Business Environment Report: Macro Environment Analysis for Tesco

This report delves into the core concepts of the business environment, providing a comprehensive overview of organizational structures, types, and functions. The report begins by differentiating between public, private, and voluntary sectors, examining their legal structures and purposes. It then explores the size and scope of various organizations, using Tesco as a case study. The analysis extends to the interrelationship of organizational functions, such as production, marketing, human resources, and finance, and how they contribute to organizational objectives and structure. The report also identifies the positive and negative impacts of the macro environment on business operations, supported by specific examples, and concludes with an internal and external analysis of Tesco, highlighting its strengths and weaknesses in relation to external macro factors. The report incorporates PESTLE analysis to explain the external factors affecting business operations.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 .......................................................................................................................................1
P1. Explain different types and purposes of organisations; public, private and voluntary
sectors and legal structures.....................................................................................................1
P2. Explain the size and scope of a range of different types of organisations......................6
TASK 2............................................................................................................................................8
P3. Explain the relationship between different organisational functions and how they link to
organisational objectives and structure..................................................................................8
TASK 3 .........................................................................................................................................11
P4. Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.........................................................................11
TASK 4 ...................................................................................................................................13
P5. Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses.....................................................................................................13
P6. Explain how strengths and weaknesses interrelate with external macro factors ...........14
CONCLUSION..............................................................................................................................15
REFERENCES .............................................................................................................................16

INTRODUCTION
Business environment is very important concept in business. Every business have to face
different factors due to these uncertainty in an environment. There are internal and external
factors which may considered in environment. In internal factors those elements are considered
which occurs inside the firm. Such as organisational structure, employees, workers productivity
and others. These factors are under control of enterprise (Baraya, Budden and Escobar, 2011).
The another factors is external. These factors are not under control of an organization it take
place outside firm. These elements are dynamic in nature and have great influence on business.
This may include political, social, economical, legal and environmental.
The company which is taken into consideration is Tesco. It is one of the leading grocery
brand in UK. The market share of company is very high. They are operating their business in
many other countries also. The main motive of firm is to provide high quality of goods in lower
prices. The firm is into many businesses such as clothing, grocery, electronics, financial services
and others.
In this report different types of organisation and purpose are given. Different
organisational functions and their interrelation has been discuss in this assignment. The internal
and external environment audit has been done in this project. The positive and negative impact of
these factors are mention.
TASK 1
P1. Explain different types and purposes of organisations; public, private and
voluntary sectors and legal structures
1

There are different kind of enterprise. Some of them are private owned and some are
government owned. The operations are differ from each other. These enterprises are having
2

different size, nature, capital structure, number of employees and others. The rules and regulation
regarding to these firms are also different. Following are the some of types of organization.
Public enterprises: Public enterprises are those which are owned by government. The size of
enterprise is usually large. The number of employees are also large. These organisation is
working with the main motive of doing welfare for the citizen of country with small margin of
profits and Love,. The sources where they get the capital is taxes, different duties excise by
government. The examples for public sector companies is BBC is a multinational British broad
casting company. It is 124 year old organisation.
Private enterprises: These enterprise are owned by private individuals, groups,
partnership or company. Before establishing these enterprises firm need to follow different rules
and regulation exercise by the government of particular country. There are different types of
private companies some are very large and some are medium and small size in nature. There can
be different nature of business such as hair dressers, clothing business, textiles or other many
business. The number of employees are depend upon size of business. The main motive of these
enterprises are is to earn profits and increase their market shares. The example of public sector is
TESCO is the British multinational grocery company which is situated in UK. It has cover 12
countries and establish stores. It is the largest grocery market of the united Kingdom.
Legal form of organisation
 Sole traders: These are the form of business in which individuals are running business.
Example of sole traders are hairdresser. They are limited numbers of formalities which
individual needs to do . The individual and company are treated as same entity. Liability
are unlimited because every losses incurred by business has to bear by individual. For
example Gary J Harding, Russell Walker & Co., Peter Brown Accountant and Gillian
Murray.
 Partnership: In this formal agreement is signed by the partners. There are more
formalities which is followed while formulating the partnership. The deed formed legal
relation between partners. For example
 Limited Company: There are many many formalities which is followed while
establishing the company. Before opening any company the memorandum and article of
association is formed. There are many other documents which are needed while opening
an organisation.
3

Voluntary sectors: The another form of enterprise is voluntary in this number of people form
group and work for well being of society. The sources where they get the funds are from charity
and donations. These enterprises are working for different reasons as some of them are working
for blind people, some are for women rights and other reasons. The main motive is do the
welfare of society and make this earth a better place. Some of the examples Oxfen is the biggest
voluntary company of United Kingdom. It provides facilities to the poor people and help them.
They work with communities for reducing poverty.
4

Followings are main purpose of Business
 To bring continuous new innovation
5

 To serve customers
 To earn profits and sell products across the world
 To get the good return from the investments
 To make appearances in market
6

P2. Explain the size and scope of a range of different types of organisations
7

There are also different kind of level of enterprise. These levels are given below.
 International organisation: These organisation are not having their own business in
foreign country they sell their products by the way of exporting (Hamilton and Webster,
2015). The risk factor and cost is low because company do not operate their business in
foreign country.
 Transactional organisation: This is combination of multinational and global. The nature
and structure of these enterprises are very complex. These firms are very flexible in
nature as they operate in many countries so according to that only they manage the work.
 Global company: The size of these enterprises are very large. They have their business in
most of the countries. The organisational structure is very large.
 Multinational organisation: These companies are operating their business in limited
number of countries. These enterprises are small than the global firms. The risk factors
are also less because they serving in limited number of countries.
8

Company responsibility towards its stakeholders: Stakeholders refer to customers,
suppliers, employees, government and others. These are very important part of an organisation.
So firm need to satisfy them to sustain in market for longer run.
 Company need to give the rights and authorities to their stakeholders
 The firm is responsible to give them job opportunities and provide security.
 Firm need to pay their suppliers on regular routine.
 Towards customers organisation need to provide good quality of products.
 Taxes and other duties should be paid to government on time.
These are requirements and responsibilities which firm need to fulfil. Tesco is company
those who are successfully satisfying their customers. This one of the reasons by which firm is
having good growth.
9