Business Environment and Organizational Analysis Report (HND Business)

This report provides a comprehensive analysis of the business environment, focusing on the purposes, sizes, and scopes of different organizational types, including private, public, and voluntary sectors. It examines the functions of companies and their alignment with goals and structures. The report uses Tesco, BBC, and Oxfam as case studies, evaluating their macro-environmental impacts, and conducting SWOT analyses to assess their strengths, weaknesses, opportunities, and threats. It also explores the interrelationship between macro factors and organizational performance, offering insights into the business environment and how various factors influence organizational success. The report covers various aspects of the business environment, including stakeholder analysis and organizational vision, mission and legal structures.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1. Purposes of different kinds of organisation......................................................................1
P2. Size and scope of various kinds of firms..........................................................................3
TASK 2 ..........................................................................................................................................5
P3. Relationship between various operations of the company and their relation with its goals
and structure...........................................................................................................................5
P4. Positive and negative impact of macro environment on functions of Tesco...................8
P5. SWOT analysis of Tesco................................................................................................11
P6. Link between the strengths and weaknesses of macro factors of Tesco........................12
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Business is considered as an operation in order to exchange goods and services and in
return the owners of the business gets some amount of profit in terms of money. There are
different purposes of a business as individuals who are carrying this activity may wants to earn
benefits, resolve any issue related to the society and fulfil the demands of the consumers. There
are different factors which influences an organisation and these might be present in internal and
external environment. If the enterprises does not form any policies and strategies by keeping
these elements in context then it will directly or indirectly impact the productivity and
profitability of the company. It could be said that the businesses have to adopt and function
according to the needs of the business environment in which they are functioning. If they wants
to know and analyse the business environment they can perform SWOT and PESTLE analysis.
SWOT will be for the evaluation of micro and PESTLE will be for macro. This report will be
brief about the effectiveness of business in the existing scenario and how any changes can bring
variations in their profitability. Tesco, BBC and Oxfam are the three private, public and
voluntary organisation respectively which will be considered for this report.
TASK 1
P1. Purposes of different kinds of organisation.
It is observed that in a business environment their exists various kinds of organisations
and these are differentiated on the basis of different criteria. Diversification on the basis of
goods, services, legal structure, purpose of formation and aims can be some factors which can be
considered for this purpose. Mostly companies are divided on their aims of earning profit and the
market share they acquire. Private enterprise are the firms which are formed on totally profit
making aims. In the surrounding there exists some companies who make sure the economy of the
country is functioning well and there is stability in that. All the goods and services provided
them are at reasonable prices and are of good qualities. In the society there are various social
issues which needs to be addressed in order to make sure that the social economy of the country
continuously experience regular development. This responsibility is taken by the voluntary
organisations. In the current era there is rise in the private partners and these companies are
taking over the public because they are dynamic and able to perform well during crises. These
organisations can be discussed in detail in the below mentioned paragraph.
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Private Company: The authority of handling all the functions and decisions of such
firms are with the private people. They are listed in the stock market,k so their shares can be
brought and sold. Maximum market in the economy are covered by these organisations only, so
it can analysed that how important these are for the growth of economy. There can be small as
well as large size of the private firms and these have aim of increasing their market share by
expanding into the new areas. The basis of their division can be their size, capability of
production, capital and the number of people employed by them. They carry out their services
through the banks loans, personal savings, government subsidies and from the stakeholders.
They invest into other areas to earn more profit and make sure that they follow government
regulations. Tesco can be the example of such organisation as it is the private retailer.
Public Company: The ownership of these are in the hands of government and are fully
controlled by the bodies which are attached to the governing body. They are liable for providing
quality products and services at relevant prices. In a country there might be higher demand of a
goods which is necessary to met so for the purpose of fulfilling the demand of that product these
organisations are formed. If the demands will be met then there will be stability in the economy
of that country. They develop products which comes in the category of basic amenities so that
the country cannot fill lack of those resources. For example; maintaining the demand of the crude
oil, banking sector, health and education sector, these firms are formed. In order to run their
business they get finance form the taxes which is paid by the citizens of the country. Through
this concept they are termed as public companies. Each and every activity of the firm is looked
by the governing regime. They can act as producer, buyer and the provider of the goods and
services. In UK although there exist very less number of the public companies but there are some
which holds a large market share and BBC (British Broadcasting Company). This organisation
deals with media & broadcasting and is one of the world's renowned company.
Voluntary Sector: The decision making power of such organisations are with the
individuals or to a group of people who have came together for the common cause. Their aim is
not to earn money rather they work for the social cause without making any profit. In the nation
there might be lots of social problems which can hamper the growth of the economy. It is
necessary that people should look into these matter and needs to solve them as quick as possible.
There can various organisation like NGO's, charitable trust and social groups which has taken
responsibility to improve the conditions related to social economy. They receive funds from the
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corporate houses, noble people and the products which they sell in the market. The profit which
comes to them are used for the better functioning of the organisation and are also distributed to
the needy people in different forms. Oxfam is one of the organisation which is a charitable trust.
There core functioning aims at eradicating poverty from the underdeveloped countries.
Sole Trader: It is the business structure in which a single person trading as the individually
legally responsible for all the aspects of the business. All the debts and losses coming in the
business will not be shared by other.
Partnership:- It is the condition when the two people with the same interest come together to
form a business organisation and each of them has certain share in it.
Private Limited Company:- It is a type of business entity and limits the owner to their shares
and limits the number of shareholders to 50 and restricts the shareholders from publicly trading
shares.
Public Liability Companies:- It is a type of business organisation which can be called as limited
liability organisation whose shares may be freely sold and traded to the public.
P2. Size and scope of various kinds of firms.
All the above mentioned organisation have a crucial significance in the economy of
nations. These sectors which make sure that the citizens of the country lives properly and does
not face any scarcity so they produce products and services to fulfil the demands. They provide
employment to large number of people, increase their living standards and through there services
people can improve their lifestyle also. Each organisation will be discussed below with their
products, services they offer, what scope they hold, vision, mission, legal structure and the
stakeholders information.
Details of Tesco: It is a organisation which holds multinational grocery market and also a
general merchandise retailer. Established nearly 98 years ago in the year 1919 at Hackney,
London. Jack Cohen is the person who laid his foundation of the company and now it has
become the third largest retailer when it comes to profit. It has been successful in maintaining
9th position in the companies those have high number of revenues. Its market is expanded to
almost 13 countries with approx. 6,550 stores in different locations. Tesco is continuously on the
line of expanding their business and in UK it acquires almost 28% of the market share. They
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have achieved the success in providing employment to a large number of people and in 2017 the
number reached to 470,000. The employees of the company is dedicating and believes in giving
their full effort at the workplace. They have variety of products which they sell in the under the
roofs of Tesco stores. Through the data from the annual report of the company it is observed that
in a single day almost 50 million people use the products of Tesco. They wants to expand their
market in the countries and places where they don't have any store. Through this they will able to
increase the increase their profit margins and productivity.
Through this table they can able to identify what all people are important to them and
what importance have to be given to them on the basis of priority. After that they can know what
impact does they causes to Tesco. Stakeholder analysis of the Tesco is as follows:-
KEEP SATISFIED
Company need to make sure that the interest of
these people are fulfilled as they are the most
important people for them.
 Shareholders
 Employee's
HANDLE CLOSELY
In this the satisfaction should be up to a certain
stage.
 Suppliers
 Government
INSPECT
These people have to be informed about the
things going in the company and need to aware
them that all is well in the firm.
 Customers
 Investors
GIVE INFORMATION
They also have to be informed but they should
make sure that they are much disturbed.
 Local Community
Vision of Tesco are as follows:-
 Growing business and full of opportunities;
 Modern, innovative and full of ideas;
 Winners locally whilst applying our skills globally
 Inspiring, earning trust and loyalty from consumers and communities.
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Details of BBC: It is the world's most credible media organisation and holds a trust of
lot of viewer and listeners around the world. Founded by John Reith in the year 1922, this has
become the oldest media firm. Secretary of State for Culture, Media and Sport hold the power of
BBC. There services are extended to radio, TV and web portals and able to generate an income
of approx. €165 million. They are delivering their services in almost all countries with 28
different languages. They always believed in informing, educating and entertaining people
through there programs. Following are the objectives of BBC:
 Content should be made according to the needs of people.
 To generate more revenues from their services.
 To target every type of the audience.
 Believes in brining a high quality content.
As the firm is public company so its stakeholders will be the citizens of UK who are paying taxes
to the British regime.
Details of Oxfam: It is an international level charitable organisation who are focused on
eradicating poverty. In UK it is the third largest organisation whose motive is not profit making.
Oxford was the place where it was founded in year 1942. In order to build better society which is
free from any suffering they are putting their efforts to help local people to enjoy a better
environment. They are making it ensure that people are aware about their human rights and these
rights are not violated. To give rescue and help the disaster hit areas and to improve the polices
of the parliament they are equally giving their best in these areas.
For the fund rising they have to rely on the donations which they get from corporate
houses and from the sales of the donated products which they sell in the market.
TASK 2
P3. Relationship between various operations of the company and their relation with its goals and
structure.
The operations of any organisation are created through analysing their objectives and
goals. To make this effective and increase efficiency different roles and responsibilities are
allocated to the staff who are part of these companies. So it become important to set a
coordination between their functions and the goals of the firms. Company like Tesco invest a lot
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of amount on the functions which they do because they know for the growth of the organisation
sustainable development plays a crucial role. It is observed that many enterprises harm the
natural environment through their operations and they also don't obey the government rules
which abide them to do so. Tesco from years is adopting the concept of better productivity by
keeping environmental norms in mind. Planning, hiring, selecting, handling, analysing and
monitoring are the some task which are performed by the management of Tesco. They make sure
that all the goals and objectives are met in time so it becomes a challenge for the firm to
emphasis on sustainability while focusing on the targets which requires exploitation. So they are
trying their best to increase their performance and link all the functions together. All the
operations which are carried out by them have a crucial significance for the future demand of
the customers.
The structure followed by Tesco is a matrix structure because they follow hybrid strategy.
The basic aim of following this structure is that they can bring efficiency and flexibility in the
departments existing in the company. It also satisfy them that the functions which they do has
enough funds so that they can yield proper outcomes. All the operations of the firms are aligned
in the way that every area and products are focused. It can be observed that although the
structure is quite complicated but it is assisting them in managing all the roles and
responsibilities in proper manner.
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Illustration 1: Annual Report, Tesco. 2017
The image shows various departments existing in the Tesco and all these make sure that
all the activities are performed in timely manner. There is detail description of all the
departments with their functions.
Marketing and Sales: They are a big support to Tesco as they give them information
about the market in which they are operating their functions and demands of the customers. They
make other areas of the company about the changes which they have to do to gain competition
advantage. These changes are done after the market analysis by this department.
Functions: It inspect and monitor all the expenses incurred in the business activities of
Tesco during a financial year. They submit their report about the expenses which has be included
and what expenses needs to be excluded. Through this they make sure that all the functions does
not lack any money while carrying out their activities.
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Customer Service: To make all the customer satisfy and in order to sort out the queries
related to their various functions this department was establishment. They came to know about
the problems through customer point of view and according to they put forward the changes
which are required to be done.
Legal: The role of this department to ensure that Tesco follows all the rules and
regulations imposed by the government.
Product: Although this might be a small department but has great significance because
they make sure that the the stores of Tesco has sufficient number of products.
All the above mentioned functions has be linked together because this will help them in
attaining their business aims in time.
P4. Positive and negative impact of macro environment on functions of Tesco.
Macro-environment of an organisation consists some of some factors which exists
outside the surroundings of the firms and they exercise very little control over these. These can
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Illustration 2: Tesco Organisational Structure

directly or indirectly impact them and their functions. Political, economic, technological and
social are some of the elements which are part of macro environment. There will be positive and
negative impacts depending upon the situation in which they are. If Tesco wants to know their
impact they can use PESTLE analysis for this. Through evaluation they will have better
understanding and knowledge about these factors. Once they get to know these components they
can shape and formulate strategies according to it so that they don't face difficulty in achieving
their goals and objectives.
 Political: Tesco's business is spread across all over the world, so the political factors may
impact them widely. Due to the Brexit and unexpected results of the national elections
UK might face instability in their political structure. Parliament is well aware that
through this the business prevailing in UK might be impacted whether directly or
indirectly. The government have to take certain actions which will ensure that whatever is
going in the political environment should not affect the companies at much higher level.
They know that Tesco is the company who holds a great significance in the economy of
UK and they also give employment to a lot people. If there will be not suitable condition
for the company then they may face issues in their working. The positive impact of this is
that the organisation will not face much difficulty in expanding their market as they have
market share in almost all nations. The weaknesses is that some countries government are
trying to promote their local retail company thus acting as barrier for Tesco.
 Economical: There can be considered as biggest blender if there will be negative
environment. During the time of economic crises there will be increase in the inflation
rate which will decrease the customer number because the prices for the product will go
high. This would impact on their shares and people will also avoid into their share in the
stock market. Income of the customers, regular variations in the prices of goods and
services, accounts report, stakeholders report and etc. are some elements of the economic
environment. This will collapse all the sales of the company and they will find it hard to
operate their functions in efficient manner. This situation came when the world
experienced global economic recession but with the help of British government they
sustained in the market and maintained their sales. If there will be favourable conditions
then Tesco can experience higher profits. As the turnover of the company is large so they
can collaborate with the other companies who has less business thus creating positive
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