Analysis of Tesco and the Business Environment: A Comprehensive Report

This report provides a comprehensive analysis of Tesco's business environment. It begins by exploring different types of business organizations in the UK, including sole traders, partnerships, private companies, public companies, and voluntary companies, and their growth within the international business environment. The report then delves into Tesco's background, mission, and organizational structure, specifically examining its functional and divisional structures. It analyzes the interrelation between different departments like design and production, finance, and human resources. The core of the report includes a PESTLE analysis to assess the macro-environmental factors influencing Tesco, a SWOT analysis to identify the company's key strengths, weaknesses, opportunities, and threats, and an examination of the internal and external environments influencing decision-making. The report concludes with an overview of the findings and provides references to support the analysis.

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Different types of the organisation and growth of the international business environment. . .1
2. Background details, mission, vision, etc. information provide of the different businesses....3
3. Functions of the chosen business and interrelate it with different department.......................5
TASK 2............................................................................................................................................6
1. PESTLE analysis and its positive and negative impact..........................................................6
2. SWOT analysis and identify key strength and weaknesses....................................................8
3. Internal and external environment analysis which influence the decision-making................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business and business environment includes several elements that helps to make
innovative and uniqueness in the enterprise. In this consideration, different factors involved
which helps to promote enterprise in systematic manner. According to the market trends and
demand, every business need to focus on their functions and operations which increases its
effectiveness (Botha, Kourie and Snyman, 2014). Furthermore, it also develops more profits and
revenue through concentrate on the relevant elements in the business. In order to focus on the
present report, it is based on the Tesco which is retail sector enterprise of UK. They are
providing different kinds of products and services to attract and considered systematic work
performance at workplace. For gaining insight information of the present report, it covers several
types of businesses that make growth and considered effective position in the international
environment. Furthermore, it covers functions that are related with other department and to make
innovative results at workplace. At last, it considered impact of macro and micro factors that
assists to look systematic work performance in the new areas of market.
TASK 1
1. Different types of the organisation and growth of the international business environment
In the UK, there are several types of business operated their functions and operations in
systematic manner. In this consideration, operations differs because of the different sector. As
results, it assists to make systematic work performance in the business environment. Following
are different kinds of businesses exist that considered their growth in international environment:
 Sole trader Company: Sole trader companies considered their operations and functions
as the individual and self-innovative. They are operating their functions and operations as
free environment consideration. Therefore, they are able to attain creative results and
outcomes to make systematic work performance at workplace. In addition to this, the
company developing their target market. For example, Tessa Scott owns their operations
and functions as the sole trader in UK. Further, the present company follow their
structure with considered direct vertical relationship at different level of the firm. Main
advantage of this system is that it is closely related with profits and increasing revenue in
the enterprise. However, it includes disadvantage that is limited liability towards the
objectives at workplace.
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 Partnership Company: These types of business work when two or more than two
businesses are jointly work. In this aspect, it is important to look towards the structure
that followed to make partnership consideration at workplace. In addition to this, it will
also help to focus on the creative aspect that could be easily attain in business. For
instance, Spousal Ventures considered their operations and functions as the partnership
consideration at workplace. These kinds of the businesses generally deal on the basis of
share profits and losses in the business environment. As results, business will able to
make their own development in systematic manner. Tasks and duties also assign as per
the qualifications of members which increasing staff position in the direct consideration
to accomplish goals and objectives.
 Private Company: Private company known as the business which held privately. It is
non governmental business which has relatively small number of candidates. Due to
fewer shareholders, the company has no high amount of profits and revenue. Further,
they are generating their fund though offers IPO. For example, Tesco operating their
operations as small sector consideration in different areas of the world. Shareholder in
these companies possess limited liability which need to be considered in systematic
manner at workplace. With the help of the different level of relationship, it has been seen
that speciality position develop at workplace (Leonidou, Fotiadis and Katsikeas, 2015).
 Public company: Public company operate their functions and operations in business to
develop large areas of the market in systematic manner. In this consideration, large
amount of capital could be easily gather at workplace that increases systematic work
performance at workplace. In addition to this, there are some disadvantage also exist in
which it has been seen that control of business is lost by the original shareholders those
taking important part to make systematic work performance at workplace (Arasti, Zandi
and Bahmani, 2014). For example, Cadbury-Schweppes considered their operations and
functions in UK as the public operations. Therefore, share also sold to the public and
financial institutions. It will help to make innovative results at workplace.
 Voluntary company: In respect to deal in the voluntary sector, it has been seen that there
are group of members who consist their operations and functions through several
individuals. In order to accomplish desired results, it has been seen that agreement
determines to attain systematic work performance to attain desired results as well. In
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order to attain creative results, objectives are also accomplished which could be break in
different consent easily. In the whole group, different types of food, structure could be
offer in the business environment. Therefore, it will assist to work for natural disaster
such as tsunami, etc. (Botha, Kourie and Snyman, 2014). Main advantage of this kind of
business is that it helps to create positive relationship among several people to develop
the target market. As results, it increases systematic work performance in the business
environment. Main advantages of the group member participation considered that it
encourages people to share their part and attain more systematic work performance at
workplace. However, it includes some disadvantage in which high cost in the business
required to perform several functions and operations (Kljucnikov, Belás and Paseková,
2016).
2. Background details, mission, vision, etc. information provide of the different businesses
In respect to create innovative results and outcomes, there are several factors exist that
helps to make functional and divisional structures at workplace (Menychtas, Vogel and
Varvarigou, 2014). These elements help to Tesco to determines their systematic work
performance. They are as follows:
 Functional structure: In the Tesco, functions and operations are considered with
functional structure. In this aspect, it has been seen that at each level tasks and activities
performed through focus on the innovation and unique characteristics. It helps to create
group performance in systematic manner at workplace. The chosen organisation also
made their system as the marketing and set different activities in the sales department. In
order to follow this, work has been contributes among different people in systematic
manner. With the help of the innovative characteristics, it has been considered that each
member take part to make proper support in the enterprise. Effective transaction also
developed in the company to maintain coordination and communication among several
people of the organisation. In order to look towards the drawbacks, there are several
problems and issues occurs in chosen business. These impact negatively to operate
systematic work performance. In the different department, work considered
simultaneously so that effectiveness increases. In the structure, several functions and
operations has been carried to make separate activities at workplace (Leonidou, Fotiadis
and Katsikeas, 2015). In this way several activities performed that create advantages in
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the business to attain overall growth and profitability as well. With the help of the
innovations, it has been seen that line of authority allowed to make creative performance
at workplace. In addition to this, it increases concentration on business mission and
objectives as well (Kljucnikov, Belás and Paseková, 2016). It impacts positively on the
operations and functions that allows to every worker of Tesco to understand functions
and operations.
 Divisional structure: Divisional structure generally used in the large businesses. In this
aspect, different activities and operations has been carried to cover large areas in the
business. With this regard, activities are also designed to operate systematic work
performance at workplace. In this way, functions are organised in the different part of the
country to take activities as well. It helps to demonstrate divisions at workplace through
business will able to develop their departmental activities in successful manner. In order
to focus on the different functions, it has been seen that information spread by Tesco to
understand systematic work performance as well. For example, in the enterprise division
of the product line considered research and development activities at workplace. It
creates benefits to increase rapidly and operate systematic work performance as well.
Beside this, it also possesses some disadvantage in which communication is the main
element that inhibited because of the different employees are working in different
divisions. Hence, it impacts negatively that all people are unable to clarify their own
participation at workplace (Menychtas, Vogel and Varvarigou, 2014). With the help of
focusing on the systematic work performance, it has been seen that collective work
performance developed to focus on the identical functions and operations as well. Main
advantage of this function implementation is that at every branch personnel carry
important functions to accomplish their desired results.
In respect to implement the above chart, it has been described that roles and
responsibilities determines among members in systematic manner. With this regard, board of
director effective role at workplace to attain systematic work performance at workplace.
Different kinds of duties of Tesco helps to attain more profits and revenue at workplace. Hence,
in the different department, wholesale support needed with planning and operational
management as well (Arasti, Zandi and Bahmani, 2014). In addition to this, the chosen business
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also need to implement IT department, organisational management, marketing department.
Hence, each member contribute their part to make successful results at workplace.
3. Functions of the chosen business and interrelate it with different department
In respect to determines the relationship between different department, it has been seen
that in Tesco marketing, financing, accounting, etc. work together. They all are carry different
activities which related to each other and increase their profitability as well (Botha, Kourie and
Snyman, 2014). The chosen company has following department in which functions are
interrelated to make systematic work performance: Design and production department: In the business, it has been seen that design and
production department considered systematic work performance at workplace. In this
aspect, Tesco implement market analysis so that they can make innovative results in
systematic manner at workplace. It is the best way to attain desired results at workplace
(Bah and Fang, 2015.). Finance department: Finance department of the business related with the different
functions and operations. In this aspect, it has been seen that marketing activities design
to produce and develop target market for ascertain creativity at workplace. In this aspect,
it has been seen that employees need to assess market demand of products so that
manufacturing considered in this aspect. In addition to this, manager also need to provide
proper payment and other benefits as well (Kljucnikov, Belás and Paseková, 2016). With
this regard, effectiveness also increasing that make proper support to attain creativity at
workplace. Human resource department: Human resource department of Tesco work in systematic
manner to attain profits and revenue as well. In this regard, responsibilities of the chosen
business increasing with development program so that it impact positively on the
functions and operations (Menychtas, Vogel and Varvarigou, 2014). There are several
kinds of legislation included that are applicable to provide equal and proper management
of activities at workplace. It is helpful consideration that maximise potential customer
interaction in the business. Therefore, profits and revenue will be increasing in proper
manner. In addition to this, in the business manager need to follow Data protection Act
1984 through they can maintain proper security in the personal data of customers. In
addition to this, Equal Right Act 1974 implemented through it can be stated that all rights
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should be provided to the employees so that effectiveness could be increases in proper
consideration (Georgescu and Popescul, 2015).
 Sales and marketing department: Sales and marketing department of the business work
to carry innovative activities and functions at workplace. In this regard, satisfaction level
of the customers also increasing towards the products and services. Therefore, it will
assist to create review and investigate marketing functions as well. With the help of the
different functions and operations, it has been seen that high profits considered at
workplace. It develops outcomes in the business to deal with different activities (Caiazza,
Shimizu and Yoshikawa, 2017). The selected business operate their functions and
operations to increase satisfaction level of their customers and involve strategy that done
on the systematic manner.
TASK 2
1. PESTLE analysis and its positive and negative impact
In respect to implement the PESTLE analysis, it has been seen that it is the framework
which includes political, economic, social, technological, legal and environmental elements.
These elements highly impact on the business results and market activities as well (Hair Jr, Celsi
and Page, 2015). In addition to this, different opportunities and threats are also identified that
helpful to understand the impact of these elements on the Tesco. In this aspect, following
analysis could be implemented at workplace: Political factors: Government of the country determines different kinds of rules and
regulations. These impact on the operations and functions in systematic manner. It could
impact on the decision-making of the Tesco. In the UK, different activities and tasks has
been promoted to charge taxes on the retail industry. Therefore, Tesco need to follow all
these rules and regulations that make innovative results at workplace. With this regard,
social benefits maximise in the business. It creates positive impact on the systematic at
workplace (Makarova and Polyanin, 2015). Economic factors: This factor also impact on the business because developing
profitability in systematic manner. There are several changes also occurs to develop to
increase customer base in the business. In the country, different elements of the business
considered as the policies, conditions, system that impact on the performances and lead to
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implement systematic work performance. It involves formulating, implementation,
controlling, etc. All these elements considered systematic direction that operate functions
in systematic manner. Along with this, it increases operations in term of the finance,
availability or resources, etc. (Degtyarev, Malikov and Grishin, 2014). Social factors: Social activities such as market trends, customers demand, etc. also create
major impact on the business performances. In order to follow this aspect, manager of
Tesco need to adopt rules and regulations as per the market demand and requirement. It
creates positive impact on the functions and operations at workplace. Customers change
their taste and preferences as per the market consideration. Therefore, it is important to
look towards the market trends and make products accordingly. In this way, business able
to attract large number of people at workplace (Lisowska and Stanisławski, 2015). Technological factors: Technological factors mainly impact due to advance
consideration aspects. In this regard, Tesco need to implement advance tools at
workplace through they will able to increases their effectiveness at workplace. In addition
to this, it impacts positively when the business includes advance technology
implementation that increase systematic performance at workplace. With the help of
development objectives, it has been seen that it helps to generate high cost in the
production system at workplace (Bagautdinova, Galieva and Pratchenko, 2014). Legal factors: Legal factors refers as the laws and regulations that are made by
government in the nation. With the help of the proper awareness program and laws, it has
been seen that Tesco need to implement their operations and functions in systematic
manner. It will impact positively so that activities design on the basis of flexibility in
marketplace. It also assists to maintain systematic work performance through following
ethics and rules in business environment (Arasti, Zandi and Bahmani, 2014).
 Environment factors: In the business, there are two types of environment generally
implemented such as internal and external. In the internal environment, Tesco need to
considered systematic systems and policies that impact positively to attain systematic
work performances (Hamplová and Provazníková, 2014). In addition to this, productivity
also increases that helps to make proper functioning in the business environment.
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2. SWOT analysis and identify key strength and weaknesses
Tesco is international retail which develop several kinds of the operations and functions
in global areas of the world. In this way, plan also expanded to make innovative results and
outcomes at workplace (Crane and Matten, 2016). Therefore, following elements implemented in
the SWOT analysis of the business:
Strength Weaknesses
 Tesco high brand recognition
 The company technical innovation to
improve customer experience
 Good employee retention with the total
workforce.
 High competition from the UK market.
 High cost needed to implement
operations in global environment
 Global expansion is the biggest
weakness of the company
Opportunities Threats
 High potentials in emerging markets
 Innovation and unique characteristics
 In the hospitality sector is major for
looking at a boom (Kljucnikov, Belás
and Paseková, 2016).
 Entry of the different business.
 Stagnated growth
 High competition
Strength of the SWOT analysis in Tesco Strong product portfolio: Tesco considered strong product portfolio which especially
drive in the different segment. Therefore, they are able to provide services in all over the
UK and other countries. The company operates creative model to deal with the several
activities (Belás, Bilan and Macháček, 2015).
 Patent and patent licence agreements: Tesco also holds different patent and patents
agreements which develop systematic work performance at workplace. In this regard,
customers easily attracted towards the company with innovative products and services
activities (Laszlo and Cescau, 2017).
Weaknesses of the SWOT analysis in Tesco Concentrated operations: Tesco only operated in North America and some countries in
all over the world. It is only allow to sell the products and services in some regions only.
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 Economic slowdown: Further, economic slowdowns also create major impact on the
business results. Therefore, it is essential to look towards the country that impact on the
region (Leonidou, Fotiadis and Katsikeas, 2015).
3. Internal and external environment analysis which influence the decision-making
In respect to develop systematic performance, internal and external analysis impact on
the business functions and outcomes. It has been examined that internal and external
environment considered strength and weaknesses. It is important consideration to maintain high
profits to maintain cooperation that impact on the Tesco. It also determines several
considerations that could be impact positively on Tesco. Trends, relationship, pattern, etc. are
also related with internal and external parameter (Al-Saleh and Mahroum, 2015). In this context,
internal and external environment implemented with considered strength and weaknesses:
Internal analysis
In the Tesco, there are several aspects which considered impact on the business
performance. It can be impact on the interaction of employees and other members, etc. It order
describing that interview and survey develop to make systematic results at workplace. As results
it impacts on the making changes that are beneficial to considered different aims and objectives
at workplace. In the internal environment, there are different activities and objectives has been
developed that make successful operations at workplace. As results, physical facilities also
important to operate systematic consideration at workplace. Furthermore, it impacts directly on
the functions and operations of the business environment. As results, physical facilities also
important element that make and operate systematic work performance at workplace (Budak and
Rajh, 2014).
External analysis
External environment analysis also considered positive impact on the business that make
effective support and create long term plan as well. With the help of the business activities, it has
been seen that environment considered more systematic work performance at workplace
(Kljucnikov, Belás and Paseková, 2016). Hence, business able to deliver operations that are
required to make innovative results. Furthermore, in Tesco dynamic sources are also support to
attain competencies with various activities. As results, market study consist that maximise profits
and revenue as well. The chosen business also making proper coordination that are needed to
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support the goals and objectives of the company. In order to increases profitability, positive
results also generated at workplace easily (Trad and Kalpić, 2018).
With the help of the above internal and external environment analysis, it has been seen
that following are strength and weaknesses implemented at workplace:
Strength
 Qualitative human resources are considered in the business environment.
 Exclusive infrastructure activities develop at workplace.
Weaknesses
 Lack of the extension plan
 Older business activities
CONCLUSION
From the above report, it can be concluded that business environment considered
important role in the business success. In this way, effectiveness of the business developing
continuously through operate systematic work performance. In addition to this, report discussed
about the essential consideration that impact positively on the business environment.
Furthermore, it summarised about the different businesses that operate successfully to make
innovative results at workplace. With the help of the systematic work performance, it has been
analysis that organisation considered advantages and disadvantage to increase market share in
the several areas of the world. With the help of the aims and objectives, it has been seen that
company able to increase their targets and goals as well. PESTLE and SWOT analysis also
included that assists to make creative decisions in the business environment. At last, report
articulated about the internal and external environment that make successful results at workplace.
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