Business Report: Comparing NHS, TESCO, and OXFAM Businesses

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This report provides a comprehensive analysis of three distinct organizations: the National Health Service (NHS), TESCO, and OXFAM. It begins with an introduction to the concept of business and its various forms, followed by detailed backgrounds of each organization, including their vision, mission, objectives, size, scope, legal structure, and stakeholders. The main body of the report includes a task-based analysis of each organization, examining their business functions (HR, marketing, R&D for TESCO), organizational charts, and the impact of their hierarchical structures. Furthermore, the report delves into PESTLE and SWOT analyses of TESCO, highlighting the interrelationships between these analytical tools and how their findings influence decision-making processes. The report concludes with a summary of the key findings and their implications for each organization's strategic management. The report underscores the importance of understanding business environments, organizational structures, and strategic planning to achieve organizational objectives and navigate the complexities of the business world.
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BUSINESS
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Background of NHS...............................................................................................................3
Background of TESCO...........................................................................................................4
Background of OXFAM........................................................................................................4
Different business functions for chosen organisation............................................................5
Organisational chart, its function with advantages and disadvantages..................................5
Impact of hierarchical structure of Tesco...............................................................................6
TASK 2............................................................................................................................................6
PESTLE Analysis of Tesco....................................................................................................6
SWOT Analysis of Tesco.......................................................................................................7
Interrelationships between PESTLE analysis and SWOT analysis........................................8
Findings and how they influence decision-making process...................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
Business can be defined as an organization which are engaged in commercial,
professional or industrial activities. International business refers to the environment which is
there surrounding of any business in which international companies are able to run their
business. It comprises of economic, political, tax, cultural, legal and technological environment
which are there able to effect the business surrounding. There are two types of organization
which are profit and non-profit organization. Profit and non-profit organization are different
from each other in tax benefits and procedure of fee of creation etc. There are two types of
business like formal which is registered and informal business which are unregistered. In this,
report there is chosen company is NHS, OXFAM and TESCO. There are different sole traders
and partnership are there in different business entity. In this, there is introduction about size and
scope, mission, vision and objectives or business along with their legal structure and
stakeholders and many more which are there discussed further (Kirkwood and Pollock, 2019).
MAIN BODY
TASK 1
Background of NHS
National health services which are there in UK which was came in power in year 1945.
This was the structure which was began on 5 July 1948 on the appointed day. This responsibility
residing and appointed by governing party. This is very large in size and is available all over the
UK. This is the one which is operated in country and is on national level. and budget approx
£100 billion in this organization
Vision- There was the vision of providing the better health services with free health care.
Mission- Main mission is to deliver best quality of health care to their people.
Objective- NHS has the objective to provide free health care to everyone in relation to
better health of country.
Size- NHS has about 1.4 million staff members which includes doctors, nursing staff and
different staff members. Therefore, it make it a large organization.
Scope- This is national health system which is there in the UK which is a national
organization.
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Legal structure- NHS follows the umbrella body which oversees healthcare. This is an
independent body which functions can not be directly change or interfere in its function and
different decisions. NHS runs on hierarchical structure. In this, there are many layer and have
long chain of command which is from top to bottom (Shawarudin, 2018). This is the central
government organization.
Stakeholders- They are of people who are interested in significant services. Major
stakeholders of NHS are physician, insurance companies, patients, employees, pharmaceutical
firms and government.
Background of TESCO
It is a multinational brand which have multinational groceries along with general
merchandise and having headquarter in Welwyn garden city in England. It was founded in year
1919 which is by Jack Cohen in London. They are operating third largest retail shop and
supermarket there in world. They are having large size in market which are having the scope to
reach each and every customer which are there to buy any grocery product.
Vision- Tesco vision is to be one of the most valued business in relation to serving
customer.
Mission- Main mission is to be the champion for their customer in relation to helping
then for getting better quality of life (Achandi, 2018).
Objective- They want to be strong in non-food business with expansion of business for
high profit.
Size- Due to having the international brand there are about 367,000 staff members in all
over the world. Therefore, it is a large organization.
Scope- This is an international brand which is ruling in more than 20 countries and it a
global firm.
Legal structure- They are having the flat and hierarchical structure which are there able
to handle their low cost and employees and so it is a public limited company.
Stakeholders- Customers, creditors, suppliers, competitors, local communities,
government etc. are the stakeholders of Tesco.
Background of OXFAM
Oxfam refers to the global movement of people who are working to end injustice of
poverty. In this, there are many people in this organization who are tackling to inequalities which
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keeps people poor. This organization fight against the inequality and help in to make people life
better and of quality life. This is a non government organization which is there in all over UK.
Vision- Their vision is to build the world without poverty in which people can be able to
influence their decision which can affect their life, rights and being valued.
Mission- Main mission of Oxfam is to end the injustice which is there of poverty.
Objective- Objective of Oxfam is to create a lasting solution which is there to remove the
injustice of poverty.
Size- There are about less than 300 staff globally and around 10,000 staff along with this
there are about 50,000 interns or volunteers. So, it is a large organization.
Scope- This is an international organization which are serving all over the world.
Legal structure- Oxfam have the flatter structure in relation to Tesco because there are
not more people who are working in this organization. It is flatter and are not long (Hu, 2016). It
is a charitable organization which focus on the poverty and involve to remove it.
Stakeholders- There are different stakeholders who are there affected by actions of
Oxfam which are staff, volunteer, supporters, alliances, suppliers and governments along with
private sector and academic institutions.
Different business functions for chosen organization
Chosen organization is TESCO which have different business function like HR function,
marketing function, R&D function etc. which are going to be discussed further.
Human resource function
There are different role of human resources which includes hiring, selecting of people,
training, and providing compensation along with help in different performance issues. They are
the one who effectively instruct along with direct their employees towards the goal of
organization.
Marketing function
This is the one which is responsible to creating the awareness of brand which is there can
be resultant in increase in demand and sales of product there in market to enhance the
profitability (Koderi, 2018).
Research and development function
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This is the one which is there responsible for innovation in product and services along
with creation of new product for business. There is also function is that there is need to
modification in any product or service in relation to improving its quality.
When there is any new research and development then there is marketing of that new
research that can help to increase the awareness about the product and help to achieve the
demand of product and leads to high profit.
For example- When Tesco, introduces as specific detergent in its company. Then for it
sales, there is need to hire some employee that can help to creates high awareness related with
that product. This hiring can be done through HR function. Then employee can creates high
awareness my using different marketing strategy for increase sales of that product. And time to
time to enhance the sales there is need for development function that can helps to get better and
effective new supplement within products. And like this, it can help to fulfil objective of Tesco
by selling high quality product at least price to their customer.
Organizational chart, its function with advantages and disadvantages
Organizational chart Explanation Advantage Disadvantage
Hierarchical structure This follows the
pyramid structure in
which there is lower
are staff and higher are
CEO of company.
Opportunity of
promotion motivates
employees of Tesco
with increases
productivity of
company.
Salaries which arr for
multi layer increases
the cost.
Different function helps to get the organisational objectives
To achieve the organizational objectives, there is need to set small goals which can help
to get big goal of an organization. There is need to achieve small goals of an organization. In
relation to this, different functions of business is able to perform different task which helps the
business to get small goals in limited period of time. This achievement of small goal takes to lead
the company to get the big goal and objective which is there set by an organization. Each of the
business function complete their task on time so that leading business function is able to proceed
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further process and like this, all the functions of business work together to achieve the
organizational goal.
For example- for marketing purpose there is need of high finance for large organization.
When there is need for market some new product, there is need for high marketing on country
level or on international level which required high finance which can only be fulfill by finance
department. When this requirement is fulfil by finance department there can be task is done and
it can observe that there is increase in sales which shows the growth of organization.
Impact of hierarchical structure of Tesco
Due to having large company there is need to have better management structure which is
there followed by Tesco. Here, hierarchical structure is followed which have better impact on
company and each and every position have their own responsibilities which is monitored by their
higher authorities which make all the business function to run in smooth manner. In this, there is
long chain of command in which CEO is on top level then there is base level which is followed
by middle level (Dominici, 2017).
They work with proper coordination which is able to help them in managing all the
operational function that is highly helpful in attaining the objective. In relation to this, audit
committee are able to audit about the necessity and find out the problem and opportunity. And
then corporate responsibility committee is able to set the guidelines and direction which is there
according to audit. This helps the organization to achieve the objective accordingly by following
these guidelines. Nomination committee is there which can help to choose the corporate
governance that can help to get the objective of the organization.
Illustration 1: Tesco Hierarchy structure
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TASK 2
PESTLE Analysis of Tesco
This analysis is useful in examine different external factors like political, economical,
social, technological, legal and environmental which are having different impact on business of
Tesco.
Political- This is first and effective factor which is able to highly effect the Tesco
business. In this, there is need of stability in political circumstances. Better stability enhance the
better trade. Tesco is multinational company which means this can be highly effected by
different changes in political stability in different countries. There are different changes in
taxation, trade and different rules and regulation which is there directly effected by political
changes.
Positive- This can help to get better opportunity for business.
Negative- Due to unsuitability, can creates different problem for business.
Economical factor- Economy of company play a vital role in company business. Higher
the economy of country, higher is the sales which means there are higher impact of economy
which can effect the Tesco business. High economy gives customer to high purchasing power
and vice versa.
Positive- Organizational is able to do business accordingly.
Negative- Can impact on business operation on different places.
Social factor- Tesco is able to focus on the quality of food which is there to avoid
obesity like health problem which are there high in society. This focus make them able to
provide better health product which play a better role in society. Tesco need to invest in society
in relation to create better society which can help Tesco to get better business (Stamataki and et.
al., 2020).
Positive- Able to creates awareness about brand and its goodwill.
Negative- Takes time and to more focus on consequences during providing any services.
Technological factor- Tesco is using different technology which are there use latest
technology to attract high customer base. Customer are now able to pay online which is an
example of use of latest technology which helps customer to purchase and billing in least time
which is without any rush. There are different technology are using by Tesco to get better
business along with it helps in performing of different functions in less time.
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Positive- Can have high profit by using latest technology in organization.
Negative- High investment for implementing new technology.
Legal factor- There are different legal factors which are there able to effect the Tesco
business. In this, there are different laws and legislation which company needs to follow. Change
in this legal laws or legislation forces Tesco to change in their business function. This
modification or change needs high cost and time.
Positive- This can help to work with ethics and to aware about any chance in rules or
regulations.
Negative- Need to modify organizational structure accordingly which requires high
investment.
Environmental factor- People and government of different countries are focusing on
environmental issues which Tesco need to focus on minimum use of non-biodegradable product.
In relation to this, Tesco has launched the recycling process which is beneficial for environment.
They are also committed to renewable sources and promises to decrease their carbon footprint up
to 50% by year 2020.
Positive- Can provide benefit and less harm to environment.
Negative- To decrease impact, there is high need of finance and different technology
which requiem high investment.
PESTEL OF NHS
Political- This is the one in which there due to stable government there is proper
conduction of this system and able to provide high health benefit to their patients.
Positive- For better delivery of services can be there.
Negative- Change in regulation which requires time to implement.
Economic- due to change in the economy of country there is chance of getting
less fund and can impact on the better treatment of patients.
Positive- Large economy can help large population with effective treatment.
Negative- Less economy creates problem in reevaluation of healthcare due to insufficient
fund for paying employees and for treatment.
Social- There are high benefit to the society which is by providing free and better
healthcare for the patients.
Positive- Society can get easy and free healthcare services.
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Negative- Can impact on fund of government which is limited.
Technology- This is the one in which NHS uses the latest technology and always get
updated towards the technology which can help them to provide better and latest treatment to the
patients.
Positive- Can provide high benefit during treatment to healthcare professionals and
patients.
Negative- Can take time to learning its use and high cost of maintenance.
Environment- There is no any of negative impact on the environment and the products
which are used in for the treatment are biodegradable in nature.
Positive- Use of biodegradable products.
Negative- Creates more waste and large place to dump.
Legal- This can able to impact the laws that can create the impact on the regulation of the
healthcare system.
Positive- Can creates modification in different laws to provide easy and better services to
people.
Negative- Can take time and high investment for modification.
PESTEL analysis helps the business to get the information about cost-effectiveness along
with high understanding about the factor which can either directly or indirectly affects the
business environment and provide alertness and exploit opportunities. This leads to affect the
strength and weaknesses of an organization.
SWOT Analysis of Tesco
This is the analysis which is highly focused on the strength, weakness of company
along with opportunities and threat of this organization which is there in market.
Strength
Tesco is having leading market share
which is there about 28% of market
share in whole.
Tesco are many product choice which
is there in business.
Innovation is also the strength of
company which is big advantage and
Weaknesses
Need more investment in new
technology which can help to grow and
increase the productivity of Tesco.
Food safety issues is the weakness of
Tesco in which company is not able to
handle better packaging in relation to
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able to attract high customer base there
for business (Kelly, 2016).
Tesco have high adaptability which
gives high benefit during pandemic and
business earn high along with high
profit.
get better safety of their food products.
Tesco is weak in relation to control on
inventory which is there an incident
already happen. After-that company has
removed the expire product.
Opportunities
Growth of online grocery sales is
weakness which can easily been seen
during the pandemic and in relation to
this, other competitor like Ocado gets
high benefit due to having online
services.
Tesco have the opportunity to
implement the AI in their company and
need to learn the use of latest
technology which is there to increase
the productivity.
Threat
Economic recession is the threat which
is due to pandemic is there. Tesco need
to use appropriate strategy which can
help to get better business.
Tesco have another threat which is
entry of new rivals there in market.
There is high chances of getting new
rivals which are big giant can able to
come in market with big offer and get
high market share (Oluwoye, 2017).
SWOT FOR NHS
Strength
Regulated by government.
Free for everyone.
Weaknesses
Limited fund for NHS.
Huge requirement of fund on daily basis.
Opportunity
Chance to get more stakeholder for better
profit for high investment.
Can create crowd funding.
Threat
Loss of fund by government.
Need for high investment for better
delivery of services to patients.
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Interrelationships between PESTLE analysis and SWOT analysis
PESTLE is the one which is able to analyse the external factors whereas, SWOT analysis
is the one which can help to get better understanding of internal factors. This can help to get
better understanding about market which can have better influence on business (Sharma and
Pillai, 2016).
Findings and how they influence decision-making process
Strength and weaknesses can help to get better bushiness accordingly and can related
with different profit in business. This can help to get able to create awareness about business and
its value to customer which can lead to get better attraction towards customer interest. This leads
to influence the decision-making process of customer. Such like that, it can help to get better
sales and able to influence the decision-making process. This helps to get understand about the
long term effect on company performance along with activities for business. This helps to take
decision accordingly.
CONCLUSION
From above discussion, it can be conclude that there are different factors which are there
able to effect the business which is there on international and national level. In this, there is
discussion about the Tesco which is an international company. There are different analysis which
includes internal as well as external analysis of business which are able to influence the decision
making process and helps in to grow and earn high profit. There is some discussion about
different business function and their functions with advantage and disadvantage and their impact
on company. There is also discussion about the interrelationship between PESTLE and SWOT
analysis which is able to influence the decision making process.
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