Exploring Organizational Structures: Tesco, CSA, and Oxfam - Report

This report provides a comprehensive analysis of three distinct organizations: Tesco (private sector), the Child Support Agency (CSA, public sector), and Oxfam (voluntary sector). It begins with an introduction to the business environment, defining its internal and external factors and their influence on an organization's operations. The report then delves into the organizational structures, purposes, sizes, scopes, business objectives, legal structures, and stakeholders of each organization. It explores the advantages and disadvantages of each type, highlighting their missions, visions, and how they operate within their respective sectors. The analysis includes discussions on the impact of the macro environment, SWOT analyses, and the interrelationships between internal and external factors. The report aims to provide a comparative understanding of these organizations and their approaches to business and societal impact.

Business
and
Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Various types of organisation and their purpose..............................................................1
P2. Size and scope of various organisations...........................................................................3
P3. relationship of various organisational functions..............................................................6
TASK 2............................................................................................................................................8
P4. impact of macro Environment..........................................................................................8
P5. SWOT analysis of the organisation................................................................................10
P6. interrelationship between internal and external factors..................................................11
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment is the combination of internal and external factors of an
organisation that impact and influences a company's operating situation. It can be a marketing
term and refers to factors and forces that affect the ability of building and maintaining successful
customer relationship. In this assignment, discussed about Tesco and more others organisations
such as public private and voluntary and explained about their legal structure. In this assignment
discussed about different types of organisation, their purpose, size, scope and structure, etc.
Relationship between different organisational functions, advantages and disadvantages and their
objectives or structure are explained. Positive and negative impacts on the macro environment or
internal and external analysis are defined (Abede Mack, 2015).
TASK 1
P1. Various types of organisation and their purpose
In today's context there are different types of business based on size, purpose and
structure of organisations.
Public sector
These organisations are that companies which are owned by the government and exist to
provide services for its citizens. These organisations are work for the public and providing
employment. These companies include public goods and governmental services such as the
military, law enforcement, infrastructure roads, bridges, public transmit and public education.
CSA (Child Support Agency)
It is a public organisation and an executive agency of the Department for Work and
Pensions that is responsible for administering the system of child maintenance. It is responsible
for administering the system of child maintenance under which non-resident parents are required
to pay towards the upbringing and support of their children. This organisation founded in 1975.
Purpose- The main purpose of this organisation is to protect the child from economical
factors as well as negative impact of divorce or separation. The purpose of this organisation is
providing and fulfilling basis necessities of the child such as food, shelter, childcare and
education as well as other additional things that are necessary of them (Afifah and Tielung,
2015).
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Business objective- The objective of this agency is to provide the rights to the children
so that they can survive in this world and fulfil their basic needs like education, food, shelter and
others.
Legal structure- The legal structure of these kind of organisation are separated on the basis of
such as areas like local authorities, central governance, state governance etc. and they are as
following:
State governance- It refers to support agencies that implement policies for establishing
fatherhood, set realistic orders and reduce child support debts. They plan programs and strategies
to improve the wellbeing of children (Ali, Miah and Khan, 2017).
Local authorities- It help in protecting and promoting the welfare of children in needed
areas. They provide various services such as advice, guidance or counselling and organising
occupational, social, cultural and recreational activities etc.
CSA (Child Support Agency) are now expanding their business at international market by
providing its services to adult and teenagers. As its main motive is to protect the child from
economical factors as well as negative impact of divorce or separation of their parents.
Private sector
These organisations are a part of a country's economic system that run by individuals and
companies rather the government. The main motive of these organisation to provide employment
and earning profit.
TESCO
Tesco plc., is a British multinational groceries and merchandise retailer company. It was
founded in 1919 by Jack Cohen and the headquarters of this organisation is in Hertfordshire.
Purpose- The main purpose of Tesco is to create value for customers by providing good
quality products and services according their needs and demands to earn their lifetime loyalty.
Business objective- The objective of the business of Tesco to stay there leading retail
supermarket and offer quality products and services at affordable process so that they can
competitive advantages.
Legal structure- The legal structure of TESCO is corporate governance that basically
deal with shareholders. They ensure that strategies are achieved for the community as to make
sure that it reduces using carbon foot prints. Moreover, they want to sell goods and products to
customers that add value to them as well as organisation.
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Types of private sector
Partnership- It is a formal agreement in which two or more parties are involves to
manage and operate the business. In this, the income tax is paid by the partnership but profits and
losses are equally divided among the partners.
Sole proprietorship- These types of business are established by individuals and they are
only work for the organisation growth and earn profit. Sole proprietorship is basically an
unincorporated business that are run by an individual and there are no partners.
Limited companies- They are private company which owner liability is limited to their
shares and they have limited employees or fewer shareholders (Kazancoglu and Ozturkoglu,
2018).
TESCO are expanding their business in international marketplace by coming up with new
product that is cosmetic at world wide by providing premium quality of services to its customers.
Voluntary
They are non-profit organisation or established for the welfare of the society and provide
employment to the local people. These organisations work for social welfare and improving the
living standard of the people (Koišová, Grmanová and Habánik, 2018).
Oxfam (Charitable organization)
Oxfam is a voluntary enterprise that was founded in 1942 and led by Oxfam
international. The headquarters of it is in Oxford, England and there are 7,412 employees
working under it.
Purpose- The main purpose of this company is to reduce the poverty by providing or
creating last solution to the injustice of poverty.
Business objective- The objective of this firm is to help the society and community by
creating lasting solutions to the injustice of poverty.
Legal Structure- This organisation follows hierarchical structure and Board of directors,
executives are consisting the power of taking decisions.
Unincorporated association- It is an organisation set up by an agreement between a
group of people that come together for reason other than to make or earn profit.
Charitable incorporated organisation- It is a new form of legal entity or structure that
are designed for non-profit organisations. It can be picked instead of registering as a charity and
then as a company as well.
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Thus, voluntary organisation are working towards welfare of general people as well as society
too. Their main motive is to provide welfare rather that to earn profit and remain competitive in
marketplace.
P2. Size and scope of various organisations
Each organisation has different types of size and scope and for different types of
companies they are different. They are as following:
Private sector
Tesco is a private organisation and follow hierarchical organisational structure
(Korcsmáros and Šimova, 2018). Here size of the company is related to the employees so in
Tesco, moreover its wider scope of this company to deal in various sectors such as groceries
and financial services etc.
Mission: Mission of Tesco is to create value for customers as well as attain life time
loyalty from its potential customers.
Vision: Its vision is to broaden its business in order to deliver strong and sustainable
long term growth by expanding its markets at home as well as new market aboard.
Size- There are more than 476000 employees working in it. It revenue is £55.9billion,
net income is £54million and are operating income is £1,280 million per year. These employees
of the company help it to achieve its business objectives and enhance the productivity of the
company. Because they produces products and services according to the customers needs and
demands.
Scope- Tesco is a multinational company and operate its business in different countries.
It basically deals in various products band services such as groceries, retail market and financial
services (Marobela and Mmereki, 2013).
Stakeholders- Stakeholders are group, organisation, member or system that affected by an
organisation's actions. The key stakeholder are associated with the private organisation are as
following:
Employees- Employees are those persons who does a specific work in specified manner
with organisation. In the business, they are performed tasks according to the set objectives and
designed strategies, etc.
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Consumers- They are those persons who pays something to consume or buying goods
and services. They are the important part of every organisations because they help in the growth
of the company or earning profit or increasing productivity.
Owner- They are the executives of the company and provide assets, capitals and
necessary for operating an organisation.
Public Sector company are those firms and organisations that are regulated by the government
for providing employment and social welfare. Child support agency is a government owned
organisation that work for child system maintenance and provide them shelter, food, education
and other necessary things which are required to them.
Mission: To promote, support, network and act as catalysts to achieve objectives. It also
an inspiring agency and channelising action to bring sustainable social change to achieve vision.
Vision: It vision is to create to take care and protect orphaned children and ensure that
ever child is nurtured into a happy and contributing member of society.
Size- In this organisation, there are 17.3 million children and at the state level 70000-80000
child. In it there are 415 employees in the state and 377 full time and 38 part time. This
organisation support children to and the volunteers of it also help in welfare of the society. This
help in achieving objectives of the company.
Scope- This agency has wide scope because it has main aim or objective to protect child from
the economic impact of divorce or separation and providing food, shelter, education and other
things that are necessary to them.
Stakeholder for public enterprises
Government- In these kinds of organisation, government is the stakeholder and regulate
business affiliated actions for supporting consumers. It makes rules and policies to run or operate
the business of the company.
Society- It refers to the societal group and play an important in the business because they
usually used to set out business actions in correct path and providing feedback about the business
(Mmereki and Marobela, 2013).
Voluntary Firms-These firms are basically related to NGO ( Non-government organisation)
which are doing work for the welfare of the company by providing employment to local people
so that they can improve living standard or remove poverty. Oxfam is a voluntary firm that is
work for reducing poverty by providing or creating last solution to the injustice of poverty.
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Mission: Its core mission is to eradicate poverty all around the world and protect life as
well as security right of individuals. It believes in peace and reduce inequalities related to rich
and poor.
Vision: Company mission is to make sure that their consumers wear their product with
pride and they stay conscious of all company actions. In addition to this, it also have vision to
provide clothes that are useful for need people.
Size- It is referring to the number of employees, in Oxfam there are 51 stores and 7,412
employees working under it. They are providing help to aged, misfortune and child who have do
not have shelter, food and other things (Murjan and Md Salleh, 2012). It is a NGO which work
for the welfare of the society and by operating its business and services in various countries, it
help for the society and achieve its business aims and objectives.
Scope- This organisation has wide scope in its field because as its main motive is to remove
poverty and crime that occurs in society on regular basis in various forms such as child labour,
harassment and other illegal activities, etc.
Stakeholders
 The board of member that assists the organisation by designing rules and policies and
help in running company.
 Donors, government, foundations and others which are offering large amount of revenues
or monetary donors.
P3. relationship of various organisational functions
In every organisation, each and every department are interlinked with each other. The
difference in organisation function of TESCO are determined below:
Accounting and Finance department- It the important department of every organisation
because it is responsible for administering employees’ expenses and salaries or help in running
business of the company. In Tesco, it is related to the different department of the company for
example, marketing department providing sales data and it manage that data, production
department provide data related to raw materials and production of the products and services.
This department is related to other department because it maintains the data of different
department such as marketing, human resource department, production department, research and
development department etc. This department create positive impact on the business of the
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company by making important in economic condition of the company (Overton and Leeuwen,
2012).
Advantages- Finance department help in providing fund to other department of Tesco so that
they can properly operate business activities, operation and functions. The advantages of this
department are that it reduces the cost of data processing and reduce the need of extra employee
resources.
Disadvantages- The main disadvantage of finance and accounting department is that if they fail
to do proper allocation of budget for different department they an organisation will not able to
achieve their targets in competitive marketplace.
Human resource department- It is responsible for the recruitment, selection, training
and development of the staff and the employees within the company In Tesco, finance and
accounting department provide funds to this department for organised the hiring or selection
process. Marketing department help it to make promotional and provide information or
notification related to the vacant position. This department use various channels of promotion
such as internet, newspaper, social media and paid advertisement for this finance department
provide fund. Thus it will help company maximise their level of productivity and gain more
competitive advantages in a marketplace. By keeping effective coordination with all other
functions and departments, HR department strives to perform their best towards contribution of
organisational goals and objectives.
Advantages- It help the company by hire the employees when there are requirement in the
company. It help in organising and conducting training and learning session so that employees so
that they can make important in their skills and knowledge and make contribution in the
organisational development.
Disadvantages- By providing skilled and knowledgeable candidates to the company it creates
positive impact on the business of the company and it is the advantage of this department and
security breach is a disadvantage of it.
Research and development department-The aim of this department is to make
improvement in the existing product and manufacture good quality products and services
according to the consumers’ needs and preferences. In Tesco, finance department provide money
to organise research and marketing department provide area and environment to do research so
that they can easily completed their research by finding out customers’ needs and demands. HR
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department crate polices and rules or set parameters for doing research. In addition to this, R&D
are connected with marketing departments to provide information of those effective areas where
they can do their activities related to promotion and branding of H&M products and services.
Thus, R&D can increase their end result and help organisation to accomplish their objectives in
best possible way. Additionally, they are able to meet their targets in efficient way by gaining
more competitive advantages against their competitors. (Soviar, 2016).
Advantages- R&D department help in identifying customers needs and demands so that th firm
can produce products according to their needs which provide satisfaction to them.
Disadvantages- When the company organise R$D then it consume more time and cost which a
disadvantage for the company.
(Source: Organisational chart of Tesco,2019).
Organisational chart us a diagram that outlines the internal structure of a company. The
above organisational structure explained about the structure of H&M. It is a retail organisation
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Illustration: Organisational chart of Tesco

which follow hierarchical organisational structure. Every function of marketing is divided in to a
department and each department is responsible for their roles and duties.
TASK 2
P4. impact of macro Environment
Macro environment is the major external and uncontrollable factors that affect the
business of the company, decision making and organisation's performance etc. PESTEL analysis
is an appropriate style to analyse the positive and negative impact on the macro environment of
Tesco, it is as following:
Political- Political factors consist of laws and regulations which is necessary for a company to
abide in order to perform their functions in legal and ethical manner. This factor include
exchange rate, government polices, trade unions etc. For example, In Tesco if the management
will not follow trade laws and government polices like taxation policy then the authorities
applied penalty to the company it reduce the brand image of the firm.
Negative Impact: TESCO was affected by government UK as they have make changes
in their policies. As they were planning to launch new product in marketplace but this initiatives
can affect negatively.
Positive impact: If the organisation expands its business in another country and the tax
rate of that country is less that positively affected the business of the company and help in
expanding its business. Moreover, from this they will able to create opportunities as well as
increase demand for longer period of time.
Economical- Economic factor of United Kingdom usually includes availability of lending rates
and prices of overseas buyers and taxation policies. Such factors directly or indirectly affect
operations of TESCO. For example, In UK, the economy of this nation currently suffer with
recession issue it might be affect the business of Tesco. By providing job or employment
opportunities in UK, this company make contribution in the development of the economic
condition of this country.
Positive impact: TESCO are purchase raw materials from other countries and the
currency rate of that country is less, that it will create positive impact in performing their
operating and day to day activities.
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Negative impact: Due to increase in Increment an unemployment, inflation and interest
rate of the country will ultimately have negative impact in their business operations.
Social- Social factors means cultural beliefs of society in a particular geographical location. This
factor contains various elements such as change in customer needs and demands, culture, values
and others. For example, if this company produce, grocery products according to needs &
demands, taste & preference of customers then it create positive impact on the business of the
firm in term of sales and profit. This factor need to evaluate cultural beliefs of society and
ensure that their goods and services are acceptable in that reign where they are operation. Such
as:
Positive impact: TESCO are producing products according to need and demand as well
as preferences of its potential customers. Moreover, maintaining culture and values of their
operating company as it help increase the profit and productivity of the company. Furthermore,
they are adopting changes as per customer-specific demand and motiving towards organic
product in marketplace.
Negative impact: If TESCO fails to meet up need and preferences of customer as well
as not providing quality of product then they can be negatively affected from it. As now ad days
customers are becoming health conscious and mostly looking towards properly wrapped foods
and products
Technological- Technological factor includes change in style, trend and fashion preferences of
world. For example, the company can use various promotional technologies like social media,
internet, Facebook, Instagram and others to provide information about its products to the
customers. Now a days technology is dynamically changing it is essential for an organisation to
make themselves adaptable and implement effective strategies to make their employees accept
these technological changes.
Positive impact: TESCO are adopting innovative technological measure in their
operation so that they can resource and bring out effective result. Moreover, with the help of
latest technology they are able to bring innovative modifications in their products and increase
their sales.
Negative Impact: In context to TESCO modifications in technology will acquire huge
investments of funds and trained employees. Additionally, with adaption in carnage in
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technology managers of TESCO need to modify their internal structure as to compete with it
competitors.
Environmental Factor: This factor include environmental laws, carbon emission act, inventory
management, recycling process etc. Environmental factors are those factors that mainly include
efficiency and availability of raw materials, risk of exposure and present and future compliance.
For example, the management of the company can use recycling process which help in managing
inventory and minimizing the wastage of the firm. It help in protecting environment and
mangeing the resources of the organisation.
Positive Impact: TESCO can make make necessary modifications in their product and
services by using eco friendly raw materials in producing their product and services. Thus, it
will benefit Them to save their cost and attain sustainability in marketplace.
Negative Impact: In today's context TESCO are performing their business operations in
many different geographical locations which results in Change in climatic situations. Thus, it
create a negative impact in performing their operation and day to day activities.
Legal Factor: They include employment legislations, diversity act, equality law,
discrimination and other various regulations. Legal Factors are those factor that are abided by
legal rules and regulations in order to conduct their business operations in ethical manner. For
example, the company follow all the employment law and provide all the rights to its employees
so that they effectively work in the organisation till long period of time.
Positive Impact: TESCO are abide UK laws related to employment safety, equal pay
and medical benefit act for labour in fundamental manner. Moreover, this is resulting in
increasing level of loyalty among employees which ultimately benefits to increase their
productivity and profitability as well as sustainability in marketplace.
Negative Impact: There are numerous laws abided by UK government which is essential for
TESCO to abide as a private sector company. Thus, it can affect business functions and hamper
their growth.
P5. SWOT analysis of the organisation
For knowing the strengths and weakness of the company, SWOT analysis is a strategic
tool to do internal and external analysis (Abede Mack, 2015). In internal factor strengths and
weakness of the company are include and in external opportunities and threats are include. For
doing internal and external analysis, Tesco can use SWOT analysis, it is as following:
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Strengths Weaknesses
The company have strong leadership position
and have number of consumers for its quality
products.
Tesco have effective online operation and use
good technology to make improvement in its
operations, creating cost efficiencies and
enhanced services experiences.
Tesco has a good brand image at the market
place which can be strength of this company so
it does not hard to attract customers towards a
particular product and service.
Consumer cannot purchase some product cause
of high price because they have less disposable.
Weak financial performance is a weakness of
the company.
The retailer is highly dependent on the UK and
Europe for its sales and has not spent the time
and resources on developing the other markets
where they operates.
Opportunities Threats
There are various opportunities in private level
market and that place where it is not operating
its business.
There is sufficient opportunity to grow through
online shopping but by offering hone delivery
service, it can get more opportunities.
In those countries where TESCO may be
underperforming, there it has opportunity to
expand its business.
Competitors and substitute products in the
market are a big threat for the business of
Tesco.
Fluctuation in currency rate is the big threat for
the company because it operates it business
internationally.
Food price are on the rise around the world
which also reduce what consumers can buy and
how much disposable income they have
available.
Strengths Weaknesses
This manufacture wide range of products and
services including financial services.
The firm operating its business with the help of
150,000 employees at more than 500 stores.
This company has limited international present
in comparison to its competitors.
The ability of their selling prices have
restricted their entrance because it is in few
nations and the countries have fear of
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It has a strong brand image at market place and
amazing marketing campaigns that showing
services and customers delight.
competition with local vendors.
Opportunities Threats
By making innovation in its existing products
and services, the organisation can gain various
opportunities.
By making ventures in to markets that are
growing like India and China etc.
The re are numerous competitors in the market
and they generate competition for this
organisation.
Changes in the polices or rules of government
also create threats for the business of this
company.
P6. interrelationship between internal and external factors
The interrelation of strengths and weakness with external macro environmental factors
are as following:
Political- This factor is usually related to tax rates, government rules, political stability,
unemployment rate and economic condition of etc. (Afifah and Tielung, 2015). It affect the
company when the government make change in the taxation policies of the country than it affect
the business of all those companies which operate their business in that country. The company
follow all the trade rules and regulations to operate the business internationally because it
depends on the effective polices of the operating nation. If the rules of host nation is not effective
then it can be a weakness for the business of the firm.
- Strength : TESCO quintessential part is to operate the business internationally as it
depends on the favourable policies of the host countries.
- Weakness : The main weakens comes forward when the company tries to enter in an
unfavourable rules and regulation of the host country.
Economical- Economical factor is related to inflation rate, savings rate, interest rate, foreign
exchange rate and economic cycle or condition of the country. It also related to the economy of
the company. For example, if there are situation of recession will be occurred, it affect the
business of the company. For example, in UK, if the financial institution offer loan to the
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company at low interest rate then is good for the development of the business. But due to
recession if they increase the interest rate then it can not be effective. Strength : Attaining loan at low interest rate become the strength of the company.
 Weakness : High rate of interest is the biggest weakness of the company as it is not
favourable to allot more money in fulfilling future debt of the company.
Social- This factor includes customers tastes, preferences, society, culture, values and beliefs so
that an organisation can perform their best accordingly. When change in customers needs an
demands , this factor influence the company in positive and negative aspects. For example, if the
management of the company offer its products at affordable prices then it help in increasing
purchasing power. If the company set the price of its products high then it will not be favourable
for the customers. Strength : Allow the company to set their own prices is the best strength to generate a
good income for future production, this also focus on the purchasing power of the
customers.
 Weakness : It come forward when external forces oppose to set their own prices and loss
the authority to fix it by their own .
Environmental- Environmental factors are those factors that include efficiency and availability
of raw materials, risk of exposure and present and future compliance for an organisation. It is an
important factor and it also influence the business of the company, if the company follow
environmental laws such as pollution and others it positively affect the society and company
because an organisation established in a society. Strength : The strength of the company is to secure the environment in an appropriate
manner and follow the rules accordingly.
 Weakness : It refers to the problems which occurs while manufacturing the products and
don't decompose the material in an appropriate manner.
Legal- It refers to those factor that are abided by laws and regulations in order to conduct their
business operations in ethical and effective manner. This factor totally related to the laws and
legislations and they also affect the organisation's business. If the company follow all regulations
such as equality act, discrimination act and others that it can achieve its organisational growth
and enhance its productivity.
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 Strength : Follow rules and regulation of the host country is the best part and become the
strength of the company.
 Weakness : Opposing the given rules become hazardous for the health of the company as
future growth become risky.
CONCLUSION
In this report, it is concluded about different types of the organisations such as private,
public and voluntary sectors on the basis of their purpose and legal structure of these
organisations. Size, scope, stakeholders of different types of organisation are explained and
interrelationship of different functions within the organisation are also defined. PESTEL analysis
and positive or negative impacts upon business of the company are defined. SWOT analysis are
explained to determine the internal and external analysis of Tesco in order to identify strengths
and weaknesses. Interrelationship of these external macro environmental factors and strength or
weakness of them are described.
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REFERENCES
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