Business Environment Analysis: Structure, Size, Scope & Functions

This assignment provides an understanding of different organizational structures, their size, and scope, highlighting what makes them unique. It emphasizes the importance of considering both internal and external factors for successful business management. The report defines public, private, and voluntary companies, using the Child Support Agency, Tesco Ltd, and Age UK as examples. It explores the interrelationship between various organizational functions and their connection to organizational objectives, including an analysis of micro and macro factors affecting organizational structure. The assignment also utilizes PESTLE and SWOT analyses to evaluate the business environment and decision-making processes within organizations, focusing on the advantages and disadvantages of interrelationships between organizational functions and their impact on organizational structure.

Business and Business Environment
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Contents
Introduction...................................................................................................................3
LO1 Explain the different types, size, and scope of organisations..............................4
P1 Explain different types and purposes of organisations; public, private and
voluntary sectors and legal structures......................................................................4
P2 Explain the size and scope of a range of different types of organisations..........6
M1 Analyse how the structure, size, and scope of different organisations link to the
business objectives and product and services offered by the organisation.............7
LO2 Demonstrate the interrelationship of the various functions within an organisation
and how they link to organisational structure...............................................................8
P3 Explain the relationship between different organisational functions and how
they link to organisational objectives and structure..................................................8
M2 Analyse the advantages and disadvantages of interrelationships between
organisational functions and the impact that can have on organisational structure.
................................................................................................................................10
D1 Provide a critical analysis of the complexities of different types of business
structures and the interrelationships of the different organisational functions.......11
LO3 Use contemporary examples to demonstrate both the positive and negative
influence/impact the macro environment has on business operations......................12
P4 Identify the positive and negative impacts the macro environment has on
business operations, supported by specific examples...........................................12
M3 Apply appropriately the PESTLE model to support a detailed analysis of the
macro environment within an organisation.............................................................14
LO4 Determine the internal strengths and weaknesses of specific businesses and
explain their interrelationship with external macro factors.........................................15
P5 Conduct internal and external analysis of specific organisations in order to
identify strengths and weaknesses.........................................................................15
P6 Explain how strengths and weaknesses interrelate with external macro factors
................................................................................................................................16
M4 Apply appropriately SWOT/TOWS analysis and justify how they influence
decision-making......................................................................................................17
D2 Critically evaluates the impacts that both macro and micro factors have upon
business objectives and decision-making...............................................................18
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Conclusion..................................................................................................................19
References.................................................................................................................20
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Introduction
This assignment is helpful in understanding the different organisational structure and
their size and scope which make their organisation different from the other
organisations. For a successful business, organisation management needs to
consider the organisational both internal and the external factors of the organisation
those are related to the business activities of the organisation. This assignment is
related to the business environment of the organisation which helps to enhance the
business of the organisation and also provide the better conditions to do more work
in the organisation. In this assignment public, private and voluntary companies are
defined to understand the organisational structure. Here the public organisation is
the child support agency and the private organisation is Tesco Ltd and the
voluntary organisation is Age UK. This assignment describes the organizational
structure of the Tesco and their working environment. This assignment helps to
understand the interrelationship between the various functions of the organisation
which are related to the organizational objectives and goal. The various analyses are
also done related to the micro and macro factors of the organisation which helps in
maintaining the organizational structure.
.
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LO1 Explain the different types, size, and scope of organisations.
P1 Explain different types and purposes of organisations; public, private and
voluntary sectors and legal structures
There is a different kind of organisation available in the market. The organisations
are a sole trader, partnership, private limited company, public limited company and
the voluntary sector organisation. The different organisation has their own structure
and the working of the organisation.
A sole trader is that organisation which is developed by the individual person to
earn the profit. In this type of the organisation, all the liabilities of the organisation are
bear by the individual only.
The partnership means the contract and agreement where the two or more persons
want to do business to bear all profits and losses in their predetermined ratios
(Drucker, 2017). Partnership organisation have their own entity and also they have
their individual name.
A public organisation is the type of the organisation where all the power is opted
by the government of the country. Public organisation are those organisation where
a large number of the employees worked.
Private Organisation is those which maintain the private industry. This is that type
of the organisation which are run by the individual and the group of the people.
The purpose of the different organisations-
Organisation Purpose of the organisation
Public sector (Child Support Agency) This organisation is related to the child
protection in the United Kingdom. Public
organisations are established to provide
the customer satisfaction with the quality
product. This organisation is related to
the child protection and the support the
child from any misconduct and the
misbehaviour of other people. In this
public sector organisation, there are a
large number of the employees working
to achieve the goals and objectives of the
organisation.
Private sector (Tesco) Tesco is the merchandise retailer
organisation which is established in the
United Kingdom. This organisation
provides the better quality product to
their customers. The main motto of the
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private organisation is to earn more and
more profit from the business concern
(Goleman, 2017). The basic objective of
this organisation is to provide the better
quality product to their customers so that
the satisfied with the services.
Voluntary sector ( Age UK) Age UK is the non-profit organisation
which is the charity. This organisation
basically develops for the old age people.
The main reason for this organisation is
to provide the better services to the
society and fulfil the requirement of the
people. This type of organisation is not
made for making a profit (Sayed, 2018).
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P2 Explain the size and scope of a range of different types of organisations
Business organisation has a different kind of the organisation like public, private,
sole trader and the partnership. For the success of every type of the business
organisation size and scope plays the important role. The objective of the
organisation depends on the different aspects of the business organisation such as
the product of the organisation, number of the employees, and the various profit-
making plans. Size of the organisation depends on the nature of the organisation
and a total number of the employees working in the organisation (Barton, 2018).
Different organisations need a different number of employees like small business
organisation requires the less number of the employees and at the same time, they
require the small size place to work. Whereas large or macro organisations need
more than 100 employees to operate the work of the organisation. Tesco is the large
organisation which have too many stores in different places so that they require the
huge number of employees in the organisation. Currently, Tesco has the 477000
employees in the organisation to manage the work and provide the better services to
its customers.
Organisation The scope of the organisation
Public Organisation Child support agency is the public sector
organisation. It has the great
opportunities to enhance their business
as they serve the financial support to the
children. This provides the different job
opportunities and pensions to the child
maintenance group.
Private organisation As there is less impact of the government
policies but along with these the private
organisations have some restrictions. But
the management of the organisation
plans the different strategies and plans
as per the government rules and
regulations. Tesco has the vast chances
to grab the new opportunities and
expand their business to serve much
better and the innovative services and
the products to their customers (Webb,
2017).
Voluntary Organisation Voluntary organisations basically develop
for the benefit of the society. The
voluntary sector is not easy to
understand. They need to follow all the
rules and regulations of the voluntary
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organisation strictly. All voluntary
organisations need not be charitable
organisations.
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M1 Analyse how the structure, size, and scope of different organisations link
to the business objectives and product and services offered by the
organisation.
The business objectives and the goals play the important role in conducting the
business better and fulfil the desired outcome from the organisation. Organisational
objectives are plan according to their size, structure and scope. Size of the
organisation means the capital invested in the business, number of the employees,
operations of the organisation and many other factors (Dillon, 2014). As there is a
different kind of organisation available in the market so the various plans are made
according to their size. Different size means the small, medium and the large size
organisation. Size, scope and the structure of Tesco is linked to the services,
products and objectives offered by organisation-As Tesco provides the grocery items
to its customers so they need to plan the different plans according to the market
requirements and the demand of the organisation. To meet the organisation
objective Tesco works in that context only in which they provide the better services
to its customers and also provides the after sale services. To achieve the
organisational goal they serve the multi-dimensional products to its customers. As
the different organisation have their own goals and objectives but the basic criteria
for selecting and obtaining the business objective is customer satisfaction and profit-
making products.
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LO2 Demonstrate the interrelationship of the various functions within an
organisation and how they link to organisational structure.
P3 Explain the relationship between different organisational functions and how
they link to organisational objectives and structure.
As Tesco is the largest organisation which deals with the various multi products
because it's they need the different organisational functions which requiredbeing
maintaining the whole work of the organisation. For the proper working of the
organisation, they need to have the proper hierarchy so they work in direction and
follow all the rules and regulations of the organisation (Dillon, 2014). The various
organisational departments are human resource, finance, production, marketing and
operations. If all the departments work properly and cooperate with each other then
they will meet the organisational objectives and the goals of the organisation.
Different departments of Tesco are -
(Figure – organisational structure)
(Source – By Author, 2018)
Finance - Finance is the major area of any business organisation. Without proper
finance facility business organisation cannot survive in the organisation. In the
finance department, every transaction and the policies are made and maintained
according to the working and the operations of the organisation.
Human resource - as every department of the organisation plays a different role to
maintain and establish the organisation in the business market. Human resource is
that department which hires the different employee which has the good qualification
and has the good knowledge regarding the work of the organisation. Human
resources are that decides the salary, rewards and give punishment to the
employees if they did not work properly (Sayed, 2018).
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Finance Human
resource
Marketing Production

Marketing – marketing is that factor which helps the organisation to maintain the
relationship between the organisation and its customers. With the help of this
department, the organisation knows the customers’ needs and the requirements.
This organisational department is very helpful to enhance the business. When the
organisation know about the market trend and different strategies then they will do
work in that context only (Ho, 2014). All other departments work after receiving the
details regarding the marketing plans and strategies, so the organisation needs to
manage the different management team.
Production – this department is related to the profitability and the productivity of the
organisation. In this department, the production activity is done properly and
provides the better services to the customers.
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M2 Analyse the advantages and disadvantages of interrelationships between
organisational functions and the impact that can have on organisational
structure.
As the organisation is the combination of the employees. Business organisation has
the different levels of the employees and the management levels of the organisation.
The relationship between the organisations will be shown in the work of the
organisation and how they behave with their superior, to the colleagues and the
lower level of the employees (Webb, 2017). The interrelation between the different
organisational levels is very important as it removes the duplication of work. Tesco is
the organisation which deals in the multiproduct so for that they need to maintain the
balance between the various facilities and the work of the organisation. For effective
working of the organisation, management needs to maintain the different levels of
the organisation. Due to this better employee relation is also needs to maintain and
different views and several kinds of benefits also provides to the employees so they
work properly with full efficacy and effectiveness. The below table shows the several
advantages and disadvantages of interrelationship-
Advantages Disadvantages
 It provides the better
understanding of each other.
 If the proper relation is maintained
then all the employees will work in
that context only and organisation
will get the proper result on time.
 Interrelation helps to remove the
duplication of the work.
 It increases the conflicts between
the employees of the different
level of the organisation.
 It also increases the competition
between the different levels of the
organisation.
 It provides the lack of information.
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D1 Provide a critical analysis of the complexities of different types of business
structures and the interrelationships of the different organisational functions.
The business organisation has the different organisational structure which performs
the different task of the organisation. The entire task and the functions of the
organisation are performed by all the departments of the organisation (Dillon, 2014).
To maintain and manage the work management faces the various kinds of
complexities. The complexities are like employee’s relation, problems of production
and another kind of marketing and management level.
(Figure – Organisational Structure)
(Source – By Author, 2018)
All the hierarchy and work of the organisation is decided by the top management
level at the right time with the right direction. If the proper hierarchy is maintained
then this gives several advantages to both employees and customers of organisation
(Drucker, 2017). Sometimes the decisions are made as per the benefit of the
organisation only which is not beneficial for the employees of the organisation.
There is some type of structure available in the organisation that are – divisional,
functional, matrix and line organisation. All these types of organisations work in their
way and achieve the organisational goal. All the different departments are
interrelated to each other and provide the effective services to their respected
customers.
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LO3 Use contemporary examples to demonstrate both the positive and
negative influence/impact the macro environment has on business operations.
P4 Identify the positive and negative impacts the macro environment has on
business operations, supported by specific examples.
All business organisations have the same and another kind of positive and negative
impact on the business organisation. Business organisations are surrounded by a
different factor and all these factors affect the business of the organisation. These
factors provide the important decisions and provide better business planning. Tesco
is the organisation which provides different services which influence both internal
and external factors of the business organisation.
There are several positives and negative impacts of macro environment of Tesco –
Political factors – As Tesco is the private organisations which face different political
boundaries which are helpful to enhancing the business organisation. Political is the
external environmental factor which affects the business environment (Allison, 2018).
The positive impact of the political factors provides the great opportunities to the
business organisation like- political stability, the various trade agreement and
government support to the production of the organisation. Example of the positive
impact of the political factor is as the government provides different policies which
help the increase the growth and develop the profit of the organisation.
The negative impact of the political factor is as the business organisation is
influenced by several changes which are made by the government. For example –
currently, government charge high tax rate on the different business activities, which
affect the business performance and profit of the organisation.
Economic factors- economic factors are related to the income, inflation and all
factors which affect the growth of the country. For example, if the income of the UK
increases then this affects the business of the Tesco and the population purchase
more product of the organisation (Allison, 2018). Internationalization and
diversification of the business organisation affect the negatively to the organisation
provides the better changes to get the success of the business organisation. High
pressure is the reason which affects the business environment negatively.
Social factors- social factor is related to the changes occur in the society’s culture
and the activities which affect the business environment. The customer’s demand is
mainly decided as per their belief and the attitudes. Tesco is the organisation which
adopts the changes occurs in the society.
Technological factors- With the innovation of the new technologies the operations
and working style of the organisation also changes. Tesco is the organisation which
continuous adopts the new innovation and grabs the various opportunities to
enhance the business environment (Goleman, 2017). Technological factors also
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affect the business of Tesco. As their increases, the labour cost, better known to
maintain the different technology uses in the business environment.
Basically, the business environment has both positive and negative impact on the
business environment.
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M3 Apply appropriately the PESTLE model to support a detailed analysis of the
macro environment within an organisation.
Business organisation has influence by both the internal and the external factors of
the organisation. PESTLE analysis provides the study related to the external factors
which are as under-
Factors
Political Factors Political factors are tax rate, the income of the nation and related
to the trade reforms. As Tesco provides the services to different
places so it affects the business through various political factors.
Economic
Factors
Economic factors mean the wealth of the organisation (Barton,
2018). As the low fuel prices and interest rate helps the Tesco to
grow their business in the market.
Social Factors Taste and preference of customers affect the business and there
taste and preference depends on their beliefs and trust. Some
social factors are demographic change, lifestyle changes and
income distribution of the person.
Technological
Factors
New technology provides the good opportunities for Tesco.
Digital disruption is the main factor which provides the better
chance to grow.
Legal Factors Tesco is mainly affected by the various tax policies, employment
laws, safety regulations and competition regulations of the
product.
Environmental
Factors
Environmental factors are related to the environment of both
internal and external factors of the organisation. adverse
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LO4 Determine the internal strengths and weaknesses of specific businesses
and explain their interrelationship with external macro factors
P5 Conduct internal and external analysis of specific organisations in order to
identify strengths and weaknesses
Tesco is the very well-known organisation of the country. Tesco has the great
organisational environment but at the same time, they have both internal and
external factor which influences the business organisation (Chen, 2018). Tesco is
the organisation which provides the goods at a lower price for continuous growth of
the business organisation. To increase the production and business of the
organisation Tesco reducers the waste of the organisation this may occur from the
operations of the organisation. As Tesco is the continuous growing supermarket,
which sustainability wants to develop their way of working to grab the new
opportunities. Tesco implements the different policies which cover the objective of
the organisation and meet their objective on time with full potential. The following are
the strength and weakness of the Tesco-
Strengths - Strength means the strong factor which builds the business. Tesco is
the business organisation which is known to the whole country and this is done due
to the strong factor that is they provide the services to customers’ satisfaction. The
strength of Tesco is they serve the customers and provides the quality product to
their customers. Tesco adopts the strong plans and strategies to enhance the
productivity and the profit of the organisation.
Weaknesses – it simply means the weak area of the organisation due to that the
organisation faces the loss of some and another kind of the problems, which affect
the business of the organisation. The inflexible organisational structure is the main
weak point of Tesco. Other weakness of the Tesco is low reputation due to high
competition, less effective strategies for the working of the organisation
(Vienazindiene, 2018). The hierarchical organisational structure also has the weak
point of the Tesco. If the organisation wants to remove all these types of the
problems they need to conduct the proper research and the analysis of both market
and organisation.
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P6 Explain how strengths and weaknesses interrelate with external macro
factors
Tesco provides its services to both outside and inside of the country. Tax rates are
the governmental factor which is beyond the hand of the organisation. Tesco will
influence both internal and external factors of the organisation (Allison, 2018). There
are various policies and the plans which increase the production of the organisation.
For achieving the organisational objectives and goals of the organisation need to
provide the interrelation between the strength and weakness of the business
organisations.
External factors are the political, environmental, technical, social economic and legal
factors. All these factors play the important role in the business organisation.
Political factors influence the operational working of the organisation and
organisation needs to evaluate all the political policies and regulations of the
organisation.
Economic factors help to attain the high income as well as sale margin of the
organisation (Vienazindiene, 2018). Economic factors affect the business
organisation both positively and negatively.
Social factors are related to the society which affects the customer's taste and
preference regarding the purchase of the products.
Technological factors it is the new and developed factor which influence the
business environment most. With the changes in the technology, the organisation
needs to update working of the organisation and run with the market and the various
new technologies.
All the above factors are the main external factors which affect the business
environment and help the business organisation to grow their business and set their
reputation in the eyes of the customers.
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M4 Apply appropriately SWOT/TOWS analysis and justify how they influence
decision-making.
SWOT analysis is related to the analysis of various internal and external factors,
these factors help to study the different opportunities, strength, weakness and threat
of the business organisation. Internal factor helps to understand the strength and
weakness of the business organisation whereas external factors provide the
opportunities and threat of the business organisation.
Factors
Strength Strength means the strong factor which builds the business.
Tesco is that organisation which is known to the whole
country, this happens due to their strong factor of the
business organisation. The main strength of this organisation
is they provide the customer base goods and services (Chen,
2018).
weakness As Tesco have the various store at different places due to
that they face the loss. As proper research is not done it
creates the weak point of the organisation.
opportunities As Tesco provides the different segment product so they
have the great opportunities to introduce new and innovative
products.
Threats The various threats of Tesco are government rules and
regulations, competitors of the product, buyer’s decision and
the market trend of the product and services.
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D2 Critically evaluates the impacts that both macro and micro factors have
upon business objectives and decision-making.
Every business organisation is surrounded by both the micro and macro factors, and
these factors affect the business and their objective of doing the business. Macro
and micro factors are those factors which influence the various planning which is
made to make the proper decision-making process of the business organisation (Ho,
2014). Tesco is the organisation which deals with the different sector so they have
the higher number of the competitors. All the decisions regarding the product and the
services basically depend on the customer's demand and the requirement. It can be
easily said that for getting success in the market organisation needs to consider both
the micro and macro factors of the organisation.
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Conclusion
At the end of this assignment, one can easily understand the various differences
between the different organisations and their structure. In this assignment, different
factors are also discussed to find and evaluate the effect of the different
organisations on the market and on the customers demand and their satisfaction.
Tesco is the private sector industry which continuous wants to grow in the market.
To enhance the business of the organisation they introduce the new and the different
products for their customers. Child Support Agency is the public sector industry
which provides the financial helps to the child and their parents. The above
assignment also helps to understand the various positive and negative impact of the
macro environment of the organisation, which helps to understand the various
opportunities and threats of the organisation. From the above report, it can be
concluded that the market reputation and their image plays the very important role in
deciding the value and reputation of the organisation.
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