Analysis of Business Environment: Tesco PLC and Organizational Types

This report provides an analysis of the business environment, focusing on Tesco PLC, a multinational grocery and general merchandise company. It explores the influence of internal and external factors on businesses, including political, social, and technological aspects. The report differentiates between public, private, and voluntary organizations, detailing their definitions, objectives, and stakeholders. It delves into the legal structures of these organizations, such as sole traders, partnerships, limited companies, state services, local councils, public companies, trusts, and non-profit organizations. The report also examines the stakeholder objectives within each organizational type, highlighting the key goals of public, private, and voluntary entities, such as profit maximization, service provision, and beneficiary support. The report also explores the legal structure of various types of organizations, including sole traders, partnerships, and limited companies in the private sector, as well as state services, local councils, and public companies in the public sector and non-profit organizations in the voluntary sector. The report concludes by analyzing stakeholder objectives across these sectors.

Introduction to
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
What............................................................................................................................................1
So What.......................................................................................................................................3
Now What...................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
.........................................................................................................................................................7

INTRODUCTION
Business environment can be described as factors which influences the business such as
internal factors and external factors. Some of the external business environmental factors are
political, social, technological, etc. Similarly the internal environment of business is consist of
human resource, finance, labour management, and many more. This report will be discussing
about Tesco PLC which is a multinational grocery and general merchandise company. Addition
to this, the respective organisation is a third largest retailer across the world. This report will help
in having a better understanding about different type of organisation and their objectives such as
public, private and voluntary organisations and how they satisfy their stakeholders (Types of
Non-profit organisations. 2018).
What
Business environment is consist of many influencing factors such as customers,
resources, government activities, demographics, suppliers, etc. which plays a crucial role in
attaining the goals and objectives of the company. I found out that the nature of business
environment is very complex as it is affected by many elements. However, with the help of
adequate market strategy, price and quality, companies can gain competitive advantage. The
main objective of companies are to earn profit and increase the number of sales, whereas it I not
the same for different type of companies. With the help of this report, I was able to understand
that there are three type of organisations which as public organisations, private organisations and
voluntary organisations which are further discussed below:
Basis Public Sector Private Sector Voluntary organisation
Definition Public sector is the
sector which is consist
of both public
companies and public
services (Belás and et.
al., 2015). Addition to
this, these companies
are run by government.
Some of the services are
Private sector is consist
of enterprises which are
run by individuals or
groups in order to earn
profit for the business
man. These enterprises
are not controlled by the
states. Some of the
private sector services
Also known as common
interest association, it can
be described as an
agreement between group
of individuals also known
as volunteers in order to
form an organisation which
will help in accomplishing
the purpose. These
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military, water supply,
health care, public
education, etc. Some of
the examples of public
sector services and
companies are British
Armed forces, NHS, etc.
are healthcare,
hospitality, and many
more. Some of the
example are Tesco,
McDonald's, etc.
organisations work for
various disaster
management and other
uncertainties in order to
help the society. For
example, Oxfam,
Wellcome Trust, etc.
Objectives The prime motive of
public sector
organisations is to serve
for the welfare of the
whole society and
provides them services
such as health care for
free or on a very
minimum charges.
Thus, the finance is
earned from taxes from
the citizens of the
country.
The objective of private
sector organisations are
to earn profit and
survive in the
competitive environment
(Bharadwaj and et. al.
2013). Addition to this,
the private companies
also look forward to
utilise their resources
such as finance, human
resource, etc. and
minimise their cost. The
profit is earned by
selling products and
services to the
customers.
The aim of voluntary
organisation is to serve the
society. However, these
associations earn funds
from their activities which
are important for the
survival of the
organisation.
Stakeholders The stakeholders in
Public sector are
suppliers, government,
employees, directors,
and citizens of the
country
The stakeholders of
private sector companies
are customers, suppliers,
employees, creditors,
government and many
more.
The stakeholders of
voluntary associations are
founders, volunteers,
donors and beneficiaries.
Addition to this, the
government entities,
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(BriscoeTariqueand
Schuler, 2012).
partner organisations are
also the stakeholders of
voluntary association.
So What
From the above studies, my key learning was about the difference in the legal structure of
these different types of organisations. The legal structure of the organisations is mostly according
to the scale and operations of the company. The legal structure is very important to maintain in
order to assure the smooth running of the operations. Thus, these legals structures are maintained
by different individuals in public, private and voluntary organisations in order to assure a strong
legal structure of the company. Additionally, every type of organisation have different set of
requirements which needs to be taken care by the owners of the organisation in respect to private
companies (Chen, Chiang and Storey, 2012). Similarly, the legal structure of public companies
are maintained by the governing bodies which facilitates them to operate effectively. The legal
formalities are taken care by trusties in voluntary associations. The legal structure of these
organisations are mentioned below:
Private Sector- The private sector is consist of sole traders, partnership, limited
companies, etc. These are discussed below:
 Sole Trader- According to me, it is the simplest form of organisational structure. Sole
trader is usually an individual person which is legally responsible for all the elements and
different aspects of business. The decision regarding employing new members and other
decision making required in the company is taken care by the sole trader. Hence, the sole
proprietor is responsible for all the losses and profit of the organisation.
 Partnership- As per my research, a partnership can be understand as a formal
arrangement which includes two or more parties which are responsible for managing and
operating the business. Thus, in this type of structure, the risk factor is comparatively less
as it is been shared by the partners of the organisation. Similarly, these individuals are
have an equal or agreed share of profit in the company. I also found out that the some
partner may have limited liabilities (Groff and Jones, 2012). Due to different people
working together, there are canes of certain disagreements which is a risk for this style of
organisation.
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 Private organisations- According to my studies, a private limited company is a type of
organisation which is privately held small business entity. Thus, the liabilities of owners
to the shares is limited. The number of shareholders in these companies are limited to 50.
Addition to this, it is important to use the word private limited behind the name of all
private companies.
Public Sector- The public sector is consist of public companies, state services and local
councils which are further discussed below:
 State Services- It is consist of system of government that aligns with the governing
bodies (Hair and et.al., 2015). Addition to this, state services is involved in handling the
affairs of state government. The work is done according to the laws and regulations of the
government.
 Local councils- The local government or the local councils are responsible for executing
and determining regulations for the small areas in the state. Hence, the local council is
responsible for managing and solving all the local concerns and affairs under the
authorised regulations framed by the governing bodies. The upgraded local government
reflects decentralisation of authorities and powers. As per my research work, local
government has many aspects such as power, constitutional status, areas and authorities
and many more which are taken care by the respective council.
 Public companies- According to my study, the ownership of public companies is
distributed among the general public through different mediums such as shares and stock.
Addition to this, the shares of respective companies are traded to large number of
shareholders. Thus, some of the public services are healthcare, social care, law
enforcement and security, etc. After studying the legal structure of public sector
companies, I came across very new things which helped me to expand my knowledge
about public companies and its different aspects. Along with this, I learned that public
companies operate their functions for the welfare of the society and collect funds to
conduct these operations through taxes from general public. The board of directors of
public organisations are appointed by the governor of the country and are assured by
senate (Hilton and Platt, 2013). This is an at which was framed separately by the
legislatures which is commonly known as statutory corporation. Addition to this, the
functions of these organisations are clearly mentioned in the law.
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Voluntary Organisations- The voluntary organisations are consist of many different
aspects such as trust, unincorporated associations and non profit organisations. These are
discussed below:
 Non profit organisations- The limited companies is one of the most popular selection of
voluntary organisation these days. According to my research, it is appropriate if the group
manage its resources such as land, staff, funding, etc.
 Trust- These are usually formed to manage funds or property for a defined purpose. Te
formal relationship is established between trustees, donors and beneficiaries. It is a cheap
affair which consumes lesser time (Savrul, Incekara and Sener, 2014). The trustees are
liable for entering into contact on the behalf of trust.
 Unincorporated Association- These are the structure which are suitable for small groups
of individuals with membership, low incomes, short term goals and which do not look
forward to employ staff or acquire any property.
Now What
As per my research, I analysed that the stakeholders of each organisations have different
objectives which are fulfilled by the help of organisational strategies. Hence, the objectives of
different organisations are discussed below:
Public Sector- The stakeholders of public companies are government, employees,
customers or society, etc. The prime motive of the public organisations is to maximise the
interest of its stakeholders as these are formed to provide quality services to the society and other
stakeholders. Hence, these companies provide free services or services at low cost in order to
facilitate the customers from different background and provide them a healthy and quality
lifestyle. Similarly, these companies can benefit the customers by providing them more enhanced
services which will help in improving the quality of services.
Private Sector- The private sector companies also have similar stakeholders than public
sector such as customers, employees, shareholders, etc. However, the prime motive of these
companies are to earn profit. Hence, private companies such as Tesco maximise the benefit of its
customers by providing quality products at most suitable prices (Tayur, Ganeshan and Magazine,
2012). Along with this, the respective company can maximise the interest of its employees by
offering various benefits such as retirement schemes, promotions, and other similar benefits.
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Similarly, the company can help in benefiting the investors by earning more profit share which
ultimately increases the share of profit for the investors as well.
Voluntary- The stakeholders of voluntary companies are the trustees, volunteers and
beneficiaries. However, the prime motive of these organisations are to maximise the interest of
beneficiaries by providing them certain relief materials and other benefits which fulfil their needs
and demands. Similarly, there are certain volunteers which do not work for money and only
work for their moral satisfaction. Hence, these associations can help these volunteers getting
involved and provide them opportunities to serve society which fulfil their objectives. Other than
this, as per my studies, there are also other volunteers which expects certain amount of salary
(Wetherly, 2014). Thus, to fulfil their needs, these voluntary associations can collect more funds
which can facilitate in managing the expenses of the companies including salaries for the
volunteers. Thus, it leads to meeting the objectives of the stakeholders of volunteers. Another
stakeholder of these companies is beneficiaries. Thus, by increasing the range of concerns taken
care by the association, it can reach more individuals and would be able to provide its services
which will lead to meeting out the objectives of the beneficiaries.
CONCLUSION
From the above discussion, it can be analysed that business environment is a very crucial
element which helps in meeting the objectives of the company. Addition to this, it has also been
examined that there are various types of organisations which operates to meet different
objectives such as private organisations, public organisations and voluntary associations. The
legal structure of these organisations is also different from each other. Apart from this, it can also
be concluded that the role of different stakeholders such as customers, employees, shareholders,
etc. is very complex in different type of companies such as private companies, public companies
and voluntary associations.
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REFERENCES
Books and Journals
Belás, J., and et. al. 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
Bharadwaj, A., and et. al. 2013. Digital business strategy: toward a next generation of insights.
Briscoe, D., Tarique and Schuler, R., 2012. International human resource management: Policies
and practices for multinational enterprises. Routledge.
Chen, H., Chiang, R.H. and Storey, V.C., 2012. Business intelligence and analytics: from big
data to big impact. MIS quarterly, pp.1165-1188.
Groff, T. and Jones, T., 2012. Introduction to knowledge management. Routledge.
Hair Jr and et.al. 2015. Essentials of business research methods. Routledge.
Hilton, R.W. and Platt, D.E., 2013. Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150.
pp.35-45.
Tayur, S., Ganeshan, R. and Magazine, M. eds., 2012. Quantitative models for supply chain
management (Vol. 17). Springer Science & Business Media.
Wetherly, P., 2014. The business environment: themes and issues in a globalizing world. Oxford
University Press.
Online
Types of Non-profit organisations. 2018. [Online]. Avalilable
through:<http://www.tatepartners.com.au/news/not-for-profit-or-charity/27.html>.
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