Business Environment Report: Business Analysis of Tesco PLC

This report provides a comprehensive analysis of the business environment, focusing on Tesco PLC. It begins by explaining different types, sizes, and scopes of organizations, including public, private, and voluntary sectors, along with their legal structures. The report then delves into the interconnections between various organizational functions and their relationship to the organizational structure and objectives. It analyzes the advantages and disadvantages of these connections and their influence on the structure. The second part of the report uses contemporary examples to demonstrate the positive and negative impacts of the macro environment on business operations, supported by PESTLE analysis of Tesco. Furthermore, it examines the internal strengths and weaknesses of Tesco through SWOT analysis and explains their interrelationship with external macro factors. Finally, the report critically evaluates the impacts of macro and micro factors on business objectives and decision-making within Tesco.

Business and the Business Environment

BUSINESS AND THE BUSINESS ENVIRONMENT
Contents
Introduction......................................................................................................................................4
Part 1................................................................................................................................................5
LO1: Explain the different types, sizes and scope of the organization...........................................5
P1: Explain different types and purposes of organizations, public, private and voluntary
sectors and legal structures..........................................................................................................5
P2: Describe the scope and size of a range of various kinds of company for the purpose..........6
M1: Analyze the way the structure, size, and scope of various companies connect to the
business objectives, services and products offered by the company for the purpose..................8
Task 2.............................................................................................................................................10
LO2: Illustrate the interconnection of the several functions within the company and the way they
interrelate to the organizational structure......................................................................................10
P3: Describe the connection in between the various organizational functions and the way they
relate to the organizational structure and objectives..................................................................10
M2: Analyze the disadvantages and advantages of connections in between functions of
organization and the influence which can have upon their structure.........................................11
D1: Provide a critical analysis of the complexities of different types of business structures and
the interrelationships of the different organizational functions chosen for the purpose............12
Part 2..............................................................................................................................................13
LO3: Use of contemporary examples to demonstrate both positive and negative influence or
impact the macro environment has on business operations...........................................................13
P4: Identification of positive and negative impacts the macro environment has on business
operations, supported by specific examples..............................................................................13
M3: Application of the PESTLE model to support a detailed analysis of Macro environment
within Tesco...............................................................................................................................15
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BUSINESS AND THE BUSINESS ENVIRONMENT
LO4: Determining the internal strengths and weaknesses of specific businesses and an
explanation of their interrelationship with external macro factors................................................17
P5: Internal and external analysis of specific organizations in order to identify the strength and
weaknesses of Tesco..................................................................................................................17
P6: Explanation of strengths and weaknesses in interrelation with external macro factors of
Tesco..........................................................................................................................................18
M4: The justification of influence of SWOT analysis on the influence of decision making of
Tesco..........................................................................................................................................19
D2: Critical evaluation of the impacts that macro and micro factors have upon business
objectives and decision making.................................................................................................19
Conclusion:....................................................................................................................................20
References......................................................................................................................................21
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BUSINESS AND THE BUSINESS ENVIRONMENT
Introduction
The managers and the leaders of the organization maintains different department such as
management, logistics, running, arrangement, organizing, structure selection, coordination, and
planning. The organizations based In UK has also enlarged and expanded their business spheres
in many countries. Based on the present organizational scenario, Tesco PLC has established
various functions in the organization for increasing the productivity at the end of the financial
year.
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BUSINESS AND THE BUSINESS ENVIRONMENT
Part 1
LO1: Explain the different types, sizes and scope of the organization
P1: Explain different types and purposes of organizations, public, private and
voluntary sectors and legal structures.
The large organizations in United kingdom has been chosen as the prime organizations in this
research study and different types of the purpose of the organizations, public, private and the
voluntary sectors legal structures in the United Kingdom. There are many large organizations
such as Sainsbury PLC and the Asda Stores Limited, which are the main competitors of the
Tesco PLC. The large organizations in United Kingdom such as Tesco PLC can also make the
opportunities for the accomplishing the competitive advantages and thus aiding for the better
marketing strategies, quality and prices in the external market (Bah and Fang, 2015).
Voluntary Industry
The Voluntary industry has been comprised with many individuals and personnel and thus
grouping towards for accomplishing any common purpose and objective. In United Kingdom,
there is lot of organizations and thus all the companies in the industries are striving for adopting
various changes of the socio-economic developments for the rural people of the country. The
main objective of the voluntary organizations is to manage out the blood for the ill patients in the
hospital and thus raising funds for poor people in the country in the form of charitable tasks and
regional enterprises. The main purpose of the organization is as follows
 The voluntary organizations in the country are based with religious and the social
motives and thus experiencing charitable tasks in the country.
 The voluntary organizations are not a part of any government body or a local authority
and it runs on the collection of funding from the common people of the country and thus
using the surplus for earning and thus meeting the desired objectives and aims of the
organization (Chenchehene and Mensah, 2015).
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BUSINESS AND THE BUSINESS ENVIRONMENT
Private Industry
The largest organizations in the country have set their aims in earning profit at the beginning of
the business process. The private companies such as Sainsbury PLC have also performed in the
wholesale and retail market of United Kingdom. The organizations have also increased the level
of expectations and thus increasing the level of profit for the organization.
Public Industry
Many public limited organizations in the country have no upper limitations and thus creating
various issues with any kind of stocks for the common people of the country. The public limited
organizations are the most influential than the private industry as the industry showcases the own
advertisements and promotions in front of the people with the help of different prospectus and
the serving equity. The organizations have been one of the largest in the country and thus they
have also set their target in establishing business ventures for earning more profit in the future
course of time.
P2: Describe the scope and size of a range of various kinds of company for the
purpose
Size of various business organizations in United Kingdom
 Private limited company
Number of Owners 17
Amount of capital 1280 Billion Great Britain Pound
Amount of yearly Revenue 55.9 billion Great Britain Pound
NUMBER OF STAFFS 46000 and above
Table 1: Information relating to the private limited company
Scope: The private limited company has some of the limitations and it becomes much
comprehensive for managing their business management. In the private sector the board of
directors and the shareholders also get the opportunity in involving with the business and also in
giving suggestions for increasing the productivity at the end of the financial year.
 Public Limited Company:
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BUSINESS AND THE BUSINESS ENVIRONMENT
Number of Locations 500
Amount of Operating Income 1 billion Great Britain Pound
Number of staffs 150,000
Table 2: The information relating to size of a public limited company: ASDA Stores
Limited
Source: (Pantano, 2014).
Scope: The size of the largest public limited organizations in the country has been delivered and
they have a huge scope in expanding their business worldwide and thus availing finances from
the resulting shares in the share market. The managers and the leaders of the business are also
dedicated in finding out the loopholes in the business and increasing the level of communication
within the organizational culture (Botha et al. 2014).
 Voluntary Company:
Number of Staffs 5000
Amount of yearly revenue 0.9 million Great Britain Pound
Amount of capital 1.2 million Great Britain Pound
Table 3: Information related with the voluntary organizations
Source: (Pantano, 2014).
Scope: The Voluntary industry has been comprised with many individuals and personnel and
thus grouping towards for accomplishing any common purpose and objective. In United
Kingdom, there is lot of organizations and thus all the companies in the industries are striving for
adopting various changes of the socio-economic developments for the rural people of the
country. It has many scopes in expanding the sphere of the organization (Clarke et al. 2016).
M1: Analyze the way the structure, size, and scope of various companies connect to
the business objectives, services and products offered by the company for the
purpose
The structure, size, and scope of various companies connect to the business objectives, services
and products offered by the company are being analyzed
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BUSINESS AND THE BUSINESS ENVIRONMENT
Public Limited Company:
Company Background: The organizations have been the 2nd biggest chain of wholesale and
retail markets in the country.
Products and Services: Household products and stationary products
Size and Scope: The organization has their stores in Norway, Denmark, Sweden and many other
European countries. It has 13000 employees in the organization (Pantano, 2014).
Vision: To provide customer satisfaction at their retail stores
Mission: The organization wants to deliver fresh and quality foods to the customers.
Large public limited companies in United Kingdom:
Company Background: The organization is the largest chain of grocery stores in the United
States of America.
Products: The products of the public limited companies are the wholesale and retail products.
Size and Scope: The organization has 100,000 stores all around the world and it has also
expanded in many Asian countries like China, India, Malaysia (Pantano, 2014).
Vision: The organization has set their targets for expanding in the UK retail markets.
Mission: Conducting diverse research procedures on the customer’s desired objectives and goals.
Private Limited Company:
Company Background: The large private limited companies have been the largest in the UK
market and thus they have over 1200 stores all over the country (Pantano, 2014).
Products: Fresh-frozen foods, baby milk and electronic gadgets.
Size and Scope: The large private limited companies have the retailing store which covers areas
of 17200 square foot and 46000 and above employees work in the organization.
Vision: The main vision of the organization is to provide utmost customer satisfaction.
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Mission: Providing products to the customers, which have the best value for money
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Task 2
LO2: Illustrate the interconnection of the several functions within the
company and the way they interrelate to the organizational structure
P3: Describe the connection in between the various organizational functions and the
way they relate to the organizational structure and objectives
The main functions of the organization depends on the functions of various departments like
marketing, sales, survey conduction, human resource and management, accounting and finance,
training and development and resource and development as well as the customer service sectors
of the organizations. The marketing has been one of the most popular aspects of the organization,
where the both suppliers and the customers becomes profitable and thus increasing the
productivity of the organization and establishing new products in the external market.
Sometimes, in the middle of the business flow the organization also delivers some of the useful
messages to the employees and thus enhancing the social and the structural behavior of the
organizational culture and thus maximizing the responsibility of the organization (Pantano,
2014).
The accounting and finance department of the organization has also been one of the most valued
departments of the organization. The organization has also introduced a number of investments
to reach and thus meeting the desired needs and targets of the business entity. The cost
accountants and the chartered accountants of the organization have also played an important role
as they have the responsibility in preparing the balance sheet and thus valuing the profit and loss
at the end of the financial year. Many organizations in the department have also strived for the
treasury investment programs for assessing over the business growth of the organization.
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Figure 1: Organizational Structure
Source: (Raman than et al. 2017).
In large organizations, there are different regional managers, store managers. They process out
the wholesale products to different stores of the country. The food trading manager, non-food
trading managers and the personal managers are present under the store manager in large
organizations (Raman than et al. 2017).
M2: Analyze the disadvantages and advantages of connections in between functions
of organization and the influence which can have upon their structure
Advantages
The advantages of the connections in between the functions of the organization and influencing
on the structure are as follows
Large organizations has been integrating over the enlargement of the human resource
management in order to maintain the degree of the organizational behavior and thus covering all
the legislations and policies at the time of the business process (Apăvăloaie, 2014).
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Regional
Manager
Store
Manager
Food
Trading
Manager
Non-food
trading
Personal
Manager

BUSINESS AND THE BUSINESS ENVIRONMENT
Disadvantages
In large organizations, the managers are focused in functioning out on the behavioral aspects of
the employees and thus neglecting the functioning of the manufacturing department. The quality
of the goods are getting lowered and thus lowering the degree of the customer satisfaction.
D1: Provide a critical analysis of the complexities of different types of business structures
and the interrelationships of the different organizational functions chosen for the purpose
The organizational complexities are the number of resources measured with the help of the
people, data points, activities and the function points and thus improving the organizational
structures. The private organizations need to consist only of one shareholder and thus delivering
huge shares to the public. The company also offers a huge amount of shares to the individuals,
who have merged up with the organization in previous years (Cheung, 2014).
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