Business and Business Environment Report: Tesco PLC Analysis, 2021

This report provides a comprehensive analysis of Tesco PLC, a major player in the retail industry, examining its business environment and organizational structure. The report begins by defining different types of organizations, including public, private, and voluntary sectors, and their respective legal structures. It then delves into the size and scope of various organizations, using Tesco and the National Health Service (NHS) as examples. A key focus is the interrelationship between organizational functions, such as purchasing, R&D, IT, finance, marketing, and HR, and how they contribute to organizational objectives. The report also explores the impact of the macro environment on Tesco's operations, utilizing the PESTLE framework to analyze political, economic, social, technological, legal, and environmental factors. Positive and negative impacts of these factors are identified. The analysis extends to include a comparison between Tesco and other organizations, such as NHS and BHF, highlighting their differences in structure, scope, and objectives. Overall, the report provides a detailed overview of Tesco's operations and its interaction with its business environment.

Business and Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Explain different types and purposes of organisations and their legal structure...................4
P2 Explain the size and scope of a range of different types of organisations.............................5
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................7
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................8
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses............................................................................................................9
P6 Explain how strengths and weaknesses interrelate with external macro factors.................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is the most prominent and the important areas through which all
the business and the various external factors are being taken care of. This mainly covers the
suppliers, customers and all the various influencer which will thereby take part in all the external
forces. The major forces that area being included in it are suppliers, investors, customers and all
the latest technological aspect with the changing market conditions(Rajput, Zahid and Najaf,
2018). Their are mainly the public, private and the voluntary sectors ion all the parts. The
organisation chosen for this report is Tesco PLC this is the largest retailer deals in all the grocery
products with all the household and the other important items. This report will cover all the legal
structure with varies size, scope and all the other factors that can be the internal and the external
factors.
TASK 1
P1 Explain different types and purposes of organisations and their legal structure.
Organisation tends to be the association that is being made in order to maintain the work
and to earn the profit through various strategies and ideas. There are mainly various kinds of
organisation which has different purpose they are as follows:
Public Sector Organisation: Such companies are being owned by the government as that
on behalf of general public. It mainly aims to make money for the making the social benefit in
the company and they aims out to maintain the welfare for the society. For an example NHS is
the public company which serves the health service and is owned by the central government. Purpose- in order to provide services to the general public and to make the optimal use of
resources. Legal structure
Central government use to collect income tax from the general public.
Local government use to collect fund in the community charges that are known a the
council tax and the
State government constitute all the specific powers that are important in all the particular
departments.
Private Sector Organisation: Such companies are being owned by the private individuals
their owner can be the single person or that can also be run by the partners. For an instance,

Tesco PLC is the Public limited company and covers the maximum retailing business in various
countries. Purpose- There aim is to earn profit and maintain all the benefits in the business through
making their product sold in maximum reach and gain revenue.
 Legal structure- In such companies their has been given all the important three kind of
structures that are being taken in the consideration.
Sole proprietor it covers out all the good and services that are being given to the
customers in order to earn profit. They run their business by attaining the license in the local
authority.
Partnership This mainly covers the association of more then one person. All the partners
will have to in the agreement and they will share all the profit and the debts in order to maintain
the business.(Rialp-Criado and Komochkova, 2017)
Limited company The entities that area being made will be registered as the limited
company and all the firms though being working in it will get the profit which means that the
share holders will not attain any gain or profit. Corporation tax will have to be paid by the
company.
Voluntary Organisation: This covers the group of individual and which pertains the
agreements in order to frame the organisation. BHF the British heart foundation is the company
that covers out all the charitable purpose for the organisation.
 Purpose- they mainly aims to work out for maintaining the work and the benefits of the
company and they implies to creates the betterment of the society and also to increase the
growth in the country. Legal structure
Trust- It is mainly the legal entity that use to enter on all the agreements on their own
name. it gains out to maintain the personal liability.
Unincorporated association They are personally liable for all the agreements that are on
the behalf of charity as this is not an legal entity. BHF is an voluntary organisation.
P2 Explain the size and scope of a range of different types of organisations.
The organisation are mainly being divided on the basis of varies size like small, micro,
medium an large. They all are mentioned below:

 Micro size organisation- In this type of company there are mainly 0-9 employees and
their annual turnover under 2 million euros. Small size organisation- In such type of organisation there are mainly 10-49 employees
engaged in working and their turnover is about 10 million euros. Medium size Organisation- In such enterprise their may be about 50-250 employees
engaged in working and the turnover is around 50 million euros.
 Large size organisation- They mainly have more then 250 million employee engaged in
working and have the turnover around 250 million euros.(Halbert and Ingulli, 2020)
Examples of two different organisation
TESCO PLC
 Background- It is a public limited company and is also a part of private sector, which
deals with all the house hold items and sells variety of products.
 Products- It offers all the households and the other items too like the clothing,
electronics and other non- household items too.
 Size- It currently have the 6,800 stores across the world and have about 4,00,00
employees working under it.
 Scope- Tesco plans to provide the frozen food and all the ready to cook material to the
customers.
 Vision- Their vision is to gain the highly valued business and earn the loyalty and the
trust in the market.
 Mission- The mission of Tesco is to gain the lifetime loyalty of the customer and
maintain the profitability in the market.
 Objectives- Tesco aims out to make the healthy products by maintaining and cutting
their prices and give more discounts. And also to develop all the online website through
which the marketing can be made.
 Stakeholders- They have the employees, customers and the suppliers who use to serve
the product of the customers.(Anderson and et. al., 2017)
National Health Service

 Background- NHS mainly deals with the health care and also maintain the publicly
funding system that depends on the health care. It was formed in 1948. that has been
funded in varies taxes. This covers out all the clinical need and has the ability pay.
 Products-They implies all the emergency and the urgent services for care an all the
services for the sexual health.
 Size- Their are about 1.3 million staff and there are about 112 thousands of various
doctors in working.(Russo and Confente, 2017)
 Objectives- They helps out to meet the needs of the people and maintain the preference
and the shape in all way possible.
 Vision- Their vision is to give healthy life to the people and provide high quality care to
all the members.
 Mission- The NHS helps to give provide service and also attain to make care to the
families or also helps in improving health.
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
All the organisation use to cover various motives and the organisational departments are
being highly dependent on all the direct and the indirect framework. Tesco PLC covers out to the
the public limited company and they aims in maintaining all the possible was to gain the profit in
the market. Their is an relationship between departments which are mentioned below: Purchasing Department and R&D Department: All the markets there by maintained are
dependent on the research department and in order to make the expansion in the market it
merely maintain the research and inventory. As to frame the expansion Tesco PLC
foregoes with all the research teams and they maintain the work through all the demands
raised. (Gandhi, 2017) IT and Finance Department- The IT department maintains all the right information
should be explored to all the employees in the company. The helps out to upgrade the
delivery process and also the online shopping areas. Tesco there by helps out to attain the
Finance department through which they maintain the allocation of funds and also make
the up gradation in the software through t6hebIT departments. This both department are
interrelated with each other.

 Marketing and Human resource department- The marketing and the HR department are
inter related with each other this implies that all the HR department will have to make
recruitment according to the needs and they deals with getting the engagement of
employees in all the marketing activities. Tesco in order to frame the best promotional
activity maintain the growth of the company through marketing.
Organisational structure in Public and Private sector Hierarchical organisational structure- This is mainly the type of organisational structure
in which people use to work in varies departments and all the people will work on the
authority and travels through top to bottom. In this system they mainly aims it to maintain
the work and all the guidance will be given by the upper authority. Tesco use to follow
the hierarchical organisational structure where the most of the responsibilities lie on the
Regional manager from top to store level.(Miao and Di Cheng, 2020)
 Matrix Organisational Structure- This is mainly being considered that when the
company use to cover more than one boss and the employees are being diversified
operations.
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
TESCO PLC
Political factor- Tesco covers out all the political influences that mainly pertains the
operations in Tesco like the Tax rates, legislations, political instability etc. Positive: Mainly the cost changing policies and all the rules in the Tesco are low and
their implies the political stability in UK Negative: The import duty charge will affect the profitability of Tesco .
Economic Factor- Tesco empowers all the scales in the economic areas and this pertains
the nature and the record through varies buying behaviour. Positive:All the purchasing rate of the company is extremely high and their can increase
in the market conditions. Negative: COVID 19 impacts the increasing price of the company and their seems to
have the imbalance in the economic instability.(Müller, Habel and Stierl, 2017)
Social factor- The major change is the social factors that affects the demographic
changes and also the social factors being pertained.

 Positive: As in today's time the customers has attained to take one specific areas for
whole shopping and Tesco has attained and started taking all such areas and shopping by
making everything available. Negative: There is been decrease in the sale of healthy food items as this is due to the
changing trends.
Technological factor- Tesco can maintain the product and their supply chain
management through making the advancement in all there areas. Positive: Tesco started the online delivery facility in order of which attains the more
benefits in the company. Negative: As there is high competition in the market and the rival companies selling the
product at lower most merely affects Tesco.
Legal factors-All the business in Tesco is directly link with the specific laws of the
government. Positive: Tesco use to follow all the laws raised and maintain their product quality
according to it. Negative: Tesco usually have to deal with all the food retailing commission and all this
majorly affects the pricing strategy of the company.
Environmental factors- Tesco impliedly focus on all the environment change and also
try to reduce the waste and maintain use of natural resources. Positive: Tesco promotes the social awareness and through that all the increase in the
natural resources is maintained.(Moşteanu, Faccia and Cavaliere, 2020)
 Negative: As the increase in competition policy UK is being affected by there
environmental policies and regulations.
P5 Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses
SWOT Analysis of Tesco
Strength Weakness
 Tesco is a well known and is the most
famous grocery retail in company in
UK.
 Tesco is totally being dependent on the
UK market as all the intermediaries and
the link is through UK.

 Tesco comprised of the diverse range
of products all over the world.
 It mainly have its varies stores in all the
areas and bits operations are being
made in UK, US, China etc.
 The operations that are being made by
them was failed in US and also in
Japan.
 As when the credit card liability is
being managed their has been faced
huge loss in Tesco.
Opportunities Threats
 Tesco can there by join various
ventures like for all the companies who
are under performing or struggling in
their own line can be taken in record.
 The facilities like online delivery and
also various home delivery of the
products can increase the service and
the performance of the company.
 As Tesco can maintain the strategic
alliance and their has been seen that all
the competing brands and the varies
ideas can attain and attract the
maximum customers.
 Tesco can also introduce the non-
household products through which the
growth of the company can be
acquired.
 As due to change in the fluctuation in
the currency can there by affect the
Tesco.
 Their is a heavy competition in the
market and the price war that is been
maintained is the major threat for the
Tesco.
 As the idea of expanding the business
globally is good but it will take huge
amount of expansion money in it.
P6 Explain how strengths and weaknesses interrelate with external macro factors.
As their has been seen that all the external factors and the influence through which the
work is there by being raised can be complied. As in all the organisation it is important to
maintain the balance in the external and the internal macro factors which are as follows: Political- As in all the political obligations and the legislation that are being undertaken
in the record should be kept on high frame. The major influence in the company there by

is to make all the growth and the rise of the company and as their has been seen that the
Tesco can increase the growth through all the reduction in the import duty and with that
all the inventory that came from all the other sides of countries like the china, Asia is
there by helps to expand the business of Tesco in UK properly.(Dim, Dima and
Mahagaonkar, 2018) Economic- In this factor all the funds and the money that can be increased and the
methods through which the economic rate of Tesco can there by be maintained. As their
has been analysed that all the areas in the company can pertain out to frame the funds. As
in the recession all the sale of the companies goods will there by be increased and that
also helps them to maintain and become the largest retailer. Although all the areas
through which the recession can be termed out and maintained the sale of the goods. Social- As the changing market conditions and the required areas through which the
products developments can be maintained and it helps out to frame the methods and the
recalls. The diversified areas and demographic areas and nature can be maintained. As
Tesco can make available all the healthy range of products in the market and they can
there by attain to maintain all the material on a single place which will make it easy for
all the customers to take the material and increase the revenue of the company. Technological- If Tesco can enhance the technological advancement in their company
and also provide the easy and the safest medium through which the customer can gain the
maximum facilities from the market then this will enhance the growth of the company.
This implicates that all the home delivery and also all the online shopping trends with the
safe delivery in the COVID19 can attain to increase the revenue in the market.(Moktadir
and et. al., 2020) Legal- As all the legal obligations and the laws that are binding on all the company can
maintain the imbalance as at times when there has been seen that most of the company as
due to all the laws and the regulations were not being able to maintain the growth in the
company and their has been seen that all such measures through which the company can
gain the advancement. As the non- allowance and all the changing in the prices without
any notice use to make the companions to be bind on certain areas with their products.
 Environmental- As environment protection is the most important thing in all the areas
and the Tesco as by maintaining the minimum wastage in the company can attain all the

minimal wastage of the natural resources. And through it all the inventory and the leading
grocery retails can be maintained by grocery retailer in a;l the long period through varies
time.(Nayak and Mohanty, 2017)
CONCLUSION
From this above report it is being concluded that, there are varies types of organisation
from all the legal compliances and helps out to operate country. As all the operating companies
should maintain the varies ideas. Their should be proper coordination in all the departments in
terms of objectives. All the external factors will cover the positive and the negative impact on all
the functioning. Tesco covers the hierarchical organisation structure and maintains the operation
to earn profitability in market share. As Tesco can maintain the growth by keep overlooking all
the external and the internal factors.