Business and its Environment: Analysis of Organisation & Factors

This report provides an analysis of different types of organisations, including private, public, and voluntary entities, examining their size, scope, and legal structures. It focuses on Tesco Plc, UKTV, and National Trust UK as examples, detailing their business purposes, products, services, market share, and organisational structures. The report further evaluates the impact of macro and micro factors on businesses, presenting a SWOT analysis of Tesco and discussing the interrelation of these factors with internal strengths and weaknesses. The organisational structures, such as hierarchical and flat structures, are explored, highlighting their functions in facilitating communication and delegation of responsibilities within businesses. This document is available on Desklib, a platform providing study tools and resources for students.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
1) Different types of organisation...............................................................................................3
2) Size and scope of the organisation..........................................................................................6
3) Organisation structures and functions.....................................................................................7
PART 2............................................................................................................................................9
1) Critical evaluation of various macro and micro factors on business'.....................................9
2) SWOT analysis of Tesco......................................................................................................10
3) Interrelation of various macro factors and internal strengths and weaknesses.....................11
CONCLUSION .............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
A business can be called as a place where activities does take place through person with
the purpose of earning money. So for all the businesses it is essential to examine all the aspects
within the market so as analyse all those factors which may influence their business operations in
order to implement strategies in the business process. The examination of business environment
is helpful in recognising numerous threats and strength which enable the business in analysing
their prevailing opportunities in order to grow in the marketplace. Within this report various type
of organisation are taken with scope and stakeholder so as to determine their capabilities. Further
organizational structure are examined with the view to understand different functions which are
exercised by businesses. On the other hand, for finding out the influence of internal and external
factors all of these factors are analysed (Aithal, 2016).
PART 1
1) Different types of organisation
The organisation in a concern which includes numerous people and undertaken resources
with the purpose of serving society or to earn profits or may be for both the purposes. It is
configured all with labour, management and other basic principle. The success of any business is
dependent upon organisational structure, owned resources and efforts made by them during
business operations. The different organisations are bifurcated on the basis of their size, purpose
of operation and nature, so various type of organisation are explained as under:
Private organisation: The organisation which are constituted and directed by an
individual or set of individual with the main purpose of making profits are termed as private
organisation such as Tesco Plc.
Business purpose: The major purpose of running private organisation is to make
providing with the help of supplying huge mixture of products to the customers. With the view
of this, business try to innovate their services and product so as to introduce new alteration and to
earn more profits by attracting number of customer. For example Tesco Plc is running to make
profits (Ajayi, 2016).

Size: As Tesco is having 450000 employees and they operate their business in near about
13 countries including South Korea, Japan etc. Tesco is a single British company which is
having their operation in various countries.
Scope: Tesco is a multichain supermarket retailer which is having large variety of
products in their outlets. They deals in diversifies range of products such as books, furniture, hair
care products, skincare products etc. As they are operating in so many products they have a very
large scope in capturing big market size, which result them high competitive edge in the
marketplace.
Legal structure: The legal structure which is followed by such profit making organisation are as
under:
Sole proprietorship: The organisation which are owned by a single person that means
all the directive and formulation decisions are taken by a single authority is known as sole
proprietorship. As due to low legal implications, the risk are beard by them only with sole
control over investments (Athique, 2017).
Company: Company are the entities under which funds are endowed by capitalist by
investing in shares of the company, so the profit of the company is divided amongst all these
shareholders. A company is regulated by several laws made by the legislation, so the company in
which funds are invested by general public is known as public company and the company which
funds are invested privately is known as private company.
Partnership: Partnership is regulated by tow or more persons so as to operate the
business effectively. Under this a partnership deed is made which is a set of rules and regulation
of partnership business including profit and liability sharing.
Public organisation: The businesses which are monitored and managed by government
body with the purpose of benefiting the society is known as public organisation such as UKTV.
Business purpose: These organisations are supported by the government so their major
purpose is to cater society for their welfare and they have secondary purpose of making profits.
So UKTV is operating in order to create awareness so as to cater the society for their wellbeing
and they earn profit for meeting their expenditures.
Size: UKTV is having 592 employees in their organisation and they are providing their
services of channel broadcasting via digital satellite and cable subscription all over in UK and
Ireland.

Scope: UKTV is rendering services of multi-channel broadcasting to their subscribers
and they have a huge market in this industry. UKTV is subsidiary company of BBC UK; this is
providing them a distinct competitive edge so as to have trust of their viewers.
Legal structure:
Centre: It is the central body which monitor and powers whole province with the help of
providing authorities to numerous departments so that to value each and every department.
State: They are accountable for operating in a particular state which is delegated to them
by the central authority.
Local: Local authority is accountable for controlling the local communal so as to perform
various societal welfare activities.
Voluntary organisation: These are the entities which deliberately serve the society for a
cause by excessing numerous activities, by this way they provide their contribution to the society
such as National trust (Deng and Wang, 2016).
Business purpose: These are not monitored by government but they are not for profit
entities which are operating with the purpose to cater society for their welfare and to eradicate
some issue from society which are causing fear in society. For example National Trust is
working for preserving cultural heritage.
Size: National trust is having 11000 dedicated employees working with them so as to
save cultural heritage. They have their member organisation in near about 50 countries.
Scope: The main motive of National trust is to prevent and safeguard cultural heritage of
different nation so as to preserve historical essential things.
Legal structure:
Charitable trust: Theses trust are those entities which are accountable for managing
those funds which are gathered for a corpus purpose. For example is funds are gathered in order
to provide food to malnutrition kids then this funds will be utilised for this purpose only.
Unincorporated association: These sort of organisations are formed within the groups
in order to attain a specific goal which may benefit the public.
Differences between profit, not for profit and non-governmental organisations
Basis Profit organisation Non-government
organisation
Not for profit
Meaning These organisation are These organisation These organisation

constituted with the
purpose of earning
profits in lieu of
rendering their
services t the public or
by selling their goods
to the same. These are
the businesses which
render ownership to
shareholders who
purchases their shares.
They have to follow
numerous legal
implications as money
of general public are
invested din these
companies (Eisend,
Evanschitzky and
Gilliland, 2016).
perform their working
without stay dependent
on government or any
other local bodies.
These entities are
getting outer donation
for perform their
operations in an
efficient manner and
provide benefits to
their members which
includes clubs and
other organisation.
They are having so
many volunteers
through which they
perform their
operations.
works for a cause and
they devote their
efforts to society. The
sum of money which
are their surplus, they
distribute this surplus
to their shareholders
and other investors.
These organisation are
honest for their
workings and
trustworthy for the
society as they
maintain full
transparency with their
investors and
shareholders.
Scope These are working
with the purpose of
making more profit
from their operations.
They includes
numerous public, local
and global
organisation in their
operations in order to
work for some joint
affairs.
These are operating
for providing welfare
to the society by
working on some issue
which is faced by the
society.
2) Size and scope of the organisation
Tesco Plc: It is a British multinational private company which deals in selling household
groceries to their customers. Tesco is numbered as 9th largest revenue earner in UK.

Purpose of business: Tesco is the retailer who sells their products at a cheaper rated compare to
their rivals in order to meet their target which is to serve huge customer which exists in
numerous social groups.
Products and Services: Tesco is offering huge variety of products which includes grocery
items, clothing, furniture and beverages.
Market and profit share: They are more than 300000 employees working with them in UK,
which gave them market share of 28.4% and revenue of 6391.1 cores GBP in the year 2019.
UKTV: UKTV is a British multichannel broadcaster which is operating in public sector and they
have their headquarter in London, UK. It was propounded in 1 November 1992 by joint venture
of BBC and Thames television. UKTV is one of the biggest television broadcaster which provide
their services with the help of digital satellite and cable subscription in the country of UK and
Ireland.
Purpose of business: The major purpose of UKTV is to spread awareness among society,
educate them and to provide entertainment to public with the help of broadcasting various TV
shows and news (Fatricia, 2017).
Products and services: The services which are provided by UKTV includes TV news, TV
programs and other TV shows.
Market and profit share: UKTV is having 592 employees and this company ranked at number
3 among their 10 competitor. They are having 7.8% market share which lead them to earn
£344.8m in collaboration with their parent company BBC worldwide.
National trust UK: It is a voluntary organisation which is working for the purpose of generating
awareness in the public so as to preserve cultural heritage for a specific demographic region.
Purpose of business: The major purpose of National Trust is to identify those techniques which
are helpful in preserving national heritage so as to maintain it for life long.
Size and scope: They have so many volunteers which are working with them in order to save
cultural inheritance (Fernandes, 2017).
Products and services: They recognises all those techniques and practices which are helpful in
preservation of cultural inheritance in a considerable manner.

Market and profit share: As the organisation is a voluntary organisation so they do not work to
earn profit. They are working to cater society for a good cause. For this purpose they have more
than 12000 employees and more than 61000 volunteers who are working with them.
Difference between micro, small, medium-size and large enterprises
Micro enterprises Small enterprise Medium enterprise
The enterprise which is having
less than 10 employee and sum
of sales turnover is less than
€2 million is called as micro
enterprise.
A small enterprise is having
less than 50 employees and
their turnover is less than €10
million for a financial year.
The enterprise which is having
up to 250 employees and
revenue lies between €43
millions to €50 million is
known as medium enterprise.
3) Organisation structures and functions
Organisation structure: Structure of organisation is a system which involves all the
activities which are helpful in making a proper system on that basis numerous roles and
responsibilities which are authorised to all the people which are working in. structure of an
organisation is helpful in pass important information within the business without any obstacle.
Numerous organisational structure is adopted by the business as according to their nature. Some
of them are explained as under:
Hierarchical structure: This structure includes numerous levels under which
responsibilities are delegated within various designation. This structure assist the business in
creating ease in order to allocate roles and responsibilities among various department (Jacquemin
and De Jong, 2016).

Flat structure: Flat structure is organised where all the employees are brought to a same
level so that to establish greater communication between top and lower level. Tesco uses this
structure so that they can utilise their resources in an effective manner with the help of allocating
appropriate role to the appropriate person (Kolk, 2016).
Interrelation among various functional areas
Within a business organisation it is essential to manage all the functions in an effective
manner so as to establish proper interrelations. This helps in attaining organisational goals in
timely manner and to integrate all the employees together with the purpose of attaining common
goal. The interrelationship between numerous functions of Tesco is explained as below:
Marketing and sales department: The marketing department of Tesco endorse
numerous marketing strategies in order to generate awareness between customers with the use of
different endeavours such as maintaining good relationship with their customer so as to enhance
sale. Whereas sales department of Tesco is recognising the market so as to provide assistance to
marketing department in making various marketing stargates.
Marketing and finance department: The marketing department of Tesco continuously
perform research and development in order to introduce any innovation in the business for that
purpose they need funds so such funds re arranged by finance department so as to have smooth
working (Trondal, 2016).
Complexities of transnational, international and global organisation structures

The company which are investing in other countries but operate their business through a
single centred location. The complexity which is faced by these kind of companies are that it is
not possible to formulate strategies for all the countries at a single place. Transnational
companies are the companies which have invested in numerous countries and the authority to
take decisions are also with local managers. The complexity faced by these kind of business are
that it is hard to integrate at various levels. On the other hand the problem faced by international
business are that these are the business who are indulged in import or export so this process
make their operation harder (Mayadunne and Park, 2016).
PART 2
1) Critical evaluation of various macro and micro factors on business'
In order to recognise the influence of different external factors the large organisation like
Tesco is preparing PESTLE analysis where they will be able to recognise the impact of these
factors on workings of Tesco, the PESTLE analysis is described as below:
Political factors: These factors includes those aspects by which government may interfere in the
operations of business. These factors may include all those policies which are implemented by
ruling party.
 Positive impact: The supermarket tax 'Tesco Tax' has dismissed by the local authorities
of UK, due to which customers are not required to pay this tax any more which result in
reduction in price of products.
 Negative impact: Due to increment in import duty, the inventory prices of Tesco has
increased which enhances their cost of production as they are importing various goods
from East Asia and China.
Economic factors: These factors includes inflation rate, GDP, purchasing power of customer
due to which profitability can be influenced of a business.
 Positive impact: Tesco is having global business so they have wide range of products
and this is the opportunity for them to diversify their business in another countries.
 Negative impact: By enhancement in daily wage rate, this negatively affected Tesco as
now they have to pay large amount of wages to their labour which will increase their cost
of running the business.

Social factors: These factors are associated with taste and preference of customer and their
perception towards the market trend. These factors drive the buying behaviour of customers.
 Positive impact: As the world is growing very fast so customer is expecting solution to
their problem by having proper delivery channels and Tesco is a market leader in this
section.
 Negative impact: As due to emerging demands of customer and inclination towards
organic and less sweetened food items has created a threat for Tesco.
Technological factors: These factors includes all the technological advancement which are
prevailing in the market and used by the companies in order to supply best service or product to
their customers (Nijzink, van den Hoogen and Gielen, 2017).
 Positive impact: The new technology RFID adopted by Tesco which made the payment
service very easy and convenient.
 Negative impact: Due to high cost on adaptation of technological advancement this may
increase the overall cost of the company.
Legal factors: These factors includes all the legislative laws which influences the working of a
business such as contract law, employment laws and may forth.
 Positive impact: By adoption of various laws which is helpful in getting customer
satisfaction.
 Negative impact: The impact of this factor on Tesco can seen in the way that if any
failure is occurred in non compliance of these laws may hamper their brand image.
Environmental factors: These factors includes all those environmental acts which are
propounded by government so that to prevent environmental harm.
 Positive impact: Due to this factor Tesco is promoting not to use plastic carry bag in
order to prevent environment from any hazardous affect (Sparrow, Brewster and Chung,
2016).
 Negative impact: Due to introduction of so many eco friendly techniques such as green
houses and many more the operation cost of Tesco has increased.
2) SWOT analysis of Tesco
Strengths Weaknesses
 Tesco is one of the leading grocery  They follow low cost strategy in order

retailer in UK in terms of profit
earning.
 Tesco offers huge range of food and
beverages to tehir customer in order to
render one stop solution.
to become market leader which is
affecting their profit ratio.
 The liability of paying debt is affecting
profits of Tesco.
Opportunities Threats
 Tesco is having positive opportunity
over expansion of their business online.
 They can introduce various strategic
alliance in order to compete with their
rivals.
 They have so many competitors like
walmart, sainsbury etc.
 the marketing is dealing with price war
which is the biggest threats for the
company.
SWOT analysis of ASDA
Strengths Weaknesses
 ASDA deals in diversified products and
service along with financial services.
 They are operating their business with
the use of online and offline platform.
 They are not globally operating their
business.
Opportunities Threats
 They have opportunities to make
expansion in those countries where they
have not dealt yet.
 They may have some joint ventures in
order to market expansion
(Nwachukwu and et. al., 2017).
 They are facing huge competition in the
marketplace.
 Frequent alterations are taking place in
government regulation which is
affecting ASDA.
3) Interrelation of various macro factors and internal strengths and weaknesses
PESTLE Effect on strengths Effects on Weaknesses
Political Due to dismissal of Tesco tax
this created large opportunities
At the same time, large duty
on imports reducing profits of