Business Environment Analysis: KFC, Tesco, and NHS Report

This report provides a comprehensive analysis of the business environments of three organizations: KFC, Tesco, and NHS. It begins with an introduction to the dynamic nature of the business environment, highlighting the impact of both internal and external factors on organizational performance. The report explores the diverse types and purposes of organizations, including public, private, and voluntary sectors, and their respective legal structures. KFC, as a private company, Tesco, representing the public sector, and NHS, a voluntary organization, are examined in detail. The report delves into the scope and size of these organizations, analyzing their products, services, mission, vision, and organizational structures. Furthermore, it examines the relationships between different organizational functions, using Tesco as an example. The report also assesses the positive and negative impacts of the macro environment on business operations and includes a SWOT analysis of the establishments. Finally, it explores the interrelation of internal and external factors, providing a holistic understanding of the business environment.

Business
And Business
Environment

Table of Contents
Introduction:..................................................................................................................................1
LO1:.................................................................................................................................................1
P1: describe diverse type and purpose of organisation and lawful structure.........................1
LO2..................................................................................................................................................4
P2: describe the amount and scope of various types of organisation:...................................4
LO3..................................................................................................................................................6
P3: examine the relationship among different organisational function.................................6
Lo 4..................................................................................................................................................8
P4: recognize the affirmative and negative impact the macro surroundings has upon
commerce operation...............................................................................................................8
P5: SWOT analysis of the establishment...............................................................................9
P6: Interrelation of internal factors with external factors:....................................................10
Conclusion:....................................................................................................................................11
References:.....................................................................................................................................12

Introduction:
Business atmosphere is a process which operates in the dynamic environment which
has a impact on their whether they will be able to achieve the objectives in the long run. Their
are external factors that have affect on the productivity of the organisation and there are also
internal factors which are under the control of manager so that business activities can be
perform better in the target marketplace. Business environment helps in identifying the
opportunities present in the environment and taping them into useful resource which will
increase the overall performance of the organisation. Under this report three company are chosen
such as KFC as a private company offering goods and beverage to its customer , secondly
Tesco company is chosen as public sector in the UK market giving various supermarket product
and service to its target consumer and thirdly, NHS stands as National health service is taken as a
voluntary organisation. Further their will be different purpose and scope of their oragnisation
are explain in this report.
LO1:
P1: describe diverse type and purpose of organisation and lawful structure.
There are dissimilar type of establishment like private and public and NGO's in the
business environment and to have effective work place for various business goals. These
business units have their own purpose, scope and legal requirements in their work conditions.
Some of the company are looking for profits from their business operation and some of the
organisation are working for well-being of the society as whole.
Public organisation: This is open of the organisation that are owned and functioned by
the supervision and offer their product and service to its citizen. The companies in the public
sector does not seek the create profit in the marketplace. The fund and investment requirements
are raised by different modes of supply such financial transfer from various other level of the
administration. (Wong and Aspinwall,2004)
Public organization: To study the public organization, the Crown Prosecution services are
selected which is located in the Wales and England.
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Purpose: The Aim purpose of the this type of organization is to give proper culture with the
various tools and technique to face different situation in the work environment.
Nature: The Crown Persecution services are responsible for giving advice on the polices for the
further investigation in the crime .
Legal structure: It provides overall services related to the prosecution so that all the legal rules
and regulations are followed in the country.
State government: under this, government is specialized in enforces and making laws
for a state level. The country is divided into various forms which shares percentage with the
federal and national government.( Wilson, 2016)
Central government: it refers to power of the government to run the whole nation with
various rules and regulation. They are responsible for sustainable economic development and
take care of heath and safety of people by giving them good quality of conditions.
Their are various things which are to be taken into consideration while forming public sector
organisation such as following the corporation act for making business structure, taking leasing
premises under retail shop lease act, taking care of intellectual property,following employment
act , and safeguarding the privacy and information.
Private organisation: it is organisation which are run by the individual and companies
but not by the government agencies. Their aim focus is to earn profit in the long run by
operating various activities. The KFC is a private organisation offering special fried chicken in
all over world. They have different outlet around the world serving different audience. The
private companies have to follow certain rule and polices stated under legal structure such as
(MOA)andAOA).
Purpose : The purpose the private organisation such as KFC is to offer best quality of
good and service to its target audience and earn profit in lieu of product sale in the
marketplace.
Legal structure: The legal requirements of private organisation include various different
type of organisation structure. Some of them are discussed as follows:
partnership: it refers to the situation where two or more parties come together to
perform the tasks in most profitable way and bear a profit and loss for such business activities.
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Partner agreed to put the their money in the business in some proportion of their share in the
organisation and perform the essential task to complete the scope of the organisation and earn
profits. (Teece,., 2010.)
Sole trader: under this, the business is own and run by the individual and take control
of each and every business transaction. They are the aim person of the organisation having sub-
ordinates for performing all the task in the productivity manner. The one person have to bear all
the losses and also enjoy the profit margin in the business activities.
Private limited organisation: under such organisation the partner are liable to bear the
loses in accordance to the their money invested in the business operations. In the order words,
the personal establishment refers to any being, corporation, corporation working to earn profits
Voluntary organisation: It refers to those organisation which are established for the
benefit for the society and earning profit the motive for such organisation. They are not the
government bodies but required helps from the government in all the levels of task to provide
goods and service . These organisation usually runs by charity fund, donations and etc, the NHS
is a voluntary organisation working for the betterment for the public people.
Purpose: the main focus of the such organisation is to serve the needful people in the
society,as NHS provide good education , health care and emergence care of society.
Legal structure of voluntary organisation :
Trust: it act as agent or trustees on the behalf of a person for the purpose of the
organisation, transferring the assets to the beneficial party.
Unincorporated association: it refers to organisation who work for betterment of the
people without making money in return. The money is used for the development of the society.
The differences between the profits, Non profits organisation and NGO are discussed as below:
Profits organisation:
The profits organisation are those companies which focus on achieving the profits margin
by satisfying the needs and wants of the target customer in the market place. it is business which
uses different types of tactics to make out the profits from its operational activities. the scope and
size of this organisation is they have motive to earn more profits in target market with the help
of its size of maximum employees of 250 employees at the work places. For example, the Non-
profits organisation: its refers to those companies who uses its funds for the purpose of running
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its business rather than dividing the funds among the shareholders and owner of the organisation.
The scope and size of this type of organisation is not large as they are not focusing on earning
the profits rather focus in helping the organisation to grow.
NGO organisation: non –government organisation focus on helping the society and well-
being of people of the community. Its fund is raised by the government for the betterment of the
society as whole. The size of this organisation is smaller in number.
LO2
P2: describe the amount and scope of various types of organisation:
There are diverse organisation in business environment and having their own scope and size of
their business operations which are discussed as follows:
Public organisation : crown posecution
Size and scope:
The crown prosecution services are trying to manage the around 9,00,000 prosecution at the
present in the international level and having the 700 member in their organisation. it operates at
the global market and having office in very possible location so that customer can reach them/.
Product and services: the organisation offers various kind of proposals to the policies
department so that people can get benefits from the polices. It also provide information about
different rules and regulation .
Mission and vision: This public organization wants to give good advices to its people so that
they can stay out of problems. The organization provide good advice to customer about the
different kinds of policies made by the senior manager so that peace can be maintain in the
economy.
Private organisation: KFC scope and size :
Background details: It is second largest restaurant chain in all over the marketplace. It is
know as American fast food specialised in offering chickens items to its customers.
Mission and vision: The main aim is to provide best quality of fast food to its customer
in lesser time as well as provide them friendly environment.
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Business objectives: The objective of KFC is to capture the emerging market and
increasing profit percentage from 57 %to 49%. also focusing in increasing the market by 2025
in the different countries. (Rodriguez Krishnan, 2012)
Size and scope: It operates in 20,000 plus locations in all over the world. It is second
largest restaurant chain in the world.
Product and service: The KFC offers different types of chicken such as sandwiches,
French fries, various type of soft drinks, salads, deserts and breakfast.
Organisational structure: The KFC follow the Global hierarchical structure to have
proper functioning of the organisation at the largest scale. The decision are made by the top-
level of authorises in the organisation.
Stakeholders: it include CEO of KFC , managers, customers, stores employees.
Voluntary organisation: NHS
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Background details: It is a publicly funded healthcare system of the UK and founded
by the Aneurin Bevan on 5july in 1948. it has four system such as national health service in
England, Scotland, ware and Northern Ireland.
Mission and vision: The goal of this organisation is to provide help to every person who
needs to take care of their health, hospital expenses and various another expenses relating to the
health care of the person.
Business objectives: the aim objective is to protect and give them protection to the
people who needs helps in their healthcare.
Size and scope: The scope of organisation is to expand their services and provide help
to needful persons.
Product and services: It includes services in terms of healthcare and gives medical
check up for free for poor people in the organisation.
Organisational structure: NHS follow the set procedures to complete the task in the
most effective ways so that needful people are provided with the help.
Stakeholders: it includes trustees and various volunteers and sponsors to give funding
to the NGO from time to time.
The scope and size of the organisation has a huge influences on the business environment as it
operates in the dynamic work conditions. Every organisation has its own scope of work to be
done by their company and size of operations depends on task which need to be done in the
particular time-frame.
LO3
P3: examine the relationship among different organisational function
Tesco is a third largest retailer stores in the world. They operates in seven counties offering their
products and services in the target market. The product range is from household items to cloths
and electrical devices.
Organisation structure: The organisation structure refers to the proper hierarchy which
company follow in their organisation so that they able to achieve their goals and objectives in
the most effective manners. there are different type of structure such as functional, divisional
and matrix:
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Divisional structure: this structure is followed in the large organisation operating in different
international location. in the TESCO organisation, the manager follow this structure to maintain
the proper functional of all region.
Functional structure : this structure are made up in the organisation so that each department
work according to their purpose. In the Tesco organisation, they have marketing department,
sale and production department which all work for achieving the common goals and objectives
and they work in coordinating with each department
Matrix structure: it is Hybrid of divisional and functional structure so that organisation are
able to perform according to need and wants of the international location. it helps the
organisation to perform better in the target market place.
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International structure :
Global company structure: the organisation have present in the international level offering
products and services in all type of market at the global level with focus on increasing the
profits and volume of their business.
Multinational company: they have invested in many country but not coordinating in the
product, they are offering their individual goods and services.
Transnational company structure: these organisation are more complex in structure , they
have invested into foreign operations , have central corporate department such as R&D ,
marketing department to perform the task.
The different department and their relationship among another function between the
organisation within the TESCO organisation are as follows: (Bergeron and Rivard, 2004)
Marketing department: these department focus on making the effective strategies of the
organisation to achieve the goals and objectives
Financial department: this part focus on maintain the effective flow of fund in the organisation
so that all the task can be competed in the effective ways.
Human resource department: here the HR manager as to look after the requirement and
maintain the workforce in the organisation so that work can be competed in effective ways .
Research and development department: this department finds out the new areas which helps
the organisation to improve the performance of the organisation in the international levels
Marketing with human resources: the marketing is very important part of the
organisation as it helps in selling the goods and services in the target market. Different
department must have a good coordination with the marketing department. The qualified
candidate is required in the organisation who can help in increase the sale of product in the
market. The company can make advertisement of vacant position in the organisation to hire
more employees to enhance the sale and attach more audience.
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Sales with research and development: To enhance the sale of goods in the market
proper marketing research can be done to know more about audiences. With the help of R&D
department , demand and supply for the product can be increase by knowing what customer
wants in terms of product and services.
Advantages: The proper relationship among the different department of the Tesco organisation
help in achieving their objectives in the effective ways.
Disadvantage: sometimes it lead to complex situation to handle all the department in proper
manner.
The Tesco organisation has a hierarchical structure in its management levels as it focus on
various different departments function at the organisation which helps in achieving the objective
of the company in the most effective manners and its departments are interlinked with each other
as task required with department to perform to in common direction.
The private organisation :KFC
KFC is a American fast food restaurant providing different variety of chicken to its audience in
all over the world. The relationship among different department of the KFC are discussed as
follows:
Food and beverages with R&D : It operates at the international level having different
taste and preferences. To know more about the target market the organisation conduct research
and development to understand their taste in the food and beverages and produces according
and earn profit in lieu of services.
Advantages: the proper coordination lead to attract more customer by providing foods
according to their needs and wants.
Disadvantage: if there is no good relationship in the organisation then they face difficult in
performing various task in same time.
The KFC has a different structure which helps them to perform the activities in the most
effective manners and its all department have interdependence on each other to competed the
task in the most profitable manners so that organisation goals can be achieved in most proper
ways.
Voluntary organisation: NHS
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NHS stands for national health services , this organisation provide various health care services to
the needful people in the international levels by co-ordinating with different departments.
Finance department with marketing: NHS is a non-profit organisation and to run its
business operation activities effectively they needs fund and investment which can be collected
by adverting their organisation so that people can donate or to charities to give money to
organisation.
Advantages: This organisation can reach out to the needful people who required help to support
They financial needs. (Jourdan,and Marshall, 2008)
Disadvantage: sometimes the promotion is not so effective by the organisation which make it
difficult to arise the fund for the NGO.
The NGO has a systematic structure which helps them to execute the work in the most effective
and efficient manners. all the department in the management are linked to each other so that
organisation focus on achieving the common objectives within set time period.
Lo 4
P4: recognize the affirmative and negative impact the macro surroundings has upon commerce
operation.
Macro-environment are the outside events which have a force on the business operations and in
decision-making by the top-authorities. Such factors are discuses as follows:
Political: under this factor , it include fiscal policy. Tax policy and trade tariffs and
various government legislation. In the context of KFC they follows the policies made by the
government to run their business properly. The organisation charge prices according to different
counties keeping in mind income level of the customer.
Positive: KFC does not keep on changing their policies as they follows policies formed by the
government. Which have affected the business operation activities in the target market places.
The positive impact is that organization are able to expand their business in different
international market places. The organisation pay all its taxes and legal payment within the set
time period which helps them to achieve the target
Negative: it operates in different countries where there is lot of fluctuation in their policies
which makes it difficult to operates in the market. it lead to distribution in the operational plan of
the organisation. the negative impact is that organisation functional activists get affected by the
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