Business Environment Report: TESCO, BBC, Wellcome Trust

This report provides a comprehensive analysis of the business environment, focusing on three organizations: TESCO (private sector), BBC (public sector), and the Wellcome Trust (voluntary organization). It delves into the various types and purposes of organizations, their legal structures (sole trader, partnership, private limited company, state government, central government, local government, and trust), and their sizes and scopes. The report examines the internal and external factors influencing these organizations, including macro-environmental influences, organizational structures, stakeholders, and their contributions to economic growth. TESCO's operations, vision, mission, objectives, and product/service offerings are examined in detail. The report also highlights the differences between private and public limited companies and emphasizes the importance of understanding the business environment for sustained competitiveness and market leadership.

BUSINESS AND BUSINESS
ENVIRONMENT

INTRODUCTION
Business environment is the sum or total of all activities related to external and internal
factors that affects a business. The forces that build business environment are suppliers,
competitors and media with government are important to build environment and affect to it even
external factors are out of control. This report is based on TESCO which is a British
multinational grocery and general merchandise retailer in the whole world and its headquarter is
in England , UK. It is third largest retailer in the world in context of gross revenue and ninth
retailer in the whole world. This report is based on different kinds of organisations in which
public, private and voluntary with their legal structures, size and scope to enhance understanding.
In public sector organisation in which BBC and in voluntary organisation is Wellcome trust that
are playing crucial role in economy. It also includes interrelationship in various functions of an
organisation and their link with organisational structure. Further it elaborates about macro
environment that affect organisation with its positive and negative effects on organisational
proceedings and internal analysis of an organisation and their interrelation. For an organisation
internal and external environment are very much important to remain always competitive by
finding out major spheres in which improvement is very much crucial. All these organisations
contributes in growth and enhancement of an economy.
TASK 1
P1 Elaborate various kinds and purposes of organisations and their legal structure.
In a business environment there are various kinds of organisations that builds product and
services after evaluating needs and wants of consumers in proper way and contributes in
economic development (Al-Saleh and Mahroum, 2015). For that report the chosen organisation
of private sector is TESCO, for public organisation BBC and for voluntary organisation
Wellcome trust that all contributes in economic development. In different types of organisation
consist of Private, Public and Voluntary organisation here are the description of these
organisations and various factors:
Types of business:
There are majorly two kinds of businesses like public and private business organisations,
where some of them works to earn profit margins and some other's works to improve the living
standardisation as well.

Profit:
Profit businesses are those enterprises that builds product and services by satisfying needs
and wants as per the need of consumers to maximise profit. It also contributes in economic
development and growth.
Non-profit business:
Non-profit businesses are those that establish in market with the purpose of public
welfare and their main goal is not to earn profit but to build advance products and services as per
the need of consumers (Deasy and et. al., 2016).
Private organisation:
Private sector is a part of economy that run or operated by individuals and their main
motive is to earn profit and state does not control their works and activities (Azma and
Mostafapour, 2012). Hence it included all profit oriented organisations that are not owned and
operated by government. In that report chosen organisation for private sector is TESCO which is
a British multinational grocery and general merchandise retailer, headquarter is in England, UK
and it is a third largest retailer in the whole world in context of revenue. Its main objective is to
build products and services as per the needs and wants of consumer by earn profit. Every
organisation operates in economy with an definite objective and follow a legal structure that
helps to gain organisational goals and objectives.
Purpose:
The main objective of TESCO is to enhance living standard of people by giving
enchanted experiences to consumer base to giving values by ensuring consumer satisfaction
(Storey, 2016). It helps to give delighted experience and it ultimately proved beneficial for
organisation to enlarge business opportunities.
Legal structure:
Legal structure is an important attribute for an organisation and for private organisations
there are different kinds of legal structure that are as follows:
 Sole trader: Sole trader is one person organisation, found in trades in which only small
amount of money or finance required to set that kind of businesses. John Lewis could be
considered as a good example of Sole Trader.
 Partnership: To overcome from concerns of sole traders, a partnership firm should be
formed that is an association of individuals and have 2 to 20 partners (Cepel and et. Al.,

2018). Marks and Spencer at initial level started working as a partnership firm where the
two business partners named as Michael Marks and Thomas Spencer has shared profit
rations based on the agreement.
 Private limited company: That is a kind of joint stock company which has separate legal
identity from their owners and they are small, family runs businesses that owned and
operated by shareholders. In case of TESCO that operated under private limited company
that possess their own identity in marketplace to remain always in marketplace.
Public organisation:
Public sector is an important part of countries economy that effectively or efficiently
controlled by government and main motive is to serve people in better way. For that report
public sector organisation that is BBC (British Broadcasting corporation) which is a British
public service broadcaster. It headquarter situated in London and one of the oldest national
broadcasting organisation and largest broadcaster in terms of no. of employees.
Purpose:
The main purpose is to ensure by conducting research and development activities to fulfil
mission and promotion of the public purposes and to maintain significance in the whole market.
Legal structure:
To reach at desirable goals and objectives, there are some prescribed form of government
that are as follows:
 State government: State government is a kind of government of a country which
subdivision of federal form of government that shares political power with national
government (Deasy and et.al , 2016). For an example, BBC comes under the control of
state government that control each and every activity under state level.
 Central government: Central government that are accountable for accomplishing
important decisions related to operations of an organisation. Department for Business,
Energy & Industrial Strategy is being considered as a good example of central
government agency.
 Local government: Local government are accountable for handling and managing all
works and activities related to local authorities by applying various rules and regulations
to get assistance from government. Highways England could be considered as a particular
agency which is dealing and developing highways within the England.

Voluntary organisation:
Voluntary group or union is a group of individuals that work under a agreement as an
volunteer to accomplish some purpose or objectives (Grover and Kohli, 2013). The common
example of volunteer are trade associations, trade unions and learned societies and many more.
For that report voluntary organisation that is Wellcome trust which is a biomedical research
charity located in London UK. It established in 1936 to improve the health of both human and
animals in better way.
Purpose:
The main purpose of that trust is to provide extraordinary achievements in health by
finding or supporting the brightest minds. It also conducts biomedical research that supports the
understanding of public in science.
Legal structure:
There are a legal structure that follow by a voluntary organisation that are as follows:
 Trust: In trust consist of three parties in which donors, trustees and beneficiary that are
accountable for welfare of profit and not to earn profit. Trust is a generally a set up to
manage and coordinate money and property to attain specific role and purpose in better
way. They establish a formal relationship in the three parties that are donors, trustees and
beneficiaries that helps to set up all legal obligations in proper manner. National trust
could be considered as a good example here as a trust, which is dealing within England.
To lead in the market organisation, have to spend in current market by enlarge business
opportunities in better way. In context of TESCO primarily they operate at regional level but as
time passes it enlarge business opportunities with the help of various entry strategies and become
global brand name in the market (Hallward-Driemeier and Pritchett, 2015.). It presently work as
a global leader by acquisition other firms and products in better way. Acquisition and merger are
the transactions in which ownership of companies and other business organisation by
consolidating or transferred with other entities in positive manner. In context of TESCO which is
primarily a small business after analysing the current needs and wants of consumers they become
large enterprise and lead in market.
Difference among Private and
Public Limited:

Private Limited: These are the business organisations that basically performs operations
in order to gain profits.
Public Limited: These companies basically does work to improve the standardisation of
public that are related to economy, transportation and so on.
P2 Size and scope of a range of different types of organisations.
There are various kinds of organisations exist in economy such as public, private and
voluntary to provide good and services to consumer. The main aim of these organisation is to
earn maximum profits and revenues. They have different goals and objectives for achievement of
results. The size and scope of these organisation are as follows:
TESCO
It is private organisation which is multinational retail sector providing various goods and
service to consumers. This is providing its good globally in order to fulfils need and demand of
people. The products of TESCO includes hypermarket, convenience shop, superstore and
supermarket. It has many subsidiaries such as TESCO bank, TESCO Ireland, TESCO mobile and
others.
 Vision and mission: The vision statement of TESCO is divided into five elements such
as: needed and wanted around world, having modern and innovative ideas, growing
business with opportunities, winners apply skills globally and inspiring and earning
loyalty and trust from communities, customers and colleagues. Mission of to make what
matters them better together (Trevino and Nelson, 2016.).
 Objectives: The main objective of TESCO is to provide high quality products and
services which are affordable and cheap to people in order to increase maximize sales and
grow and maintain their goodwill and value in market.
 Size and scope: The size and scope of TESCO is large as it serves in different parts of
world such as United Kingdom, Thailand, Hungary, Ireland, Malaysia, India and Czech
Republic and others. There are more than 450,000 number of employees working in
respective organisation and providing services in various locations. The scope is to
increase market share and growth in competitive market so that goal and objectives can
be achieved.
 Product and services: There are various product and services which are offered by
TESCO for their consumers. The products includes food, clothing, mobile,

entertainment, books and others. Similarly, services provided to consumers are banking,
financial services, telecoms, internet service (Huang and et.al ., 2013).
 Organisational structure: TESCO is multinational British general and grocery
merchandise organisation which has headquarter is England. The organisational structure
of TESCO is hierarchical where obligation, positions and structure are divided into
various parts where they should ensure work is done smoothly and efficiently (TESCO
COMPANY ORGANISATIONAL STRUCTURE CHART EXAMPLE, 2016). The high
level authority has more responsibilities in business.
(Source: Organisational Structure of TESCO, 2016)
 Stakeholders: There are various stakeholder of TESCO which helps in achieving goals
and objectives of business. This includes both internal and external stakeholder. The
internal can be employees, experts, shareholders and external can be customers,
suppliers, government, community (Ghezzi, 2013.). The internal provide good and
service to consumers in effective manner and external purchase those products for
increasing profits and revenues.
British Boardcasting (BBC)
It is an organisation which was founded in 1922 at United Kingdom. It is public service
broadcaster which provide services related with radio, television and online and products like
broadcasting, web portals. This is regarded as world's oldest national broadcasting firm. There
are more than 20,000 employees working to provide services to their consumers in effective and
efficient manner.
 Vision and mission: The vision statement of BBC is to become most creative and
innovative organisation in world. The mission is to enhance and enrich live of people
with various services and programmes in order to educate, entertain and inform them.
Illustration 1: Organisational Structure of TESCO, 2016

 Objectives: The objectives of BBC is divided into four elements. The first is to provide
quality and distinctiveness, second is serving all audiences in proper manner, third is
value for money and fourth is to be openness and transparent in providing of services.
Therefore, it helps in engaging staff with strategy and building new partnership with
others.
 Size and scope: This is oldest broadcasting firm in world which has largest large
number of employees. It has employed 20,950 staff where 16,672 are in public sector
broadcasting. It has also flexible, part time and fixed contracts. It is serving products and
services worldwide. There are more than 20,000 employees working for business to
provide services.
 Product and services: There are different products and services which are deal by BBC
for their consumers. The products are related with broadcasting, radio, web portals for
their consumers (Schrader, Freimann and Seuring, 2012.). Similarly, services can be
related with television, online and radio for convenience of people. It focus on providing
high quality of good and services to individual in effective and efficient manner.
 Organisational structure: This is old public broadcasting service in world with number
of employees. This was founded under Royal Charter where agreement is formed with
Secretary of State for culture, media and sports and including functions. The
organisational structure of BBC is line which follows direction from one authority for
effective results (BBC Hierarchy, 2019). This is governed by Trust which form executive
board, team and management broad.

(Source: Organisational Structure of BBC, 2019)
 Stakeholders: There are various stakeholders of BBC which includes suppliers,
investors, management, owners, government, neighbours, employees, customers, media,
regulatory bodies and others. They work together for to provide and take services of
respective organisation.
Wellcome Trust
It is voluntary organisation which was founded in 1936 at United Kingdom. This is
biomedical trust which focus on improving animal and human health. It mainly provide
extraordinary improvements in health through funding to biomedical. Wellcome trust provide
services to UK and its overseas countries.
 Vision and mission: The vision of Wellcome Trust is to promote research excellence in
order to meet international health challenges through supporting research institutions and
researchers at low as well as middle countries by equitable partnerships and
collaborations (Mihalič, Žabkar and Cvelbar, 2012.). The mission statement of
Wellcome Trust is based on four points. First is to focus on providing high quality
research, second is partnership with institutions from low to middle income countries,
third is supporting and mentoring researcher and students and last is to do promotion and
advocacy of health.
Illustration 2: Organisational Structure of BBC,
2019

 Objectives: The objectives of respective organisation is to invest £5 billion in next five
years for improving health service in order to launches strategic framework which focus
on advancing ideas into research and science.
 Size and scope : Wellcome Trust has not more than 2100 employees for providing
services. This is largest service providers in world which mainly focus on health
improvement of people in better and effective manner. It has endowment of £25.9 billion
and disbursements of £11 billion. It has scope to increase their services in various parts of
world so that goal and objectives can be achieved and none of people suffer health
problems.
 Product and services : The products and service of Wellcome Trust are medicines,
providing treatment and helps. This also focus on people to provide them with quality
and hygiene treatment.
 Organisational structure: The organisational structure followed by this trust is
divisional as there are number of people who work together for achievement of goals and
objectives in effective and efficient manner (Tregear, 2015.). According to division
reporting is categorised where head is trustee and their subordinate’s manager business.
 Stakeholders: The stakeholder of trust are trustee, executive, committee members and
others.
TASK 2
P3 Relationship between different organisational functions.
TESCO
Vision:
The main vision of TESCO is to build products as per the consumer needs and
preferences to give delighted experience to their consumers.
Mission:
TESCO main mission is to “We make what matters better, together”.
Objectives:
The core objective of TESCO is to identify the core needs of consumers and build
products accordingly to give loyalty to consumers.
BBC

Vision:
The vision and mission of BBC is to enrich the lives of people. The main vision of
organisation is to provide entertainment, information and educate to people in better way.
objectives:
The main objectives is to gain large market share by satisfying needs and wants in better
way.
Business functions of Tesco:
Human resource: This is being considered as one of a crucial function for Tesco and its
advantage is that, it helps company in enlisting employees with great skills and more. On the
other hand, its disadvantage is that company basically reduces the limits of existing staff through
recruiting new individuals.
Operational function: It's main advantage is that, company easily runs its business in a
much more smooth manner. On the other hand, if it is talked about the disadvantage, Tesco
might require to invest a good money in order to sustain within the market. This will directly
impact negatively upon overall profit margins of the company.
Wellcome Trust
Vision and Mission:
The main vision and mission of Wellcome trust is to give best treatment to provide better
treatment to human being and animals so that they remain always healthy.
Objectives:
The main objective of that organisation is to give best treatment to animals and human
being by evaluating their disease.
In an organisation all departments closely associated with each other and plays very
important role in organisational development and enhancement in proper way (Heaton, Linden
and Teece, 2014). In context of TESCO in which all departments are closely related with each
other.
Relationship in different departments:
 Marketing with finance department: Marketing department are very much crucial for
organisation that are responsible for various works and activities to reach at large no. of
consumer base by advertising, promotions and for that huge finance required. In case of
TESCO they acquire proper knowledge and information about finance in proper way so