Business Environment Analysis and Organizational Functions

This report delves into the business environment, examining various sectors including public, private, and voluntary organizations, along with their legal structures, scopes, and purposes, using Tesco as a case study. It explores the interrelationships between different organizational functions such as marketing, finance, production, and human resources, and how these functions align with a firm's objectives and structure. The report analyzes the positive and negative impacts of the macro environment on business operations, supported by specific examples, and conducts internal and external analyses to identify strengths and weaknesses. It also illustrates how these strengths and weaknesses interrelate with external macro factors, providing a comprehensive understanding of business operations and strategic planning in a dynamic environment.

Business And The
Business Environment

Table of Contents
INTRODUCTION .......................................................................................................................1
Discuss various types, size, scope, legal structure and purposes of public, private and
voluntary sectors and legal structures.....................................................................................1
Discuss the relationship between different organisational functions and how they link to firm's
objectives and structure..........................................................................................................3
Search positive and negative impacts the macro environment has upon business operations,
supported by specific examples..............................................................................................4
Conduct internal and external analysis for organisations in order to identify strengths and
weaknesses.............................................................................................................................7
Illustrate how strengths and weaknesses interrelate with external macro factors..................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business can be described as a platform where goods and services are sold in order
generate huge revenue. Business plays a critical role in upliftment of the economy as it directly
provide numerous technical and managerial job opportunities to a large section of the society
people. Many industries , hotels and transport companies are established for business which aid
them to overcome the issue of unemployment (Ayios, 2018). This report is based on Tesco is a
successfully British multinational groceries retail store. It is the third largest grocery store in
terms of revenue. Firm was founded by Jack Cohen situated in Welwyn Garden City,
Hertfordshire. This leading organization dealing in multinational grocery items and are
successfully meeting the emerging needs of the customers across the globe. This assignment
covers public, private and voluntary sector along with their purpose, size, scope and legal
structure. Additionally, discuss the relationship between distinguished organizational functions
and how are they linked with aims, objectives and structure of the administration in the global
market. Along with this impact of macro environment upon business operations are studied
deeply so as to frame the tactics accordingly (Beatty and Abril, 2018).
Discuss various types, size, scope, legal structure and purposes of public, private and voluntary
sectors and legal structures
Profit organization (Tesco) is defined as those legal organization whose main motive is to
earn profit worldwide. This business associates maximize huge profit by selling product and
services of the enterprise across the boundaries. By doing set goals and objectives are achieved
in the set time duration which is a positive sign for the business associates. Organization
formulate effective strategies to gain competitive advantages against rivalry in the intense
competitive market place. However, profit organization are accountable for paying taxes based
on their net income. The government bodies utilizes the funds for their nations improvement in
order to make it as economically stable in nature (Brown, 2018). The ratio of unemployment and
poverty can be eliminated by properly utilizing the taxes fund. This company is having sores in
all over the world and they and continuously growing their market to more other countries,
Large scale enterprise refers to as that administration which turnover is greater than 1.5
billion euros. Along with this around 450000 staff members are working to full-fill the emerging
needs of the customers in the open market place. And a balance sheet total should be two billion
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euros then only that particular firm can be termed as large scale organization. According to this
Tesco is a large scale enterprise whose revenue is 2,206 million and six thousand stores are
located across the globe. Organization deals in product such as, Hypermarket, supermarket etc.
which leads to growth and sustainability . It rely on highly responsive supply chain so that
goodwill can be raised in the eyes of the customers. They are having good reputation in all over
the world, most of the profit they are taking prom their online tores and they are having good
labour force . For any organization employees play important role to every organization. Tesco
also working to give employment to people. Many government invite this company to open
shops in their country so government can provide employment to the employees and they can
increase employment rate in their country. They are having business in all around the world and
they are looking for more expansion in the countries where they can get opportunities
The targeted customers of Tesco are price conscious, young people and sensitive
customers for fashion trends. It has studied that Tesco captures a sales share of sixty nine percent
of total inditex Group's sales. In the working premises international organizational structure is
executed as it focus more on requirements and operations. It leads to raise the workforce
efficiency at a tremendous scale (Côrte-Real and Ruivo, 2017). company is following new
fashion trend s and they are looking for the satisfaction of the customers. Company also give
huge amount of discount on their customer and they also run programs in which customers can
gain points for shopping from their online side . People can redeem those points in future
purchase and they also organise customer locality programs in which they invite customers who
regularly buy products from the company. In this program they also invite famous artists and
personality. This programs can only attend by people who are regular customers and company
send them a invites to come and join those program.
Non profit organization is explained as whose aim is to provide services to the society.
There motive is not to earn profit but to provide better and effective services to the customers.
BBC (British Broadcasting Corporation) is a non- profit British public service business. Here,
the main purpose is to serve best quality services to the community people. This type of
organization accumulate revenue from public for their betterment on continuous basis. It is
located in London, United Kingdom and round 20, 916 staff members are working day and night
to meet the emerging needs and wants of the potential customers. Management of the company
provide training programs to their employees so they can get better and skilful workers The
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subsidiaries offered by the organization is BBC Weather, BBC Mundo, BBC News, BBC Radio
etc. To grow sustainability across the globe they figure out innovative idea in order to gain
competitive advantages against rivalry. they are also making strategies to gain competitive
advantages for their company. They make strategies like price skimming and premium pricing.
In and price skimming strategies company is providing quality clothes with low price range and
in a premium pricing company was making premium cloths with high price range , this both
strategies help Tesco to increase their market growth to take competitive advantages
Medium size enterprise refers to as firm having equipments more than two core but does
not exceed five crores rupees. BBC organization is categorized as medium size enterprise in the
global market (Crane and Spence, 2019). The market share of the BBC radio is fifty eight
percent and BBC News captures seventeen percent of the market share. The strategies framed by
the business associates to need to modified as per the dynamic environment so as to capture more
market ration as compared to the competitors. However, the reason behind so successfully
business over the years is the kind of organization structure they are using in their working
premises. BBC (British Broadcasting Corporation) is implementing global organizational
structure because it does not focus on product basis rather it is used for operations which are
controlled and managed on geographic level. It encourages the staff members of company to
work effectively and efficiently to achieve the desire goals and objectives in the set time
duration. The net income of the of this new company is 4.82 billion British pounds in the year
2016. Whereas, 3.74 billion came from license free income in the cut throat competitive world.
NGO (Save the Children) it was established in UK in the year 1919 (Edgington, 2018).
The purpose of this NGO is to improve the lives of the children by providing them proper
education, economic opportunities and health care. NGO work for the upliftment of the society
by eliminating poverty and other economic issues prevailing in the community. The gather cash
amount either by charity, donations, membership fees etc. They provide services like, health
care, education facilities to women's etc. Save the Children is a NGO it never work for profit
maximization in the global market. It works for the society people only. They resolve the crises
or issues emerging in the society in any terms so that living standards of the people can be raised
respectively. Save the Children is growing sustainability as the the members are working day and
night to full-fill communities people needs, wants and preferences. This increase the reputation
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of the company in the market. Mostly they focusses on the education of the children because
they think that they are future and if they will be educated then they can be success in their life .
Company is providing eduction and they bare also motivating other company to come and
contribute for the society.
Micro enterprise is termed as those companies in which staff members are few or less
than ten people. As well as the annual turnover does not exceed to two million euros in the open
market place. Save the children is classified under micro enterprise as in initial days it was
operated in small level and later on tired into micro level. Around twenty four thousand
employees are working across one hundred twenty countries (Foss and Saebi, 2017). This
particular NGO is able to meet the emerging demands of the people of it's flexible organization
structure carried out. It execute transnational organizational structure as it arrange the business
along with distinguished products, functional and geographic levels. It encourages the staff
members of company to work effectively and efficiently to achieve the desire goals and
objectives in the set time duration.
Discuss the relationship between different organisational functions and how they link to firm's
objectives and structure
The functions of Tesco are interconnected with mission and objectives of the
organization. Marketing, production, finance, human resource, customer support service etc.
examples of various functions which are carried out in an organization in effective manner. The
interdependence of each and other function helps business associates to provide better services
to the potential customers over the years. Also, set objectives and mission statement is achieved
accordingly. This all fictions play important role in company growth. It is important for every
company to look for their internal function which can help them to achieve success in the
business .
Marketing and finance department of Tesco helps firm to promote their product
effectively in the global market (Hamilton and Webster, 2018). The interconnection provide
rough idea about how much funds is need to advertise globally. By doing so best results can be
attained in the set time duration. Whereas, gap among this departments decreases the
productivity and profitability volume at a rapid scale. The set realistic objectives of the firm
motivates the employees to perform better in order to full-fill mission statement. Finance
managers are responsible for arrange funds for company they have to where company can need
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fund and how they will arrange the fund to fulfil requirement of the company. Every department
in the Tesco need particular funds to run activities and Finance manger helps to arrange this
fund. Human resource and production departments connections aid the business associates
to known how much human assets are required to carry out the production activity. To get best
outcomes in the international market it is necessary to have strong and healthy connections
among the departments. As per the requirements the production activity is carried out to achieve
the set standards. Along with this it directly or indirectly encourage workers to raise workforce
efficiency to meet the mission statement (Hillary, 2017). HRM provide a skilful labour for
company and fulfil the needs according to the available job. This department also helps in
decision making and planning of the company if Tesco want to open new branch then Human
resource department help company in decision making and also make proper planing for the
new branch. They also run training programs and group activity in workplace so employees can
increase their skills and work together. Information Technology and Consumer support
system department build strong connections with each other in order to achieve the desired
outcomes in the cut throat competitive world. The data gathered from information technology
department assist the business associates to support consumer system department in order to
provide quality and best services. The miscommunication or weak bond among various
functional unit leads them to increase employees turnout ratio as well as set objectives are not
meet on time. Company is making profit through the Information technology because they are
having online stores and people can do shopping from their home and company also provide card
factuality in their stores so customers can pay digitally. Marketing and production
department are closely related with each other as production activity cam be carried out as per
the demand of the customers in the international market. The production of product take place
when the demand for the marketed good raises. Effective marketing tools leads to increase in
sales volume at a tremendous scale. Marketer play important role in the Tesco company. They
search potential market and study of the customers behaviour. The main objective of the
marketers is to understand the needs of the customers. According to the needs of customers they
develop product which can provide satisfaction to the customers. And production department
look for the quality of the goods and they also minimize production cost in the manufacturing
process. This helps Tesco to provide better quality product in less price range to their customers.
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Search positive and negative impacts the macro environment has upon business operations,
Macro environment consist of political, economical, social, environmental, technological
and legal factors (arach, 2017). In order to grow the business sustainability in the competitive
marketplace it is mandatory to scan the dynamic environment effectively. By doing the loop
holes of other can be turned out into their opportunity which is a positive sign for the enterprise.
In order to gain competitive advantages against rivalry examining of dynamic environment is
mandatory. The innovative idea is generated while evaluating the macro environment on
continuous basis.
Political forces: The political environment of UK is stale in nature. There is huge
opportunity for Tesco to grow in other segments as well. Foreign trade policy, trade restrictions,
consumer protection laws, bureaucracy, corruption etc. are some of the examples of political
factors. By evaluating all this factors effectively best strategies ca be designed so as to gain best
outcomes. Recently Brexit affect Tesco in probability because they were getting most of the
chip labour from the European country and because of that they resources labours labours from
other counties and this take so much time and cost from them. After some time they find other
countries for trade and this help Tesco in make their position again in the market.
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Illustration 1: PESTEL Analysis
Economical forces: Interest rate, tax rates, policies, governmental activities etc. are part
of economical factors (PESTEL Analysis, 2018). Tesco before expanding the business in the
global market study deeply this factors in order to grow the business smoothly without
government interference. Organization ignoring this forces will come across huge loss in the cut
throat competitive world. Effectively adopting economical factors will directly raise goodwill in
the eyes of the customers. Exchange rage affect them to much if the rate of the found diaereses
then they will get row material in low price.
Social forces: Tesco on priority level follow social forces so as to attain best results in
the market. Traditions, society customs, norms, beliefs, language, imports, cultural taboos,
lifestyles of the people, trends etc. are categorised under social factors (Lee and Shin, 2018). By
full-filling this on continuous basis directly or indirectly this increases the market value of the
goods and services in positive manner. To gain competitive advantages against rivalry it is
important to examine this particular forces. Company is following new trends which is attracting
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customers. They are introducing new design and product which can give satisfaction to the
customers and company is taking competitive advantage.
Technological forces: This affect Tesco directly or indirectly in the neck to neck
competitive competitive world. By adopting this in the global market place best results can be
achieved in the set time duration. Implementation of 3D technology leads to raise in sales
volume as well as set objectives are achieved which is a positive sign for the business associates
in the international market. By using modern tools and techniques company is able to satisfy the
demands of the customers at a rapid scale. Technological factors give many advantages to the
company because they open their online sores in the all over the world and increase their reach.
Company also providing card facilities on their stores so customers can pay through card ,
transaction will be done digitally customers do no need to pay cash in this technology. They are
also thing to put new trending technology which can increase their profitability.
Environmental factors: such as, pH level of soil, temperature, pH level of water,
population, climate etc. are categorised under this. The survive for longer time period in the
global market it important to study this forces effectively in the global market. Tesco frame
friendlily tactics for their business activities in order to safeguard the environment. By doing so
tough competition is created for competitors in the international market. Tesco is making product
which is healthy and eco- friendly. Those product does not affect health of their customer and
their packaging safely delver product to their customers.
Legal forces: It includes consumers law, copyright law, health and safety law, fraud law,
employment law, Import and export law, discrimination law etc. Tesco adopts this effectively in
the working premises so that best outcomes can be achieved in the set time frame. Violation of
this law affect the smooth functioning of the business in the UK market (Linder and Williander,
2017). By continuously following this positive image is build in the mind of skilled and potential
staff members so as to gain set objectives in the global market. They have mainly focus on the
labour low because employees are their first priority and they provide shifty to the employees
are are working in a workplace.
Conduct internal and external analysis for organisations in order to identify strengths and
weaknesses
SWOT (Strengths, weaknesses, threat and opportunities) analysis of Tesco is carried out
so that best results can be attained in the international market. By studying the strengths and
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weaknesses of Tesco the unique tactics can be formulated accordingly to expand the business
over the years. While the prevailing threat and opportunities is evaluated so as to grab the
positive aspects of them for the betterment of the organization.
The strengths of Tesco are as follows:
 It is well known in the global market about it's unique and quality product and services.
 They are having shops location in all over the world more then 6700 stores Tesco open
in worldwide
 Along with this there is huge cash reserves and property with the organization which
directly provides them strong financial support in all kinds of economical cycles.
 Administration and it's staff members are flexible in nature and are easily adoptable to
the dynamic environment.
 Additionally, the core strengths of the enterprise is that it focus more on meeting the
emerging needs, preferences and demand of the potential customers.
 They spend huge investments in research and development area in order to come up with
creative idea.
 Almost 45000 employees are working for this company and they have strong workforce
and skill full workers.
 In online market they are giving competition to the reputed companies.
The weaknesses of Tesco are as follows:
 Some of the Tesco's subsidiaries are not working effectively in the intense competitive
world.
 The tremendous increases in economic crises has decreased the profit margin of the
organization.
 The purchasing of customers are low in some countries due to which the high cost of
inventory is beard by business associates in the neck to neck competitive world.
 They are depending on the UK and Europe. They do not take interest in other market
because of that other companies are giving competition to the Tesco
 they are not following new trends
 there is no strategies ton increase probability for organization they are just looking for
expansion.
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