Business and Business Environment Analysis Report for TESCO

This report examines the business environment from the perspective of TESCO, a major retail organization. It explores different types of organizations, including public, private, and voluntary entities, along with their legal structures. The report analyzes the scope and size of various business types, using TESCO, Oxfam, and NHS as examples. It delves into the relationship between organizational functions, such as production, marketing, sales, HR, research, and finance, and how these functions link with organizational objectives and structure. Furthermore, the report discusses the positive and negative impacts of the macro environment on business operations, utilizing the PESTLE model for analysis. It also includes an internal and external analysis of TESCO to identify its strengths and weaknesses, particularly in relation to external macro factors, culminating in a conclusion that summarizes the key findings and insights.

Business and The Business
Environment

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Types and purpose of organisation with their legal structure...........................................3
P2 Explain scope and size of different types of business.......................................................5
TASK 2............................................................................................................................................6
P3 Relationship between organisational function and their link with organisation objective and
structure..................................................................................................................................6
TASK 3............................................................................................................................................7
P4 Negative and positive impacts of macro environment on business operations.................7
TASK 4............................................................................................................................................9
P5 Internal and external analysis of organisation for identifying strength and weakness......9
P6 Weakness and Strength that relate with external macro factors......................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business is a constant number of action and strategies that are undertaken and controlled
by the individual with the motive of earning profit. One of the main motive of a business
organisation is to generate more amount of profits through selling products and services to
potential customers with involve of marketing activities in the organisation. Along with this
management of a business organisation is responsible to formulate strategy according to business
environment for accomplishing goals and objectives in minimum time-period. Moreover,
business environment relates with formulation of plans and strategies to manage work according
to internal and external factor of business (Ayios, 2018). This report is written from the
perspective of TESCO and it one of largest retail organisation that operates business in different
geographical areas. Moreover, report highlights on size, scope and types of organisation that
impacts on macro environment and identify strength as well as weakness that relates with macro
environment of organisation.
TASK 1
P1 Types and purpose of organisation with their legal structure
Organisation is an explained as a unit of person which is well-structured and organised and it
leads management for performing business in a systematic manner. Some types of business are
discussed as below:
Public organisation- Government of a country formulates and establish public organisation
so all decisions and functions are governed by authorities and officers of government. Moreover,
public organisation is self-funded and they work with motive of providing effective services to
the public. Tax collection is an important aspect that leads organisation to purchase raw-material
or resources for completing public organisation work (Buytendijk, Hatch and Micheli, 2010).
NHS is selected as a public organisation that works with purpose of offering effective services to
the society instead of earning more profits.
Legal structure of public organisation Trust: As NHS is a public organisation and with this they have their traditional
constitutions under which their working is performed under the sustained guidance of
governed charities by which ability to attain sustained objectives is attained with
perfection.

 Unincorporated association: As it is a public limited company thus it is required that its
functions is processed with certain guaranteed is offered as per specifications of laws
and regulations.
Private organisation- According to present market conditions, private organisations lead
the market through performing their work in different economic sector. This helps in improving
the knowledge of business owner through registering themselves as a well-based business. The
main motive of private organisation is to earn sufficient amount of profits for enhancing their
business size at a large level. Large organisation such as TESCO is an example of private
organisation that large range of products into different area.
Legal structure of private organisation
Sole proprietorship- According to the sole proprietorship, single individual is main
person that are responsible for operating and organising company activities to perform business
in an organised manner. Profits and loss are owned by the individual or owner only.
Partnership- According to partnership firms one or more individual perform their work
together for operating business activities (Chokheli, 2014). By sharing company profits and risk
this is easy to expand business at the international level. Moreover, business start with agreement
in which profits and roles are divided by both partners equally.
Limited organisation- Limited organisation is explicated as a structure by which different
persons operate their business within the business. Example- Organisation suffer loss than
management and investor only pay according to decided amount.
Voluntary organisation- All type of organisation develops and creates different number
of individuals that perform different group for individuals. In this individual arrange as well as
combine different efforts for achieving common goal as the main motive of business is to gain
benefits for society. Moreover, voluntary organisation is generated through taking permission
from the ruling government of country. It also offers essential resources to required individuals
for performing business properly (Commander and Svejnar, 2011). Oxfam is selected as the
voluntary organisation and it motivated towards removing poverty from society to raise living
standard of individuals.
Legal structure of voluntary organisation

Trust- A trust is defined as a set of asset that is related with property, investment and
number of individuals that are offer by person, trustee with intention of benefiting third party.
Along with this trust is owned by asset that offer benefit to beneficiaries.
Social enterprise- There are less common formats exists in voluntary organisation which
aids individual to work with business model and it is employed by management for completing
task with legal format. Along with this social enterprise is accepted for completing work as per
derives that offer better annual income to manage task with earned sources.
P2 Explain scope and size of different types of business
Private organisation- TESCO is one of the largest organisation that exists in present
scenario at the international level (Craig and Campbell, 2012). Each business perform their work
with different purpose and it aids to complete work according to decided scope and size which is
too large and differ from the public and other voluntary organisation. Moreover, in context of
TESCO management increase its size through operating business into different countries. The
expansion of TESCO defines surplus profits and it lead organisation to earn more revenue for the
business. In terms of scope management TESCO management earn high amount through sale its
products into rural market for covering potential customers. Size: It is a larger size organisation as having a store 7005. Scope: The company works with the scope to offer wider services and maintain diverse
range of portfolio. Vision: Tesco works with the vision to be highly modified business that serve better
services to customer's.
 Mission: Tesco believe “to work better and all together in which all the working
operations get interrelated and connected towards each other in systematic manner.
Voluntary organisation- The term Oxfam is one of the largest trust based organisation.
They perform work as a NGO in the UK. Management earn profits for development of society
that is established within year 1942 and it exists among business to complete task as a trust that
work under the motive of managing and completing their task with an appropriate manner as it
reduce poverty form the society. So with increase in size of business it is easy for all members to
perform their work among all over the world. This leads organisation to complete task according
to needs of individuals (Heaton, Linden and Teece, 2014). Like, Oxfam provide services to
individuals that improve living standards through reducing poverty from countries of UK.

 Size: It is having a massive reach within the competitive marketplace by which long term
development is attained with perfection. Scope: To offer trade justice, education, fair trading, livelihood, health, quality etc. that
induces international trading at smoother manner. Vision: To get influence decision making that affect living standards as by enjoying right
with full responsibilities as to treat everyone equally.
 Mission: It is to create and provide long lasting solutions with this injustice about poverty
is offered with security and safety.
Public organisation- The term public organisation provides different services to the whole
society. In context of management there are all products or services which is offered are at low
rate. This is also used for satisfying need of customer at low price and in present scenario, NHS
provide services in the health sector. This helps society for living a healthy life through utilising
organisation service at low rate. Within UK the specific needs of England is filled by NHS to
provide health services including primary and health care services. Moreover, organisation offer
free and better health service to low segment and it aids them to improve company health
services. Size: NHS operate its functions and operations at higher level or at multinational level. Scope: The scope of NHS is to offer better sustainability all the patients as by offering
better treatment. Vision: The company works with the vision to offered improvised life in which
customer's well being is considered.
 Mission: NHS always found everything under which better living standard is processed
with support of excellence and professionalism.
TASK 2
P3 Relationship between organisational function and their link with organisation objective and
structure
Organisation such as TESCO performs their functions and operations with engagement of
different departments that aids management to perform their actions according to goals and
objectives. Marketing, finance, production etc. perform an important role for management and it

leads management to complete their work by managing different function at different role.
Relationship between different function is discussed as below:
 Production and marketing function- Both marketing as well as production perform
an essential role for completing function of organisation with motive of obtaining
sustainability in market (Heaton, Linden and Teece, 2014). Production team is
responsible to manufacture products according to market requirement through
discussing and obtaining information with marketers for transferring needs and wants
of customer. Further, marketing department also promote products and services that are
manufactured by organisation. In context of TESCO, members of marketing analyse
and work as per motive of earning profits only. Further, marketing and production
department relates with TESCO structure as it aids to manage function according to
company goals.
 Sales department and human resources- This is essential for an organisation to
establish the workforce that is required by management to complete task as per
workforce. Management of human resources execute activities that are used in
improving sale of organisation products and services. Within context of different
business HR department is responsible for hiring capable candidates related with
organisation. This is also used by management to manage work as per structure of
business objectives (Hopkins, 2011). As with effective sales force organisation is able
for increasing value of products by selecting human resources of HR team. In context
of TESCO, different values relate with employee’s are required for managing multi-
national stores of organisation.
 Research and finance department- For expansion of an organisation at the large
level research department plays an essential role to explore different opportunities in
the market. There are roles performed by management which is required to implement
techniques according to needs and wants of customer. Finance department also help
management in managing task of organisation. This is also the responsibility of finance
team to manage work as per decided monetary resources. Objectives of both
departments relates with business functions that is used to operate task according to
regular aspect of business for accomplishing of business objectives within stipulated
time period.

Tesco uses hierarchical structure as within this they are able to assign and allot various
functions and strategies through which long term success is achieved with perfection and on
timely frame as well. It is also be define under as functional structure as well that maintain clear
focus and concern about each of department as from their working is diverted in terms of
multiple layers and forms. As the size of Tesco is large thus with the support of this structure
company is able to perform and accomplish all its standardised objectives and target in adequate
manner.
TASK 3
P4 Negative and positive impacts of macro environment on business operations
The term macro environment is considered according to external factors that indirectly or
directly impacts on working of business organisation (Jenkins and Williamson, 2015). PESTLE
model is appropriate for minimising negative impacts that relates with motive of analysing
external factors with appropriate methods. Some positive and negative impact to improve and
enhance macro environment is mention as below:

 Political factor- This is concerned by management that political stable country
formulates better rules and regulations and it is imposed to manage all actions according
to import and export of products. It is also used by organisation for managing task with
motive of managing work according to task for managing work as per TESCO to deal as
per unemployment rate of providing techniques with employment rate of managing task
with organisation perspective. The positive impact is that Tesco has worked with all
around world and with this they are able to gain higher sales and profit. On the other
hand, due to the uncertain political environment all around the world it is hard for the
business to maintain its working standards stronger and better. Economical factor- The term economic factor consist inflation, interest rate and
inflation for managing work according to current market environment. Cost, profits and
price results in formulation of developing positive aspects that is used for borrowing
cost from different aspects. The negative impact on Tesco is that, it is important that
management complete task with analyse of Brexit decisions in order to perform work
with decided profitability and growth in order to complete work with profitability of
business in UK and international market (Madureira, 2014). On the other hand Tesco
offer online services and delivery as well by which they are able to gain adequate profit
share in adequate manner. Social factor- This is related with perception and attitude of the individuals that is
regarded with services and products of organisation. With considering all factors it is
identified by management that social factor consists of managing and demanding fast
delivery of products with understand of dynamic aspect related with market and society.
The preference of customers get changes on continuous basis and it has negative impact
over business as with this ability to attract and retain customers attractiveness is always
be difficult for the business. On the other hand, the slide of customer's towards online
services is advanced and it is a biggest advantage for Tesco by which its ability to gain
higher success is advanced on regular basis. Technological factor- Techniques and digital methods to complete work is managing
task with motive of managing work as per latest technology aspects that are used to
accomplish goals and objectives with more efficiency and effectiveness. With major
changes among organisation related as per managing needs and wants to enhance and

increase customer experience in positive manner. Management of organisation define
task which is used to drawn better aspect of involving technology as this involve high
investment to manage work of TESCO (Menet, 2016). The rapid change in technology
is always be difficult for the business as with this it is hard to get match the working
standard and digitalisation. The positive impact that customer's easily get related
themselves with the marketplace as with this ability to make better advancement is
induced with perfection. Environmental factor- This is considered by management that with implement of
change among policies related with environment. TESCO manage and complete work
under high pressure from government of UK to manage and reduce environment issue.
The threat related with organisation defines that change in plans due to which task are
managed by under the guidelines of TESCO. Further, the delivery vans use the fuel
saving routes in order to save environment. It also results person are motivated to
formulate plans to work in safe environment. The negative impact on Tesco is that they
have to follow various roles and regulations related to environmental protection and it
has negative impact over business working standards. In relation to positive impact
Tesco, induces higher amount of changes by which effective utilisation of resources is
implemented in effective manner.
 Legal factor- This relates with the laws and rules and it is used by the organisation for
performing work according to country governance, rules and policy. Employees of large
business such as TESCO are not satisfied according to their pay basis so it is the
responsibility of persons to complete all work according to given rates and it leads
management in managing task according to pay rates that is given by organisation for
managing work according to negative aspect of business. Positive impact are also
implemented that makes more effective for TESCO to start and manage work according
to retail market and country rules. The positive impact is that due to follow up of legal
formalities all the required resources are used in balanced mode as with this
effectiveness towards working standard is developed systematically. The negative
impact is that Tesco operate its functions at different locations and with this they have to
follow various regularity in ordinate manner.

With use of PESTLE model it is understand that by analyse of political, social and technological
factor it is used by management to complete work in managing task. There are different task
managed to understand strategies with laws of UK (Paul, Yeates and Cadle, 2014). The
probability related with risk and uncertainty is reduced and this leads to achieve short as well as
long term goals in an effective manner.
TASK 4
P5 Internal and external analysis of organisation for identifying strength and weakness
This is essential for an organisation to identify strength as well as weakness of a business
because it leads management to give competition which assist organisation to compete with
individuals in the similar industry. TESCO perform and manage it work through competing local
as well as international players of retail market. This is also essential for managing task
according to decided task that is available for identifying negative and positive aspects related
with external and internal environment (Riaz and Khalili, 2014). So it is used to complete all
work with decided strategies which increase in improving satisfaction level of potential
customers. SWOT analysis of TESCO is mention as below:
Strength
 TESCO is recognised as one of the
largest grocery retailer of UK. From
perspective of TESCO this is
recognised by management that
increase in size is major advantage of
TESCO.
 Organisation provides large number of
products and services. This offer needs
as well as preference products to
potential buyers. It results that
management is able to capture largest
market share in limited time period.
Weakness
 TESCO face the major problem that is
related with rapid decline in the
perspective of operating profits for
business because it is reduced due to
decision of Brexit. This results share
price of organisation is decreased which
offer loophole to competitors.
 Due to the high competition among
market and retail industry situated in
UK. This is analysed that price wars
generate challenge for business. It also
results TESCO are not able to earn
same profits.
Opportunity Threat