Business and Business Environment Report: An Analysis of TESCO

This report analyzes the business environment of TESCO, a British multinational grocery and general merchandise retailer. It examines the different types of organizations, including private (TESCO), public (BBC), and voluntary (Wellcome Trust), their legal structures, purposes, and contributions to the economy. The report delves into TESCO's objectives, size, scope, products, services, organizational structure, and stakeholders. It also explores the macro environment's impact and the importance of internal and external analysis for maintaining competitiveness. The report highlights TESCO's evolution and global presence, discussing its acquisitions and mergers. Overall, the report offers a comprehensive overview of TESCO's operations within its business environment, including its vision, mission, objectives, size, scope, and its interactions with stakeholders.

BUSINESS AND BUSINESS
ENVIRONMENT

INTRODUCTION
Business environment is the sum or total of all activities related to external and internal
factors that affects a business. The forces that build business environment are suppliers,
competitors and media with government are important to build environment and affect to it even
external factors are out of control. This report is based on TESCO which is an British
multinational grocery and general merchandise retailer in the whole world and its headquarter is
in England , UK. It is third largest retailer in the world in context of gross revenue and ninth
retailer in the whole world. This report is based on different kinds of organisations in which
public, private and voluntary with their legal structures, size and scope to enhance understanding.
In public sector organisation in which BBC and in voluntary organisation is Wellcome trust that
are playing crucial role in economy. It also includes interrelationship in various functions of an
organisation and their link with organisational structure. Further it elaborates about macro
environment that affect organisation with its positive and negative effects on organisational
proceedings and internal analysis of an organisation and their interrelation. For an organisation
internal and external environment are very much important to remain always competitive by
finding out major spheres in which improvement is very much crucial. All these organisation
contributes in growth and enhancement of an economy.
TASK 1
P1 Elaborate various kinds and purposes of organisations and their legal structure.
In an business environment there are various kinds of organisations that builds product
and services after evaluating needs and wants of consumers in proper way and contributes in
economic development (Al-Saleh and Mahroum, 2015). For that report the chosen organisation
of private sector is TESCO, for public organisation BBC and for voluntary organisation
Wellcome trust that all contributes in economic development. In different types of organisation
consist of Private, Public and Voluntary organisation here are the description of these
organisations and various factors:
Types of business:
There are majorly two kinds of business that are
Profit:

Profit businesses are those enterprises that builds product and services by satisfying needs
and wants as per the need of consumers to maximise profit. It also contributes in economic
development and growth.
Non profit business:
Non profit businesses are those that establish in market with the purpose of public
welfare and their main goal is not to earn profit but to build advance products and services as per
the need of consumers.
Private organisation:
Private sector is a part of economy that run or operated by individuals and their main
motive is to earn profit and state not control their works and activities (Azma and Mostafapour,
2012). Hence it included all profit oriented organisations that are not owned and operated by
government. In that report chosen organisation for private sector is TESCO which is a British
multinational grocery and general merchandise retailer, headquarter is in England, UK and it is a
third largest retailer in the whole world in context of revenue. Its main objective is to build
products and services as per the needs and wants of consumer by earn profit. Every organisation
operates in economy with an definite objective and follow a legal structure that helps to gain
organisational goals and objectives.
Purpose:
The main objective of TESCO is to enhance living standard of people by giving
enchanted experiences to consumer base to giving values by ensuring consumer satisfaction
(Storey, 2016.. ). It helps to give delighted experience and it ultimately proved beneficial for
organisation to enlarge business opportunities.
Legal structure:
Legal structure is an important attribute for an organisation and for private organisations
there are different kinds of legal structure that are as follows:
 Sole trader: Sole trader is one person organisation, found in trades in which only small
amount of money or finance required to set that kind of businesses.
 Partnership: To overcome from concerns of sole traders, a partnership firm should be
formed that is an association of individuals and have 2 to 20 partners (Cepel and et.al .,
2018).

 Private limited company: That is an kind of joint stock company which has separate
legal identity from their owners and they are small, family runs businesses that owned
and operated by shareholders. In case of TESCO that operated under private limited
company that possess their own identity in market place to remain always in market
place.
Public organisation:
Public sector is an important part of countries economy that effectively or efficiently
controlled by government and main motive is to serve people in better way. For that report
public sector organisation that is BBC (British Broadcasting corporation) which is a British
public service broadcaster. Its headquarter situated in London and one of the oldest national
broadcasting organisation and largest broadcaster in terms of no. of employees.
Purpose:
The main purpose is to ensure by conducting research and development activities to fulfil
mission and promotion of the public purposes and to maintain significance in the whole market.
Legal structure:
To reach at desirable goals and objectives, there are some prescribed form of government
that are as follows:
 State government: State government is an kind of government of a country which
subdivision of federal form of government that shares political power with national
government (Deasy and et.al , 2016). BBC comes under the control of state government
that control each and every activity under state level.
 Central government: Central government that are accountable for accomplishing
important decisions related to operations of an organisation.
 Local government: Local government are accountable for handling and managing all
works and activities related to local authorities by applying various rules and regulations
to get assistance from government.
Voluntary organisation:
Voluntary group or union is an group of individuals that work under a agreement as an
volunteer to accomplish some purpose or objectives (Grover and Kohli, 2013). The common
example of volunteer are trade associations, trade unions and learned societies and many more.
For that report voluntary organisation that is Wellcome trust which is a biomedical research

charity located in London UK. It established in 1936 to improve the health of both human and
animals in better way.
Purpose:
The main purpose of that trust is to provide extraordinary achievements in health by
finding or supporting the brightest minds. It also conducts biomedical research that supports the
understanding of public in science.
Legal structure:
There are a legal structure that follow by a voluntary organisation that are as follows:
 An unincorporated association: That form of legal structure formed by individuals by
signed a contract in parties to give prosperous life to people (Hockerts, 2015). That
organisation system or structures best for small groups that held short term goals and
objectives and low income. Unincorporated associations are very much quick and cheap
to set up and there is no legal and separate existence in the whole world.
 Trust: In trust consist of three parties in which donors, trustees and beneficiary that are
accountable for welfare of profit and not to earn profit. Trust is an generally a set up to
manage and coordinate money and property to attain specific role and purpose in better
way. They establish a formal relationship in the three parties that are donors, trustees and
beneficiaries that helps to set up all legal obligations in proper manner.
To lead in the market organisation have to spend in current market by enlarge business
opportunities in better way. In context of TESCO primarily they operate at regional level but as
time passes it enlarge business opportunities with the help of various entry strategies and become
global brand name in the market (Hallward-Driemeier and Pritchett, 2015.). It presently work as
an global leader by acquisition other firms and products in better way. Acquisition and merger
are the transactions in which ownership of companies and other business organisation by
consolidating or transferred with other entities in positive manner. In context of TESCO which is
primarily a small business after analyse the current needs and wants of consumers they become
large enterprise and lead in market.
P2 Size and scope of a range of different types of organisations.
There are various kinds of organisations exist in economy such as public, private and
voluntary to provide good and services to consumer. The main aim of these organisation is to

earn maximum profits and revenues. They have different goals and objectives for achievement of
results. The size and scope of these organisation are as follows:
TESCO
It is private organisation which is multinational retail sector providing various goods and
service to consumers. This is providing its good globally in order to fulfils need and demand of
people. The products of TESCO includes hypermarket, convenience shop, superstore and
supermarket. It has many subsidiaries such as TESCO bank, TESCO Ireland, TESCO mobile and
others.
 Vision and mission: The vision statement of TESCO is divided into five elements such
as: needed and wanted around world, having modern and innovative ideas, growing
business with opportunities, winners apply skills globally and inspiring and earning
loyalty and trust from communities, customers and colleagues. Mission of to make what
matters them better together (Trevino and Nelson, 2016.).
 Objectives: The main objective of TESCO is to provide high quality products and
services which are affordable and cheap to people in order to increase maximize sales and
grow and maintain their goodwill and value in market.
 Size and scope: The size and scope of TESCO is large as it serves in different parts of
world such as United Kingdom, Thailand, Hungary, Ireland, Malaysia, India and Czech
Republic and others. There are more than 450,000 number of employees working in
respective organisation and providing services in various locations. The scope is to
increase market share and growth in competitive market so that goal and objectives can
be achieved.
 Product and services: There are various product and services which are offered by
TESCO for their consumers. The products includes food, clothing, mobile,
entertainment, books and others. Similarly services provided to consumers are banking,
financial services, telecoms, internet service (Huang and et.al ., 2013).
 Organisational structure: TESCO is multinational British general and grocery
merchandise organisation which has headquarter is England. The organisational structure
of TESCO is hierarchical where obligation, positions and structure are divided into
various parts where they should ensure work is done smoothly and efficiently (TESCO

COMPANY ORGANISATIONAL STRUCTURE CHART EXAMPLE, 2016). The high
level authority has more responsibilities in business.
(Source: Organisational Structure of TESCO, 2016)
 Stakeholders: There are various stakeholder of TESCO which helps in achieving goals
and objectives of business. This includes both internal and external stakeholder. The
internal can be employees, experts, shareholders and external can be customers,
suppliers, government, community (Ghezzi, 2013.). The internal provide good and
service to consumers in effective manner and external purchase those products for
increasing profits and revenues.
British Board Casting (BBC)
It is an organisation which was founded in 1922 at United Kingdom. It is public service
broadcaster which provide services related with radio, television and online and products like
broadcasting, web portals. This is regarded as world's oldest national broadcasting firm. There
are more than 20,000 employee working to provide services to their consumers in effective and
efficient manner.
 Vision and mission: The vision statement of BBC is to become most creative and
innovative organisation in world. The mission is to enhance and enrich live of people
with various services and programmes in order to educate, entertain and inform them.
 Objectives: The objectives of BBC is divided into four elements. The first is to provide
quality and distinctiveness, second is serving all audiences in proper manner, third is
value for money and fourth is to be openness and transparent in providing of services.
Therefore, it helps in engaging staff with strategy and building new partnership with
others.
 Size and scope: This is oldest broadcasting firm in world which has largest large
number of employees. It has employed 20,950 staff where 16,672 are in public sector
Illustration 1: Organisational Structure of TESCO, 2016

broadcasting. It has also flexible, part time and fixed contracts. It is serving products and
services worldwide. There are more than 20,000 employees working for business to
provide services.
 Product and services: There are different products and services which are deal by BBC
for their consumers. The products are related with broadcasting, radio, web portals for
their consumers (Schrader, Freimann and Seuring, 2012.). Similarly, services can be
related with television, online and radio for convenience of people. It focus on providing
high quality of good and services to individual in effective and efficient manner.
 Organisational structure: This is old public broadcasting service in world with number
of employees. This was founded under Royal Charter where agreement is formed with
Secretary of State for culture, media and sports and including functions. The
organisational structure of BBC is line which follows direction from one authority for
effective results (BBC Hierarchy, 2019). This is governed by Trust which form executive
board, team and management broad.
(Source: Organisational Structure of BBC, 2019)
 Stakeholders: There are various stakeholders of BBC which includes suppliers,
investors, management, owners, government, neighbours, employees, customers, media,
Illustration 2: Organisational Structure of BBC,
2019

regulatory bodies and others. They work together for to provide and take services of
respective organisation.
Wellcome Trust
It is voluntary organisation which was founded in 1936 at United Kingdom. This is
biomedical trust which focus on improving animal and human health. It mainly provide
extraordinary improvements in health through funding to biomedical. Wellcome trust provide
services to UK and its overseas countries.
 Vision and mission: The vision of Wellcome Trust is to promote research excellence in
order to meet international health challenges through supporting research institutions and
researchers at low as well as middle countries by equitable partnerships and
collaborations (Mihalič, Žabkar and Cvelbar, 2012.). The mission statement of
Wellcome Trust is based on four points. First is to focus on providing high quality
research, second is partnership with institutions from low to middle income countries,
third is supporting and mentoring researcher and students and last is to do promotion and
advocacy of health.
 Objectives: The objectives of respective organisation is to invest £5 billion in next five
years for improving health service in order to launches strategic framework which focus
on advancing ideas into research and science.
 Size and scope : Wellcome Trust has not more than 2100 employees for providing
services. This is largest service providers in world which mainly focus on health
improvement of people in better and effective manner. It has endowment of £25.9 billion
and disbursements of £11 billion. It has scope to increase their services in various parts of
world so that goal and objectives can be achieved and none of people suffer health
problems.
 Product and services : The products and service of Wellcome Trust are medicines,
providing treatment and helps. This also focus on people to provide them with quality
and hygiene treatment.
 Organisational structure: The organisational structure followed by this trust is
divisional as there are number of people who work together for achievement of goals and
objectives in effective and efficient manner (Tregear, 2015.). According to division
reporting is categorised where head is trustee and their subordinates manager business.

 Stakeholders: The stakeholder of trust are trustee, executive, committee members and
others.
TASK 2
P3 Relationship between different organisational functions.
TESCO
Vision:
The main vision of TESCO is to build products as per the consumer needs and
preferences to give delighted experience to their consumers.
Mission:
TESCO main mission is to “We make what matters better, together”.
Objectives:
The core objective of TESCO is to identify the core needs of consumers and build
products accordingly to give loyalty to consumers.
BBC
Vision:
The vision and mission of BBC is to enrich the lives of people. The main vision of
organisation is to provide entertainment, information and educate to people in better way.
objectives:
The main objectives is to gain large market share by satisfying needs and wants in better
way.
Wellcome Trust
Vision and Mission:
The main vision and mission of Wellcome trust is to give best treatment to provide better
treatment to human being and animals so that they remain always healthy.
Objectives:
The main objective of that organisation is to give best treatment to animals and human
being by evaluating their disease.
In an organisation all departments closely associated with each other and plays very
important role in organisational development and enhancement in proper way (Heaton, Linden

and Teece, 2014). In context of TESCO in which all departments are closely related with each
other.
Relationship in different departments:
 Marketing with finance department: Marketing department are very much crucial for
organisation that are responsible for various works and activities to reach at large no. of
consumer base by advertising, promotions and for that huge finance required. In case of
TESCO they acquire proper knowledge and information about finance in proper way so
that various activities should be coordinated (Paul, Yeates and Cadle, 2014.). On other
hand marketing department collect about consumers demand and give information
regarding future sales so that finance department can collect proper money. In context of
TESCO they coordinate each and ever activity by communicating with various
departments in organisation. On other hand in BBC and Wellcome trust all departments
also related and connected to each other they share all necessary knowledge and
information to each other to accomplish their goals and objectives in better way.
 Human resource with sales department: Human resource department are very much
crucial for an organisation. In context of TESCO sales department providing and
distributing products and services in proper way by evaluating demand and supply forces
so that balance should be maintained in proper way (Segatto, Inês Dallavalle de Pádua
and Pinheiro Martinelli, 2013. ). On other hand when in sales department skilled labour
force required in that case TESCO HR department select best candidates by evaluating
various factors. On other hand in BBC and Wellcome trust are also share role and
responsibilities with other departments in better way. Sales department give necessary
knowledge and information to human resource department to select best and competitive
staff members so that they can achieve goals and objectives in better way.
In that way all organisational departments are interrelated with each other and comply in positive
manner when changes occurs in organisational structure and their works and procedures. So it is
very important to communicate with departments so that desirable outcomes should be achieved.
Organisational structure:
Tesco is an British multinational grocery and general merchandise seller of products and
services. Tesco follows the hierarchical organisational structure in which positions and
obligations are divided in many parts to work with efficiency and effectively. On other hand