Business and the Business Environment: A Tesco Case Study (HND Unit 1)

This report provides a comprehensive analysis of Tesco's business environment, examining various aspects such as organizational functions, structures, and their interrelationships. It delves into the different types and purposes of organizations, including public, private, and voluntary sectors, and their legal structures. The report explores Tesco's internal and external factors, including a SWOT analysis to identify strengths, weaknesses, opportunities, and threats, and a TOWS analysis to formulate strategic recommendations. Furthermore, it utilizes the PESTLE model to assess the macro-environmental factors impacting Tesco's operations, such as political, economic, social, technological, environmental, and legal considerations. The report also examines the impact of these factors on Tesco's marketing decision-making and overall business performance, offering a detailed understanding of the challenges and opportunities the company faces within its dynamic business environment.

UNIT 1 – Business and the
Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.................................................................................................................................................1
P2.................................................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship of different organizational functions and objective and structures for the
purpose:.......................................................................................................................................1
TASK 3............................................................................................................................................3
P4 Various macro environmental that impacts on business operations-.....................................3
TASK 4............................................................................................................................................5
P5 Swot analysis of Tesco-........................................................................................................5
P6 TOWS analysis-.....................................................................................................................8
CONCLUSION..............................................................................................................................13
REFERENCE ................................................................................................................................14

INTRODUCTION
Business environments related to the organizational functions which related to the
internal and external factors that influence operating situation company. Business environment
include all the organizationals functions like customers employees, investor, manager and
supplier etc. in this report different types of organizations define their structure and their
functions according to their size. It report also determines the different types of organizations
purpose like public, private and voluntary and structures and their size and scope. Tesco has been
considered as the organizations discussed in the report. It report also define the relationship
between all the organizational and their functions and their objectives. And the positive and
negative impact on micro environment factors has business operations which supported by the
specific company (Drucker, 2017). Or apply the PESTLE model to support internal and external
analysis of company and their strengths and weakness with related to the external macro factors
in organizations.
TASK 1
P1
Coverd PPT
P2
Coverd in PPT
TASK 2
P3 Relationship of different organizational functions and objective and structures for the
purpose:
Functions- The functions are relation to organisation which define the different functionality in
organizations. Which are discussed below-
 Human resource- The human resource relation to Tesco to operate all over employees
working performance like they handle all staff responsibilities and they appoint all the
staff to their work according to their ability.
 Employees- employees are most important part of the organization and they are directly
link to the organizations like Tesco employees are handle all over functionality of
working like handle customer' and give details about the product etc.
1

 Marketing department- Marketing department is the most important function
organisation like the marketing department of Tesco able to promote their organisation
product and make popularity of products,
 Sales department- The sales department are able to maintained all the selling to
organisational products. For example- the Tesco sales department are selling all product
of organizations.
In organizations business functions are sales, marketing, research, production and billing.
Organizational structure determines the relationship and interactions between the all elements in
they interrelated to each other and interconnected to each other. Those functions in organizations
influence to each other (Bryman and Bell, 2015 ). The various ways to define the relationship of
the company functions and structures-
 Functional structures- Organizational functions department each are linked together. Each
department concentrate to their particular mission and task. In organizational many
department like employees, managers, directors etc. all are linked together and growth of
the company. Organizational factional department take responsibilities to the
organizations all are work together. For example – Tesco organizations have many
functional department which are linked together like manager, employees director and
other staff members. All are shard their working details and working functions to each
others. If Tesco organizations have any problems related to the any department so other
department help to solved their problems. Apart from that functional department of any
organisation define their
 Divisional structure- Decisional organizational structure defines the functions across
different branches if company has products lines so divisional are in group like sales,
accounting, marketing, R&D etc. each divisional of company has necessary functions.
And all have different purpose of to doing business. Each divisional are carry out its
business operations. Each divisional have different personality in business. For example-
Tesco have also divisional department which all are had different purpose like suppliers,
marketing department, sales, distributors etc. marketing department performed the
promotional functions in Tesco and the sales department which are selling the Tesco
2

products to the customers in market and the suppliers supplies the products to the other
retailers in the market (Kolk, 2016).
 Matrix structures- Using the matrix structures in business this give greater flexibility in
business functions then more hierarchical organizations. In this structure each employees
are worked according to the function based department like finance or marketing. But it
also occurs they are allotted a project by different teamed. The matrix structure changing
the organizational needs. For example – Tesco organize the structure which employees
are the worked in different team lead like they are appointed to the different functional
department like finance department employees are working in the marketing department
and marketing sector employees are working in finance department. The meaning is each
employees are arrange duties in organizations. The Tesco mainly define the
organizational
 Organizational charts- In this structure organizations mainly maintained their working
according to the staff working they are not handle the distribute the staff functions they
make chart to improve management efficiency (Cull, and et.al., 2015). Mainly the shows
the authority and control running between different departments and levels of
management. The chart defines the who makes decisions and what work are done
employees in organizations. For examples- Tesco also adopts chart organizational
facilities which defines the working in their organizationals like suppliers work,
employees work, marketing department work etc.
M2 Advantages and disadvantages of interrelationships of organizational structure and their
functional-
Advantages-
The main advantages of the company the relationship of strictures and functional
department all are worked together and manage all the management work together in
organizations. One more advantages of each department help to take other department
responsibilities. The functional department also organize chart facilitate where all the employees
are mention their duties in the chart (Cavusgil, and et.al., 2014). This is most beneficial
advantage which define the management efficiency.
3

Disadvantages-
All organizational department not take responsibilities to the organizationals because all
organizational have different functionality and structures which are different to each other and
their work is also different to each other. The main disadvantages is some time the organizational
chart employees are mention wrong duties and the management managing staff duties are going
to wrong.
D1 Critical analysis of complexities of different types of business relationship with structures
which impact going to organizational structure.
The main thing defines the critical analysis of the organizational structures and their
relationship to functions of organizations define the all the employees are worked together in
organizations and also helps to the department and maintained the growth of the organizations.
They also define the duties of the organization and their responsibilities towards of the
organizations.
TASK 3
P4 Various macro environmental that impacts on business operations-
Macro environmental factors effects the Tesco marketing decision making. The macro
environmental factors mainly effects the planing and development of every business. Similar to
Tesco has some influence of macro environmental factors like marketing decision-making. The
macro environment factors also affects the Tesco political, economic, environmental, social and
legal functionality of Tesco (Kljucnikov and et.al., ). The Tesco is multinational food retailing
company and selling food and non-food products to the consumers. Those factors effects the
organizations working power and impacts to the negative and positive effects to the
organizations. Those impacts are in Tesco mainly define the organizational working skills and
their responsibilities to the customers are and legal authority. The various factors impact Tesco
business operations which are -
 Political factors- That factors understand the Tesco political factors like the company
retailing operate global and worldwide political factors which influence the performance
of Tesco. In this include the all acts of legislation and tax rates and stability of the
country. Government encourage Tesco to plays creating employments opportunities and
increase demands for its products those factor impacts positive impacts on the
4

organizations (Demil and et.al.2015 ). The political factors negative impacts on Tesco
they complete all the legal formalities to the company because the countries' government
are not allowed to open store without any complete formalities of the store and also
inquires of the products.
 Economic factors- This factors impact on Tesco cost, profits, demands and price. The
company also trying ware the policies and their requirement of the company and define
the knowledge of the company. This factors also impacts Tesco finance and changes of
taxation factors. For that Tesco always gives advertisement to increasing their brand
value. The economic factors define the all the responsibilities towards organisation
decisions. The negative impact of economic factors impact on Tesco productivity like
competitors are present the advantage products in organizations. Apart from that
economic factors negative impacts is governments takes high amount tax from the
organizations and they time to show the profit to the organisation.
 Social factors- social factors are impacts on Tesco competitive advantage like Tesco offer
their customer to varsity products. In business the Tesco have many shopping mall in UK
where they present their variety products to the organization. Social factors the Tesco
because the market change and people test is also change they provide different authority
product sin market but they all are not according to customers satisfaction (Cavusgil and
et.al., 2014). And Tesco have to adopt the changes and they innovate their products
according to the market the positive impacts of social factor in Tesco organization they
are give benefits to the society like they give discount products to the customers and
organize sale for the consumer to maintained the retention of the customers .
 Technological factors- This factors impact the Tesco technology like development of
products or creating products. The Tesco provide their customers to online facilities like
customer order at home the products and Tesco delivery boy give the products to the
home. The Tesco also improving their technology they give self service to their
customers to investigate the self Tesco products. This factors define the Tesco adopts
various technology and techniques which is beneficial to the customers are also the
organizations. The positive impacts of the Tesco organization they adopt various new
technologies procedures which help to make the better facilities to the customers like old
5

age people, children they are not coming to purchase goods form the Tesco super market
so they give online facilities to those people at home they order the products and Tesco
provide them home delivery products to customers.
 Environmental factors-In this factors define the environmental issues and to adopts ways
of operation for the society. In Tesco organisation environmental factors are defined the
benefits to the society (Kljucnikov and et.al., 2016.). Tesco adopts the environments
responsibilities where they adopt the operations which benefits to the organizations like
they give their products to the offer price and retailer price they give consumers to the
exclusive deals.
M3 PESTLE model support a detailed analysis of the macro environment:
Political Environment Legal Social Technological
Political factors
effects the
organisation
political
conditions like
company wants to
start business any
countries they
complete all
formalities of that
company.
Environmental
factors effects
organisation
environments like
employees
working style
how they behave
in company etc.
Legal factors
affects the
company legal
formalities like
how organisation
can tart to
complete legal
formalities in
business.
Social factors
effects
organisation
social condition
like how
organisation
benefited to
society people.
In these factors
technological
factors effects the
organizations
technical
conditions like
that impacts
going to company
technologies
reatled products.
TASK 4
P5 Swot analysis of Tesco-
The SWOT analysis of Tesco it's a retailer brand that offers food and non-food items in
countries all over in different formate Tesco is mainly large retail organizations in UK. The
retails organizations face a various external forces and competitive advantages which pressure to
6

rethinking their strategy and going foreword. In this SWOT analysis Tesco organization define
their strengths, weaknesses, threats, opportunities in details-
Strengths-
 Tesco win the various awards in retail industry to gives best service and quality products
to the consumers. The main strengths of Tesco is the largest retailer supplier goods in
UK. And they give barns products and very usable product in their organizations.
 Tesco give competitive advantages to their competitors to the existing products and
Tesco have many store in UK to provided quality products to the customers in cheaper
rates.
 On of the main strengths of Tesco they provide their customers to all kinds of products
in their so customers are attracted their store and they not going other store to purchase
products (Georgescu and Popescul,2015).
1. They also provide food and non- food products to their customers to in retailers price.
 The strengths of Tesco they give their customer the latest technologies products and
creating greater cost efficiencies and services.
Weaknesses
 The weaknesses of Tesco is some employees in the organisation are not takes the proper
responsibilities like finance department. They are mistakes in their accounting that effects
going the organizational financial conditions.
 The other organizations which are open same retailers business in organizationals. And
that effects goes to their Tesco productivity. Like those effects are also going to
customers retentions.
 The Tesco organization provide their customer to various products but not are sell so
Tesco having loss in their company.
 The competition in market and the retailers profits and prices in the market but Tesco
only focused on their competitive advantages.
 Tesco weakness they not examine the market and not exactly target the market. Tesco
only presented the products in the market. This is most major weakness of the Tesco.
7

 The main weakness of Tesco not listing the demands of the market and need of the
customers they only know how to supplies the goods and services to the customers.
Opportunities-
 The main opportunities of the Tesco is they supply the best products in the market in
retail prices and also attract the customers in the market. The main aim of the
organisation to supply better quality products in cheaper price.
 In UK where the most of the retail organizations start their business in the largest
platform they also join and help to Tesco and the local company are help to research
about the market and improve their performance in the market.
 The Tesco offer their customers to online shopping and home delivery service in city.
 Tesco also opportunities in the private label market (Simoes, and Perin, 2015 ).
 Many organizations provide customers to the products in cheaper price but Tesco provide
their customers to better access and quality products in lower price.
Threats
 The main threats to the Tesco form competitor they always trying to provide quality
products and gives competition in market.
 The labour threats also the most effaceable threats to the Tesco because Tesco employees
are left job in the organization.
 Tesco always changes their products prices because they offer various quality products
and the various product which are food and non-food products in organizations.
 Greater stakeholder arr pressure to the Tesco to change strategies and responsibilities on
cost basis.
 The government and politician also putting the pressure on Tesco to follow the
regulations and that require making significant changes in to operate the structure of
additional expense.
 To raising row material also threatening Tesco probability and cussing it to expand the
suppliers network in order to get better pricing strategy.
8

P6 TOWS analysis-
TOWS analysis define the strength and weaknesses of the Tesco. TOWS analysis define
the internal and external analysis which identify the organizations strengths and weakness. Tesco
haven many strengths and weakness in retailer industry, in details those are the weakness and
strengths which are interrelated to the opportunities and threats-
Impacts on macro factor on SWOT- The macro are impact on the SWOT analysis functional
requirements and their legislation for the organizations:
 Political factors- the political factors are connected and give impact on the Tesco service
which are public and private.
 Legal factors- legal factors impacts on SWOT analysis legal requirement like
organizations opportunities for the legal transection and legal service which are assign by
the government.
 Environmental factors- this factors connected to the SWOT analysis threats which are
affected the Tesco environments like competitors etc.
 Social factors- this factor connected to the SWOT opportunities like Tesco have
opportunities for provide social services to the society people.
External analysis
Internal analysis
Strengths weaknesses
Opportunities  Tesco the
largest retailers
in UK and they
provide their
customers to
quality services
and the quality
products they
also give their
 Tesco target
the market to
gives discount
products to the
customers.
They focused
on the growth
of supplying
more fresh and
9

customers to
lower prices
products.
 Tesco also
gives
competitive
advantages to
their
competitors.
And provide
the best quality
service to the
customers.
According to
the competitors
form that
Tesco retain
their customers
long time
(Sodeyfi,
2016).
 Tesco have one
more
opportunities
and benefits to
the
organisation to
provide their
customers to
organic food
which best for
organic food
to boost sales.
 To focused on
food market
Tesco only
gives discount
their food
market in
organisation.
 The main
profitability in
the business in
Tesco the
Tesco only
provide their
customers to
the cheaper
prices
products with
quality
product to the
customers.
 To focusing
on the
emerging
health food
market could
also help
Tesco solve its
profitability.
 The
10

health.
 The main
opportunities
and threats of
Tesco paired
with lower
corporation tax
can assist in
gaining price
advantages for
Tesco.
 Strong supplier
power and the
best quality
products in the
organizations.
 Tesco is
famous largest
organization in
UK which win
various awards
to in retails
world.
 The most
important
opportunities
in the Tesco
they give their
customers to
better service
like old age
weaknesses
are the Tesco
only focus on
organisational
service and
like provide
service. Not
make sure the
company
profits and
other details
about the
organizational
s and the
opportunities
is they
maintained
their suppliers
service to the
organisation
(Besley,
2015).
11

people and
childminder
and they gives
viscount in
various
occasions in
UK
Threats  The Tesco can
regain their
reputation
through
customers an
employee
satisfaction. So
they
automatically
promote their
services and
products in the
market.
 The Tesco also
have threats
form the
suppliers
which adopts
the
responsibilities
for all
marketing and
promotion to
the
 In this Tesco
defines the
weaknesses
about the
company
which are
Tesco
competitors
attract their
customers to
gives various
deals and other
exclusive
offers to the
organizations
which are
attracted most
to the
consumers.
 The biggest
loose of the
Tesco they
give big
discount to
12

organizational
products. So
the
organizational
promotional
department are
only see the
organizational
working
performance
and operate
only the
website
promotional
activities. The
threatening
define the
competitor
which always
present the
quality product
give challenge
to Tesco to
adopts those
facilitates in
their
organization.
their
customers and
make don't
have any profit
to the
organizations.'
 the
weaknesses
are the Tesco
they supply
their
customers to
both food and
non-food
organizations
so the Tesco
manage their
productivity at
same time.
 The main
weaknesses
and threats of
the
organizations
is their
employees are
left and its
difficult to
appoint new
employees and
gives
13

information
about the all
working in the
Tesco and
their
responsibilities
towards the
organization.
M4 SWOT/TOWS analysis they influence decision-making for the chosen organisation:
 Strengths- Tesco main strengths to take strategic decision in their business they take each
and every decision according to the organizations benefits.
 Opportunities- the main opportunity in Tesco always take decision for their employees
and make profits in organisation.
 Weaknesses- Tesco weakness is take immediate actions some time that effects positive
and some time its effects negative.
 Threats- the main threats their competitors are having benefits when Cisco take wrong
decision in their organization.
D2 Impacts that both macro and micro factors have upon business objectives and decision-
making:
Macro factors impacts Tesco working conditions and like they pay tax something they face
government rejects etc.
Micro factors effects organization internal parts like employees problems and their personal
related problems.
CONCLUSION
In this above report this is concluded the business environmental activities which are
relates to the external and internal functions of the environments which influence the business
operations in organizations (Madhavaram and Hunt, 2017). This report also concluded the
Business environment structure which include the various functions in the organizations and all
14

fictions are interactions with different departments. It report also concluded the different type of
organizations which are public, private and voluntary which define their structure of
organizations and their scope and size of different organization and their purpose. It report also
concludes the relations of the each functional and departments of the organizationals and their
objectives. And the positive and negatives impacts of the macro environmental factors in
organizations and internal or external analysis which define the weakness and strength of the
organizations and TOWS analysis which define all the weaknesses and strength of the
organization.
15

REFERENCE
Books and Journals
Besley, T., 2015. Law, regulation, and the business climate: The nature and influence of the
World Bank Doing Business project. Journal of Economic Perspectives. 29(3). pp.99-
120.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Cavusgil, S.T., and et.al., 2014. International business. Pearson Australia.
Cull, R., and et.al., 2015. A new index of the business environment for microfinance. World
Development.70.pp.357-388.
Demil, B., and et.al. Introduction to the SEJ special issue on business models: business models
within the domain of strategic entrepreneurship. Strategic Entrepreneurship
Journal 9(1) pp.1-11.
Drucker, P.F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard
Business Press.
Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of collaboration and
communication for business environment. Procedia Economics and Finance.20.
pp.277-282.
Kljucnikov, A., and et.al., 2016. The Entreprenurial Perception of SME Business Environment
Quality in the Czech Republic. Journal of Competitiveness. 8(1).
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business.51(1).
pp.23-34.
Madhavaram, S. and Hunt, S.D., 2017. Customizing business-to-business (B2B) professional
services: The role of intellectual capital and internal social capital. Journal of Business
Research, 74. pp.38-46.
Simoes, C., Singh, J. and Perin, M.G., 2015. Corporate brand expressions in business-to-
business companies' websites: evidence from Brazil and India. Industrial Marketing
Management.51. pp.59-68.
Sodeyfi, S., 2016. Review of literature on the nexus of financial leverage, product quality, &
business conditions. International Journal of Economic Perspectives. 10(2). pp.146-
150.
16