Business and Business Environment: Analysis of Tesco's Operations

This report provides a comprehensive analysis of Tesco's business environment. It begins by defining the business environment and introduces Tesco as a case study, exploring its operations within the UK market. The report then delves into different types of organizations, including public, private, and voluntary sectors, along with their legal structures. It explains the size and scope of various organizations, categorizing them as micro, small, medium, and large scale businesses. The core of the report examines the relationship between organizational functions, such as human resources, information technology, and finance, and how they contribute to achieving organizational objectives. It also identifies the positive and negative impacts of the macro environment on business operations, supported by specific examples. Furthermore, the report conducts internal and external analyses of Tesco, pinpointing its strengths and weaknesses and illustrating how these factors interact with external macro factors to influence the company's current policies. The report utilizes various academic sources to support its findings, offering a well-researched overview of Tesco's business strategy and its position within the competitive market.

Business and the
Business
Environment

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
TASK 1......................................................................................................................................3
P1 Explain different types and purposes of organisations; public, private and voluntary
sectors and legal structures.....................................................................................................3
P2 Explain the size and scope of a range of different types of organisations........................4
TASK 2......................................................................................................................................5
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure..................................................................................5
TASK 3......................................................................................................................................7
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples...........................................................................7
TASK 4....................................................................................................................................10
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses.....................................................................................................10
P6 Explain how strengths and weaknesses interrelate with external macro factors............11
CONCLUSION........................................................................................................................12
REFERENCES.........................................................................................................................13
Books and journal................................................................................................................13

INTRODUCTION
Business environment can be defined as an environment in which organisation is
trading and performing its function in accordance with the needs and requirements (Aithal,
2017). It is identified that organisation need to perform its function in accordance with the
requirement of current resources and using them according to the needs and requirement.
Which consist of selling goods and services and order to a earn profit. In context of the
current report it is based on the study of Tesco. It is a British multinational grocery seller
which is performing its function in the market of UK. Organisation is trading its products and
services in order to fulfil the requirements of local customer and achieve business objectives.
In context to this report there is discussion about different kind of organisation based on their
structure and size. This also consist discussion about the influence of micro and macro
environment on the organisation and their positive and negative impacts. Along with this
there is use of strength and weaknesses of organisation as well as their interrelationship with
external macro factors for identify current policies of organisation.
MAIN BODY
TASK 1
P1 Explain different types and purposes of organisations; public, private and voluntary
sectors and legal structures
Business environment is consist of different kind of intracranial ventures as well as
business organisation which is depend on their function structure and help the organisation in
performing its function within the market in which it is spreading false for the organisation to
use an appropriate structure so that it can work within the business environment achieving its
business objectives and performing with adequate profitability level. It is identified that there
are different kind of organisations which are performing within the market according to their
functions purpose and legal structure within the market. In context of the current report some
of these structures and differentiations are discussed below:
Public organisation: A public organisation can be defined as a public limited
company which is performing its function within the market and order to achieve the business
objectives and perform the function in accordance with the needs and requirements of the

customer. The major objective of public limited companies to serve the local people and
order to maintain appropriate level of satisfaction between different individuals full stop a
public limited companies owned by the government where maximum share within the
organisation are held by the government in order to regulate its functioning and provide
benefits to the local individuals (Breckova, 2016). These kind of organisation follow the legal
structure where there are dependent on the governments of that area in which organisation is
working for all staff government bodies are related to helping the organisation so that they
can perform its function in an appropriate manner by regulating its functioning.
Private organisation: A private organisation can be defined as that organisation
which is operating by private owner. Private organisation can be defined as a partnership
corporation person agency or any other organisation with this operating its function for profit
and non-profit functions. It include the business that are profitable and non-profitable which
are owned by the private individual not by the government. Private organisation can be
federal body which is self-substance and established in order to achieve some certain
objectives which are different from the government once (Brennan, Canning and McDowell,
2020).
Voluntary organisation: It can be defined as those enterprises which are working
under the independent sector or civil actors. These organisations are performing the duty of
social activities which are undertaken by the organisation in order to perform the function
under the non-governmental, non-profit organisations. This sector is related to the third sector
community centre and non-profit sector which is related to public sector and private sector. In
terms of these it are emphasis on building relationships to the civil societies so that they can
easily perform the function and achieve the objectives by managing their contribution within
significance to the society and the economy.
These are the different kinds of organisation which are operating according to their
needs and requirement as a structural system. It is identified that under this system
organisation can operate according to its requirement and performs the function in order to
achieve the business objectives efficiently and timely. This is also identified that there are
various factors which are covered under the system of organisation which help in managing
functions and achieving the objectives according to the needs and requirements.

P2 Explain the size and scope of a range of different types of organisations
It is identified that there are different type of organisation which are operating according to
the needs and requirements of the organisation and the marketplace in which they are
working. It is also identified that this organisation required appropriate system which they are
working according to size, scope and objectives of the business (Camilleri, 2017). These
enterprises can be classified in terms of micro small and large business ventures which are
performing their business according to the requirement of business environment. Different
organisation and this category are discussed below:
Micro and small: Micro and small business ventures are those organisations which
are performing their function within different employee categories. These ventures are
performing their function in accordance with the dates and requirement as well as using the
local resources in order to fulfil their objectives. Micro and small business organisation are
operating at smaller level where the used to generate the finance from family members and
friends. The major purpose of micro and small organisation is to earn profitability and
perform their function in order to improve the current facility by developing an innovative
product within the market. They cover a low area within the market where it generally
includes the local areas in which organisation is working organisation use sole proprietorship
as a legal structure.
Medium scale: Medium scale organisations are those organisations which performing
their functions in order to improve their performance as well as using the goods and services
in accordance with the market segments. It includes high level system which include micro
small and large scale organisation which are performing appropriate system. Medium scale
organisation include appropriate system which are related to providing sufficient functioning
to both large and small scale organisation for stop the major goal of this organisation is to and
profitability and expand their business operations within the market in which they are trading
fall stop the major purpose of this organisation is to improve the customer satisfaction by
increasing the business opportunities within the market (Geissdoerfer, Vladimirova and
Evans, 2018). Medium size organisation journal cover the local boundaries of the nation
where organisation can easily form action its operations and achieve the business objectives.
These organisations follow the different structure which depends on the size and functions of
organisation and which market are trading. These organisation generally include employees
greater than 10 and minimum than hundred.

Large size organisation: It conclude that kind of organisation which performing their
functions at large level which help the organisation in achieving the products and services as
well as manage the good level of employability in order to perform the functions of the
organisation. And this kind of system it includes those organisations which are performing
their function at larger level as well as achieve the objectives in an appropriate manner. It
includes all those organisations which are operating at larger level and different industries.
The major goal of this organisation is to expand their business operations but continuous
improvement within the production services and performing with the higher productivity at
global level (Guinot, Chiva and Mallén, 2016). This organisation also performs their function
in order to provide the goods and services to the customer at larger scales for getting great
numbers in revenue. This kind of organisation cover large market segment where it can the
target customer at global level so that organisation can perform in an effective manner.
Organisation includes a variety of products and the large scale system so that it can complete
its function and use appropriate department system. There are different structures which are
followed by the large scale organisation in order to improve their functions and achieve the
better results.
It can be evaluated from the above mentioned information that there is various kind of
organisation which is operating with different mind-set as well as performance level. It is
identified that in order to achieve the better results and perform the function accordingly it is
mandatory for the form to use this function and promote its functioning according to the
requirements of organisation and attaining better results than the market in which it is trading.
TASK 2
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
Organisation is consisting of different departments which are interrelated to each
other in order to perform different functions and achieve the goals and objectives of the firm.
It is identified that there are different kind of functions which has to be performed in order to
maintain an appropriate system and achieve the organisational goals according to the
requirements. This is also identified that in order to perform this functions organisation
require a better coordinated environment so that it can achieve the objectives as well as
maintain the business environment in accordance with the needs and requirement of different

factors. It can be evaluated that in context of Tesco it is a global performing organisation
where there is appropriate relation between different departments of the organisation so that
management can perform the functions and achieve the objectives in an appropriate manner.
It is also evaluated that there are various functions which are required to manage the
performance ability as well as coordinated environment so that organisation can bring
effectiveness within the market. In context of Tesco different relationships between various
departments of the organisation is mentioned below
Human resources management and information technology: Human resources
department is an important part of organisation where it played number of roles and
responsibilities in accordance with human resources of the organisation. It includes different
functions such as recruitment compensation management hiring placement orientation and
many others. It is identified that organisations using appropriate system which is related to
management of these functions and achieving the goals and objectives (Lang, 2019).
Information technology and human resources within Tesco has a great relationship which
help the organisation and maintaining a cooperative environment and forming the function
according to the needs and requirements. It is analysed that there are various functions which
are performed by information technology in order to bring more threats to the organisation
functions related to human resources. Digitally and help in achieving the objectives. This
helps in maintaining the coordinated environment between information technology and
human resources so that organisation can easily achieve its goals and objectives.
Finance and human resources: Finance function of organisation act as a backbone
for every organisation this is because it provides finish to the different activities so that
organisational functions can be performed in order to achieve the business objectives. In
context of the current scenario of Tesco there is appropriate coordination between human
resources and finance department of organisation. This is because finance department provide
guidance to the human resources about the use of financial resources in accordance with
management of human employees. Finance department also help in compensation
management of human resources which act as a motivated function to the human resources of
organisation. In context to this human resources of Tesco also play important role in
managing finance by providing guidance about the functions which can be performed in
order to save the money and reduce the cost according to the performance level.

Marketing function and human resources: Human resource and marketing function
also play important role within the organisation for establishing an appropriate coordination
in accordance with the needs and requirements. This is identified that human resources help
marketing department by providing talented employees which can perform different
marketing function and according to the needs and requirement. On the other side marketing
department provide information to the human resources department about the current trends
related to training and development where human resources manager can formulate effective
training programs which will help the organisation in achieving the business objectives.
Order to achieve their business objectives (Minasyan and Midova, 2017)
TASK 3
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples
It is essential for every organisation to conduct an appropriate analysis of macro
environment. This is because our environment is consist of different factors which are related
to organisational productivity and functions. In order to meet the requirements and perform
the functions in an appropriate way it is mandatory for the firm to use effective environment
factors. Environment consists of different factors which include political economic social
technological legal and environmental factors these all factors as different positive and
negative impact on the performance of organisation operating at global level where it is
required by the organisation to identify these factors and take corrective action according to
the needs and requirements. In context of Tesco different factors are discussed by the use of
pastel analysis.
Pestle analysis of Tesco
Pestle analysis can be defined as a framework which is used by the organisation and
order to scan the external factors which impact on organisational performance and lead to
changes within the policies of organisation within the market where it is trading. In context of
Tesco there are different external environment factors which impact the organisation some of
these are discussed below with their positive and negative impact:
Political factor: Political factors of those factors which include two government
policies related to stability within the environment in order to maintain the functions within

the market way organisation is trading. It include foreign trade policy is taxation policies
labour laws and government laws and various other. In context of Tesco these factors are
impacting in both positive and negative manner where are the major factors which impact on
the organisation are the trade restrictions and foreign trade policies (Omoy and Aniefor,
2016).
Positive impact
Positive impact of political factor on Tesco’s that due to changes in the foreign trade
policies as well as a referendum of BREXIT there is and doing business for organisation
where it can easily trade with foreign countries and perform its function in an effective
manner. This helps the organisation in managing a function and achieving results in a better
way.
Negative impact
Negative impact of political factor on the performance of Tesco is related to the trade
restrictions. Due to changes in the government policies regarding trade with various countries
such as china and other. There is restriction on the trade which impact on organisation
because of its business availability at different nations. As well as dependency on raw
material which include high cost.
Economic factor: Economic factors of those factors which are directly related to the
significant impact of how an organisation does a business within the market by maintaining
the profitability within economy. In context of Tesco there are various factors such as
economic growth interest rate exchange rate inflation disposable income of customer at
business and various other which impact on the organisational performance in both positive
and negative manner within the area where it is working (Schaltegger, Hansen and Lüdeke-
Freund, 2016).
Positive impact
Low interest rate as well as hike normal growth helps Tesco and performing its
functions within the market of UK. This is because organisation is working within the Tesco
environment at a large level where there is appropriate economic growth as well as low
interest rate with the market in order to promote the business of different organisations.
Negative impact

The major negative impact on the performance of Tesco related to economic factor is
the government control over the interest rate and taxation policy which impact negatively on
the organisation where organisation has to pay high text for higher revenues within the
market.
Social factor: social factor can be define as endorsed factor which include the
believes attitude in population of the area in which organisation is working in order to
implement its production services. In context of Tesco there are different kind of social
factors which impact on the organisation these are related to age distribution has
consciousness career attitude as well as different other factors which are related to the social
influence. In context of Tesco, there is different impact of social factors on the organisational
performance.
Positive impact
Changing customer trends as well as health consciousness is a factor which impacting
positively on the performance of Tesco where organisation is using different kind of features
and products and services which are related to improving the focus of individual toward the
health conscious.
Negative impact
Social factors such as improper distribution of age impacting negatively on
performance of Tesco. Under the Spectre organisation is to identify appropriate market where
it can target the production achieve its objectives.
Technological factor: It includes continuous changes within the technological and
the landscape which impact on the organisation as well as products and services offered by
the form within the market. In context of Tesco there are different factors to the technological
factors such as changes in the way of producing goods and services distribution of goods and
services and various other which impacting on the organisation directly (Schaltegger, Hörisch
and Freeman, 2019).
Positive impact:
In context of Tesco, the major positive impact of technological factor on the
organisation is related to improvement within the goods and services of the organisation as
well as better communication and the target market.

Negative impact
Negative impact of these factors on the market of Tesco is related to changing in the
distribution channel where the organisation has to manage the function according to the
requirements and perform it under the goods and services distribution system which impacted
negatively on the cost of firm and increase its production cost.
Environmental factor: inventor factor are those factor which are related to the natural
environment and surrounding of organisation in which it is performing its functions. It is
mandatory in the current time to follow the environmental factors such as raw material
pollution targets doing business on ethical and sustainable system and many others.
Positive impact
Positive impact of environmental factor on Tesco is that organisation is using
appropriate tools and techniques to minimise the negative impact of pollution on
organisational performance where it is using environment friendly techniques. Impacted
positively on profitability because it help in attracting number of customer.
Negative impact
Negative impact of this factor on the organisational performance is related toof using
environment friendly techniques.
Legal factor: legal factory include number of rules and regulations which has to be
followed by the organisation in order to manage the functions and achieve the business
objectives according to the needs and requirements. in context to this organisation need to
manage its function and achieve them in an appropriate manner. It is identified that
organisation is using different systems which are helpful in managing the functions which
include laws, rules and regulations (Silvius, 2018).
Positive impact:
The major positive impact of legal factor on the performance of Tesco is that
organisation using different kind of rules and regulations which are helpful in reducing the
legal liability within the market where it is trading.
Negative impact:

This directly impact on performance of organisation as well as increase its cost and
abilities to perform the functions due to changes in rules and regulations.
It can be evaluated from the above stated information that there are various kind of
external environment factors which impact on the imagine performance and help in achieving
the business objectives and order to analyse its strength and weaknesses. This is also used
that different kind of strength and weaknesses of different external environment can be used
to achieve the objectives by managing the function in accordance with the needs and
requirements.
TASK 4
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses
In order to scan the internal environment of the organisation they are appropriate Framework
which can be used in order to maintain the functions and identify different capabilities of firm
so that it can perform its function within the market. In context to this SWOT analysis
Framework which is used to identify the strength weaknesses opportunities and threats of the
organisation in the market where it is trading. This is an appropriate function which help in
maintaining appropriate system so that organisation can perform and manage the work in
order to achieve the business objectives (Solodilova, Malikov and Grishin, 2017).
Strength
 Largest grocery retailer: the major strength of Tesco is that it is a large grocery
retailer with the UK where is operating as a super market joint in order to perform its
function. The annual operating profit rose by 26% because of this function.
 Leading market share: this also act as a strength of organisation where it is a leading
market share operator. In context of Tesco it is covering 27% of market share within
the market which is largest than any competitor.
 Wide range of product: this is also acted in strength of Tesco where organisation is
providing the wide range of products and services in the market. This is helpful to the
organisation in improving its function and attracting the customer within the market
by the use of these product range.
Weakness