Business Environment Report: HND Business Environment Analysis

This report provides an in-depth analysis of the business environment, focusing on the purposes, scope, and size of various organizations, including Tesco, BBC, and Oxfam. It examines the interrelationship between organizational functions, their structures, and objectives, with specific attention to Tesco's operations. The report includes an analysis of the positive and negative impacts of the macro-environment, a SWOT analysis of Tesco, and an explanation of the interrelation between strengths, weaknesses, and external macro factors. The report covers public, private, and voluntary organizations, their purposes, and legal structures, providing insights into how different factors affect business performance and sustainability. The report explores the functions of management, planning, organizing, staffing, controlling, recruiting, selecting, evaluating, and monitoring and their importance to the success of an organization. It also considers stakeholder analysis and how to manage different stakeholder groups. Overall, the report offers a detailed examination of the business environment and its impact on organizations.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1...........................................................................................................................................1
P1 Purposes of various kinds of organisation ............................................................................1
P2 Scope and size of various kinds of an enterprise...................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between various organisational functions and their relation with its structure
and objectives .............................................................................................................................1
P4 Negative and positive effect macro environment on TESCO operation ...............................4
P5 SWOT analysis of TESCO ...................................................................................................7
P6 Explain how weakness and strength interrelated with external macro factors......................9
CONCLUSION ............................................................................................................................10
REFERENCES .............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
Business environment is the total of whole internal and external factors that influence a
company. It is put up for several purpose, such as reducing an existing social problem, for
receiving profits, producing targeted population as per their requirements or demands. A
company gets effected by various kinds of sources that present in its external and internal
environment. These elements related to a business enterprise have indirect or direct relationship
with its effectiveness and performance. Basically , it can be opened that, business surrounding is
very important of an enterprise in which it has to function regarding to different modification
that are taking better place (Guglielmetti, 2011). To protect that enterprise is capable to integrate
and adapt all essential dynamics of market, the needs and wants of manager to use different
kinds of tools or technique's such as , PESTLE analysis for assessment of SWOT analysis and
macro factors for assigning micro development can pannier its capability to accomplish its
activity as well as task. This report is based on topic “Business Environment” and this will
describe company effectiveness in resent scenario. Any situation between needed change in
businesses environment and modes in which its positive impacts of an enterprise operations. For
this report BBC channel, Oxfam and Tesco are taken as several examples of public, voluntary
and private organisation. In this report has different factors and their relation with organisation
functions.
TASK 1
P1 Purposes of various kinds of organisation
An organization is a group of people for a particular purpose . It can be private or public.
Main type of business organizations are in private sector are solo business , partnership,
franchise or company. In solo trade most common activities are plumbing, electric work etc. in
partnership there can be partnership between two to twenty partners. More capital requirement in
this kind of business. In company need always a shareholders. A specialist manager's is
requirement in the company organization. Every company must register to the registrar. In US
60% of the retail sellers are do the franchisee business . Examples like McDonald,etc. In
company's matter there are three kind of companies in the market
1. Public company
2. Private company
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3. Voluntary company
All companies are explained following:-
Public company:- A public company issued secretary through IPO. These companies can give
their shares to public. A small percentage shares floated to the public. A public company is not a
private company. One Example is TESCO. TESCO is British related to company and its
headquarter is in England. This company is third largest retailer in the world. It restores 12
countries across Asia . This company is retailer of books, clothing, electronic, furniture etc. the
chain of TESCO company's grow from 500 stores in mid of 1990's. Jack cohen founded this
company on 1919. TESCO pulled out the US market at a reported cost of 1.2 billion euro.
Private company :- A company whose share can't be distribute in public they are called private
companies. There are four type of private companies are s corporation, c corporation ,sole
proper ships and liability corporations. Private company has different roles for different type of
persons. The cost of IPO is too high so the private companies are expensive. Sainsbury is the
second largest chain of the private sector in UK market. This company is cover the supermarket
of UK . Many things are like sainsbury money, sainsbury travel energy, sainsbury clothing,
sainsbury electricals etc. this company makes life easy to to persons .
Volunteer company:- when a company work for socially or for public with no money
requirement then these type of companies are called volunteer company . In volunteering
company a individual or a group can start this kind of companies. It is totally different from
public and private company . In private and public company a firm or public see the earnings
but volunteer company never see any kind of funds or profit. Many volunteer company work in a
natural disasters like flood , earthquake, volcano or any other emergency rescue. Firstly this
companies are established in 19th century. After that many companies are come ahead for
rescue. NHS is the name of one of the volunteering company. It establishes in England, Scotland
and Wales. This volunteer company established during second world war. And rescued to many
persons. Apart from this, all these types of organisation has their different purpose, which wants
to be achieve in futures in appropriate manner.
P2 Scope and size of various kinds of an enterprise
There are various kinds of an organisation as expressed above, they have top level of
important in the organisation of country and its citizens. These enterprise are basically based on
various kinds of plans and give several numerous products or services to the individual living
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within United Kingdom. They support in giving job opportunities, developing living standard,
increasing lifestyle. There is a board analysis that is mentioned below. It will regime regarding
distinctions in size, business objectives, services, products, scope, mission, vision, information
and legal structure related to stockholders.
Overview of Tesco
Tesco is a retail company and it was, by 1931, this company is capable to open its prime
store in the UK and by 1940, it had more than approx 100 stores in the country. Present day it is
a general merchandise retailer and multinational grocery company and their headquartered in
Welwyn Garden City, UK, England and Hertfordshire etc. it is a 3nd largest retailer company in
way of profits while their ninth ranks in term of revenue. Tesco established in more than thirteen
countries and it is developing at a quick speed. Recently it stays more that 28% of market share
in UK alone, it is making by market leader. It has more than approx 460,000 workers who are
trained as well as motivated to attain goals and objectives of an enterprise. On the basis of
average more than approx 50 million person are use business goods or services. In the current
market they have display such as floated items which extent from being reasonable as well as
luxurious. The business is recently aiming to become number of retailer in the world, so that it
can attain the needed as well as desired level of revenues and profits. In this task there are
various kinds of companies who required to set there desirable goods in the self of Tesco as to
raise their product sales.
Stakeholder Analysis
KEEP SATISFIED
(Most power, Interested)
MANAGE CLOSELY
(less power and Interested)
These person required to be completely
satisfied because they are entirely engaged in
the tasks and activities of the company.
 Workers
 Shareholders
These person to be incessantly fulfilled but the
satisfaction must be at a high level that people
should not be eager.
 Government
 Suppliers
CONTROL
(less power, much interest)
KEEP INFORMED
(less power and Interested)
These people needs to be advised as well as These parties need to be literate but do not
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informed regarding the satisfactory &
important information and should be confident
that there is no huge problem arising
 Buyers
 Financiers
irritate them by regulars messages.
 Local society and Community
Above the mentioned table, these are the different parties and level of effect which required to be
determined by enterprise.
Overview of BBC
It is a public funded and government owned enterprise that is called as British
Broadcasting business firm. BBC is a one of the best as well as oldest media broadcaster in the
economy. It workers more than 21000(approx) individuals on the basis of permanent. This
company was regulated ninety four years ago and established by John Reith in 1922. this
company comes under the legal power of secretary of regime for sport, media and culture etc. it
gives best services in broadcasting, television, radio and web portals etc. Their revenue of more
than €4.6 billion(approx) and net income is €165 million(approx). The cited company is giving
their services in more than twenty eight languages in different as well as every country. The
main mission of BBC is very simple, “They want and need to inform, entertain and educate
person.”There are 4 various objectives which are leading by BBC.
 Every job area is cable to create value for money execution
 The best content is audience focused.
 Different kinds of audience is targeted by citied company.
 Making world and best class content.
BBC is a channel and state owned enterprise, it is funded by different players such as taxpayers
which also built them important stakeholders.
Overview of Oxfam
It is a multinational as well as internation company which provide donation are known as
charitable business. That is concentrating on reducing and removing malnutrition and poverty
from this economy. It is a third largest company in the world are non as non profitable enterprise
in the UK. It was regulated in 1942 in England and Oxford. It works with the various enterprise
as to support person who living in the basis of poverty and provide them a best life. They need
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person to live their life with dignity while all rights of person and basic amenities are there for
them.
TASK 2
P3 Relationship between various organisational functions and their relation with its structure and
objectives
Other factors and various functions are definite on the basis of structure and goals of an
enterprise (Robbins, Judge and Campbell, 2010). There are different responsibilities and roles
which are given to the workers as to attain organisation objectives and goals in a efficient and
effective manner. It is very important for business to interpret that relationship up various
functions within. It will support in increasing that is capable to achieve the sustainable growth
such as success as to built enterprise afloat (Gebauer, Paiola and Edvardsson, 2010.). Tesco is a
leading company and it understand the significance of sustainable improvement and that is why
cited business invest large amount of money. While doing this company and they also has to
built sure that it is does not effecting environment and also putting productivity at a top level of
effectiveness and efficiency. Management in cited company has a activity and task of performing
different functions such as , organising, planning, staffing, controlling, recruiting, selecting,
evaluating and monitoring etc.
At the present time of planning handler are focus on various objectives and goals of an
enterprise as to attain them is a given as well as set time period. It is a board and major challenge
for business to focus on sustainability while they attracting on targets which necessary
exploitation. The one question is why they want to set up a plans by which they can relation
whole functions together and raise enterprise performance (Fernando, 2011). These are very
essential functions for an organisation and they support in making much value to future and
complete various need of the buyers with qualitative services and products.
Tesco has a well regulated as well as established enterprise structure, that is supported on
a Hybrid strategy. Cited company adopt this strategy because it ensure flexibility by the every
functions or department which are attain important funds to run at their maximal. Different
functions in enterprise are classified as per the product and region lines offered. As per
determined the all companies structure is considered to be a analysable but it is very supportive
for Tesco as to protect that whole duties of workers are properly managed.
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Source 1: Annual Report of Tesco, 2017
Tesco have various departments are there, as stated in picture above. These functions help
enterprise in protecting that whole activity and task are fulfilled and different goals are attained
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in a specific and minimum time duration (Erving and et. al., 2011). Whole function are declared
below with a statement of how they support another sectors:
Product: It is a best department which views after the products and shelf provide by superstore
of business. It also keep stock, and protect by individual and provide services and products is
available for buyers and their past experience at per.
Sales and marketing: Both functions such sales and marketing are play a very essential part in
giving important information related to consumer and market wants and needs. Mainly this
sector is not specified to the advertisement as well as promotion of services and products but
they are involved in supporting another departments about modification in the market
surrounding (De Jonge, 2011). The best examples is, it help research & development department
in selecting innovative technologies for creation supply chain management much efficient.
Finance: This departments are responsible to documents and manages whole income and
expenses that is achieved by an enterprise in a financial year. It is very important because it gives
high amount of finances to whole functions of business as to help them in creating at their best.
Customer and channels: It is best department that is obsessed with the fulfilment of buyers. It
addresses different grievances and give perfect data about different kinds of services in a best
way, so modification can be successful in the services and they can be developed.
Legal: This sectors are make sure that whole activities and functions are operating as per the
legislation of government. It also support enterprise by preparing a structure which can be used
and making a best as well as standardised platform for all tasks.
P4 Negative and positive effect macro environment on TESCO operation
Macro environment of a business includes various factors that are does not in monitor of
an enterprise. They have indirect as well as direct effect on enterprise and its tasks. It includes
different components such as, technological, political, economic and social etc. which modified
with time and have grate effect on enterprise is a negative or positive manner. Tesco can
determine these elements with the support of PESTEL analysis which is a very important
because it is crafted for evaluating external surrounding and its effect on business. Knowledge
and skill of this effect can help management in policy implementation and formulation as they
will have a occurrence idea to avert any shock from place (Cronan and et. al., 2011). The
PESTLE analysis defined as follows:
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Political: There are range of elements that have determinant over TESCO. This company is
recently starting in international market, which built it much assailable to these factors. They
mostly influence enterprise capability such as instability in political factor can effect all
enterprise functioning. Recently there is ability in Britain political factor which is creating it very
hard for business to function. In this scenario there government has to take important process as
to protect that no company gets effected. Tesco Is a internation brand that plays a essential role
in giving jobs and developing living standard of person in the country (Cordes, Richerson and
Schwesinger, 2010). Political factor have positive effect that if it is favourable them business will
be capable to flourish and it working will be easy and in case will hamper enterprise capability to
perform.
Economical: This is a best components which can effect enterprise in a part that it might even
mischance. Cited company has to built on determining economic surrounding as to protect that it
is a capable to select and be variable enough to present problems that are subsisting in economic
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Source 1: Narayan and Fahey,2001

environment. Deflation of product cost, inflation rate, recession, stock market, report of banks,
income of people are some components which wants to be evaluate by cited company managers
in economic environment (Commander and Svejnar, 2011). Every modification in these sources
can effect all enterprise functioning and they can use losses. In year 2008, there are several
recession which affected business profits difficult and they brutal to the grounds as person were
more attracted on investing money rather of spending. The UK government was capable which
support Tesco in retaining its sales revenues. According to the positive side about this factor , it
is a favourable than enterprise will be capable to attain effect will cause inability as well as
unbalance in enterprise and its productivity.
Social: There are several modification that built on taking best place within people and society.
This source is much dynamic as well as important in nature as with boost in globalisation,
modification between person has maximised. It leads to modify in lifestyle, ethics, culture and
values of aggregation living in a region (Chow and et. al., 2012). The manager of Tesco need to
built an determining this source as to understand the wants and needs of buyers who consume
enterprise services and products. If there is confusion in socity then cited company will also face
such as suffer but if person are living peacefully. In this way then company will be liable to
produce them properly.
Technological: This is a best factor which support enterprise in improving efficient functioning
and help in reducing consumption of factors. In recent day aggressive economic plays a vital role
in increasing productivity of an organisation in a effectiveness and efficiency way. The needs of
cited company to select technologies as to develop its supply chain management. So that it can
supply qualitative services to buyers. The positive effect of this source is that it rise business
capability to fulfil its activity in specific time period. While the negative effect is that it take a lot
of factors in adaptation steps.
Legal: There are various laws in United Kingdom which are in existence with EU. The cited
company is highly effected by these legislation as it has different branches in European Union
countries and United Kingdom. With Brexit is a very complicated for mentioned company as to
protect that they do not lead into many legal trouble (Cantwell, Dunning and Lundan, 2010).
There are different laws which shape that enterprise has to inform buyers about different goods
changes. In this way where cited company follows whole laws in a specific way then it will be
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capable to attain a best position in marketplace but different regulation and rule are breaking its
image in customer mind.
Environmental: This factor have different treaties that are being signed by different societies as
to encourage environment from exploitation and pollution. It is very essential for enterprise to
understand by the TESCO and follows whole government guidelines of sustainable growth as to
protect that it do not pollute environment location and built surrounding safe.
P5 SWOT analysis of TESCO
It is needed to evaluate enterprise abilities, micro environment and its overall protective.
There are SWOT analysis of TESCO company are as follows:
Strength: Tesco is a leading company and it will established in UK or EU market. It has a multi
and best format strategy to give the customers needs. This business offers different services and
products via its Hyper and super markets, convenience stores and difficult discount stores
(Blanchard, Tolbert and Mencken, 2011). It produce as well as serve various kinds of general
merchandise, grocery and food related goods to buyers. It has a top level of good quality brand in
market place and it also consider to be very reputable brand.
Weaknesses: There are clear weakness of an enterprise which are related with the current
controversies like to negative media extent and change to public image. Also the system scandal
has fall investors trust in business. It is inactive which is suffering from poor presence in
improving states which have mush opportunities to deed. Cited company has a history of credit
card, insurance claim and financial debt to be given.
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Opportunities :There are several opportunities which required to be employed by TESCO, such
as, it wants to introduce new in digital media promotion as to rebrand its rival stores. They
needed best advertising for attracting high number of buyers towards them (Bill Pasmore PhD,
and CMC, 2010). Also this company has another option of incoming into improving
marketplace via and acquiring little chain. Till now cited company was focused on raising its
food product with the assist of sales, which required to modify non food products it to be
promoted.
Threats: The advanced price of raw material in both non food items and food products range are
striking its profit margin. It has to built less cost which are threatening its profitability and
productivity. It also boosting competition is comely threat for TESCO.
Impact on decision making
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Source 2: Andrews,k., 2007

SWOT analysis is very important which are support managers in strategy implementation
and formulation. Enterprise knows what are his abilities and productivity level. It also introduce
the modification as per the variances and requirements. In this way all decision making which is
based on these weakness and strength. It also rise their managers ability to accomplish different
activity by taking impactive decision.
P6 Explain how weakness and strength interrelated with external macro factors
Every one required to determine SWOT analysis which stand for Strength, opportunities,
weakness and threats. In this way order to measure their performance in national and
international market. Also there are several macro source which are interrelated with SWOT
analysis. This process required by the TESCO. This analysis support for mentioned business in
determine factors which having effect on company function and operation. Cited firm capable to
achieve aggressive benefits with the support of this process (Belás and et. al., 2015). Weakness
and strength both are interrelated with macro factors which are mentioned as below:
Political: Whole function and operations of TESCO has been impacted by explosive political
factor in United Kingdom. This will also liable to reduce as well as remove whole ability of
industry.
Economical: Deflation index and unstable inflation rate having effect on existence of industry.
This will highly impact selling rate of cited company.
Social: Regarding to unequal classification of incomes which mentioned company is capable to
achieve its potential targets, it is not meet goals as well as objectives. Through which business
are not capable to protect its work quality.
Technological: Tesco is a leading and multinational company in UK. This business already
opted different early technologies in order to maximise cost and rise up profit margin. Through
different numbers can improved their management system of supply chain for achieve their set
targets.
Legal: Certain changes in legislation, laws, rules, regulation and policies are also highly impact
existence of industry. Legal authority of mentioned company need to protect that firm comply
with those legal process which are authorise by legal advisor. According to this process where
industry is capable to achieve enterprise objectives and goals.
Environmental: To protect the environment various policies were designed by the different
countries (Aula, 2010). According to this process has 2 and more than 4 consult with related and
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frame lawful agreement for maximise carbon emission by using important tools as well as
technique's. Furthermore, different numbers of TESCO choose such kinds of methods and
technique's for protect surrounding. As it is a best advantage for a cited company to meet its long
and short term goals and objectives.
CONCLUSION
As per the above mentioned report, it can be concluded business environment, it is very
important and needed for every enterprise. This envelopment has to be determined by company
managers as to protect that organisation and it do not get effected by it an future as well present
also. In this report there are various kinds of factors that lays in a company environment such as
macro and micro. Both are determined with the support of SWOT as well as PESTLE analysis
which help advisor in linking different functions of enterprise and rise their decision making
process. Present day private enterprise has over grown and adult public sector business in scope
as well as size. It has been possible regarding to modification in company slow adaption and
environment of these public sector. This file also boost of social sector has assisted community
in overcoming different problems.
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