Business Environment Analysis and Impact on Organizational Objectives

This report provides a comprehensive analysis of the business environment, focusing on public, private, and voluntary organizations. It examines the different types and purposes of these organizations, including Tesco (private), BBC (public), and Cancer Research UK (voluntary), exploring their scope, size, vision, and mission. The report delves into the relationship between organizational functions and their link to objectives and structure, detailing various organizational structures such as divisional, matrix, and functional structures. Furthermore, it identifies the positive and negative impacts of the macro environment on business operations, analyzing both internal and external factors to determine strengths and weaknesses. The analysis includes an examination of how these strengths and weaknesses relate to external macro-environmental factors, offering insights into the challenges and opportunities faced by these organizations. The report concludes with a discussion of the key findings and implications for business strategy and performance.

Business
and
Business Environment
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain different types and purpose of public, private and voluntary organisation..............1
P2 Explain scope and size of different types of organisation.....................................................2
TASK 2............................................................................................................................................4
P3 Relationship between different functions of organisation and their link with organisational
objectives & structure.................................................................................................................4
TASK 3............................................................................................................................................6
P4 Identification of positive & negative impact of macro environment of business operations
and functions...............................................................................................................................6
TASK 4............................................................................................................................................8
P5 Internal and external analysis of organisations for identification of strengths and
weaknesses..................................................................................................................................8
P6 Relation of strength and awareness with external macro environment factors......................9
CONCLUSION..............................................................................................................................12
REFERNCE...................................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Business is an activity which is related to transaction taking place in an organisation with
concern to exchange of goods & services for providing value to the final consumers of the
product. Each organisation has an objective which is according to the type of organisation which
can be in form of public, private or voluntary sectors (Berg, Davidson and Potts, 2018). In the
present report there are three companies which are discussed based on vision, mission, scope,
objectives and analyse its impact on organisation. There are various factors present in the
organisation and in the macro environment of the organisation such as Tesco is facing issue of
closing of 14 shops and plans for simplifying their business which will lead to 1,70,000 jobs cut.
This report is based on developing understanding of Influence and impact of such relationship of
internal and external, its strength and weakness having impact on achievement of business
objectives.
TASK 1
P1 Explain different types and purpose of public, private and voluntary organisation
Organisation can be classified based on different categories according to the motives for
which they are formed. Different types of organisation are discussed below:
Private sector: These companies are owned by various private entities such as
partnership, companies and they are having major motive of earning profits. Tesco is one such
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organisation of UK having its main motive of increasing satisfaction level of customers and
maximization of profits (Boyce and Ville, S 2017).
Purpose: Main purpose of private organisation is to increase profits and create value for
increasing of overall market share.
Legal structure:
Sole proprietorship: This is a business which is having its ownership and is controlled
by a single person. These are personally liable for all transactions in a business whether it is
profits or losses.
Partnerships: This is a form of business where there is ownership by one or more
partners together. Mutual decision is made regarding losses and profits. A partnership deed is
prepared and it acts a guide for all transactions in a partnership firm.
Limited companies: These are separate legal entities who are working for managing of
business. In limited companies’ capital is arranged in form of issuing of shares who possess
ownership in form of purchasing of shares. Private limited firms are those that are owned by
private entities government entities. On other hand public entities are those that are owned and
controlled by government. This report is based on one of largest retail stores of UK, that is
Tesco. This organisation is having its headquarters in Garden city, England
Public sector organisations: Public companies are ones which are manage and managed
by government of a country. Main objective of such organisation is not to earn profits but to
work for welfare of people living in the society. BBC is a public sector organisation which is
manage by government.
Purpose: Main purpose of such organisation is to work for uplifting of society and
people living in society.
Legal Structure of Public Organisation:
Central : This is a apex body and they possess control on the entire economy by
providing of authority to various departments who are working for welfare of society
(Organisational structure, 2019).
State : These are having responsibility if particular zone or a territory. Based in which
they are monitoring and regulating departments (Crick and Chew, 2017).
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Local : these organisations are operating are operating at local level and manage a
locality. These are responsible for making people life simpler and more comfortable. BBC is an
organisation having its presence in London. It is one of largest broadcaster in the world
according to number of employees working in this organisation.
Voluntary Organisation: These organisations are having their incorporation for welfare
of society or for solving any prevailing issues. These organisations are started by people by their
own choice. Cancer Research in UK is a voluntary organisation working for benefit of people
suffering from cancer (Davies, 2016). It was founded in the tear 2002 in February, main aim of
this organisation is to reduce number of deaths because of cancer.
Purpose: Main purpose is aiding and solving different issues of people and at same time
addressing the social causes taking place in the society. Many people are suffering because of
cancer that has also to be solved by cancer research organisation.
Legal structure of Voluntary organisation:
Trust: This organisation has the responsibility of managing of land holdings, property
and utilisation of funds for achievement of their overall objective.
Unincorporated Association: In these organisation people get voluntarily engaged for
short period of time and for achievement of specific objective it is solving of some issues.
P2 Explain scope and size of different types of organisation
Tesco: Tesco opened its store in Edgware in London in the year 1929. overall scope of this
organisation has been very wide as from long term prospect they have successfully involved in
complete transformation of their strategy. Basis for size for the organisations is based on number
of employees working in a particular organisation.
British Broadcasting Company: BBC is a company registered as a royal charter and is
an old broadcasting company (Doppelt, 2017). This organisation is funded by license fee which
is paid annually. The program is intended to carte awareness about various instances taking place
across globe.
Cancer research UK: Cancer research is a voluntary organisation working for people
who are suffering from cancer. They have the objective of conducting research so that doctors
can provide best treatment to people suffering from this disease.
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Company Vision Mission Size Scope Stakeholders
Tesco The overall
vision to make
a a brand more
valuable by
providing
increase value
to their
customers.
The mission is
to make a
company more
develop by
providing
unique and
innovative
products to
their
customers.
Tesco is one
of oldest and
biggest
retailers as
well as
merchandise
in the world so
the company
has 460000
employees
working
internationally
and therefore
it is
categorized as
large
organisations.
Tesco is one
of biggest
retailers in the
world.
Headquartered
in Uk, now
developing its
activities in
US and other
countries also.
Tesco metro
and Tesco
stress are one
of the major
key areas
which
company is
focused more.
But as Tesco
express has
larger market
area so it is
important
sector of the
Tesco.
There are
many
stakeholders
such as
employees,
customers,
investors who
are working
with TESCO
and affecting
their
performance
and helping
them in
achievement
of objectives.
BBC Vision of
company is to
provide
creative and
Mission is
providing
authentic
information to
BBC is having
its operations
across country
where approx
Scope is to
add more
programs and
channels
There are
many
stakeholders
which are
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innovative
products to
their
customers.
make their
target
customers
aware about
their services.
20000
employees are
working and
they are also
in the category
of large
organisations
as they are
having more
than 250
employees
working in
their
organisation.
which can
help in
attracting
more
customers.
They are
covering lot of
regions and
market across
UK. Market of
BBC is having
both online
and offline
presence. BBC
is also
focussing on
sustainable
development
by as they are
having a major
aim of uniting
a particular
nation in one.
present
internally and
externally such
as partners,
customers,
employees etc.
Cancer
research UK
Vision of this
organisation is
to cure cancer
and minimize
the number of
people
suffering from
this disease.
Mission is to
conduct a
detailed
research and
cure various
other issues
connected
with cancer.
The company
has 100
volunteers
associated
with this
organisation
which help
them in
They are
willing to
increase their
area of market
which can
help them in
providing
benefits to
Cancer
research is
highly
committed
towards
providing best
services top
their
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operating and
taking all the
necessary
decision
regarding
various
function of the
company.
Cancer
research
comes under
small and
medium
enterprise as
they are
having less
than 250
employees
working in
their
organisation.
more people.
Cancer
research is
world’s largest
cancer
research
charity and
they are
conducting
research in
diagnosis and
prevention of
cancer. There
are high
probability of
sustainable
development
of cancer
research as the
speed at which
cancer is
spreading has
to be
addressed very
fast so that
they can
contribute
towards
society.
stakeholders
such as
beneficiaries,
volunteers etc.
so that wide
variety of
services can be
provided to
them.
Market share: Tesco is having presence in UK. It is a market leader having 28.4 percent
share which is more than its competitors Sainsbury and ASDA. BBC is one of world's oldest
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broadcasters and they are larger broadcaster according to number of employees working this
organisation.
Growth: There have been very high prospect of growth for Tesco as it is part of four big
supermarket chains. But there are many uncertainties also as there is weak consumer confidence
which is a present issue faced by Tesco and has high probability of increasing in future an
affecting growth of Tesco (Erasmus, Strydom and Rudansky-Kloppers, 2016). Growth prospect
for BBC is very high as they are providing funds by annual television license fee that us charged
to companies, British households etc. this leads to sufficient availability of resources that can be
used for spending on future strategies by this organisation.
Sustainability: A business can possess sustainability growth if there are products
according to customer requirements. Sustainability is one of big priorities for Tesco as they are
willing to achieve high growth and competitive advantage to ensure that their present profit
levels are not affected and remain sustainable in future (Gelderblom, and Trivellato, 2019).
Various initiatives such as reduction of plastic is an initiative taken by Tesco for ensuring their
sustainability for a longer period of time.
BBC is taking many initiatives so that they are able to contribute towards suitable
development especially after world war second BBC is involved in making initiatives towards
uniting the nation into one.
Cancer research has helped in contributing towards society by saving lot of people from
this dangerous disease apart from this they are willing to achieve their vision in coming period of
time that is to make a world where no person is suffering from cancer.
TASK 2
P3 Relationship between different functions of organisation and their link with organisational
objectives & structure
Different types of structure related to size and scope of operations of a business:
organisational structure: It is a system which is used for defining how various activities are
done in an organisation. It is used for determination of how information is flowed and different
channels of authority & responsibility in an organisation (Mintel 2016). There are various
organisational structures as discussed below:
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Divisional structure: In this type of structure whole organisation is divided based on the
type of functions and there is a basis of flow of resources and operations.
Matrix Structure: This structure there is a relationship between subordinate and
superiors based on grids and matrix,
Functional structure: This is the structure which has been implemented in Tesco where
organisation is divide in various groups according to the functions they are performing.
Complexities in various organisational structures:
Transnational structure: In transnational transition structure there are various
interrelationships which are developed based on cooperation and interdependence between
different departments in an organisation (Hirschmeier. and Yui, 2018). Tesco is facing some of
the issues in case of transnational structure such as there is no proper coordination and
integration at different levels which is leading to increase in competitors of this type of structure
in this organisation.
International structure: International structure is in relation with handling of all
operation's created for establishment of control for all activities taking place across borders.
There are many issues faced by international structures such as problem of centralisation and
decentralization, as there is difficulty in managing various organisation in different parts of the
world and every country has its own set of culture which can possess impact on. All such are
various issues connected with international structure (Jacquemin and De Jong, 2016).
Global organisation structure: In this type of structure's there are global operations
which are managed based on various geographic regions. This line is mostly used in case when
product lines of an organisation are not that diverse and can be managed. Conflicts are related to
changes in new management, effective communication across various departments, conflicts
present in departmental loyalty. Are the major types of issues concern with global organisation
structure.
Relation of various functional areas of business with their overall mission & objectives:
There are different functional areas in every business such as human resource, finance,
marketing etc. all the three functional department are related to each other Such as human
resource department helps to provide competent and talented workforce to marketing and
research & development department. Research and development department helps marketing
department in getting information required for formation of strategies. In case of Tesco also there
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are certain functional departments which are having related to each other in many ways but the
most important relation is that they are working towards achievement of common objectives.
Marketing Research and
Development
Human Resource
Relation of various
functional department
with overall mission
and objectives
Marketing department
of every organisation
has the responsibility
of identification of
situations and trend
prevailing in markets
which is used as a
basis for formation of
various strategies for
increasing profit for
Tesco and have a
competitive edge as
compared to their
competitors (Lüdeke-
Freund, and et. al.,
2017).
Research and
Development
department in Tesco
has the responsibility
of making various
modification in
products on the basis
of research conducted
and collected market
information. Such as
in case of Tesco
market research it has
been discovered that
people are preferring
ready meals so there is
a need for more focus
on development of
variants of such ready
meals for this retail
store.
Human resource
department of Tesco
has of recruiting best
talent among various
available alternatives.
This is very helpful in
achievement of
organisation’s
objectives.
All functional departments in Tesco are having high interrelation between each other
which is helping them in achievement of business objectives. Such as sales department conveys
the market related information to production department which helps them in planning their
production quantities. There is increasing demand for packaged food products so sales
department is going to convey this information to production department that will lead to
increase in their sales. On other hand, as people are becoming more health conscious so there has
been decrease in demand for oily food products this information will help production department
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of Tesco in reducing production of such products and preventing piling up of large stocks of
inventory. Functional department’s posses impact on overall achievement of objectives as all
these functions together help in smooth functioning of the organisation. When Tesco is divided
based on different functions it leads to formation of functional structure in the organisation.
Such interrelationship together contributes in achievement of main mission of Tesco.
Such has main aim of organisation is to achieve maximum sales if there will be proper
coordination between marketing and human resource department then it will lead to achievement
of more sales by the information that is being provided by the research and development
department. For example; there is a need of a expert who is having effective communication skill
for increasings sales in their physical outlets. So this information will be communicated by
marketing department to the human resource department and they will further recruit a candidate
who has such communication skills.
TASK 3
P4 Identification of positive & negative impact of macro environment of business operations and
functions
Micro environmental factor has an impact on overall strategy of a business and various
decision-making criteria. These factors affect a business in terms of resources, strategies, v
capacity as they are affected by changes in the external environment but these factors are
controllable by the organisation (McMurray and et. al., 2016). Different factors of these micro
environment include Customers, employees, competitors.
Internal factors influence operation of company and these are related to organisations
culture that has influence on working structure, leaders of the company. Employee support is
another factor which plays a very crucial role in achievement of organisational objectives.
Macro Factors are the ones which can possess positive or negative impact on a business
organisation. Organisations do not possess any control over such factors as they are present in
the eternal environment. For making a detailed analysis is crucial for organisation to use an
opportunity by minimizing the negative impact of such factors.
For making analysis of macro environment below discussed PESTLE model is used:
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