Business and Business Environment: Case Study of Tesco and Iceland

This report provides a comprehensive analysis of the business environment, focusing on case studies of Tesco and Iceland. It begins with an introduction to the business environment and its impact on organizations, followed by a comparative analysis of Tesco (a public limited company) and Iceland (a private limited company). The report explores the interrelationship of various organizational functions and structures within Iceland, including the finance, marketing, HR, and production departments. It examines the advantages and disadvantages of these interrelationships and different organizational structures like functional, SBU, and matrix structures. Furthermore, the report identifies the positive and negative impacts of the microenvironment, conducts internal and external analyses to determine strengths and weaknesses, and links these strengths and weaknesses to external macro factors. The report also applies PESTLE and SWOT analyses, examines the impact of micro and macro factors on the decision-making process, and concludes with a summary of the findings and references.

Business and Business
Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
a) Case studies of private and public sector organizations..........................................................3
b) Interrelationship of various organizational functions and structures.......................................5
c) Tesco vs. Iceland......................................................................................................................9
Part 2..............................................................................................................................................10
a)................................................................................................................................................10
P4 Identifying the positive and negative impacts of micro environment on the business
operation....................................................................................................................................10
P5 Conducting internal and external analysis to identify its core strength and weaknesses.....11
P6 Link of strengths and weaknesses of external macro factors...............................................12
M3 & M4 Applying PESTLE and SWOT.................................................................................13
b) Impact of micro and macro factors on decision-making process..........................................16
CONCLUSION..............................................................................................................................17
REFERENCE.................................................................................................................................18
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INTRODUCTION
Business environment is composition of internal and external environmental factors
which effects on entity's operations. These factors are able to present market position of
company and its products value. The present report is based on case studies of Iceland and Tesco
retail industries in private and public sectors respectively of UK. Therefore, methods to solve out
issues are to be expressed to run organization effectively. Moreover, the study is able to present
organizational functions and different structures systematically. It is to provide understanding
positive and negative aspects of environmental factors and presents firm's reputation in market.
However, analyses of internal and external tools can be determined through this report to predict
strength and weaknesses of business entity in transaction of resources. In addition to this, impact
on organization's effectiveness is to be recognized to present competitive strategies of retail
industries.
PART 1
a) Case studies of private and public sector organizations
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Tesco:- It is public limited company provides grocery and food products to customers at
large scale. In this regard, government interferes in business operations including transaction of
resources, effectiveness of entity and in various functions. In addition to this, it plays effective
role in country's efficiency.
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Iceland:- It is wide spread private limited retail company of UK aims to gain maximum
profit with customer satisfaction. Further, owner and top level managers of entity makes
decisions to run business. Therefore, less government interference presents. In addition to this, it
provides goods and services to million customers and has several branches in other countries of
the world.
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b) Interrelationship of various organizational functions and structures
Iceland is one the most popular retail company of UK in providing grocery and food
items to consumers at high level. It has several branches in other cities of country also
establishes good relationship with other business entities for long term sustainability of
organization in market. At present, it is considered that organization is facing issue of unstable
economy to run business smoothly (Ahmed, 2012). Therefore, different departments of entity
effects and create imbalanced environment at workplace. According to this case study, several
departments and their functions including interlinks can determined as:-
Different departments:- There are various departments in organization are as follows:-
 Finance department:- It includes activities of fund allocation, money transaction,
making decisions for economic development (Camacho, 2012). Thus, finance manager
of company sets target to implement monetary profile and increasing productivity as
well profitability of firm.
As per the given case, Iceland is suffering from monetary crises, highly impacts finance
department of the organization. It interrelates with other departments of company as marketing,
production and operation as similar research and development department. Therefore, entire
business activities effects due to lack of money in transaction of resources.
 Marketing department:- Manager of marketing department prepares plans for accurate
market research and production and distribution of resources effectively. It includes
decisions related to product quality, price and promotional techniques to advertise goods
and services in market (Dickinson, 2013). However, it interrelates with other
departments for effective transaction of resources and efficiency of entity to manage
demand and supply of goods.
According to financial crises case of Iceland, it is determined that issue is interconnected
to marketing department. In this regard, production and operations of transaction get impacted
also effects on other departments of entity to run industry effectively.
 Human resource (HR) department:- It is department related to entire business activities
of organization. It involves functions like analyzing employees performance and
encouraging them for effective coordination to reach out the target (Gabriel, 2014). In
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addition to this, HR department analyses business activities including evaluation of
market research, recognizing production and distribution of resources, relationship
management among workers and other departments of the firm effectively.
As per the given case, it is determined that ineffective fund allocation impacts HR
department. In accordance to this, HR manager of Iceland requires to analyse problem and
coordinate to implement strategic plans. Hence, HR department plays great role to achieve
coordination and create environment of the organization.
 Production and operation department:- This department's manager plans to proper use
of resources including production and supplement of goods. It prepares plan according to
market research analyses on behalf of which other factors and departments get effected.
In this regard, research and development, quality and quantity of goods and services are
recognized (Galende, 2016). It is interconnected with departments as economy, create
balance between demand and supply of goods. In addition to this, it is related to
management of risks occurs in the organization etc.
Regarding case study, financial problem of Iceland impacts on transaction of resources as
production and distribution. In this process, department's manager has to contribute its working
performance for economic growth. Therefore, effective production and supplement of grocery
items and food products can be achieved.
Interrelationship of different departments:- Several departments who work for organization's
effectiveness are interconnected to each other (Ghosh, 2014). For example, market research
analyses and implementing strategic plans are possible to be effective only through great
coordination of all departments. Hence, fund allocation decision requires to make decisions for
arranging appropriate money to run business effectively. Similarly, HR department plans to
create supportive environment of organization's departments' through encouraging employees for
better service qualities. It influences entity's market position and also presents competitive
strategies to long term sustainability.
According to given case study, it is recognized that monetary issue occurs in organization
reflects other departments of Iceland to activate entire business activities. It impacts on other
departments' planning procedure. Therefore, environment of the retail company get disturbed due
to issue occurs at workplace.
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