Business Environment: Analysis of Organizations, Impact, and Functions

This report provides a comprehensive analysis of the business environment, examining various organizational types including private (Tesco), public (Crown Prosecution Service), and voluntary (Oxfam) organizations. It delves into their purposes, legal structures, scope, and size. The report further explores the relationship between organizational functions and their connection to organizational structure and objectives. It also assesses the positive and negative impacts of the macro environment, offering specific examples. Additionally, the report includes internal and external analyses of a particular organization, evaluating its strengths and weaknesses and their interrelation with external macro factors. The report aims to provide a holistic understanding of the business environment and its dynamics.

Business And The Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Various purposes and types of different organisations like private, public and voluntary
and legal structures as well.....................................................................................................1
P2 Scope and Size of various sort of organisations................................................................3
TASK 2............................................................................................................................................5
P3 Relationship between various organisational functions and their link to the organisational
structure and objectives..........................................................................................................5
TASK 3............................................................................................................................................6
P4 Positive and negative impacts on the macro environment with the particular examples..6
TASK 4............................................................................................................................................8
P5 Internal and external analysis of particular organisation for analysing the strength and
weakness.................................................................................................................................8
P6 Interrelation of strength and weakness with the external macro factors...........................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is the combination of external and internal factors like
requirements of customers, expectations, suppliers, owners and supply and demand as well.
Along with this there are lots of activities which is playing by the government like economic
changes, market trends, technological change and so on. Therefore, business environment is
much helpful for analysing the useful resources, business opportunities in order to improve
overall growth and performance of business in an effective manner. Being a business analyst this
report is divided into three parts such as private organisation wherein, TESCO has been selected
which is the world's best grocery store in the UK. After that, Crown Prosecution services has
been taken as the public organisation which identifies the criminal prosecution in England. At
last volunteer organisation is based on Oxfam that is an alliances of 20 independent charitable
trust for reducing poverty globally. Along with this, various kind of scope and size of
organisation and relationship with different functions and their link to organisational structure
will get covered (Al-Saleh and Mahroum, 2015). At last, suitable examples in order to know the
negative and positive impact on the macro environment for operating business operations and
identifying the strength and weakness of proper business with their interrelationship with
external macro factors will get covered.
TASK 1
P1 Various purposes and types of different organisations like private, public and voluntary and
legal structures as well.
Private organisation: These types of organisation can be the person, partnership and
agency which is never operated by the public. Along with this, these organisations includes in all
kind of businesses that are not operated by government agencies. Apart from this, private
companies always have 2 to 50 employees in order to manage their business operations. In
reference to the TESCO, as they are dealing with lots of grocery items so that they have
sufficient employees and it was formed in the year of 1919 by Jack Cohen.
Purpose: TESCO is one of the best multinational general merchandise and groceries
retailers store and headquartered in Welwyn Garden City, UK. Therefore, this company has
particular purpose to offer best services to their customers everyday. On the basis of this they can
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make their trust on this company easily. Along with this they can meet their desirable goals by
using this purpose and always their duty to fulfil customer's requirements effectively.
Legal structure: As per this, TESCO mainly follows the hierarchical structure, in this
all kinds of obligation and positions are segmented in the different parts which always ensures
that work will be completed in a proper and smooth manner. On the basis of this the manager of
this organisation can manage their overall operations of an organisation and able to maintain
employees working performance easily.
Stakeholders: They can be the person in any kind of business entity or they can be an
individual which always make effective results in order to manage their organisation value in
front of others. They are includes in the form of shareholders, employees and customers as well.
Public Organisation: These sort of organisations totally depends on the different types
of companies which is operated and manage through the government and always ready to offer
best services for the people in the society (Bah and Fang, 2015).In context with, Crown
Prosecution Service, they always identifying the criminal prosecutions within the Wales and
England. Along with this, it was founded in the year of 1986 through the Paul Staff for managing
the situation into the marketplace.
Purpose: Crown Prosecution Services have aim to reduce the crime which is scanned by
the police in Wales and England. With the help of this purpose, they always offer good and legal
advice to police and investigating agencies. They always conduct different types of services in
the secondary sector and than collect information after that provide good advice in an effective
way.
Legal structure: It mainly identifies the top level of of this respective organisation. In
regards with this, this company emphasis on different types of evidence and policies in order to
appropriate decision and develop effective plan according to the current situation. Legal
structure is the good thing to communicate with other people and make proper benefits to people.
Stakeholders: Under the public sector stakeholders plays very effective role like an
government employee, financial institutions and so on. In which they can influence by the
different types of policies and industrial structure.
Voluntary Organisation: It is the set of action and activity which is not controlled and
directed by the state. Along with this, is the kind of another activity which is owned by the
government and external members. In regards with Oxfam, this is the alliance of 20 freedom and
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independent charitable trust that always works for minimising the poverty from the globe. It was
established in the year of 1942 through Cecil Jackson-Cole in England. Apart from this it is not
profit administration organisation in an effective way.
Purpose: The main aim of this organisation is to make better solutions for each issues in
order to reduce poverty. Herein, vision is to make happy world without any issues. Therefore,
this respective organisation makes this type of decision so that people can understand their roles
and duties and able to live happily. Wherein, mission is to develop equality within the globe.
Legal Structure: It emphasis on various parts of organisation like unincorporated
association, trust, believe and company's interest in communities and so on. There are some
terms which is following below in brief:
Legal needs: It mainly consist different kinds of laws such as compliances checklist,
charity laws, legal advice which all are helpful for this organisation so that they can follow these
sort of structure.
An Unincorporated association: It is the group of people in which not much legal
existence. As per this all legal decision are take by the group of people.
A Trust: According to this term people works together in the one firm and always
manage their work in a systematic way. This respective organisation offers effective fund for the
community of welfare. Furthermore, trustees are only one who are able to develop effective
contract on the basis of believe (Breckova, 2016).
Stakeholders: Who is always interested and make proper benefits for the organisation
always comes under the volunteer organisation. Ii is mainly comes in the founders, staff
members, beneficiary, volunteers and donors as well. Apart from this there are several kind of
stakeholders like project team, project members, sponsors, customers and so on.
P2 Scope and Size of various sort of organisations.
Public organisation : Crown Prosecution Service
Product and Services Size and Scope Vision mission
According to the
Crown Prosecution
Services, they always
offer various legal
CPS operate its
800,000 prosecution
under this system. In
which they have 600
Vision is to make
organisation with fully
freedom and becoming
the most advisable and
Mission is to develop
effective behaviour
within the
marketplace. With the
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advices to the police
and investigating
department or kind of
agencies. They mainly
collect the information
and implement on
them in a right
manner.
staff members and
2900 solicitors within
the working place.
valuable for people. help of this, they can
make strong
relationship with their
colleagues and
customers as well.
Private Organisation : TESCO
Product and Services Size and Scope Vision mission
TESCO offers
different types of
merchandise and
grocery products with
several kind of designs
and shape. With the
help of this they can
influence people by
giving them effective
goods and services
accordingly (Charter,
2017).
The scope of this
organisation is very
good as they always
have higher sells by
giving best product to
their customers.
Wherein, size is also
very wide as they
manage 7000 stores
within the world by
offering effective
quality of services .
scope regarding to the
level of the market in
which it sells its
product and services.
Along with this, this
respective organisation
has largest shop in
The main vision of
TESCO is to
becoming the world's
best retailer of the
grocery and
merchandise products,
by offering better
quality in their
products.
Mission of TESCO is
to design its stores in
an effective way, so
that customers can
easily buy their
desirable product. By
using this strategy
company is able to
meet their goals in a
proper way.
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England with the
17,230 square metres.
Voluntary Organisation :Oxfam
Product and Services Size and Scope Vision mission
In this type of
organisation Oxfam
provides few advice
and make proper
strategies in order to
reduce poverty and
improved living
standard of people. On
the basis of this they
will apply few concept
on the marketing
product so that people
can easily purchase
any product in the
proper way.
The scope of this
respective organisation
is high because they
will always make
strategies for
minimising poverty
and the size of this
organisation is 20
charitable trust and in
this all people works
together properly
(Erasmus, Strydom
and Rudansky-
Kloppers, 2016).
Vision of Oxfam is to
prepare good pricing
strategies for the
consumer's benefits.
Oxfam mission is to
minimising the poverty
from globe and
improver people
standard effectively.
Along with this
remove inequality
concept from the
workplace.
TASK 2
P3 Relationship between various organisational functions and their link to the organisational
structure and objectives.
As per the present context, there are several kinds of departments in which any
organisation can perform their every operations and activities in a proper manner. On the basis of
this they can show their interconnection with different ways in order to attain their specific goals.
In reference to the TESCO, they have different sort of departments by which they can work with
them and able to earn equal profits with higher sales and revenue. Therefore, there are different
types of interrelationship of TESCO with other departments, those are mentioned below:
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Sales Department: This department is very important in each and every company, which
shows the interrelation between company's product and customer's requirements. Along with
this, sales department always works for maximise the enough profit for organisation and generate
proper strategies for price. For improving this situation sales department generally apply
effective and unique ideas in order to develop good pricing concept within the market. In
reference to the TESCO, they always try to make strong relations with the customers to achieve
their goals. Due to this they also responsible to always take care of the customer's requirement
for bringing peaceful strategies for their customer's. Therefore, it shows the interrelation of
company and their sales department in order to maximise customer's trust towards this brand.
Human Resource Department: According to this, employees of the companies are able
to accomplish their goals and requirements by the HR manager of an organisation. In reference
to the TESCO, HR department plays very significant role in order to manage employees working
performance and also able to lead or guide them in order to achieve their goals in an effective
manner. On the basis of this, TESCO is depends on the HRD because both aspects works for
motivate to their employees to achieve objectives and goals. Along with this HR has duty to hire
appropriate candidate for particular job profile (Grigore and Drăgan, 2015).
Marketing Department: It is much important for every organisation in which
employees can perform their activities in order to achieve their targeted goals effectively. On the
basis of this TESCO mainly depends upon the marketing department just because this
department only the one who always helps customer's by giving them proper goods. Along with
this there are several kinds of distribution channels like marketing mix, advertising, promotion of
sales and so on. Therefore, both are interrelated with each other for achieving their goals.
According to the above discussion this can be said that, all the above departments are
very much helpful for TESCO by which respective organisation can achieve their desirable
objectives. With the help of this they can increase their sales and higher profit in an appropriate
way. For example: all those functions are effective and essential for the company in order to
meet desirable goals, by using this they can stay in the market for long period of time.
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TASK 3
P4 Positive and negative impacts on the macro environment with the particular examples.
The company Tesco is one of the biggest organisations which deals in retailing sector in all
over the world. The operations and the business environment of the TESCO is affected by
many factors, that can be micro and macro factor. The micro factor are those which are
available within the organization boundaries and also be control by the organization. Some
micro factor are organizational structure, ethics, values, organizational culture and many
more. If we talk about the macro factor, the factor which are outside from boundaries of
the business and they cannot be controlled by the organization, some of the macro factors
are political, economic, technological, legal, social, competitors, suppliers, stakeholders
and many more.
The TESCO is using PEST for analysing the operations which affect the organization
from outside the business, that are described below:
Political Factor: This factor includes governing policy, tax policy, governmental
stability, foreign trade policy, labour laws, company law, environmental laws and many more.
As TESCO is a largest company which deals in various countries, where they have their
suppliers like japan, USA, Germany and many other countries, if government policies, and law
changes then, it affects on all over the business of Tesco. This factor is very effective, as it helps
TESCO working legally and ethically without any dispute. The negative point of this factor is
Change in policies of import and export by the UK government, as it will result in the huge loss
in profitability of company Tesco.
Economical: This factor deals with the economic factor of the country, which is essential
for effective result of industry, this factor includes in inflation, defilation, exchange rates,
demand and supply, price, interests’ rates, wages, tax rates, unemployment rates, rescission. As
TESCO is a UK brand, where there is a very good economic situation which helps Tesco in
generating the business at high level for their growth and success. As good economy in UK, the
UK government can provide the rebates in various taxation and prices which is very helpful to
Tesco to sell his product and services on the other hand Increase in rates of interest and taxation
will directly affect the business which is not good for the organization.
Social: The social factor can be described as cultural, beliefs, ethics, value within a
certain area where activities are taken place. This macro environmental factor includes the
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sociology characteristics, standard, duty and belief of individual as well as groups within the
organization area. This factor helps in solving the problems as Tesco is factor which help in
creating the brand image and the profit maximization as well as market share in UK. The
positive effect of this factor is that, it helps in various activities of organization such as it also
helps in creating the reputation and the brand image in market and also helps in improving the
productivity and efficiency. It is forces to the company, this factor and CSR activities, if
company don’t follow this directly impact on their brand image.
Technological: Now a days, technology is the most important and necessary factor for
each and every organization. The company Tesco has kept themselves updated with different
new technologies, which they can execute well in their working and also helps in improving the
productivity of each individual. The technology help Tesco in creating and updating their system
more effective and accurate, so it increase the productivity and the performance in the market
place. On the other hand, if company adopting new technologies for the updation each and every
time of period this will increase the large number of cost and investment.
TASK 4
P5 Internal and external analysis of particular organisation for analysing the strength and
weakness.
TESCO is the largest British multinational merchandise and groceries retailing store,
which was formed in the year of 1919 and also operating their more than 7000 stores around the
world. On the basis of this SWOT analysis of this respective organisation is given here by
identifying the strength and weakness, threats and opportunities, those are as follow:
Strength Weakness
As TESCO is one of the best leading grocery
retailer market within the UK. So that they
have more than 500000 employees within the
globe. Therefore, it is the number one growing
company who support their customer's and
fulfil their needs at the right time (Hair Jand
et.al., 2015).
The main reason of TESCO is that they have
failed few operations within the US and Japan.
Along with this, respective company was
charged with higher pay in order to
misrepresentation of sales. Therefore, some
times they are not able to give effective output
to their customers.
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Opportunity Threat
TESCO has opportunity or chance to develop
their effective goals and objectives in order to
gain competitive advantages. As they are
giving better products and services to their
customers so that they can achieve their goals
in the perfect way. By taking lots of
opportunities they can enhance their sales at
higher level.
TESCO faced so many challenges within the
competitive world while launched Christmas
ad within the 2017. therefore, he also faced
other issues like Brexit referendum. Apart from
this they also face economic crisis and lots of
competition in order to gain supermarket
values in an appropriate manner.
P6 Interrelation of strength and weakness with the external macro factors.
At the present context, each and every organisation has various kind of their strength and
weakness for achieve their particular goals and target in a proper way. For this there are different
types of external factors in order to operate business functions in both aspect negative and
positive. In context with TESCO, as they are having vision to gain competition in the business
environment by giving higher satisfaction to their customers (Hamilton and Webster, 2018). The
interrelation between the strength and weakness of macro environment, those are listed as under:
Political Social Economical
TESCO is the largest
British multinational
retailing stores so that
they can affected by
the changing policy
and rules within the
UK market. Therefore
they are needed to
follow each policy for
managing their
business in the
According to this
factor TESCO have to
keep different types of
product with effective
and proper design in
order to make their
proper sales by
providing goods
according to the
people choice.
In each and every
organisation labour
cost is very much
important so that
influence the
supermarket of UK.
Therefore, TESCO
need to maintain their
cost like inflation rate,
economic growth and
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competitive world.
Along with this it
includes some
policies, laws and
government policies.
so on.
Strength If TESCO will apply
all laws in their
business functions
than they can manage
their business in a
proper way.
If TESCO will focus
on the life style of
people and able to
make product
accordingly than they
can get their goals
easily.
According to this,
TESCO is capable to
give effective cost to
their labour by which
they can earn effective
goals in an effective
manner.
Weakness If TESCO will not
able to follow all these
government rules than
they can loose their
potential customers
and good profit as
well.
If TESCO will not
considered the safety
aspects than they can
get lower satisfaction
from customers and
not to attain proper
goals.
TESCO is needed to
maintain all kind of
growth rate. But some
times company is not
able to have any idea
about economical
condition of UK
supermarket.
Technological Environmental Legal
Technology is one of
the best factor which
influence lots of
people in an positive
manner. It depend
upon the TESCO in
order to apply advance
technologies in their
TESCO needs to apply
effective
environmental policies
and proper strategies
in order to stay in the
market for long period
of time by using the
According to this
TESCO needs to apply
legal changes as per
the current situation.
With the help of this
they can make proper
changes in their
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products so that they
can grab potential
customer's.
proper techniques. marketing scenario.
Strength With the help of using
innovative techniques
in the product and
goods they can earn
higher profits easily
(Hillary, 2017).
TESCO is very
famous company who
always cope up with
current situation of the
UK supermarket in a
effective way.
The main thing is that
TESCO can easily
apply effective legal
laws on their business
operations, for achieve
their goals.
Weakness If company will not
apply new techniques
on their production
strategies than they
can loose their sales in
a negative way.
If TESCO will not
follow the
environmental changes
so that they can not be
sustain for the long
time in the
marketplace.
Due to few changes in
the environment
company is not able to
apply laws and legal
rules on their functions
and can loose their
customers.
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CONCLUSION
According to the above respective report it has been concluded that business environment
refers to the internal and external factors by which company's functions can get influenced in a
positive and negative manner. The present report is based on three types of organisation like
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public, private and volunteer which have different types of functions and operations in the
marketplace. On the basis of this report, various sort of size and scope of each organisation had
been covered by which people can understand the functions of an organisation. Wherein, TESCO
played an very effective role and also this organisation is interrelated with sort of departments by
which people can influence and able to buying their product with medium price. Apart from this
SWOT and PESTLE is also much helpful for analysing the several methods for generating better
results as well as higher profits.
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