HNBS 301 Business and the Business Environment: A Comprehensive Report

This report provides a comprehensive analysis of the business environment, focusing on three distinct types of companies: Tesco (private), BBC (public), and Wellcome Trust (voluntary). The report begins by defining and differentiating between private, public, and voluntary sectors, outlining their legal structures and purposes. It then explores the scope and size of each company type, examining Tesco's multinational operations, BBC's public service role, and Wellcome Trust's focus on social welfare. The analysis extends to the interrelationship of organizational functions, specifically highlighting the connections between marketing and finance, as well as HR and marketing. Part 2 of the report delves into the external and internal factors influencing business operations. It includes a VRIO analysis, a PESTLE analysis, and a SWOT analysis of Tesco, examining the positive and negative impacts of the macro environment and linking strengths and weaknesses to external factors. The report concludes by summarizing key findings and emphasizing the importance of understanding the business environment for strategic decision-making and organizational success.

Title HNBS 301 Business and
the Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
PART 1............................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain different types and purpose of company: public, private & voluntary sectors along
with legal structure......................................................................................................................3
P2 Explain size and scope of various types of companies..........................................................4
TASK 2............................................................................................................................................6
P3 Interrelationship among organizational functions.................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES ...............................................................................................................................8
PART 2 ...........................................................................................................................................9
INTRODUCTION ..........................................................................................................................9
TASK 3 ...........................................................................................................................................9
P4 Determine positive & negative impacts of macro environment on business operation.........9
PESTLE ANALYSIS....................................................................................................................10
TASK 4..........................................................................................................................................12
P5 Conduct SWOT of company................................................................................................12
P6 Explain how strength and weakness are linked with external macro factors......................13
CONCLUSION .............................................................................................................................14
REFERENCE.................................................................................................................................15

INTRODUCTION
Business environment includes internal and external forces which can affects the
function, operation and activities of company. For this it is vital to coordinate and collaborate all
function together for smooth running (Ivanovich, 2020). In present report, a private company,
Tesco is selected, a voluntary company, Wellcome Trust and a public sector British Broadcasting
company is chosen. In which this report covers different types of company on the basis of scope
& purpose. Additionally, relationship among organisational functions.
MAIN BODY
PART 1
TASK 1
P1 Explain different types and purpose of company: public, private & voluntary sectors along
with legal structure.
Organisation are formed for performing different operation in order to gain specific goals
or objective. In business environment there are three different types of company i.e. private,
public and voluntary. All these have different aim and purpose & there existence in market
shows different purpose (Saleh and Watson, 2017). In which brief discussion of all these are as
follow:
Private company: Such types of firm operates their business with the aim of earning
profit & they are self sustaining or non federal entity. It includes partnership group, association,
agency or corporation. Tesco, M&S, Sainsbury etc. are the examples of private companies which
operates their business at international level.
Legal structure of private company
Sole trade- Sole traders are those who manages and handle their business operation itself.
They are only responsible for loss or profitability. Owner possess responsibility to carry out
activities that are linked with operations legal & financial aspects.
Partnerships- In such types of business there is less requirement of fund along with it the
risk involvement is less. In this there are two or more than two partners work together. John
Lewis is an example of this type of business unit.

Private limited company: These types of firm are authorise by private proprietor and are
not permitted to sell their market shares in market. For instance, Airdri
Public limited company: Such firm's are free to sell their market shares in market for
gaining huge amount of capital. For instance Tesco, Sainsbury's etc.
Public company: These types of companies are mainly governed by government with the
aim of offering services or products. Additionally, they contributes their large section towards
economy of nation. Example are gas, oil, steel fertilizers and many more (Hamilton and Webster,
2018). Primary aim of private companies is to increase the profitability for development and
growth of nation. British Broadcasting company comes under public organisation. Lawful
structure of public companies are as follows:
Central government department are owned by state government.
Local authorities are managed & controlled by local authority.
Voluntary companies: Main aim of operating these firm is to provide social welfare and
development to the individual of nations. Wellcome trust is an example of such type of company.
This was founded by Henry Wellcome in 1936. there legal structure are as follows:
Trust- there are specific trustees who provides funds for the welfare of society
Others- Community, royal charter bodies etc.
Un-incorported association – These refers to those which mainly committed to to
perform task and operations.
P2 Explain size and scope of various types of companies
All companies have different scope, vision, size and mission and offers different
products. All these wish to maximizes their stakeholders for enhancing capital with their
assistance so that firms will able to sustain and operates for longer period in market. Scope &
size of companies are as follows:
Private Ltd. : Primary aim of these types of companies is to increase profitability by
attaining predefined goal and that is laid by tip management. Tesco is a multinational
organisation and has supermarket chain in retailing industry of UK and making more profit.
Objective of this firm is to increase market shares by offering various products to increase sales
(Vision, values and business strategies A Tesco case study, 2020). These firms made adequate
research studies towards consumers and on that basis make required modification for consumers
offerings.

Background : Tesco is a leading firm and has largest supermarket chain in UK. It was
founded by Jack Cohen in 1919. Since past decades they offers qualitative products to
consumers.
Vision: To create high valuable business by providing qualitative commodities, services
and goods to end users.
Mission : To maintained sustainability for employees in order to offer good quality
product to customers.
Objective: To increase market shares by earning more profit across globe.
Product: Tesco company has a largest supermarket chain and deals with groceries,
luxurious home products along with cloths.
Size: Tesco is a multinational company and have more than 450000 number of
employees.
Structure: Functional organisational structure is followed by Tesco as it make easiness
for managers to spread information all each level.
PLC (Public limited company): These firms are the part of public sector by legal
framework at any degree. For instance BBC( British broadcasting company)
background: BBC is a public service sector , headquartered of this is in London. Established by
John Reith in 1922 and launched by royal charter. It offers services like media, sports, digital and
culture (BBC MISSION & VISION STATEMENT, 2020).
Service & product: BBC offers information related with digital media on TV, Radio,
internet etc.
Vision : To become world most creative and innovative business unit.
Mission: To provides relevant information to consumers with assistance of news session
and entertaining programs.
Size: Currently the total number of staff with in BBC company is more than 20916.
objective: To provide knowledgeable & entertain programs to customers across the
world is main objective of BBC.
Structure: BBC follows Hierarchical organisational structure.

Voluntary sector: Such firm operates their business for the welfare and development of
society. Their primary aim is not to make money but they wish to do good foe society well-
being. Wellcome trust is an example of voluntary company of UK (Wellcome Trust, 2020.).
Vision: To increase health of individual & animals on that biomedical research is carry
out.
Mission : To do well in biomedical research and for individuals benefits.
Size : Around 1797 employees working in this company
Objective: To improve the health of community peoples and provides funds to various
biomedical research.
Structure: Wellcome Trust follows matrix organisational structure.
TASK 2
P3 Interrelationship among organizational functions
Marketing & finance: The role performed by marketing department is to carry out
effective promotional activity in order to influence ample number of consumers towards their
offering. For which they needs funds and that is provided by finance team of company and on
that basis they will formed cash flow for promotion. In relevance to Tesco company, marketing
department organises campaign & advertisement with the assistance of finance departments. This
interrelationship affects organisational structure of company. As it supports in effectively
utilisation of funds and capital of company. So it is important to maintained good relationship
among all department.
HR & Marketing : Main role of HR department is to recruit, hire, select best and suitable
candidate who perform well within company so that goal will be achieved. In which marketing
department has to post the vacant position & promote services offered by firm. Apart from this
marketing department of Tesco company is responsible for effective market research &
determine requirements of consumers. Entities of marketing offers information about vacant
position to HR departments. This aids company to recruit potential and appropriate candidates
for marketing team (Eling and Schaper, 2017). This increases their productivity and leads to
attaining the goal of high quality staff.
Organisational structure : Organisational structure that is followed by Tesco company
is functional structure which assist in enhancing operational efficiency by engaging employees in

their assigned roles and authorities. In this each and every department are managed and
organised by a specific mangers so that goal will be attain within stipulated time frame.
CONCLUSION
From above discussion it has been concluded that there are various types of organisation
which operates their business for the different purpose such as private company operates its
business for making profit, public operates for offering services for public welfare and voluntary
operates for improving the living standards of individuals. Additionally, it is vital for firm to
collaborate & co-operates with all departments within firm so that goal will be achieved on time.

REFERENCES
Books and journals
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
Operational Research. 258(3). pp.1082-1094.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Ivanovich, K. K., 2020. About some questions of classification of institutional conditions
determining the structure of doing business in Uzbekistan. South Asian Journal of
Marketing & Management Research. 10(5). pp.17-28.
Saleh, A. and Watson, R., 2017. Business excellence in a volatile, uncertain, complex and
ambiguous environment (BEVUCA). The TQM Journal.
Online
Vision, values and business strategies A Tesco case study. 2020. [Online]. Available
through :<https://businesscasestudies.co.uk/vision-values-and-business-strategies-a-
tesco-case-study/>
Wellcome Trust. 2020. [Online]. Available through: <https://wt-globalhealth.cam.ac.uk/about-
us-hs>
BBC MISSION & VISION STATEMENT. 2020. [Online]. Available through: <https://mba-
tutorials.com/bbc-mission-vision-statement/>

PART 2
INTRODUCTION
In business environment there are various types of external and internal factors that
influence business activities, operations and function of company. In that conditions it is vital for
companies to analyse all these factors before expansion or devising any strategies. In order to
understand all these, a company is selected which is Tesco. In following part discussion about
VRIO, SWOT and Pestle is carried out for determining strength, opportunities and external
factors of company.
TASK 3
P4 Determine positive & negative impacts of macro environment on business operation.
VRIO analysis of TESCO
Value- TESCO is the one which is able to provide the valuable products to their
customer which initiates their customer to buy their products. This creates the positive market
reputation which is due to awareness of the brand, awareness of brand and human resources.
Rare- Food products can't says to be rare but their resources such as employees, patents
and distribution network of the company are the rare one. Awareness of the brand is rare along
with human resources with positive market reputation is there. Positive market reputation and
human resource and the brand awareness is rare (Cherunilam, 2020).
Imitable- Patents and the distribution network are the one which can't be imitated due to
having their specific quality. Products of the TESCO can't to be said as imitable. Positive market
reputation and awareness of the brand is there which can be imitate.
Organisation- The financial resources and the distribution channel and network are the
one which are organised in the TESCO. Patients are not well organised in this brand. They are
having the better reputation than the other company and the human resource are well organised
which help in for high level of advantage to the company and leads to the increase the
productivity.
Resources and
capabilities
Value Rare Imitable Organisation Competitive
advantage
Positive YES YES YES YES Long term

market
reputation
competitive
advantage
Awareness of
brand
YES YES YES NO Moderate
competitive
advantage
High customer
rating
YES YES NO NO Moderate
competitive
advantage
Human
resources
YES YES NO YES Strong
competitive
advantage
PESTLE ANALYSIS
Factors Introduction Positive Negative
Political factors There are many thing which are
there to effect the business of the
TESCO. In this, one of the most
important one is the effect of Brexit
referendum which has applied in
this year 2020 which has created the
shortage of the market for the sales
of the products (Meissner, 2016).
This can help in
creating the high
value of the
company when
they are able to
deal with the
company which
has created the
high level of
awareness.
Due to Brexit,
there is loss in the
productivity which
leads to less profit.
Economic
factors
Due to Brexit there is change in the
economic status and there is also
the effect of the covid impact which
created large unsuitability.
Company can use
the diversification
to the international
market for higher
profit.
Due to unstable
economy, TESCO
is not able to make
high profit due to
reduce in the sales

of the brand.
Social factors There are many initiatives which
are there taken by the company
which is there for the society which
like reducing the use of plastic and
are having the organic products
which are the high demand of the
customers.
The awareness of
the brand is getting
improved.
This creates high
cost which creates
less profit for the
brand (Steger,
2017).
Technological
factors
This is the one which is responsible
for bringing change in the TESCO
like installing of the scan and pay of
bill by using the mobile.
Saves time along
with energy which
can helps in
improving the high
number of
creosotes in less
period of time.
Using the new
technology or any
update in the
technology takes
high training along
with high cost.
Legal factors This is the due or having many laws
and legislations which company
need to follow for rules of each
country where they are having the
business (Hillary, 2017).
Following all the
rules and
regulation can help
in building the trust
in their costumer.
There are many
countries which
laws and
regulations which
need to follow the
TESCO.
Environmental
factors
This is the one factor where
different institution and also the
government are forcing for reducing
the governmental issues. Adopting
new technology which is there for
the purpose of recycling.
Recycling creates
the reduction in the
environment harm
which also attracts
the customer for
using their product.
Hence, increase in
sales.
Installation of eco-
friendly techniques
high investment by
the TESCO.

TASK 4
P5 Conduct SWOT of company
SWOT analysis is a tool that is used by companies in order to analyse inner strength &
weakness along with external opportunities and threats. In order to maintain sustainability and
growth, it is important for company to perform SWOT analysis. It provides ideas for working
effective business SWOT analysis of Tesco is underneath:
Strength Weakness
 Tesco is one of the leading company in
grocery retailing of UK and have no.
one position in supermarket as they
makes higher sales and revenue
thought out the world.
 Tesco adopted many best and
innovative technologies in best
effective manner for increasing
experiences of consumers.
 Have high innovative M-commerces
facilities along with mobile payment
application.
 In some regions Tesco company fail to
do effective research and that leads to
loss for company.
 Tesco company have high debts and
credit card liability as financial
profitability of company got affected
(Beatty, Samuelson and Abril, 2018).
Opportunity Threat
 There are many opportunities available
for Tesco company for expanding
business in many nations where they
have not yet entered such as south
Korea due to their global presence with
the help of effective and good market
research.
 They have opportunity to develop
effective strategic partnership with
 Tesco company faced so many social
media backlash during Christmas eva
advertisement. This reduces the loyalty
of consumers towards offerings.
 As United kingdom is not a part of EU
and that major affects the trade deals
and cost of Tesco company.