Business and the Business Environment Report: Comprehensive Analysis

This report provides a comprehensive analysis of the business environment, focusing on the characteristics, scope, and size of various organizations. It examines public organizations like the National Health Service (NHS), private entities such as Tesco, and voluntary organizations like Oxfam. The report delves into the purposes, legal structures, and stakeholders of each organization type, providing insights into their operations and objectives. Furthermore, it explores the interrelationship between different organizational functions and their structures. The report also assesses the positive and negative impacts of the macro environment on businesses, including factors like governmental policies and technological advancements. Finally, it includes both internal and external analyses of the organizations, as well as the interconnection of strengths, weaknesses, and external factors to provide a holistic understanding of the business environment.

Business and the
business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Various purposes and types of different organizations ....................................................3
P2 Explain the scope and size of organisation.......................................................................5
TASK 2............................................................................................................................................8
P3 Relationship between various organizational functions....................................................8
TASK 3..........................................................................................................................................10
P4 Positive and negative impacts of the macro environment...............................................10
TASK 4..........................................................................................................................................13
P5 Internal and external analysis of organization.................................................................13
P6 Interrelation of strength and weakness with the external macro factors.........................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Business environment refers to the combination of both internal as well as external
elements such as suppliers, customers, owners, requirements of customers, supply and demand
and so on. In addition to this, there are various activities which is implemented and decided by
the government. These activities are exchange rate, governmental policies, technological
advancement and so on. Therefore, it has been identified that business environment helps in
analyzing resources, business opportunities and growth in order to enhance the overall
performance of an organization effectively (Al-Saleh and Mahroum, 2015). In the given scenario
it has been mentioned that Merill Lynch is a private organization founded in the year 1914 by
Charles E. Merrill. Their potential clients are analyzed and three of them are selected which are
public, private and voluntary organization. In case of private organization, TESCO is chosen as
the base company which is one of the leading company deals in grocery items and household
products. At the end, third organization is volunteer which is Oxfam. There main aim is to
remove poverty from the world and enhance the living standard of individuals. National health
services was established in 1948 in England. Main purpose of NHS is to remove poor and
provide social care services for the peoples. In addition to this, this report includes detail analysis
of scope and size of different types of organizations as well as inter-relationship with other
functions along with their link with organizational structure. At the end of this report, positive
and negative impact on the macro environment are going to be discussed.
TASK 1
P1 Various purposes and types of different organizations
Public Organization: It is the type of organization which is fully owned and controlled
by government of the country. They provide best and effective services to their customers in
order to enhance their brand image (Bah and Fang, 2015). In the present context, NHS (National
Health Services) is chosen. It is the organization which provide various services to their
customers related to health. NHS was established in the year 1948, with the motive of providing
free health services to individuals.
 Purpose: National Health Services, is a public organization established with the aim of
providing free health services to the individuals living in the country. With this purpose,
they offer best and effective services to the people and improve their health.

 Legal structure: In public organisation all decisions of the organisation is taken by
gove4rnment. In contact of national health services, all the decisions of the organisation
is taken by the state government and central government. So all the decisions which
launch by the government, top authority of the organisation discussion with there
employees in a effective manner. (Breckova, 2016).
 Stakeholders: In case of public organisation, stakeholders play very essential role. They
are the one who invested their money as well as associated with the profitability of the
company. Stakeholders which is included in this organisation is financial institutions,
government and many more. All these stakeholders highly influence working of the
company. Some of the stakeholders includes local authority, patients, trustees.
Private organisation: It is the organisation which includes an individual, partners as
well as agency which is not a public body, operated for profit. Apart from this, it might be a non-
federal body which is self-established and sustaining. In the present report, TESCO is chosen as
the base company which is a private entity deals in grocery items. For this, they have enough
amount of employees within their organisation. in order to manage their business operations
(Charter, 2017).
 Purpose: TESCO which is chosen as a private organisation is a multinational general
merchandise deals in groceries all over the world. Its headquarter is located in Welwyn
Garden City, UK and was introduced by Jack Cohen. It is the company which is
established with a purpose to provide best services within affordable price to their
customers. Along with this, they can satisfy the requirements and demands of customers
and maintain their brand name at the competitive marketplace. With the help of this, they
will be able to attain their goals and objectives effectively.
 Legal structure: Private organisations legal structure is depends on the top authority like
board of director and CEO of the organisation. They are take big decisions of the
organisation with the help of low and legislation. In contact of Tesco organisation all the
decisions are depends on there top authority which is directly communicated with there
employees and subordinated. All the decisions are effect the probability and marketplace
in a effective manner.
 Stakeholders: They are the person in every business organization associated with some
motive and result. Performance of company largely affect the behavior of stakeholders.

Stakeholders of TESCO includes investors, employees, customers as well as government
agencies (Erasmus, Strydom and Rudansky-Kloppers 2016).
Voluntary Organization: It refers to the set of various activities and functions which is
not managed, controlled and directed by the government. Apart from this, it is the activity which
is owned by external members and government of the country. In the present context, voluntary
organization Oxfam is chosen as the base company. Oxfam was introduced by Cecil Jackson-
Cole in England in the year 1942. It is the organization which is associated with 20 independent
charitable trust. There main motive is to remove poverty all over the world (Grigore and Drăgan,
2015).
 Purpose: Their main purpose is to make the society poverty free. Their vision is to
enhance the living standards of individuals so that they can reduce the poverty from
environment. Therefore, the present organisation which is Oxfam take effective decisions
so that they can easily perform their task and roles related with the individuals. On the
other hand, there mission is to develop equality among the individuals living within the
country.
 Legal Structure: Voluntary organisation's legal structure is depends on the trusty and
top authorities. In contact of Oxfam all the decision of the organisation is depends on the
trusty of the organisation. All those decision should be related to the development of
sociality and employees.
 Stakeholders: They are the one, highly interested in the organization functionality. It
includes those individuals who are associated with the profitability of organization. It
mainly includes the founder, staff members, beneficiary and so on. In addition to this,
there are some different types of stakeholders which includes project members, project
team, customers, sponsors and many more (Groşanu and et.al., 2015).
P2 Explain the scope and size of organisation
Organisation is a place where business activities are performed. And there are basically
three types of organisation, namely, public, voluntary and private. The size and scope of these
are discussed in detailed manner below:
Private Organisation: TESCO
It is a British multinational store which deals in groceries along with in general
merchandise retailer. It headquarter is situated in Welwyn garden city, Hertfordshire, England.

TESCO is the third largest retail business across globe. There are various functions which are
discussed below in detailed manner :-
Product and service: Company have diversified product range such as merchandise and
grocery product as per the requirement of customers. With the variety TESCO can attract large
customer base and can have high revenue. TESCO offer offer their products and services through
the medium of, Convenience shop, Superstore, Hypermarket and supermarket. Main product of
company include food and beverages, clothing, beverages, financial services and more.
Size and scope : The company have vast scope in future as they provide better quality of
service to their respective clients. In the regard of size. Company operates with 7000 stores
across worldwide. They provide best offering to their customers and they have largest store with
having more than 500, 000 employees (Tesco's number of stores worldwide from 2008 to 2019).
Vision and mission : TESCO offer their services with a mission statement of “ We
make what matter better, together”. In addition with this, company hold vision, which is “ to be
one of the most highly valuable business by offering qualitative services to customers,
communities, colleagues and shareholders that they serve within which they operate.
The vision of TESCO is to become the world’s biggest retail outlet in five years. They
are focusing more or customer taste and preference and providing better quality services to create
a band image in the minds of customers. They want to be the first choice of customer when they
think about retail stores. Company want to grow their business where they have been reached yet
and provide their services in untapped marketplace. TESCO is developing new technologies
where customers can have new shopping experience and earning the loyalty and trust among the
customers by providing the best product and service among their rivals.
Public organisation: NHS
In this research NHS is taken as public company which provide health services to their
people. It was established in year 1948 during the world war in England. They also indulge in
free treatment if the people are the permanent resident of United Kingdom. Dental treatment and
optical care services are also the part of NHS services. The company also require to pay their
prescription charges as per their income. There are various size as scope for the company
explained in detail manner.
Product and services : As per the NHS, they provide various health services to their
people. The company main founding principal is to provide free and comprehensive services to

their country. DR Somerville Hastings proposed the resolution of establish the NHS in year 1934
NHS offer emergency medical help services, emergency treatment along with treatment of
infectious diseases free to everyone.
Size and scope : The current working staff of company is nearly about 17,197 as per the
year 2019. due to BREXIT the employees are leaving the country as they do not feel safe for the
family. In the NHS there around 11% of physician working for company. There is immense
scope in the company because they are planning to increase their medical training employers
from 7500 to 15000 by year 2030. NHS have current working staff of 1.5 million individuals
those who offer their services across UK (How many NHS employees are there?. 2019).
Vision and mission : Vision statement of the company is to make people to live healthier
lifestyle in the best possible way. Another vision of the company is to provide effective and
coordinated care whomsoever visit their hospitals.
The mission of NHS is facilitate the customer with their outstanding services that
individual and families want for themselves. The company wants to serve with high quality
treatment and safe care with full dedication. Company have mission to treat employees with
dignity and respect every customer they meet. Understanding the problems of customer and
provide solution which is best for their customers.
Voluntary organisation : Oxfam
Oxfam was initially formed in 1995 by the several group of independent and semi
government organisation. Their motive was to work together for greater impact on the society to
remove poverty and injustice. Oxfam offer humanitarian services to wide range of population
and thus provide relief to their needs and demand and further raise their standards in best
formative manner.
Product and service: They work for society and have different volunteer services such
as they fight with poverty, deals in emergency responses, long term development and
multimedia. The main objective of the company is to provide long lasting solution to poor
people. As Oxfam is the part of global movement change as they provide services to encourage
people to raise their voice for future that is secure.
Size and scope : The scope is very vast for the organisation and as they poverty have
reached in every corner of the world. They have to continuously contribute to the society and

make strategies to fight these odds. Oxfam offer their services by having confederation of 20
charitable organisation.
Vision and mission : The vision of the Oxfam is the world free of poverty. Company
wants that people should be treated equally and regards their colour, gender etc. Company
mission is to challenge the law and structure of the injustice of poverty and come with solution
and fight against these hurdles. Company is allying with their partners locally and globally to
strong their roots and fight against discrimination among society.
TASK 2
P3 Relationship between various organizational functions
Organization have various kinds of department where entire operations are performed in
specific manner. It is a nucleus process and individual have their own responsibilities and task to
carry out business process. The main functions include, marketing, human resource, customers
service (Wilden and et. al., 2013). In the case of TESCO, it is an investing and wealth
management company which provide retail services, prime brokerage and security dealings.
They have different set of department and are scrutinized with each other to work effectively and
meet the organizational objectives. There are different types of interrelationship in TESCO with
other several departments which are given in detailed below.

Illustration : Organisational Structure
(Source: Organisational Structure, 2019)
Sales Department and Marketing Department : It has the direct tie up with company product
and service and sale person also deals with the respective customers. It is important for a
company to have effective sales team fort generating high volumes of sales. This department
focus on the aspect of sales techniques and also manage the sales activities in a company. A
trained employee which pitch the sales for organisation and have knowledge of ins and outs of
their needs. Sales department have direct relationship with marketing team and work together for
a business and communication is important for both the department for smooth functioning.
Marketing department with the assistance of attractive marketing strategies aid sales department
to increase their overall sales target, while sales department provide sources to marketing
department within which this department can conduct their marketing functions. This will
effectively aid TESCO to achieve organisational goals. (Andersson, Forsgren and Holm, 2015).
Human resource department and IT Department: Every company needs HRM
department to perform their activity in best possible way. The department look after management
and administration process. It is important for department to provide skill employees who can
meet the daily challenges of business environment. In regards with TESCO is the prime duty of
HRM department to have proper training and development programme of employees working in
different department to increase their efficiency. It is utmost important to choose best fit for job
for HR to provide fruitful result. HR department mainly have direct relationship with IT
department as they provide them skilled and talented workforce, while on the other hand IT
department offer innovative and updated software to human resource department of company
that can be undertaken by HR department as to increase their performance measure. This will
effectively increase profitability and productivity of TESCO.
Market department and Finance Department: It is the most important department in
every organization. It is what that create profit and customers. Marketing team provide the
insight of future goals and define whether the business will successful or going to be fail in
future (IşıK, Jones and Sidorova, 2013). For TESCO marketing team should identify the taste of
customers in Retail outlet and according they must provide service to their customers. Finance
department effectively provide adequate fund to organisation Market department that will
effectively aid marketing officials to conduct their marketing objectives. While with attractive

marketing, marketing department increase profit ratio reserve of company that fulfil foremost
objective of finance department. Marketing are more related to finance department because they
are the individual who keep track of sales, profit and losses. There are the two main important
department in any organisation because they deals in numbers.
As per the above discussion, it has been analyzed that, all the department in TESCO are
interconnected to each other. To increase efficiency of company, these departments must have a
seemly communication within themselves which will improve the productivity of employees.
With the help of these techniques organization growth will be immense and able to generate
more profit in future. HRM department will play a vital role in identify the right candidate for
TESCO which will definitely increase the efficiency in providing better retail services to their
respective customers.
TASK 3
P4 Positive and negative impacts of the macro environment
TESCO is one of the biggest and largest leading organization deals in groceries and
general merchandise retailer. It is a British multinational company operates their business
functionality across the whole wide world. Functions, operations and business environment of
the company is largely affected by various factors which includes micro as well as macro factor.
Micro factors are those which exists within the boundaries of an organization and are
controllable by the management team of the company. Some of the micro factor includes
structure of the organization, culture, value, beliefs and many more (Hair and et.al., 2015). It
includes PESTLE, which are going to be explained in detail as follows:
Political factor: It is the factor which includes tax policy, labor laws, governmental
policy, environmental law, foreign trade policy and many more. All these political factors highly
affect the working of an organization in both positive as well as negative manner. In context of
TESCO, it is one of the biggest leading company which deals and operates in all over the world
such as USA, Japan, Germany and so on. If governmental policies and laws of the country
changes it will affect the profitability of the company. It is one of the most important factor
which highly influence the overall functionality of TESCO and assist them in order to perform
their work ethically and legally (Hamilton and Webster, 2018).

 Positive impact: Political condition of UK is stable and support investment which as a
result create positive impact on the overall working of TESCO. Negative impact: Terrorist attacks and international wars affect the political condition of
the country, which negatively affects the functionality of business organization.
Economical factor: It is the factor which mainly deals with the economic system of the
country. It includes various factors such as inflation rate, interest rate, employment rate,
exchange rate and many. All these factors affect the functionality of company in the competitive
working environment. In reference to TESCO, it is a UK brand where country have strong
economic position. Therefore, it will generate more and more revenue for the company at
competitive marketplace. Along with this, if company provide more employment opportunities,
it will automatically enhance the living standard of individuals (Hillary, 2017). Positive impact: Strong and good economic condition of UK assist TESCO in order to
generate more revenue. Therefore, it helps in generating more employment opportunities
and enhance the living standard of individuals. Negative impact: Increase in tax rates and labor cost affect the profitability of TESCO in
a negative manner.
Social factor: It is the factor which consist of various factors associated with the beliefs,
values, perception, culture and tradition of individuals. Management team of the company must
examine the requirements and demands of customers, so that they can manufacture goods
according to their needs. In context of TESCO, it is the factor which creates positive brand image
of the company at the competitive marketplace. Along with this, social factor helps in satisfying
demands and requirements of customers (Ketata, Sofka and Grimpe, 2015). Positive impact : Through this factor an organization can fulfill the requirement of there
customers and increase brand image of the organization. So it can say that social factors
effect the organization in a effective manner. Negative impact: On the other hand, sometimes it forces the organization in order to
adopt CSR activities, so that they can contribute in the development of individuals.
Technological factor: In today's competitive environment, technology plays very
important role in the accomplishment of goals and objectives of the company. Continuous up
gradation in the technology might affect the productivity and performance of company at
competitive marketplace. In the context of TESCO, management team of the organization

upgrade their technology in every three years, so that they can minimize the competition level
available at the marketplace. Along with this, in order to use latest technologies, it is very
essential for managers to provide training sessions to their employees. With the help of this,
managers will be able to reduce the wastage and overlapping of works. Positive impact: Regular up gradation on technology will enhance the profitability of
TESCO. With the help of this, managers will be able to produce high quality products
and services to their customers which will generate more revenue for the company (Kolk,
2016). Negative impact: On the other hand, regular adaption of technologies enhances the
overall cost of the company. This as a result affect the profitability at the competitive
marketplace.
Legal factor: In case of legal factor, there are various laws and legislation which affect
the functionality of business organization. It includes health and safety law, anti discrimination
law and many more all these laws affect the business organization. In references to TESCO,
managers implement these legislations within their organization in an effective manner. This as a
result, provide security to the staff members working in the organization and leads to improve
the performance of employees. Positive impact: It will create positive working environment within the organization,
which as a result enhance the efficiency and effectiveness of employees working in the
company. Negative impact: Legal implications creates complexities within the organization and if it
changes on a regular basis then it will affect the performance as well as profitability of
the company (Tregear, 2015).
Environmental factor: It is the factor which says that companies should perform their
functions in such a manner that there might not be any loss to the environment. In context of
TESCO, managers adopt such technologies which produce Eco friendly products and services to
their customers. Positive impact: It creates safe and secure environment to the individuals and attract
large number of customers towards their organization in order to purchase goods and
services.