Business Environment Analysis Report: Tesco, HSBC, and Oxfam

This report provides a detailed analysis of the business environments of Tesco, HSBC, and Oxfam. It begins with an introduction to the business environment, emphasizing its importance through the example of Tesco. The report then explores different types and purposes of organizations, including private (Tesco), public (HSBC), and voluntary (Oxfam) organizations. It examines their legal structures, sizes, scopes, visions, missions, and objectives. The report further analyzes the interrelationship between various organizational functions, particularly marketing and HR, and finance and HR, highlighting the advantages and disadvantages of these interrelations. The report also includes a PESTEL analysis of Tesco, examining its strengths and weaknesses in relation to political, economic, social, and technological factors. The analysis reveals how external macro factors influence the company's performance and operations. Finally, the report concludes by summarizing the key findings and insights into the business environments of the selected organizations.

Business & Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.Various kind and main purpose of organisation................................................................1
P2. Size and scope of different types of organisation............................................................2
P3: Explain the relationship between different organisation function...................................4
TASK 3............................................................................................................................................5
P4 & P5 are covered in PPT...................................................................................................5
TASK 4............................................................................................................................................5
P6 Strength and weakness in interrelation to external macro factors.............................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
In business term, the total or collection of entire external and internal components like
customer, trends and preferences, supply and demand, supplier, owner, innovation in technology,
social and market trends, economic changes etc. is defined and business environment (Chi,
2015). In order to better understand the importance of business environment Tesco has been
selected which is one of the leading supermarket chain of UK.
In this report, different types of size, scope of organisation and interrelation of different
function within company are explained. In addition, appropriate example to show positive and
negative impact of macro environment are discussed.
TASK 1
P1.Various kind and main purpose of organisation.
In business context, there are number of organisation that have been established for
different important purpose the most important is to satisfy the need of customer and attain
maximum profit. Some of these are defined below:
Private organisation:
Tesco, is one of the leading supermarket chain with almost 3400 stores and operating its
business in almost 11 different country (About Tesco, 2019). It is consider to be the third largest
retailer as measured in gross revenue and ninth largest retailer in world that is measured by
revenue. The company have different services and areas like books, electronic, cloths, furniture,
petrol, toys, financial services, telecoms and internet services. Tesco have more than 300,000
colleagues working together with the common motive to provide the best services to existing and
new customer that support to increase profit, gain competitive advantage etc. The main purpose
and legal structure followed by private company is defined below:
Purpose: The main Purpose of Tesco is to deliver best improved quality goods and
services to existing customer base so that new customer might get attracted. The offer different
product at reasonable prices and regular discount for increasing sales figure. Company also
purpose to maintain good relationship with supplier, clients and business environment.
Legal Structure: In business context, private company involves partnership, sole
proprietor, limited company and cooperation as a legal structure. In context of Tesco, the legal
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structure followed is limited structure that simply means that company gain productivity and
profitability by dealing and offering in various product.
Public Organisation:
HSBC is a British multinational banking and financial services provider that was started
in 1991 and was awarded as 7th biggest bank of world in 2018 (About HSBC, 2019). It has almost
3900 offices in approx 68 countries with around 38 million customer. HSBC have four business
group: commercial banking, retail banking and wealth management, Global private banking and
Global banking and market.
Purpose: Hongkong and Shanghai Banking corporation have main purpose is to promote
and provide variety of banking services to large number of customer.
Legal structure: As public organisation follow various legal structure like central, state
and local government, so HSBC follow central legal structure that help to run operation.
Voluntary Organisation
Oxfam is one of the leading independent international company that mainly work to
provide the help and grants to different people those are part of society. The company was
established in 1942 and have have expanded its non profit services in different part of word with
the main motive to increase the living standard of people.
Purpose: The main purpose of respective company is to remove poverty, educate people
and fulfil the basic needs of people.
Legal Structure: In context of Oxfam, the company follows Trust as its legal structure
that support to provide valuable services for the benefit of society people.
P2. Size and scope of different types of organisation.
In present business world, each company have its own priorities, scope, size and
objective that help in running business in profitable manner (Chorafas, 2016). There are basically
three kind of organisation that provide useful services and goods to large number of customer:
Public organisation: The mainly operate in public sectors, that usually provide services
to improve the living standard of people. The main source of raising funds for public sectors
includes fees, bounds, taxes and financial transfer from other level of government. The reporting
system defines that annual reports must be prepare accurately by manager so that tax amount can
be calculated. All those stakeholder that have public as their share, they essential to announce the
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revenue that was produced each and every year and the payments that are owed to every
associate.
Private Organisation: These kind of firm are mainly owned by individual those have
unlimited liability such as penalties, taxes, debts payments etc. They usually source their
organisation by taking loans, hire purchase or browning form friends. The main motive is to
share profit and raise income level.
Non-Governmental organisation: All those NGO’s have a common puspose that is to
benefit the well being and health of citizen. The main sources of funding includes, grants, NGO’s
Charity, shows so that money can be used to meet the uncertain and natural disaster happening
anytime.
These are defined below:
Tesco:
The company have essential size, scope, vision, mission and objective so all business
operation are performed in specific manner to attain desired goals.
Size and scope: The size of Tesco is increasing and rising at a great speed as it offer
variety of products and services that aid to fulfil needs of people and attain international market
share.
Vision: The visions of Tesco is to build trustful brand and have major mission to become
leading retail company in world.
Objective: The major desire of company is to deliver most suitable and appropriate
services at faithful prices that aid to satisfy needs of customer.
HSBC:
Size and Scope: The size of HSBC is very big as it is fourth largest bank in term of
assets, second largest in term of revenues and largest in term of market value (Falkner, 2017).
Vision: The vision of bank is to make customer understand the need of banking services
as it help in improving quality of life. In addition HSBC have mission to connect customer to
opportunities. Such as they enable customer to thrive and economies that help in fulfilling the
hopes and dream of people.
Objective: The primary objective of HSBC is to provide useful global financial services
to large number of customer. Such as personal financial services, commercial banking,
investment banking and market.
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Oxfam:
Size: The Size of company is raising as services are provided at global level and there are
20 organisation group. The main scope of Oxfam is to capture international market and deliver
best essential living services.
Vision and Mission: The primary mission of Oxfam is to reduce the injustice practices
and increase the living standard of people. The vision of company is to make society free of
poverty and make new generation educated.
Objective: Management of Oxfam have predetermined objective that is to work on life
changing events so that poverty and other issues can be resolved (Divanbeigi and Ramalho,
2015).
P3: Explain the relationship between different organisation function
Interrelationship between Marketing and HR function: Human resources can be said
to an crucial function in the organisation which focuses around procuring and retaining capable
employees. The Human resources section in an organisation is responsible to hire accurately the
right talent who is able to fulfil roles and duties of marketing department. In context of Tesco,
the identification and selection of a members in the marketing section cannot be carried out
without a proper correlation between marketing and HR section as it will appropriately
determine requirement of the position. The identification of traits and capabilities which are
required for a marketing executive assist in selection of a capable candidate.
Interrelationship between Finance and HR function: It has been identified that Human
resources and finance department have to work together so that organisational goals can be
fulfilled. The finance section for a business focuses on numbers and ROI which are brought in by
the members who are hired through HR function. Therefore it can be said that these two
functions have a overlapping goals which can be fulfilled through integration of efforts. Tesco
have emphasized the use of metrics so that activity of workforce can be quantified and further
improved upon. The Human resource manager also consults finance section when it comes to
budget, hiring and employee engagement activities ( Lee, Lee and Seo, 2015).
Advantages of interrelations between organisational functions:
Foremost advantage of interrelations between organisational functions is specialization
because as each department is established according to specialization there is such a protection
that any job assigned to each labor department will be done as best as an expert if there is no
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working organization and another IT-related problem came to the company and the whole
company would be confused and confused about how to solve the problem.
Disadvantage of interrelations between organisational functions:
The biggest disadvantage of interrelations between organisational functions is that due to
the departments distributed on the basis of the function, there are only a few employees from the
ministry seeking help or meeting other services, and in many ways companies have different
companies including different companies and different components. It should be a common
integration goal to extend the company for a long time.
TASK 3
P4 & P5 are covered in PPT.
TASK 4
P6 Strength and weakness in interrelation to external macro factors.
In business context, there are strength and weakness of Tesco in respect to PESTEL analysis that
are discussed below:
Political factors: Tesco is based in UK that desire to expand business in different part of
remaining world. Therefore it is important for them to examine the political factors that
directly influence the performance and operation of company.
 Strength: Tesco have number of retail store and they keeps on increasing number of store
at international level. So company provide number of employment chances by following
the policies of particular nations.
 Weakness: It is not easy for Tesco to follow all essential laws and legislation that are
implemented by government, due to which complete business performance can lead
down.
Economic factors: These kind of factors have greater emphasis on various business factors
like micro and macro which basically includes, interest rate, disposable income, demand and
supply and spending power of consumer.
 Strength: Tesco have its operation in various developed nations like UK,
Malaysia etc. as in these nations customer have higher disposable income so there
is low risk of inflation rate.
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 Weakness: Due to changes in economical policies the rise in fuel prices
negatively impact the sales for Tesco and also affect the supply chain in specific
time period.
Social factors: Different factor like high inflation rate, low wages are consider to be main
grounds to social changes such as spectacular change in the shopping habits of consumer
that impact the profit of Tesco.
 Strength: In recent time customer are becoming more heath conscious and prefer
more organic product. Thus, Tesco deliver variety of healthy drinks and food
items that are essential to fulfil the demands.
 Weakness: It is observed that retail outlets like Tesco normally receives reduced
footfall in working period as most of there worker work outside.
Technology factor: It includes the advance technology and innovative manner of running a
business in more profitable manner that help to gain competitive advantages.
 Strength: Improve techniques helps company to deliver more beneficial services to
customer such as, save time in payment, advance delivery service etc. This help Tesco to
get the attention of large number of customer and increase profit.
 Weaknesses: Tesco faces the resistance of their staff to adopt new technology or
changing the existing regime or patter of working.
Environmental factor: It contains factors or elements such as tourism, corporate social
responsibility and climatic condition. So business organisation is required to operate ethically
and accept eco-friendly methods and techniques. Large business organisation such as Tesco
are estimated to minimise emission of carbon and to adopt ethical process.
 Strength: Recently Tesco agreed to accept practice of zero waste management and
banned plastic bags.
 Weakness: Company is struggling with major ethical issue related to sale of organic
food.
Legal factor: There are numerous kind of legal issue which bound the Tesco like candid
treatment, minimum wages, discrimination policy and so on other factors.
 Strength: As impact of different policies and cut throat competition price or value of
new entrant facing complexities to enter and remain in competition.
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 Weakness: As a result of high price war and tuff competition overall profit margin
has been decreased.
CONCLUSION
The above report, conclude that it is important to determine the internal and external
environment of business so that business operation can be run and managed in effective manner
resulting higher profitability. The different department of company must be interrelated with
each other in better manner that help to perform task in appropriate manner.
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REFERENCES
Books and Journals:
Chorafas, D. N., 2016. Energy, environment, natural resources and business competitiveness:
the fragility of interdependence. Gower.
Chi, T., 2015. Business contingency, strategy formation, and firm performance: An empirical
study of Chinese apparel SMEs. Administrative Sciences. 5(2). pp.27-45.
Falkner, R., 2017. Business power and conflict in international environmental politics. Springer.
Divanbeigi, R. and Ramalho, R., 2015. Business regulations and growth. The World Bank.
Dyllick, T. and Muff, K., 2016. Clarifying the meaning of sustainable business: Introducing a
typology from business-as-usual to true business sustainability. Organization &
Environment. 29(2). pp.156-174.
Korshikova, M.V., and et.al., 2016. Methodological provision of active management of
economic risk in agrarian business. European Research Studies. 19(2). p.113.
Lee, D. S., Lee, K. C. and Seo, Y. W., 2015. An analysis of shared leadership, diversity, and
team creativity in an e-learning environment. Computers in Human Behavior. 42. pp.47-
56.
Online
About Tesco. 2019. [Online] Available through: <https://www.tescoplc.com/about-us/our-
businesses/tesco-uk/tesco-in-the-uk/>.
About HSBC. 2019. [Online] Available Through: <https://www.hsbc.com.tr/en/about-hsbc/hsbc-
turkey/our-vision-our-purpose-our-values>.
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