Business Environment Analysis Report: Organizations and Environment

This report provides a detailed analysis of the business environment, focusing on various organizational forms and their functions within the public, private, and voluntary sectors, using Tesco, NHS, and Oxfam as examples. It examines legal structures, organizational size and scope, and the inter-relatedness of functional departments. The report also explores the impact of the macro environment on businesses, including both positive and negative factors. Furthermore, it conducts internal and external analyses of specific organizations to identify strengths and weaknesses, and assesses the interdependence of macro factors on business performance. The report covers a wide range of business sizes (micro to large) and discusses transnational, international, and global business structures. The conclusion summarizes the key findings, and references are provided for further study.

BUSINESS AND
BUSIENSS
ENVIRONMENT

Table of Contents
TASK 1............................................................................................................................................3
P1 Depict various form and function of organisations; public, private and voluntary sectors
and legal structures.................................................................................................................3
P2 Size and scope of the organisations...................................................................................5
TASK 2............................................................................................................................................8
P3. Inter relatedness of the different functional departments of the organisation and their
linkage to the vision and structure of the respective business. ..............................................8
TASK 3............................................................................................................................................9
P4.Determine the affirmative and pessimistic impacts the macro environment upon the
business and provide suitable example...................................................................................9
TASK 4..........................................................................................................................................11
P5. Conduct intrinsic and extrinsic investigation of particular organisations in order to
determine capability and failing...........................................................................................11
P6 Interdependency of the macro factors to the strength and weakness of the business... .13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
INTRODUCTION

Business can be defined by the procedure of selling and buying of products and services
for earning the profits and appreciated the social needs. Along with this, business organisation
environment is the collection of the outside and inside element which can impact the enterprise
performance, growth and sustainability in the both affirmative and pessimistic manner. In this
file, there are mentioned about the private, public, and self-imposed organisations that are Tesco,
NHS, and Cancer Research UK. This document will defined the different type of associations
along with their size and scope and tell about the kinship between the organizational role and
how they can impact on the macro environment. Moreover, it assist the organisations that how
they can analysis the external and internal factor to sharpen their strength and reduce their
weaknesses.
TASK 1
P1 Depict various form and function of organisations; public, private and voluntary sectors and
legal structures
In the corporate world, there are diverse type of business in which all the individual have
various intention of implementing their activities(Savrul, Incekara and Sener, 2014). These
organisation are divided into three categories which include private, public, and voluntary they
all are conducting their activities for achieving a specific goals. While operating the
organisational activities they have to follow a legal structure also. Here is the brief statement of
various business and their lawful constitution which are mentioned below.
Private organisation (profit) is that organisation which is conducting their activities for
earning a better profits by satisfying the needs of customers and this kind of associations are
generally independent from the authorities power and possession. This type of business are
operated by the individuals and a unit of people. In this study, the selected organisation is Tesco
which is a giant of the retailer in UK. The Main purpose of Tesco is to provide their customers
with the supreme quality of the products and services so they can attract various customers and
able to sustain in the market. There are diverse form of private organisation such as sole trader,
partnership, limited companies etc.
Legal structure
Sole trader is a very common business in today's business world in which is run and
closely-held by an individual who is liable for bearing all the loses and earnings. This kind of
enterprise need a small amount of finance as compare to others.

Partnership is that form of business in which various individuals are gather in one
business for accomplishing a specific goals by particular deeds(Babu, 2012). In this kind of
business all the partner are responsible for the profits and losses to their ratio of invested capital
or equally.
Private Limited companies are those formed by the single entity or a group of people
and before the company is formed all the legal procedure are taken into consideration such as
essential licence from the company. These organisations have no right to sell their shares
publicly whereas they performs their duties to earn profitability.
Hence, Tesco is included in the private limited companies.
Public organisation (not for profit) This type of organisations are formed by the
government in which all the activities are operated only by the government. This kind of
organisation s are conducting their activities for the social welfare and they are not operating
their activities for earning profits.
Legal Structure
Central government this government is responsible for that policies which are attendant
with health are defined for holding health care service around the world the nation.
State government is responsible to hold heath care service at government level.
Local government in this government some of the people who are authorized from NHS
will play the responsibility to hold health service in a specific city.
Voluntary Organisation (non-governmental organisation) is that organisations which
are administration their action for supplying service to the poor, needs and the sick citizens
without making any profit(Cohen and Kietzmann, 2014). In this report, chosen organisation is
Oxfam which plant for the social welfare without making profits.
The main motive of this organisation is to remove poverty, provide education, and complete the
needs of the people.
Legal Structure
Trustee is indicate those persons who are authorised by the company to maintaining all the
activities.
Charity is that structure which is followed by the Oxfam in their operations under the charity
Act, 2011.
Complexities of transnational, international and global organisation structures

These term are related to that condition when a company want to expand their business in
the other countries(Bocken and et. al., 2013). Expanding the business is not an easy task the
company have to face various conflicts and issues on which they have to concentrate. There are
the mentioned below following terms that refers to when a company expand their business in
others countries.
Transnational is the most complex form of the business in which a company operating
their business in more than one country which create sometimes problem for them. As they have
to consider different countries rules and regulations which is not easy so they are not able to
make stability between all the rules and organisation goals.
International this type of companies are only responsible for importing and exporting
goods and services so they does not need to make any investment outside of their country. The
main issue in this that if the import and export taxes will be increase then it create extra cost for
the companies who are operate their activities at international level.
Global is refereed to that companies who are operating their operational activities in
multiple countries. The main problem which they have to face is understanding the culture of
different countries is become a biggest task for the companies.
Hence, Tesco is considered a Global company because they operate their activities in
multiple countries and they are dealing in a large number of products.
P2 Size and scope of the organisations
In the present corporate world, there are assorted kind of set up which are conducting
their action for achieving various goals and objectives(Zeng, Li and Duan, 2012). They all are
established for accomplish a specific purpose and for competing the social needs. Below
mentioned are the distinguish between the micro, small, medium and large businesses.
Basis Micro
Organization
Small
Organization
Medium
Organization
Large
Organisation
Definition Micro business is
related to a very
small company in
which company
employing only a
In this category
that business are
included which are
conducting their
activities in a
This type of
organisation
operating their
activities in
more than one
Large
organisations are
those who had
already expanded
their business in

few people within
it(Sena Ferreira and
et. al., 2012).
Example of this
organisation is
Issoria, which is
business
management
consultant.
small area of
market and earn
the profit. For
instance, Austin
Frazer is a small
business which is
a recruiting
consultancy firm.
area of
particular
nation. For
example bevy,
it is dealing in
premium
drinks and
snacks only in
UK.
more than one
country. For
instance, Tesco is
a largest store as
it serving its
customers from
all over the world
They have no
limit for investing
the capital in their
business.
Market share They are operating
in a very small scale
with the help of
some people so,
they are able to
cover market share
as compare to other
companies.
Austin Frazer is a
consultancy firm
who operates its
activities in
London. So the
market share of
this is very less.
This company
is operating
only in UK
due to this they
are not able to
cover a great
market share
as compare to
large
companies.
Stores of the
Tesco is situated
in all over the
world so they are
able to cover a
great market
share in the
marketplace.
Profit share They are earning
profit on daily basis
and they able to
earn very less
profit.
They are earning a
little bit higher
profit from the
micro
business(Boons
and Lüdeke-
Freund, 2013).
Their profit
share is not
equal to large
business but
they are
earning a good
profitability
Due to the largest
form of the
business and the
stores of this is
situated world
wide so they earn
a higher profit

which is higher
than the micro
and small
business.
share as compare
to other
companies.
Growth and
Sustainability
The are covering a
very small market
in the marketplace
so their growth and
sustainability
capacity is very
low.
This company is
only dealing in
the international
market so the
growth and
sustainability is
less than the
medium and large
enterprises.
Bevy's
performs its
activities
throughout the
UK due to
which growth
and
sustainability
is good in
marketplace.
As the Tesco
conducting its
activities globally
so the growth and
sustainability of
firm is higher in
the market.
Size and scope of the private, public, and voluntary organisations:-
Private organisation (profit):- Tesco
Tesco is a international grocery store and broad merchandise in UK which is known ninth
largest retailer in across the world. It is delivering its visitant in global level, they are dealing in
high quality of products and they are able to pull in a large mass of the public with their
activities. At present marketplace Tesco has conduct their operational activities in around 11
countries and approx 7000 stores.
Public Organisation (not for profit)- NHS
The main motive of NHS is to removing catching illness from the world by rendering
health services to the citizens(Glova, Sabol and Vajda, 2014). They are organising their activities
only with the purpose of social welfare. Along with it, they provide free check-up for the eyes,
heart surgery services, and mental healthcare to the citizens across the world. NHS has a great
scope in all over the world and they are conducting their activities at a large scale, for providing
a better heath services they are employ around 1300000 employees all around the world which
defines that this is largest organisation.
Voluntary Organisation (non-governmental organisation):- Oxfam

This organisation are those which are not regulated by the higher authorities and the main
function of this organisation is to remove the global poverty(Andersson, Forsgren and Holm,
2015). They are alliance of 20 independent charitable organisations. This organisation is working
on the foundation of non profit and they always precede the rules and regulations which are
practical on their organisation.
TASK 2
P3. Inter relatedness of the different functional departments of the organisation and their linkage
to the vision and structure of the respective business.
Every administration have their functional departments inter-connected and interlinked so
that the goals of the business can be achieved smoothly and all the activities of the business can
be carried out effectively.
Marketing and finance departments are fully dependent upon each other in order to
perform their task in the most appropriate manner. Marketing departments is considered with the
activities of selling of goods and services for which the funding is required, the amount of fund
which is required by the marketing section is allocated by the finance departments. These
departments work together and simultaneously so that the goal of the company can be achieved.
Similarly this inter-relatedness of these sectors will also help the company like Tesco in
operating their activities by providing them the required amount to promote their goods in the
industry so that they can pull in large mass of the people.
Production and marketing departments works hand in hand in every business as these
are the essential function that is to be carried out in business enterprises. The relations between
these departments is must as the activities of marketing a products can't be performed without the
help of production departments. The role of manufacturing sectors is to produce commodity and
services as per the expectations of the of customers and it is the core duty of merchandising
department to advertise the products that has been produce(Avramenko, 2012). Marketing
departments also determines the present needs of the customers. This can be profitable for Tesco
as through this inter-relations a better amount of coordination can be established between both
the departments and organisational objectives can be achieved within a short duration of time.
Marketing and Human resource departments are the most essential sector for every
enterprise(Morgan, 2012). As marketing department help the business in promoting their goods
and services similarly the HR departments is responsible for hiring and recruiting the most

suitable employees in the business who would execute the action of selling. The merchandising
departments of Tesco is imagine to give details to HR departments about the talents ans power
that are mandatory to execute the task of merchandising so that it can gain their level of customer
contentment and fecundity and can build large customer base.
The impact on organisation structure due to their inter-relatedness is very huge as
each units of the structure are somehow inter-linked to one another so that the long term vision
of the business can be attain within a period of time. Tesco is the business enterprise that
operates their activities globally. It is mainly work with topmost to bottommost approach to
convey inside the structure about the targeted goals and the functions, roles and responsibilities
of each departments are diverse and has a vast impact on the firm. These different functions of
each departments help the business of Tesco to formulate the strategies and organisational
structure.
TASK 3
P4.Determine the affirmative and pessimistic impacts the macro environment upon the business
and provide suitable example.
The working of business is affected through various extrinsic component these factors
can be analyse with the assist of PESTLE analysis. Pestle is the means that is used by business
enterprise to determine all those factors which influences the macro environment of the business.
Political factors involves all those rules, regulations and policies that have been imposed
by the government bodies. All these policies must be adopted by UK retail sectors in order to
maintain their sustainability in the market(Onetti and et. al., 2012). UK retail sector have been
affected by these government interventions in positive as well as in negative ways.
Positive impact is that retail sector can survive in the UK economy as the authorities plan
of action over UK is stable and does not alter quickly and the negative impact is that too much
addition and decrement in the tax rate may decrease the opportunity of growth and expansion
Economical factors includes factors such as inflation rate, growth rate, foreign exchange
rate that would impact the collective need and multiple investments of the system. UK retail
sector uses these factors to determine growth rate(Palepu and Healy, 2013).
Positive impact is that it would help the UK retail sector to earn higher profits as the
economy is developed here and the negative impact is that the growth opportunity of the Retail
sector is less as the investment by the government towards retails sector is low.

Social factors are those which works on some ethics and norms, customer belief, and
their changing preferences. Retail sectors must opt these rules and regulation as this would show
nonstop consideration of society.
Positive impact is that it would increase the sales of retail sector rapidly and their
expansion and negative impact is that
Technological factors includes the intrinsic power execution as well as employment that
the retail sector turned to its customers.
Positive impact is that advancement and updated technologies helps the structure to keep
their commodity modify and the pessimistic impact is that too much updation in technology
would create complexity and will increase the cost.
Legal factors includes government institution and frameworks which has an impact on
the smooth working of retail sector.
Positive impact is that execution of right law in order to protect the employee's interest
the company can maintain employee's retention in the organisation and the negative impact is
that if the company does not implement proper law their public relations can be harmed.
Environmental factors are those which are inexhaustible and formulated by
organisations in order to achieve the vision with minimum rate(Schaltegger, Hansen and Lüdeke-
Freund, 2016).
Positive impact is that it would help the retail sector in managing the waste and negative
impact is that the forceful modification may also provide some commodity futile and will
comparatively let down the presentation rate of Retail sector.
TASK 4
P5. Conduct intrinsic and extrinsic investigation of particular organisations in order to determine
capability and failing.
Business enterprise uses SWOT analysis to analysis their area of strength and weaknesses
and all those possibility and danger that are forthcoming to them from their competitors in the
market(Iyer and Henderson, 2012). Strategic tool used by Tesco to determine their strength,
weakness, opportunity and threats are as follows:-
Strengths Weaknesses
 Tesco has its market share up-to 28.1%  Tesco uses low cost strategy in the UK

and is the leading retail sector of the
economy.
 Tesco offers a range of diversified
products which has built its large
customer base .
 Tesco uses updated technology for
operating their activities and provides
best quality services and experience to
their customers.
economy which has lower its profits
margin too.
 Due to the weak understanding of
oversees marketing Tesco failed to
operate their business in the USA and
Japan.
 Tesco has lowered its goodwill due to
its fraud practices and scandals.
Opportunity Threats
 Tesco have the opportunity to expand
their business in private label market as
these markets are still untouched.
 They can expand their business by
providing online services and home
delivery services to their
customers(Rose, Orrenius and
Neumann, 2013).
 Tesco have the opportunity to enter into
the joint venture with the local
companies so that they can understand
the market and improve their
performance.
 Tesco faces a great threat from the
price war as the competitors of Tesco
are great discounters and it is difficult
to compete with them.
 Changes in the government rules and
regulation is also a threat to the
business of Tesco as it will affect their
working.
 Rising costs of raw material is also a
threat to the profitability of Tesco.
From the above-mentioned table it is easy for the Tesco to gain their capability that assist
them to take introductory mover reward in the business(Tutunea and Rus, 2012).
Porter's five forces analysis: This is a business management tool that helps in examine
the competition of the organisation or business and their profitability. It is generally used to
shape the business and to increase their competitive advantage. In context of TESCO, this has
been observed that companies know a days focus more on their competitors so that they can do

better in compared to competitors and can build strong brand image which can be deep sited in
the mind of customers. Company like Tesco, have also adopted this tool so that they can know
the gauge of customer satisfaction and provide them with the best of it in comparison to the
competitors. To compete in the market they must look into all those 5 forces which influences
the customers perceptions -
Rivalry competitors in the industry – It focuses on the number of competitors
available in the business to cut down the organization. Company like Tesco faces a strong
competition from their competitor companies. Tesco has adopted the concept cost leadership
where the organization has kept its prices generally low in relation to the competitors due to
which rival have hard time in competing with Tesco. Tesco has established a large consumer
base.
Bargaining power of buyers-It deals with the power that a customers possess to drive
down the monetary value. For company like Tesco bargaining power of consumer is generally
huge. These compelling buyers can cut down the cost leadership value but will ensure that Tesco
will keeping making sensible profits as compared to its rivals.
Bargaining power of suppliers- This describe that how the increments in prices are
drive by the suppliers available in the market. It would also allow Tesco in determining the
number of suppliers available to them(Rocha, 2012). The fewer the number of supplier , the
more power company posses and have the advantage of earning high profits.
Threats of substitute-This shows that how easy it is for the customer to shift to the
products and services offered by other institution. Tesco faces less amount of rival from their
substitute as there are few substitute available in the market for the products and services which
is offered by the retail business like Tesco(Ismaeel and Blaim, 2012).
Threat of New entrance- This forces describes that how easy or difficult is for the
competitors to enter into the market. The danger of brand-new entrants in the market is relatively
low as there is barriers to entry . Companies wishing to enter into the industry have to pay a huge
amount of licensing to the government. The cost of setting up a new venture is high and rapidly
changing technology has made it difficult for new entrant to cope . Tesco can cope up with it
easily by making it services more efficient.