Business and Business Environment Report: Nando's, Tesco, and NHS

This report provides a comprehensive analysis of the business and its environment, covering various aspects such as organizational types, structures, and the influence of macro-environmental factors. It examines the public, private, and voluntary sectors, using examples like Nando's, Tesco, and the NHS to illustrate key concepts. The report explores organizational functions, including marketing, human resources, and research and development, and their relationship to organizational objectives and structure. It also delves into the positive and negative impacts of the macro environment, utilizing PESTEL analysis to assess political, economic, social, technological, environmental, and legal factors. Furthermore, the report interrelates strengths and weaknesses with external macro factors, providing a holistic view of the business landscape.

Business and business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1 ................................................................................................................................................1
P1 Types and purpose of organisation ......................................................................................1
P2 Size and scope of range of different types of organisation ...................................................2
LO 2 ................................................................................................................................................3
P3Relationship between different organisational function and its link with objective and
structure.......................................................................................................................................3
LO 3 ................................................................................................................................................5
P 4 Positive and negative impacts of macro environment .........................................................5
LO 4 ................................................................................................................................................7
P 5 Internal and external analysis ...............................................................................................7
P 6 Interrelation of strength and weaknesses with external macro factors ................................9
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................11

INTRODUCTION
Business and business environment is basically a collection of all internal and external
factors such all the micro and macro factors. As these factor affect the working of the company
and directly impact it to a large extent. It helps to identify all the business opportunities. This
report is based upon the three company which is operated in private , public and voluntary that as
Nando's, Tesco and NHS. This report will cover different type and purposes of organisation
public , private and voluntary. Further it will discuss the size , scope of different type of
organisation. It will will state the relationship between different organisational functions and link
to organisational objectives. It will include positive and negative impact of macro environment
and also it will conduct internal and external analysis. And at last it will interrelate the strength
and weakness with external macro factor.
LO 1
P1 Types and purpose of organisation
Public sector – Public sector is basically a sector which has full intervention of
government and government control enterprises. It is the part of the economy which is control
and operate by the other authority. It is mandatory for the public company to lost itself in the
stock exchange. Public company are allow to offer its shares to the public with the help of initial
public offering. And also it can transfer its share to other without any restriction.
For example – Tesco as it is British multinational retail company which was founded in
1919. it offers many products and services to the customers
Purpose – the main purpose if the public enterprise is that to offer quality of product and
services to the customers. And to satisfy them and solve there problems. Also to fulfil the needs
and wants of the customers. And also to build loyal customer based (O'Neill, Beauvais, and
Scholl, 2016).
Legal structure - public company has no restriction to transfer its share to public and also
it can also offer its share to the public with the help of initial public offering. And it is important
for the public company to sign certificate of incorporation before incorporating. And it
mandatory for the company to have memorandum of association and article of association.
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Private sector - private sector are the body which have no intervention of the
government. Company can operate and control by the group of individual. Also for this type of
company there is restriction in transferring the share to the public with the help of initial public
offering . And also there are less paper work and legal formality a compare of public sector. Also
there is no need to list itself on the stock exchange (Lee, J. Y., Kozlenkova and Palmatier,
2015).
For example – Nando's
Purpose – the first and foremost purpose for the private sector is that it focus on the
maximising the profit as it puts all of its effects in maximising the profit of the company and also
provide wide variety of products and services to the customer.
Legal Structure - Each shareholder in a private limited company must be the part of the
business and are restricted to transfer its share to the general public. As each share entitles the
owner to 1 vote in the annual general meeting. And each share holder has limited liability for the
company. And it is important for the company to have legal document completed that
Memorandum of Association and Articles of Association (Strese and et.al. 2016) .
Voluntary sector – Voluntary sector are the body which work to improve the society and
also the living standards of the people.
For example – Red cross society as it is charitable body which help the society to a large
extent . As it gives emergency services to the society.
Purpose – the main purpose of voluntary organisation is that to create social impact as
they are non profit organisation. And also work for the interest of public . Its purpose is to create
employment opportunity and increases living standard of public.
Legal structure – there are three main legal structure used by the voluntary groups , an
unincorporated Association , a Trust and the last one is a company limited by guarantee.
P2 Size and scope of range of different types of organisation
Basis Public sector Private sector Voluntary sector
Size The size of public
company company is
very less as compare
The size of private
company is very
wide .
The size of voluntary
sector is very limited
as compare to both.
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to private company
(Josepe, Klingebiel, R.
and Wilson, 2016).
Scope The scope of public
company is very wide
as it can transfer its
share to the public and
offer its share to the
general public through
initial public offering.
The scope of private is
narrow as it has
restriction to transfer
its share and offer its
share to general
public.
The scope is very
limited. As it is non
profit organisation and
work to serve the
society.
No . Of director The minimum
director in public
sector is at least
minimum 3 directors
and maximum there is
no limit.
The minimum director
is at least 2 .
There is no director .
Objectives Its first and foremost
objective of public
company is to provide
quality of the product
and services to the
customers and satisfy
their needs and wants
as in order to build
loyal customer based.
Also to bring
innovative ideas in the
market and also to
build brand image.
Its objective is to
maximise the profit in
the organisation by
increasing sales of the
company (Pérez-Valls
and et.al. 2017).
Its main focus it to
provide emergency
services with the
motive is to increase
the living standard of
the society. At the hear
of their work is
providing g help to
people in crises both in
UK and overseas.
They have the
commitment to help
other with profit
motive
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LO 2
P3Relationship between different organisational function and its link with objective and structure
There are mainly two type of organisational structure which help the organisation to perform in
systematic manner such as -
Tall structure – Tall structure is very effective in the organisation. As it include multiple
layer of management as CEO, Board of directors at the top , middle and lower layer of
management. In this business owner are responsible for guiding principle and vision of the
company. By the help of tall structure the organisation run in the systematic manner and also in
the right direction. There are clear roles and responsibility in the company as top layer are
responsible for making all the tactics of the company and lower layer has to follow all the
instruction which are given by the top layer. As there is strong chain of communication. As by
the help of tall organisational structures there will be increase in productivity of the company
(Butler and Wilson, 2015).
Flat structure – This is the another type of organisation structure which has no
organisational layer . As it can have direct contact with the manager. Also the decision making
process is very quick as it allow innovative ideas and creative skills. As the flow of
communication is very smooth and every one has the opportunity to put their opinion.
Tesco uses tall organisational structure as it is very effective structure in which all the
roles and responsibility are clear and there is less confusion . And also Tesco is large
organisation and often has multiple layers with in the hierarchy . Also there is narrow span of
control as each manager supervised its employees closely. And also in this type of structure there
is less conflicts (Eling and Schaper, 2017).
Organisational function
Marketing – As marketing is the most important function as it help Tesco to promote its
products and services . And also it help to market the product by apply various marketing
strategies. As it connect the organisation with the potential customers and helps in identifying the
needs and wants of the organisation.
Human resource – The second function is human resource as it has wide function as it help in
recruiting , selection , performance management , training and development etc. it help the
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company to provide capable employees. It plays a important role in the organisation and helps
the company to a large extent.
Research and Development – The third function is research and development as it is very
important to known the needs and wants of the company and also to bring innovative ideas in the
market as it will help to gain competitive position in the market. As by the help of research and
development Tesco can have the information of customer needs and helps to attract large number
of audiences (Benzer and et.al. 2017).
LO 3
P 4 Positive and negative impacts of macro environment
Macro environment affect the business to a large extent as it include various factor such
as political , economical , social , legal , technological and environment factor.
PESTEL analysis of Nando's
Political factor – This aspect means the factor which are affected by the government
regulation , action and various policies. Political factor affect the business by both negatively as
well as positively. One of the positive impact of political factor is that increasing international
trade agreement as Nando's has the opportunity to expand its multinational business based on
improved international trade which helps to increase the global supply chains. On the other hand
negative impact is that governmental guideline for diet and health causes negatively and hinders
the fast food business (Eisenhardt and Bhatia, 2017).
Economic factor – This factor analyses to the effect if economic condition as it plays a
major role in the business. As economic factor directly impact the business in both positive way
as well negatively. As if there is stable growth in country where it is operating then it will causes
positive impact. But if the income level of the consumer decrease then it will causes negative
impact.
Social factor – Social trends include consumer behaviours , attitude, taste and
preferences. If there is busy lifestyle in the urban area then people are more attracted towards the
fast food as they will avoid cooking. On the other hand if people are more diet conscious then it
will impact Nando's in the negative way.
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Technological factor – Ad organisation success nowadays depend on the adaptation of
the advance technology as it will help to maximise the benefit from the technological trends. As
technology plays an important role in the organisation. As if Nando's invest more in the research
and development department then it will causes negative impact as it will help the organisation
to bring innovative and creative ideas which help the business to a large extent. On the other it
impact in the negative manner as from the advancement there are many security issue as there
are chances to misuse the personal information as it will affect the organisation to a large extent.
Environment Factor – As this aspect is very important and emerge recently as it linked
to the natural environment as it affect Nando's to a large extent. As it affect the business by
positively as well negatively. As if there are changes in the climate condition in some region as if
the condition are not good and chances of flood , tsunami earthquake then it will hinder the
growth. And if MacDonald's corporation can improve its environment programs and
sustainability to strengthen its brand and business performance.
Legal factor – it include the impact of different type of laws and regulation on forms. As
by the change of legal system and the new law shape can affect the business to a large extent. As
it also impact in the negative manner as health regulation impose limits on the availability of the
fast food in some workplaces. As this legal regulation affect the enterprise to a large extent. On
the other hand if the legal laws are in favour of the company then it will impact it positive
manner (Sartor and Beamish, 2019).
PESTEL analysis of Tesco
Political factor – Political factor plays a major role in the organisation. As Tesco operate
in different country has it is important to follow di9fferent policies of different country. As it
affect greatly to the performance of the Tesco. As this include act of legislation and stability of
the country where it is operating. Of there is financial instability in the country then it will affect
the organisation in the negative manner. And also it affect in the positive manner as it
government encourages the retail sector to provide employment opportunity to the unemployed
people so by creating the job , this will help Tesco in increasing the demand of the product and
diversifies its workplace.
Economic factor – This factor consider as the main point of concern for the Tesco as this
factor hinder 5the growth of the company. As it include tax rate, income level , gross domestic
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product , employment level and profit and prices of the products. As it is very important for the
company to be aware of the economic condition where it is operating. As there is a changes in
the taxation policies then it will directly affect the working of the business in the negative
manner. But if there is increase in the income level of the people then automatically there will be
rise in the sales and profitability of the company (Sartor and Beamish, 2019).
Social factor – The most common that affect the Tesco as it include eduction level ,
believe , preferences, taste , attitude and customs of the customers. As it affect the business by
negatively and positively. As there more awareness of health issue as customers are more
preferring health food so Tesco has change its approach towards food as it is adopting more
conceptualization to these modification by obliging the demand for the organic products.
Technological factor – As the advancement of new technology has bring many new
changes as well as opportunity for the Tesco. As it affect in negative and positive manner. As
development of inline shopping with facility of home delivery has help Tesco to operate and
expands its business. As by this it increase the sales and profitability of the business . As it has
give Tesco new room for operating its business. As it affect the business in the positive manner.
In the other hand by the technological advancement it causes quit burden for the employees
Tesco as they feel little bit pressurize for the innovative ideas as well operating the technology
in the systematic manner (Sartor and Beamish, 2019).
Environment Factor – As environmental factor plays an important role in the business
to a large extent . As by fulfilling the corporate social responsibilities it will help Tesco in
improving the brand image and hence it will help to increase the sales as it will attract more
number of customers. As it has clearly committed to reduce the carbon footprint by 50 % by
2020. as it will causes positive impact for the company. On the other hand bad climatic condition
hinder the growth of the company as it causes negative impact.
Legal factor – Government policies and regulation causes direct impact on the company
and its performances. As there are many regulation which hinders the process of Tesco such as
the Food Retailing Commission in 2004 suggested a Code of Practice should be introduce which
ban many practices as it impact the Tesco in the negative manner. But if there is different laws
and regulation which are imposed which favour the Tesco then it will affect the working of the
organisation in the positive manner (Prajogo, 2016).
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LO 4
P 5 Internal and external analysis
SWOT analyses help the organisation to identify all the strength and weakness and
opportunity. And helps the business to overcome the threat.
SWOT analyses of Nando's
Strength – There are many strength of Nando's which help the company to gain
competitive position in the market. The first and foremost strength is that the company has
successfully rolled out new menu items like coffee , smoothies it which attract large number of
audiences. Also the second strength is that the company has strong loyal based customer which
help the business to growth and earn profit. And also it has secret recipe which make unique
position in the market (Kljucnikov, Belás, Kozubíková and Paseková, 2016).
Weakness – There are some weakness for the company which need to be overcome by
the company. As it spend less in the research and development as it hinder the growth and
expansion of the company . And also it will be harder for the company to find prime location to
build a set of golden arches. As it hinder the working of the Nando's. the next weakness is that
the employees of the company has morale as it will affect the working of the company.
Threat – the first threat is intense competition as the brand has many competition which
help to decrease the sale of the company as the competitor offer very low price to the customer
that threaten the company to a large extent (Hamilton and Webster, 2018).
Opportunity – Nando has various opportunity as there are opportunity for new
restaurants as it will help the company in expansion and diversification of its products. And also
there is fast growth in the fast food industry which help the organisation to a large extent. As
most people first preference is fast food.
SWOT analyses of Tesco
Strength – there are many strength as it has strong brand image which helps Tesco to
gain strong competitive position in the industry. And also Tesco has various awards for its retail
excellence , customer services which make good position in the market. And it has long lasting
history which gives assurance for the long run basis.
Weakness – One of the biggest weakness which need to be overcome is that Tesco 's
subsidiaries are not operating well and they are more vulnerable. And also customers are not
buying as many items just because of low disposable income.
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Opportunity – there are many opportunity for Tesco as for strategic alliances with other
brands as to offer more products to attract more customers. And also there are many opportunity
to grow its business online.
Threat – The biggest threat is its competitors by which Tesco sometime can not handle
intense competition from its competitor. And also rising raw material costs are also threatening
Tesco profitability and causing it to expands its supplier network in order to get better pricing on
raw material (Gaganis, Pasiouras and Voulgari, 2019).
P 6 Interrelation of strength and weaknesses with external macro factors
The first and foremost strength of Nando' is its loyal customer base which is interrelated
which the economic factor as if there is decrease in the income level then it will affect the buying
behaviour. As the income level decreases then there will be chances of less sales and also it will
causes negative impact in the organisation. Further the next is large wide variety in the menu as
it will interrelate with the social factor as it will full fill the needs and wants of customers and
satisfy their need to a large extent. The other strength that interrelate with macro factor is that its
brand image that interrelate with technological and environment factor. As by fulfilling the
corporate social responsibilities Nando's has increase its brand image. And also by using advance
technology and innovative ideas this will help the company in improving its brand image.
The first weakness is that the company spend less in research and development as it is
very important for the company to invest in research and development as this weakness will
overcome by the help of technological factor as it is necessary to bring innovative ideas by the
help of research and development as it will help the business to attract more number of
customers and it will help to increase the sales of the company. The second weakness is that the
company is not able to find the prime location for this it will be interrelate to the political factor
as by the help of political factor it will help the Nando's to have the chance to have prime
location as it is necessary to maintain good relationship with the government for the smooth
working of the company. Also the next weakness is that its employees has low morale which will
be overcome by the social factor as it will be important to boost up the morale of the employees
by motivating them and providing them with rewards and incentives.
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CONCLUSION
The above report is based on business and business environment as it is the set of all
internal and external factor which affect the business to a large extent. As it help the business to
identify the different business objective of the business. As this report has concluded different
types , purposes of organisations and also size and scope of range of different types of
organisation. Also it will conclude the relationship between different organisation function. It has
also identify all the macro environment factor with the help of PESTEL analysis and also it has
identify the internal and external analysis with the help of SWOT analysis. Further it has
articulated the relationship between the strength and weakness with external macro factor.
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