Business and the Business Environment Report: Unit 1 Analysis

This report provides a comprehensive analysis of the business and its environment, encompassing various types of organizations such as public, private, and voluntary companies. It delves into their purposes, sizes, and scopes, using examples like Tesco and Aldi to illustrate key concepts. The report explores the relationships between different company functions and their alignment with organizational objectives. It examines the positive and negative impacts of the macro environment on business operations and analyzes internal factors influencing decision-making processes. Furthermore, it investigates the interplay between a company's strengths, weaknesses, and external macro factors, offering a holistic view of the business landscape. The report provides valuable insights into the complexities of business operations and strategic decision-making.

Unit 1 - Business and the
Business Environment

TABLE OF CONTENT
INTRODUCTION.................................................................................................................................3
LO1.......................................................................................................................................................4
P1 Types and purposes of organisations............................................................................................4
P2 Size and scope of various organisations.......................................................................................6
LO2.......................................................................................................................................................7
P3 Relationships between various company functions and how they link to objectives....................7
LO3.......................................................................................................................................................9
P4 Positive and negative impact of macro environment on business operation.................................9
LO4.....................................................................................................................................................12
P5 Analysis of internal factors that affects on decision making of business....................................12
LO4.....................................................................................................................................................16
P6 Strengths and weaknesses interrelate with external macro factors..............................................16
CONCLUSION...................................................................................................................................17
REFRENCES......................................................................................................................................19
Books and journals..........................................................................................................................19

INTRODUCTION
The business and business environment is understood as one of the highly growing
working parameters where companies within global paradigms are being actively developing
on larger vision for new working innovation, diversity of fundamental operations. The report
will be explaining various types and purposes of organisations, with varied scope and size
parameters and working relationships between various functions of company for analysing
their linkage with wider objectives. Tesco is one of the biggest public limited company of UK
and has been working with wide international reach having wide reach of products and
services and Aldi is private limited company having high range of working operations with
strong innovation goals. The study will be also explaining company positive and negative

impacts within macro environment and their working scenarios impacting business operations
of longer run. Study will be also discussing internal and external analysis for identifying
strengths and weaknesses for company’s functional networking scenarios and their
interrelation within each other on longer time factor (Agnihotri, 2016).
LO1
P1 Types and purposes of organisations
There are various types of organisations within wide business environment where
they are divided on basis of type and purpose they serve operations with, and are keenly
working towards gaining new functional horizons of larger productive diversity. The main
three types of organisations under which business structure are divided can be understood as
public company, private company and voluntary companies where industry actively focuses
on pertaining larger innovation and diversity.
Public companies owned by government
The public companies are public traded company which list their shares open in
public whose ownership is organised via shares of stock and which are intended to be freely
traded on stock exchange. Public companies are widely known for having high working
innovation on various platforms where there is large efficacy towards innovation, investing
larger capital range and also for developing new diverse working fundamentals. The public
company do note open up any decision power within shareholders where there is no power
open among people to take decisions and, shareholders can only invest in shares. Public
companies widely focus on keeping the capital range strongly diverse as financial reports are
an important parameter for bringing large investments from various people and also there is
high diversity governed. Tesco is one of the largest public company having large range of
products and services within all stores, having productive goodwill with strong innovation
keen scenarios and also focusing to diversely work on new leveraging arenas. Purpose of
public companies are focusing on gaining larger investments among people with higher
goodwill horizons, larger capital functional capabilities and also to leverage on new working
potentialities by developing goodwill among diverse target consumers (Bäckstrand and
Engström, 2019). Public companies have legal structure where their shares are open among
people to invest on further for corporate expansion and new scale developed legal consumer
goodwill on which varied scale functional goal innovation is present for harnessing varied

goals developed connectivity. Uniliver is one of the biggest public company expanded on
varied scale arenas with high scope goals and new range of productive innovation.
Private companies
The private companies are corporations who work independently and shareholders are
the only holders of all responsibilities and legal actions within meetings, where they are
active decision makers and shares are not open for public to invest in which is demerit and
also there is functional higher range of goodwill on varied horizons. Private companies have
strong working synergy of higher innovation and enhanced vision to formulate new criteria,
larger effective decision makers as being the shareholders they have optimum right to invest
and gain best results. IKEA is one of the largest private limited company having wide range
of products and services, expanded among varied horizonswhich has been expanded into
various parts of world.The private companies are less open among people as shares are not
open among people to invest in which limits fundamental working opportunities, higher keen
scenarios of working vision and shareholders have large power to be active decision makers.
The private companies are solely responsible for all capital investment decisions and to
leverage higher working goodwill within longer time run, to enhance new working
potentialities and also actively work towards pertaining new growth objectives in larger
productive scenarios. The Aldi is UK one of the largest private limited company having high
range of stores within global parameters, serving people with vast categories of products and
services and also for factoring productive innovation within diverse retail competitive
industry scenarios. Purpose is solely to focus on profit factors and leverage goals, higher
effective innovation and also to work on goodwill horizons for larger competitive strength
(Cohendet, Parmentier and Simon, 2017).Ownership of public companies are under
government and private companies ownership is under private bodies of shareholders, where
there are larger arenas of working horizons taking wider shape on varied aspects. DYSON is
one of the known private company within UK where legal structure of private company is
widely expanded on large range of shareholders and higher range of strategic scope for
stronger new investment scenarios on which private company goals have been vividly
growing.

Voluntary companies
The voluntary companies refers to company whose primary purpose within functional
scenarios is to create social impact rather than profit in longer run where purpose is to serve
people with high advanced working determinants. The voluntary companies have strong
purpose not to create larger profits, new working goodwill and also there is limited capital
range to invest further on varied domains. It can be understood that voluntary companies
serve functional work goals where ethics, to enable society effective living standards by
bringing on keen scenarios and new productive working paradigms. Red Cross, UK is one of
the best voluntary company serving people from around world with best social care services
and to work with vision of promoting equal productivity, larger goals working operational
metrics. The voluntary companies have wide scope for bringing on overall change within
society, larger productive goals and also to promote equality and new vision formulated to
keep diversity at high range (Dvorak and Razova, 2018).
P2 Size and scope of various organisations
The size and scope of various organisations can be analysed based on various
productive paradigms, new productive scenarios and for developing innovation new
functional working goals and larger vision onto wider domains.
Public companies
 Public companies size is large due to its wide functional capital range and wide range
of people investing highly on working goals based on goodwill horizons, larger
diverse range of products and services catering as per consumers demands and also
for keeping up with innovation (El-Helaly, Ntim. and Al-Gazzar, 2020). The scope of
public companies is also wide as people have large functional opportunities to take
active investments as shares are open among people by trading them in open market.
Scope is wide but people who are investing in shares cannot take any decisions where
it can be understood that the shareholders have no voting power to be impacted within
working decisions.
 Tesco as public company is widely best serving within competitive retail company
where large range of products and services are there, widely spread globally and also
there is wide working scenarios for new innovation functional synergy. As wide
scope of public company is present there is wide developing innovation, technical
growth and diversity standards worked on and also for creating new advanced reach

on higher evocative domains. Public companies have wide reach among public as
shares are open for public to invest in and also there is wide functional innovation
worked on which keeps revenue standards at high profitable scenarios.
Private companies
 The size and scope of private companies are comparatively less when analysed in
comparison with public companies where the investments are done by shareholders,
they also hold majority of working powers to take all informative best decisions
within company business scenarios. The private companies also functionally have
wide scope for new working innovation in larger quality work metrics to functionally
enhance wider domains expertise and also leverage goodwill among consumers based
on products, services.
 Dyson is one of the most known private companies where brand has wide number of
stores and services, productively having best working innovation but limited scope as
shares are not traded among people within open market. These factors enable us to
analyse large creative horizons and diversity paradigms for private companies and
how they have large working parameters. Private companies have internal
shareholders who are the main people who invest through capital, and no outsiders
can take any active decision power or interfere within productive enhancement
decisions (Grimpe and Sofka,2016).
 Small size company: they are independent firms with less than 50 employees.
However, the maximum number of employees is different from one country to the
next
 Medium size company: business with up to 250 employees.
 Large size company: Large businesses are businesses with 500 employees or more.
 Micro
 Small and medium companies: ; small businesses are usually defined as organizations
with fewer than 100 employees; midsize enterprises are those organizations with 100
to 999 employees.
 Large companies: A large enterprise is an enterprise that checks at least one of the
following two conditions: has at least 5,000 employees ; has an annual turnover
greater than 1.5 billion euros and a balance sheet total of more than 2 billion euros.
 Sole propertiorship: The sole proprietorship is the simplest business form under which
one can operate a business

Voluntary companies
 The size and scope for voluntary companies can be in detail understood by analysing
purpose of their operations which are widely focused on bringing new vision within
working society, functionally enhance wider better living parameters for people and
also to enhance overall productivity. Size of voluntary companies is limited and scope
is also widely narrow, where capital structure is also limited where no shares are there
for people to invest in nor wide focus is given towards marketing and promotional
aspects.
 It can be evaluated with theses paradigms that voluntary companies have least size,
scope as compared to any other size of organisations and also limited working reach
among people which can fundamentally also impact on new future horizons. For
example: Red Cross being one of the most prominent voluntary company has been
focusing to work on bringing new working efficiency, by bringing on decisions where
scope is limited and also capital to bring on innovation. People often bring charity
within voluntary companies which enable to broaden the working horizons, where
degree of local involvement, democracyis widely analysed and reporting of best
regulatory costs where scope is limited at some working parameters (Hekker and
Negro, 2020). Micro organisations are in very small size as compared to small
medium and large organisations where they can be understood to be having wide
number of determinants for keeping up effective domains.
LO2
P3 Relationships between various company functions and how they link to objectives
The various company functions within company are widely connected with each other
and their interrelationship with each other enables us to analyse various parameters for
growing objective completion and larger vision formulated. Various departments within
company are not only interlinked with each other but also contribute to company objective
completion in longer time run for high quality goodwill within services and larger revenue.
The resources completion worked on with best innovation, larger diversity enables companies
to functionally grow on varied grow paradigms and sustained goodwill among consumers
where there is new diverse activated growth worked on.

 Production and research technology department: Tesco production department
working objectives are connected with research technology departments for attaining
new functional innovation among production standards, in goods and services within
productive functional working arenas. The company higher revenue, longer term
goodwill goals are interlinked with new working paradigms, where the
interrelationship of production department, research technology department is widely
connected. There has been new progression worked on within this scenario where
research and technology department functionally focuses on bringing new primitive
ways for keeping up with high innovation within production standards. This effective
interrelationship also enables to keenly work on varied competitive growth aspects
and also for rational competitive efficiency, yielding new functional advancement.
 Human resource department and marketingThe interrelationship with human
resource department and marketing, production departments is also considered to be
one of the most essential for Tesco to work with large efficiency and skilled human
resources. When human resources are talented and widely focused on to bring on new
functional horizons scenarios, where varied activities of all departments are worked
with high promotional working synergy overall productivity is grown. Tesco aims to
keep all functional activities highly pertaining focus on innovation and larger
diversity, by bringing on skilled employees at board and also for generating larger
worked on vision to be dynamically evolving. This interrelationship is widely active
to enhance new working leveraging vision, for harnessing long term goodwill based
on varied parameters and also to aim keen growth (Helmreich and Merritt, 2017). Marketing department and sales department: The interrelationship between
marketing departments and sales departments within working functional horizons
enable us to analyse that resources and strategies used within marketing departments
are actively communicated to sales departments. The sales departments set targets and
goals of business completion, not only focuses on marketing excellence with focus on
digital platforms but also to reach larger audiences. Tesco as one of the fastest
growing biggest retail brand has been actively focusing on generating new end goals
of best marketing and sales activities, for keeping up with wide innovation and also
for generating high scale diversity within varied paradigms. Marketing and sale
targets shall be kept in check and monitored effectively with high scale regularity for
generating new scale wider diversity within new potentialities and also for keeping up
with best goodwill in competitive retail industry.

 Finance and research technology department: The interrelationship with finance
departments and research technology development department is widely correlated,
interrelated with vision to form new scale evoking goals where resource
implementation is wide (Hilbolling and et.al., 2020). Tesco company goals for being
best quality serving retail brand among foods and services, have major scope for high
profitable working innovation and to be cost effective within resource allocation
goals. The finance departments keep check on how much capital range is invested
within new technology development and also for larger vision innovation. It can be
understood that finance departments are holding new functional working reach of best
evocative horizons for generating large vision oriented growth in technology scale
and also for productive new profitable goals. The role of finance department is also to
actively focus on keeping up with all financial reports and larger outputs scenarios,
where all focused vision to bring on new productive goals completion is worked on
for gaining larger determinants attained. Tesco company resources are also within
research and technology departments are in active correlation with finance
departments, where revenue standards have to be actively monitored and also for
wider informative goals completion (Matošková, Macurová and Tomancová, 2018). ]
The interrelation among company functions within business development brings
forward mew domains of company culture which enables competency to be vividly
developed forward and also for generating higher revenue standards. Tesco has been
working with matrix company culture structure which has enabled business scale
diversity to be evolved further.
LO3
P4 Positive and negative impact of macro environment on business operation
Macro environment include all factors that are external to business but directly on
Macro environment include all factors that are external to business but directly on indirectly
impact on its strategy and operation. Such as each company have to abide to recent laws,
rules, regulation of government in order to protect itself from huge penalties and fines.
Technology, social, economic, environment and legal are many other factors that have
positive as well as negative impact on Tesco which can be illustrated as follows:

Political factor: Brexit is one of the policies implemented by government that have resulted
in political instability thus lots of businesses are uncertain about specific strategies that they
could use to grow business (Crowley and Jordan, 2017).
Positive impact
Globalisation has encouraged UK government to implement free trade policies so that
enterprise such as Tesco are able to expand their business in global market thus economy of
country can grow.
Negative impact
After Brexit, United Kingdom cannot transact or trade with European Union thus it
has resulted in decrease in overall sales volume and profitability of organisations. Free trade
policies have resulted in increase in competition level as large number of firm have invested
their capital in UK to earn heavy return. So, it causes threat to operation and sustainability of
organisations.
Economical factor: Interest rate, disposable income of customers, GDP of country,
demographical structure and unemployment rate are some of the components that are
included in economy that influence business. United Kingdom due to covid-19 and brexit is
suffering from economic slowdown or recession thus number of people are unemployed or
having less income (GAIKWAD and KATE, 2016).
Positive impact
Tesco offers products and services at lower prices possible than other competitors in
market so they are able to motivate maximum number of customers to select there products
so that their needs can be fulfilled.
Negative impact
Cost of raw material have rise so company have to incurred additional expenditure to
purchase similar quality of products thus it have reduce profit margin of Tesco. Due to
increase in interest rate, both firm are less willing to diversified their business operation as
high interest need to be paid for using capital.
Social factor: It includes people or group of individual that are living in society that purchase
products and services from several companies so that their daily requirements can be

fulfilled. Customers demand and preferences changes rapidly as per existing trends, prices
and availability of alternative options in the market (Xu and Koivumäki, 2019). The way this
changing preference and trends have affected Tesco are illustrated below:
Positive way
Both companies have effective adapted to external social changes in order to sustain
their business and meet customer’s expectancy such as they have launch organic food range
for health conscious individuals. Varieties of products or services are offered by firms at
single stores so that they can easily choose and satisfy their needs.
Negative impact
Most of the people think that these company offer low value products due to lower
pricing strategy thus it have impact on their brand image and reputation. So Tesco have to
improve its quality of products and services render to customers to effective expand its
market share and profitability in retail industry. Due to covid-19, people are less preferring
unhealthy products or making less purchase for their health and safety so it have resulted in
decrease in sales of several firms that are operating in retail sectors of UK.
Technological factor: there are number of huge enterprises which are making investment
and use of innovative techniques and method to deliver services to customers. Like use of
internet, digital technology to market or promote brand image and products of company so
that more and more customers prefer particular company.
Positive impact
Tesco by making use of digital technology or social media have created strong
awareness of their respective products and services in minds of customers that are living
across worldwide. Online presences and strong supply chain, innovative technology have
provided ease to customers to easily book or order products while staying at home or working
in office. Mobile payment options, quick home delivery of services have helped in satisfying
needs of customer beyond their expectancy.
Negative impact