Business Environment Analysis: A Report on Tesco PLC and RSPCA

This report provides a comprehensive analysis of the business environments of Tesco PLC and RSPCA, two contrasting organizations. It begins by describing the types of businesses, their purposes, and ownership structures, highlighting the differences between a multinational corporation like Tesco and a charitable trust like RSPCA. The report then explores the influence of stakeholders on each organization, including employees, customers, suppliers, and donors. It delves into the organizational structures and functioning areas such as HR, finance, marketing, production, customer service, and sales, and explains how these contribute to their strategic plans. Furthermore, the report examines the influence of economic environments, specifically boom and recession, on Tesco PLC's business activities. The analysis also covers political, legal, and social factors impacting both organizations and their stakeholders. The report concludes with a summary of the key findings and provides references to support the analysis.

THE BUSINESS ENVIRONMENT
Page 1 of 9

Table of Contents
Introduction......................................................................................................................................3
Assignment 1: Types of Business and their ownership...................................................................3
Task 1...............................................................................................................................................3
P1. Description on the type of business, the purpose and ownership of two contrasting businesses
.........................................................................................................................................................3
P2. Description on the different stakeholders who influence the purpose of the two contrasting
businesses........................................................................................................................................4
Task 2...............................................................................................................................................4
P.3 Description on how two businesses are organised in terms of their structures and functioning
areas like HR, Finance, Marketing, Production, Customer Services and Sales which contribute to
its strategic plans..............................................................................................................................4
P.4 Explanation on how the style of organisation of your chosen businesses helps them to fulfil
their purposes...................................................................................................................................5
Assignment -2- Similar Businesses in Different Worlds.................................................................6
Task 3...............................................................................................................................................6
P5. Description on the influence of two contrasting economic environments on business
activities within a selected organisation..........................................................................................6
Task 4...............................................................................................................................................7
P6. Description on how political, legal and social factors are impacting upon the business
activities of your selected organisations and their stakeholders......................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
Page 2 of 9

Introduction
In the modern perspective of the business environment, it is seen that a business totally depends
on the strategy, objectives, economic factors, ownership of that organisation. Not only is that
stakeholder’s one of the essential factors of a successful business. At the same time, the social,
legal and political impact also influences the environment and the success of an organisation.
Assignment 1: Types of Business and their ownership
Task 1
P1. Description on the type of business, the purpose and ownership of two contrasting
businesses
Before taking a step towards the business field, it is necessary to understand about the type of
business of the business organisation running their business in the UK. The aim of this project is
to understand the purpose, ownership of the business. In this case, the name of the two chosen
organisations is Tesco PLC and, which is an organisation of clothing, home wares, grocery,
electrical and another one is RSPCA or Royal Society for the prevention of cruelty to Animals.
Tesco PLC is a multinational company, specialise in grocery, homeware, clothing, electrical in
Welwyn Garden City, the United Kingdom, Hertfordshire, England. It is popular as the third
largest in the world in case of profit measurement and fifth largest in the world in case of
revenue measurement (www.tesco.com, 2017). This company separates itself from the other
companies with their best quality products, wonderful customer services, and innovative ideas. It
has stores throughout the 8 countries in the world, including Asia, UK, Malaysia, Hungary,
Ireland, and Thailand. The purpose of this organisation is to provide a quality shopping
experience as well as the great products with reasonable prices. They provide daily requirements
like homeware, clothing, electrical, grocery items that help to lead a healthy lifestyle. Tesco is a
PLC or private limited company and sells and bought their shares on a stock exchange.
RSPCA or Royal Society for the prevention of cruelty to Animals was founded in 1824. It is
operating in UK and Wales promotes the animal welfare (Enofe et al. 2013, p.41) It is the largest
and oldest welfare association of animals has 172 branches throughout Wales and UK,
investigated more or less 150,863 cases and has 1,667 employees as 2011. This organisation runs
33 animal centres and 38 clinics. Not only that, this organisation spreads in Asia and Africa also.
It is generally funded by the donation of the volunteer who is willing to do it. The purpose of this
Page 3 of 9

organisation is to protect the dogs and other animals from any kind of lab testing. Another
purpose is to give special care, treatment, home to the needy animals (Dragoi et al. 2013, p.440).
RSPCA is one kind of charitable trust totally depends on the donation of volunteers. It is an
arrangement to raise funds for poor animals and for their needs to give them a healthy life.
P2. Description on the different stakeholders who influence the purpose of the two
contrasting businesses
The stakeholders are the main building blocks of a successful business. The key stakeholders of
the Tesco PLC are their employees, suppliers and their customers. Employees are giving their
100% to give success to their organisation. Their stake is that the company they are working for
always give them proper support to lead a healthy life. They wand the security of their
promotion, good reward for their hard work, and security of their employment. A person always
wants to be a part of an organisation for which they feel proud. Customers always want good
quality products in reasonable price. They also like improvements in their daily needs that give
them better value. Suppliers want stable and frequent order and payment in right time. They also
want to feel valuable to which they supply their products (Doh et al. 2015, p.258).
The owners of this organisation provide capital to run their business successfully. They also
select the eligible employees who can do hard work to maintain the stability of the organisation.
The trade unions help the employees to do their work together and boost up them to give their
100% performance. It also enhances the wages to the higher level and working environment. The
Stakeholders of RSPCA are the Employees, local and national donor, Governments. Employees
are feeling very proud and happy to be the part of this type of great purpose. They give special
care and treatment to animals who are suffering. Local and national donors who love and care for
the poor, needy people donate the huge amount of money and daily requirements of those poor
animals or sometimes medicine, food etc (Congleton et al. 2015, p.311). Governments also want
to make this good purpose to be successful. They take the responsible to protect the poor animals
and the organisation that they can run their business properly.
Task 2
P.3 Description on how two businesses are organised in terms of their structures and
functioning areas like HR, Finance, Marketing, Production, Customer Services and Sales
which contribute to its strategic plans
Page 4 of 9

Human resources (HR) management does planning for the development of organisations and
check the needs of workers and manage the whole recruitment process and select the eligible
person for work. HR team ensures that every people working in the organisation maintain the
policies and regulations properly. Finance parts of the business keep the financial activity record
of any organisation like the amount of expenditure on buying raw materials, production, earning
amount, profit, staff salary amount etc (Clarke et al. 2016, p.3102). Marketing is the part by
which the customer needs are understood which can help to produce new products, improve the
old products. It also helps to inform the entire business strategy to the workers.
Production is a process by which the workers putting raw materials as well as various immaterial
to form a new product which can fulfil the requirements of customers. It is the act to create new
products that have value and can fulfil the requirements of an individual. Customers are the
essential factor to make the business of an organisation successful and expand its name
worldwide. Not only that, customers decide the quality of the products of an organisation
whether it is good or bad. So a wonderful customer service is always essential to grab the
customers to the shops and make the business improved and successful (Ceptureanu, 2015, p.30).
Sales are a type of activity by which an organisation can sell their products to the customers as
their needs. It is also called a transaction process by which the customers gets quality products or
services in exchange for money.
Tesco PLC is a multinational company of grocery items, electrical items, homewares, and
clothes. They maintain the above criteria which contribute to their strategic plan to make the
organisation world's third largest in a case of profit measurement and fifth largest in the world in
case of revenue measurement. But RSPCA is a charitable trust, it totally depends on the fund
given by the donors. This organisation does not fulfil the above criteria, that sometimes they face
some financial problems (www.tesco.com, 2017).
P.4 Explanation on how the style of organisation of your chosen businesses helps them to
fulfil their purposes
The style of the organisation helps to understand the plan by which an organisation meet their
objectives or fulfil their purposes and also needs of the organisation to run the business
successfully. The needs and strategies help them to divide the working department and divide the
workers according to the works of the departments. The style of an organisation helps to
understand what parts of the organisation need further improvement and meet their goals. The
Page 5 of 9

structures of an organisation help the organisation to divide into small departments that every
department can divide their work properly as the workers understand their jobs clearly (Cai and
Yang, 2014, p.140).
Now the discussion is about the strategic planning, the main part of a business. It is mainly the
activity of the management used for various purposes like strengthening operations, focus energy
and resources, set priorities to achieve the goal, ensure employees and stakeholder to contribute
their 100% to meet the objectives, organising the direction of an organisation towards the
changing environment. Not only that, strategic planning is also the failure to meet the objectives
according to the customer needs, resource availability, and depending on the suppliers, owners,
local or national communities, governments etc. There are two types of strategic planning one's
mission statement and another is vision statement (Belás et al. 2014, p.22). The mission
statement is to determine the objectives that the organisation achieves overall and what they are
planning now to achieve. Another one; the vision statement is totally the planning to achieve
anything in future
There are four types of objectives generally an organisation wants to meet. These are wide
objective, functional objective, team objective and individual objective. There is a corporate
objective which can be maintained by the organisations. This objective is totally known as a
word SMART. S stands for specific, a clear objective that anyone can easily understand it, m
stands for measurable, the workers should be eligible to meet the objective, A stands for
achievable, the workers should achieve the objectives, R stands for realistic, the objectives
should have real value, T stands for time bound, the objectives should be fulfilled within the
deadline (www.tesco.com, 2017). Tesco PLC and RSPCA have a clear idea about their
objectives in the business world; they should fulfil their objectives very efficiently. Tesco spread
their service for human whereas RSPCA spread their services for the poor animals throughout
the world.
Assignment -2- Similar Businesses in Different Worlds
Task 3
P5. Description on the influence of two contrasting economic environments on business
activities within a selected organisation
Page 6 of 9

In this purpose, the chosen organisation is Tesco PLC,
on which the description of two contrasting economic
environments on business activities has been described.
The first topic is the boom, it is an economic period of
fastest growth of any organisation that means the
outcome is very much high due to the high demand. At
the same time, unemployment is very low, for this
reason, the demand is fulfilled. The demand of
consumers is directly proportional to the investment of
funders (Belás et al. 2015, p.95). The demand of consumers makes them confidence to invest the
huge amount of capital. In the time of Boom, a company produce a huge amount of products due
to increased demands. In this period the business activity of the particular product is very much
increased. The boom is generally the result of the increased demand for the clothing products of
Tesco, rather than the food products or electrical goods.
The recession is exactly opposite pole of the Boom, it is related to the decrease of economic
growth rate rather than increasing it. The outcome is very much low, due to the low demand of
any product. The investor loses their confidence to invest capital and reduce the amount of
investment. The employee turnover is very much increased in comparison to the general period.
The actual economical activities are slow down during this period
(Lee and Vachon, 2016, p.90). The demand is decreased, the huge amount of product is given up.
The businessman loses their confidence also, and the loss of products also be a reason behind the
stock market failure.
Task 4
P6. Description on how political, legal and social factors are impacting upon the business
activities of your selected organisations and their stakeholders
The most important factor of the political issue that has the strong effect on business activity is
benefit cuts. The Government of a country mainly issue this benefit cuts and this has a strong
impact on a business organisation. The Tesco PLC does not sell vital products, but the customers
choose certain types of products not to use in their daily requirements, decrease the sale figure of
the Tesco TLC. Sometimes government issues the tax on some products. If the demand
Page 7 of 9

increases, the company has to pay more tax due to increase (www.tesco.com, 2017). This
decrease the income comes after tax payment as well as the profit.
The Tesco PLC has to consider many laws issued by the UK Government. This organisation
should write a number of ingredients and the nutrition value of the packet of every food item. If
this law is accidentally not obeyed, a serious condition may arise, due to this reason organisation
has to face many legal procedures (King and Fitzgerald, 2016, p.187). An organisation should
give some amount of their yearly income for charity or for social development.
Conclusion
From the above discussion it is concluded that the Tesco PLC Company and different well
known established companies are developed using the basic business knowledge. They have to
maintain the strategies and the structures of the business as well as the Rules and Regulations of
Government.
Page 8 of 9

References
Belás, J., Bartos, P., Habánik, J. and Novák, P., (2014). Significant attributes of the business
environment in small and meduim-sized enterprises. Economics & Sociology, 7(3), p.22.
Belás, J., Demjan, V., Habánik, J., Hudáková, M. and Sipko, J., (2015). The business
environment of small and medium-sized enterprises in selected regions of the Czech Republic
and Slovakia. E+ M Ekonomie a Management, (1), p.95.
Cai, S. and Yang, Z., (2014). On the relationship between business environment and competitive
priorities: The role of performance frontiers. International Journal of Production
Economics, 151, pp.131-145.
Ceptureanu, E.G., (2015). Research regarding change management tools on EU SMEs. Business
Excellence and Management Review, 5(2), pp.28-32.
Clarke, G., Li, Y. and Xu, L.C., (2016). Business environment, economic agglomeration and job
creation around the world. Applied Economics, 48(33), pp.3088-3103.
Congleton, C., Hölzel, B.K. and Lazar, S.W., (2015). Mindfulness can literally change your
brain. Harvard Business Review, pp.309-318.
Doh, J., McGuire, S. and Ozaki, T., (2015). The Journal of World Business Special Issue: Global
governance and international nonmarket strategies: Introduction to the special issue. Journal of
World Business, 50(2), pp.256-261.
Dragoi, G., Rosu, S.M., Pavaloiu, I.B. and Draghici, A., (2013). Knowledge applications
development at the SMEs level in a virtual business environment. Procedia Technology, 9,
pp.431-441.
Enofe, A.O., Mgbame, C., Aderin, A. and Ehi-Oshio, O.U., (2013). Determinants of audit quality
in the Nigerian business environment. Research Journal of Finance and Accounting, 4(4), pp.36-
43.
King, R. and Fitzgerald, L., (2016). 10. Challenges facing the accounting profession: maintaining
relevance in a changing environment. Perspectives on Contemporary Professional Work:
Challenges and Experiences, p.187.
Lee, K.H. and Vachon, S., (2016). Integrated Supply Network and Business Sustainability.
In Business Value and Sustainability, pp. 59-93.
www.tesco.com (2017) TESCO Available at: https://www.tesco.com/ [Accessed on 28 Aug
2017]
Page 9 of 9