Detailed Business Environment Analysis: Tesco Plc and Oxfam Report

This report provides a comprehensive analysis of the business environments of Tesco Plc and Oxfam, two contrasting organizations. It begins with an introduction to the concept of the business environment, outlining internal and external factors. The report then delves into the types of businesses, purposes, and ownership structures of Tesco and Oxfam. It explores the influence of various stakeholders, including owners, customers, employees, and government, on the organizations' objectives. The report further examines the organizational structures and functional areas of both companies, highlighting how their structures support their respective purposes. It analyzes the influence of economic environments, such as booms, recessions, and inflation, on Tesco's business activities. Finally, the report assesses the impact of political, legal, and social factors on the operations of both Tesco and Oxfam, concluding with a summary of the key findings and their implications for the organizations' success. This assignment is a valuable resource for students seeking to understand the complexities of business environments and the factors that shape organizational strategies.

Business Environment

Table of Contents
INTRODUCTION............................................................................................................................3
TASK 1.............................................................................................................................................3
P.1 Type of business, purpose and ownership of two contrasting businesses............................3
P.2 Stakeholder that influence the purpose of two contrasting businesses..................................4
TASK 2.............................................................................................................................................5
P.3 Examined that how two business are organised and there function areas.............................5
P.4 Style of organisation helps them to fulfil there purpose........................................................5
TASK 3.............................................................................................................................................6
P.5 Influence of two contrasting economic environments on business activities within a
selected organisation....................................................................................................................6
TASK 4.............................................................................................................................................7
P.6 Analysis the political, legal and social factors are impacting upon the business activities...7
CONCLUSION.................................................................................................................................8
REFERENCES.................................................................................................................................9

INTRODUCTION
Business environment means all the internal and external factors that affect the company's
business operations. In this internal factors are those which affect the company by there
internally, it includes employees, rules, policy etc. and in external factors it includes all those
factors which affect the business by outside such as politically, demographically, socially etc.In
this research report, it describes the two contrasting organisation. It also describes the two
contrasting organisation such as Tesco Plc and Oxfam. Tesco Plc is a British multinational
grocery and world largest retailing company, which was founded in 1919 by Jack Cohen, there
headquarters will be situated in England. The company has provided various products in
supermarket, hypermarket and superstore. But Oxfam is an international confederation of
charitable organisation that focus to control of global poverty.
This research also describes the type of business, purpose and ownership of business, it
also give the role of stakeholder that influence aims of two contrasting organisation objectives
and also evaluate their influence on the chosen organisation. This refers the organisation structure
of the two contrasting firms and the factors which affect the operations of the business
organisation.
TASK 1
P.1 Type of business, purpose and ownership of two contrasting businesses
Tesco is a globally traded organisation which operate in 14 markets across Europe, Asia
and North America. Nowadays the company have 3 lac employees who working with it and they
have there approaches in 2900 stores. It is public limited company so that company can sell or
buy there products to the public. The main purpose of Tesco is to create value so that there
customers will get there life time loyalty. Company offers large amount of products and services
from groceries, household products, clothing etc. This is the retailer so that they provide there
products and services to there general population and business such as wholesale, transportation
and distribution. The maain purpose of Tesco is to maximize there profit by giving goods and
services in a cheap price so that it can be easily affordable by there customers. The company also
make an effort to maintain there position and make there impression in front of there competitor
and remain market leader. Tesco's ownership is taken by several partners, many people who

owned there sharers as a shareholders who give there fund in the company(Cavusgil, Knight,
Riesenberger, Rammal and Rose, 2014).
Oxfam in contrasting is an international charitable organisation that work with the
business to control the poverty in global level. The main purpose of the organisation is working
with many local partners who work to improve the living of people in stage of poverty. There
main objectives is to make the effort to educate the people about the nature, cause and effect if
there will any chances of poverty and the organisation will make there campaign for making
fairer world. Oxfam is an international association which having 14 organisation in it and
organisation is working almost 48 countries in worldwide so that there are many people who
owned the ownership of the organisation.
P.2 Stakeholder that influence the purpose of two contrasting businesses
Owner- Owner is a person that manages all the business operations so that the image of
the business is depends upon the reputation of owners also. The owner's income ,wealth and there
earning will make an impact and affect the Tesco and Oxfam organisation.
Customers- Customers are the people who want the products and are ready to buy the
organisation's products and services, so that Tesco provides affordable price for there customers
and Oxfam always make there effort to give services so that they can control the poverty.
Employees- Employees are those who work in organisation so that there almost 3 lac
employees who working in Tesco and 14 lac employees who working in Oxfam.
Suppliers- Suppliers is a person who supply the products to the organisation, so that in
Tesco suppliers give continue products and in equal revenue and in Oxfam suppliers are those
who give the information of poverty related areas to the organisation.
Local and National Community- Local and national community includes all those people
who live in next to the both organisation and want to buy there products and services by the two
contrasting organisation.
Trade union- Trade Union are association which are developed from the employees to
take care of the interest of the employees so that in Tesco, trade union take average and continue
wealth from the organisation and in Oxfam, trade union are those who ready to take the critical
examined of poverty related areas in world wide level.
Government- Government plays an important role in both the two company. They make
full control, all the activities which are performed by the company, such that all the activity are

done by organisation in favour of customers or not. In this way, Govt. charge taxes and make
fraction changes in there Govt. policies and tax rate also(Mazaheri, 2013).
TASK 2
P.3 Examined that how two business are organised and there function areas
Tesco has a hierarchical structure so that it include several level such top to bottom level.
In this E.G. Managing Director is in top because it is the most powerful level in the organisation
and in lower level it include quality guard manger and financial accountant. On the other side
Oxfam have flatter organisational structure and it is based on geographically which are Woking
in all around the world to help the less fortunate person. The charity is controlled by chairman
and all the other work was completed by managers(Wang and Fan, 2013).
There are many functional areas where the two contrasting business can perform. they are
as follows:
Human Resource- HR is most important factors which is considered by the organisation.
In Tesco and Oxfam, there are large number of employees is working so that organisation can
give proper reward sand incentives to work with them more effectively.
Marketing- Promoting the products and services is the best way to make an effective
communication with the customers, so that both the organisation can focus in marketing and
promotional activity to communicate with there customers.
Customer service support- Customer Service support include all such customer service
department which was held by the two organisation so that they can receive the complaint,
feedback or any type inquiries with there customers and also provide a good solution regarding
with there feedback.
Sales- To make the business growth and development sales department plays an important
role in it. They try to get the sales revenue and make there effort to get the profit with there sales.
In this Tesco and Oxfam make there sales department as p[er there need and working styles.
Finance- Finance department are in any kind of organisation make the great role in
making fund flow or financial statement of the organisation. So that finance and there activities
are included in both the two contrasting organisation as per there need(Prajogo, 2016).

P.4 Style of organisation helps them to fulfil there purpose
The style of Tesco and Oxfam help them to fulfil there purpose by making understanding
that organisation can what things ton accomplish there goals and earn profits. There hierarchy
will help to maintain or co-ordinate with different department to running the business. The style
help to focus the areas which required improvement etc. Organisation styles includes many things
such as the strategic planning, it include the aim or objective of business to that can fulfil by
making an effective strategic plans. It include by setting an objectives, analysing the current
situation. by devising alternative strategies and implementing the strategy which are chosen by
the organisation and at last evaluating the strategy are involve in whole planning process.
Strategic Planning involves both the mission and vision statement of the two contrasting
organisation. In mission statement it includes, what the business does, and what is the aim to
achieve it and values and standard which are set up by the organisation are included in it. In
vision statement it include organisation's future development, it will require the widen scope of
the two businesses(Harrison, 2013).
Business objective of two contrasting Businesses can be achieved by taking SMART
techniques such as organisation have specific, measurable, achievable, realistic and time related
activity can be perform by the two organisation.
TASK 3
P.5 Influence of two contrasting economic environments on business activities within a selected
organisation
In this Tesco is chosen to make the influence of two contrasting economic environments
on business activity.
Boom- Boom is the condition in which there will be fast economic growth, which means
that there are large chance to get the profit, in this way business can increase there output because
demand was very high so that there will be lower rate in unemployment conditions. In concern of
business it means that there will high in investment and as per customers point of view it means
that customers is confident to give extra spending.
Recession- It is a condition in which economic growth will may be slow and level of
output is decreases. This shows that there will be chance of unemployment conditions. This

condition is bad for the organisation and it make the negative impact in business, price and also in
profits.
Inflation- This condition occur when there is general rise in price of the goods in the
Tesco. In this not every but average price of products are rises(Gupta, 2013).
TASK 4
P.6 Analysis the political, legal and social factors are impacting upon the business activities
In this Tesco and Oxfam are two organisation that are chosen for operating in two
different economic environments.
In political factors, it includes political stability, government support for private/
voluntary or public organisation and there fiscal policies which ever changing in nature are
included in it. All this factor may affect the operational activity of Tesco and Oxfam too.
Illustration 1: Environmental factor
Source: Wetherly and Otter, 2014

In legal factors, it include legal framework which are related the framework of business
such as Tesco and Oxfam, there company law which provide protection for the consumers and
employees by providing employment law, consumer protection act. All this legal framework
ensure fair and honest trading by the two organisation(Welford, 2013).
In social factors, it includes every things which are related to the growth or decline of the
population, changes in structure such as households and families, education, attitude of work,
customs and there religions etc. are the factors which make an impact of business activity like
recruitment of staff, there product design, transportation of goods and there promotional activities
etc. which help the organisation to accomplished there goals and objectives(Kubasek, Brennan
and Browne, 2016).
CONCLUSION
All above the reports and data which are provided in this research, it will be concluded
that the two contrasting organisation Tesco and Oxfam make there organisation structure based
on the business environment such as all the environmental factors like internal or external factor
which may affect the growth of the two organisation as inner side or outer side. It also concluded
that the structure of organisation can help to focus in more competitive stage and help to achieve
there goals. In this, it describes that the two organisation in which one is focused in profit earning
and other is focused to give services to the people. In this way, both the organisation can fulfil
there aim by there own business structure and by making a effective strategic plan, so that they
can identify the need in which improvement are required for the success of there motive which as
profit earning or providing facility in the way of social services(Botha, Kourie and Snyman,
2014).

REFERENCES
Journals and Books
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology. Elsevier.
Kubasek, N. K., Brennan, B. A. and Browne, M. N., 2016. The legal environment of business: A
critical thinking approach. Pearson.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
Wetherly, P. and Otter, D., 2014. The business environment: themes and issues in a globalizing
world. Oxford University Press.
Gupta, A., 2013. Environmental and pest analysis: An approach to external business environment.
Merit Research Journal of Art, Social Science and Humanities.1(2). pp.013-017.
Harrison, A., 2013. Business environment in a global context. Oxford University Press.
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.
Wang, X., Yu, W. and Fan, G., 2013. Business environment index for China’s provinces: 2013
report.
Mazaheri, N., 2013. The Saudi monarchy and economic familism in an era of business
environment reforms. Business and Politics. 15(3). pp.295-321.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G. and Rose, E. L., 2014.
International business. Pearson Australia.
Online
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[ Accessed on 5th May, 2017]