes in the existences. The main
purpose of UCLH is provide benefit to people and maintain their health as well.
Public sectors are incorporated for non profitable purpose and for social welfare and
including legal jurisdiction. Private sectors is profitable entity establish to earn profit for
individual not for society without any including formal firms. Voluntary associations
purpose are both they are established by individual group of persons are agree for agreement.
Public sectors are controlled by government and following some legal formalities at the of
start-up. Private firms are controlled by individual owner and there are no legal formalities.

Voluntary firms are run by volunteers to create a agreement without any laws, including
without any jurisdiction. These different types of organisation preforms on different
functions, regulations, factors and use different types of strategies as well (Carroll and
Shabana, 2010).
P2 Scope of different types of organisation.
Size and scope of companies depending on its entity types, economy, structure and
strategies. The size of a firm depend on its employees, functions, techniques are used in the
market to create a position and value. Scope of any firm depending on its marketing strategy,
research, products and services providing to the customers demand and to meet goal of firms.
Public sectors- This type of company traded and owned by publicly with the legal
rules and regulation and not started by individually. The membership of public sectors
include minimum 7 members, 3 directors and maximum numbers of members are unlimited
for a committee (Carroll and Buchholtz, 2014). The transfer of shares are unrestricted and the
minimum paid-up capital is approx 5,00,000. Tesco limited is retail company to providing
different products and services for social welfare. Size of this company is very large
including its employees, functions, products, directors, shares and subsidiaries. Tesco limited
increase its scope in market use different type of marketing and pricing strategy comparing its
competitors. This firm start a chain of supermarkets, start restaurants or cafes and some
restaurants with its stores in different cities to achieve a position and earn profit. Employees
0f this company around 390000 to 470000 in last year. Tesco give the different type
subsidiaries are mobiles, banks and stores.
Private organisation- This type of firms owned by individually and group of persons
for the purpose of earn profit without any legal formalities. The minimum paid capital around
1,00,000 and minimum members are 2 or maximum limit are 50 people and number of
directors at least 2 for start a company. In this company the public subscription are not
allowed and transfer of share are restricted. To start a company and business after reviving a
certificate of incorporation to given by the public authority. The size of this company
included many stores in different cities, employer and management teams. Numbers of
company employees approx 22000 to 23000 the last year. Company increase its scope in the
market launched the TV advertisings campaign in market included a song (Klapper, Lewin
and Delgado, 2011).

Voluntary organisation- This type of organisation a group of persons to create a
agreement with a organisation to a accomplish purpose. There are many types of voluntary
sectors are trade associations, unions, environmental groups, learned societies and
professional associations. Organisation include the all types of groups like large business
corporations, charities groups and some local authority (Red Carnation Hotel. 2017). The
numbers of minimum employees at least 1 and maximum are no limits to start a voluntary
association. Companies are organised for earn profit and financial gain are called partnership
sharing profit between the partners (Osterwalder and Pigneur, 2010). The legal status of these
firm are not including any legal formalities, and including without any laws. In any condition
including some legal rules and jurisdictions require that the association registration with the
official body to inform the public of the association's existence. The scope of these firms are
very high including large companies, social groups, personal and governmental authorities.
Charitable organization- The scope of these types of organization is smaller then other
organizations. UCLH is a charity company which depends on the donations and incorporated
for the benefit of people. People who are interested are able to form it and try to provide
proper assistance to people.
M1.
Public organisation are incorporated to non profitable and social welfare . These type
of firms helps to achieve its goals and objectives in forms of help to society in many ways
create social groups and government agency (Wheelen and Hunger, 2011). Private sectors
achieve there goals and objectives by owned work. They work individually or a group of
persons without legal formalities, involvement in a agreement. To meet there goals use many
types of strategy in marketplace like different prices, quality, designs, and services to their
customers. Voluntary associations achieve there goals to involve the large business
corporation, charities,funds and local authorities. It create a agreement with volunteers for a
accomplish purpose are profitable and non profitable (Welford, 2013).
D1.
The functions of public sectors are used in different form like Human resource function are
use for social welfare and help the society. This depart ant use in this sectors for planing,
formatting, controlling and directing to all activities related to the society welfare. Financial
function in public sector are main key player for help to peoples. They give subindexes and

loans to people help in fulfil the basic needs. In private sectors the role of human resources
are use in different forms to hiring people, give training to staff for achieve the goals.
Financial section is a main player in the private firms to use in a manual manner to create a
financial statement. reducing taxation.
TASK 2
P3 Relationship between organisation function to achieve goals.
The whole firm activities depend on its function are dividing in many such as
operations, financial, marketing and personal relations. Company functions hold those all
activities of a business together to achieve ultimate goals. Function of organisation are;
Designing and production- This function are play an important role for a company
which included those factors; Labour is a part of firms function give a mental and physical
effort by the peoples and take many types of forms included data processing, management,
market and decision making. This function help to meet the firms objectives use this mental
and physical effort to create products and give the services to consumers. The physical capital
purchases by the financial availability such as loans, shares. This function is a main key
players of an organization I many forms like investors, shareholders, and creditors. Material
is a row form are use produced the product and services. This function help to achieve
company goals and gain value to meet the organisation objectives in a form of products and
services an example to start a cafe to need material and need to ingredients to make food they
serve their consumer. Information function needed to produced end products. The factors of
production classified into capital, land, labour and enterprise (Bryman and Bell, 2015).
Human resources function- Personnel functions main responsibility is the planning,
requirement and selection and conduct the training and development for there staff. These
factors involving developing the staff to maximise organisation potential objectives and
create an well defined structure. They may also create structure and human policies need to
help employers work in a organisation (Trkman, 2010). This function made a company
structure like management, operations, financial and technical teams.
Sale and marketing function- These function will research consumer demand and
wants to develop and create strategy, product and services to satisfy people needs and wants.
Marketing help to investigate the market in different types of consumers like age, background

and religion. Sales department responsibility presenting the consumer to purchases end
product and services made by marketing research. This function help to achieve objectives to
sale the strategies involved food sales, telephone sale and mail shots. This factors help to
create a structure involved in many forms like formal or informal structure and vertical or
horizontal.
Financial function- This section of company will keep in a manual record of
investment, money and income paid by the firms. This information also produce management
accounts to help identify the business reviews in market to meet the goals. This function
create a financial structure of a company to identify all return of investments, taxes, loans or
get a review of all strategies (Boons and Lüdeke-Freund, 2013).
M2.
Interrelationship between different organisation function to meet the goals of
company to depends on the functions they all are related with each other. The functions of
human resources depend on the financially and marketing research department. The help of
search department give the information about customer demand and competitors strategy
producing better services in market. Finance department help to create a financial record
about the investments, money and capital in the market. Production department help to
producing and providing products and services with the help of human department
(Casadesus-Masanell and Ricart, 2010). These function are interrelated with each others to
meet the organisation goals.
TASK 3
P4. Identify positive and negative impact of macro environment.
Macro environment are stands for major external factors which are uncontrollable in
nature and influence existence of the business. It having impact on the decision making of the
organization. It include political and social factor which effect when they are unstable and not
control by any person. Managers and leaders of TESCO have to identify their macro
environmental factors which effected their existence. In macro environment economical and
legal factors are also having impact on that. Through this step they are able to improve their
performance in international market and increase their profit margin as well. Business
environment is the combination of bothy internal as well as external environment. They can

effect existence of company in both way positive and negative way. The effect of macro
environment are as follows:
Elements Positive Negative
Political factor The Tesco deliver its goods and
services in across the national
border so that they to stable political
factor in order to maintain sooth
working of organization.
The political factor is stable in UK
which is helpful for them.
This factor is also effect badly to
the existence of organization. It
imposed some restriction on them
and they frame some rules and
regulation which they have to
follow. Companies are frame their
plans and strategies on the basis of
these rules and regulations.
Environmental
factor
Environmental factors are able to
improve performance of companies.
These factors are frame some rules
and regulations which are related
with the environment. These factors
may ensures that organization not
be use technologies which are
having impact on their performance.
Further, it promote sustainable
development which is beneficial for
entire country.
These factors may restricts
organization for not be use
technologies which are effect the
environment of the country.
Through this they are not able to
achieve their set of target and
goals.
Social factor
Technological
factor
TESCO is the international retailer
which provide its goods and
services in most of the country
which require latest technologies in
order to produce large number
products and promote them in
Organizations have to provide
proper training to their employees
in order to improve their
performance and increase their
skills and knowledge as well. So
that, trained workers are use

across the national boundaries. technologies and put company in
the profitable position.
Economical
factor
At the time of inflation in the
country customers are ready to
purchase and spend more amount of
money which is beneficial for for
the TESCO . Through which are
able to improve their performance
in international market. Higher rate
employment is beneficial for
companies to meet their target and
objectives (Zott and Amit, 2010).
Recession period is having impact
on the performance of
organization which is not
beneficial for them. At this stage
people are not ready to spend
money which bale to drag down
the performance of company.
Legal factor Government support to the fair
trading which is beneficial for
companies. So that, Tesco is freely
transfer their goods and services in
international market through they
can earn large number of profit.
On the other hand, also
government frame some rules and
regulations which are which have
to follow by organization.
M3.
Macro environment is play an significant role in the existence of organization. These
factors are uncontrollable in nature which are not be control by any person. Most of these
factors are having impact on the performance of the company. Political factor if not stable
then it affect negatively to the existence of company (Ferraro and Brody, 2015). They having
impact on the decision making. Decision making is effected with the help of macro factor
which is not beneficial for them. On the other hand, according to legal factor government
support fair trading which is helpful for organizations to meet their set of target and goals.
Through organizations can deliver their goods and services in across the border and improve
their performance as well. They have to provide good quality of goods and services to

customer in order to increase large number of people and improve their performance as well
(Herbst and Merz, 2011).
D2.
Macro factors as well as micro factors both having impact on the objectives, goals and
decision making. Macro factor are uncontrollable in nature which is not able to control by
any one. They can affect positively as well as negatively to the existence of the company. If
they positively affect them then it is beneficial for them and through entities are able to meet
their long term target and objectives (Davenport and Beck, 2013). Decision making process is
also affected with the macro factors through which existence of firm is affected.
TASK 4
P5 Internal and external analysis of an organisation.
SWOT Analysis- This structure evaluate those functions effect on a organisation ,a
project or a business venture. Internal factors include strength or weaknesses and external
elements involve opportunities or threats.
Strengths are characteristics of a business or project that give a advantage comparing others.
Its show the position and reputation of a company in marketplace. It is a expertise of partners
in management level. Weaknesses are characteristics of a business that show the
disadvantage about the company (Solomon, 2014). It shoe the shortage of constant at
operation and management level. Opportunities are elements in the environment that show
the cloud the exploit its advantages. Its identify the market to establish position with a well
defined market niche. Tethers are elements to identify environment cloud cause for use in
trouble for the business.
Strengths weaknesses
 Tesco capture a large market share.
 They providing better quality in our
products .
 They give large range of services to is
consumers.
 The company has develop a sales
 This company cover a small
international level of market.
 Pricing strategy are very high.
 They will use unknown trade in
various cities (Du, Bhattacharya and

strategy and network in important to
market.
 They select young employees to
know the organisation goals and
objectives (Bharadwaj, 2013).
 Achieve excellent corporate image.
Sen, 2010).
 Weak financial statement in the
market.
 Its products are expensive in foreign
market.
 Poor customer relationship and bad
information flow.
Opportunities Threats
 This firms use to quality on marketing
based.
 Achieve the low employment rate in
market.
 They use financial stability in market
for its strategy.
 It takes low employment rates
comparable its competitors.
 Create high employment rates and
there for low income in the
marketplace.
 The designer of product manufacturer
capture a strong market position and
create a good financial support.
P6. Strengths and weaknesses which having are interrelated with external macro factors.
Identification of strengths and weaknesses are help companies to analyse their internal
and external factors. Through this factors organizations are able to meet their long term as
well as short term objectives (Weske, 2012). Strengths and weaknesses are help companies to
identify their current as well as present performance of company. Various types of macro
factors such as political, environmental, legal, economical, social and technological factors
which having impact on the performance of the company. The main strengths of TESCO is it
has large number of customers and having good image in the international market. Also it has
wide rang of goods and services and deliver in across the national border through which
companies are able to meet their set of target and objectives. And it use latest technologies in
order to produce large number of goods and services (Tayur, Ganeshan and Magazine,
2012). Further, these technologies are use to promote their products in different countries. On
the other hand, the main weaknesses of company is it cannot use latest technologies for
promote their products and services in international services. Through this companies are not