HND Business Environment Report: TESCO's Analysis and Macro Factors

This report examines the business environment of TESCO, a prominent private sector organization. It begins with an introduction to the business environment, emphasizing internal and external factors impacting business operations. The report then explores the purposes, scopes, and sizes of various enterprise types, using BBC, Oxfam, and TESCO as examples. It delves into the interrelationship of organizational functions within TESCO, highlighting departments like product, marketing, finance, customer service, and legal. A PESTLE analysis assesses the positive and negative effects of political, economic, social, technological, legal, and environmental factors on TESCO's operations. Finally, a SWOT analysis evaluates TESCO's strengths, weaknesses, opportunities, and threats, and explains how these factors interrelate with external macro factors, concluding with overall observations and recommendations based on the analysis.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose of various types of enterprise...................................................................................1
P2 Scope and size of various type of enterprise..........................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between various organisational functions and their relations...........................1
.........................................................................................................................................................3
TASK 3............................................................................................................................................5
P4 Positive and negative effect of macro environment on TESCO operation ...........................5
TASK4.............................................................................................................................................7
P5 SWOT analysis of TESCO ...................................................................................................7
P6 Explain how strengths and weaknesses interrelate with external macro factors ..................9
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................11
INTRODUCTION
Business environment is a combination of external and internal factors that influence
businesses operating situation. It means a collection of all entities, individuals and other sources

which may or may not the manage of the enterprise, but can impacts its probability, even
survival, growth and performance etc. Every business enterprise run in a distinctive surrounding,
as it cannot present in isolation. Such a business environment influences firms and also gets
impacted by its activities. A firm gets affected by various kinds of factors that exist in its external
and internal environment. These elements related to an enterprise have indirect as well as direct
relationship with its effectiveness and performance (Yoon, 2012). To ensure that economic is
capable to select and integrate all essentials market dynamics, leader needs and wants to use
different tools like PESTLE and SWOT. This report will describe company’s effectiveness in the
present scenario. This file also includes different variances among necessary change in
businesses environment and ways in which it effect enterprise's operations. For this study BBC,
Oxfam and Tesco are taken as example of Public, Voluntary and Private organisation. Different
source and their relation with organisational function will be there.
TASK 1
P1 Purpose of various types of enterprise
Covered in PPT.
P2 Scope and size of various type of enterprise
Covered in PPT.
TASK 2
P3 Relationship between various organisational functions and their relations
Different factors and functions are decided regarding to their structure and goals of an
enterprise. There are different duties which are provide to the workers as to attain enterprise
objectives and goals in a efficient and effective manner. It is very important for many companies
to understand that relation with various functions within. It will help in increasing that is capable
to achieve the sustainability success as well as growth as to keep economic afloat. Tesco
understand the sustainable development important and that is why cited company invest large
amount of money in its functions (Welford, 2013). While doing so firm also has to make
understood that it is nor effecting environment and they also keeping productivity at a top level
of effectiveness and efficiency. Management function of TESCO such as, recruiting, managing,
controlling, evaluating, organising, monitoring and selecting etc.

At the planning time then mangers focus on various goals and objectives of an economic
as to attain them is a specific time period. It is a board challenge for industry to focus on
sustainability while concentrating on targets which is needs exploitation. That is why they
required to prepare decisions by which they can relation all the functions together and rise
performance of an enterprise. Every functions are very necessary as well as important for
economy because they help in adding large value to future and complete buyers needs and wants
with qualitative services and products.
Tesco is a well formed enterprise structure that is based on matrix and tall structure it is
called hybrid strategy (Trkman, 2010). Cited company adopted these artefact because it ensure
the flexibility. In this way different functions and department attain essential funds to runs at
their maximum. Different functions in economy are classified on the basis of region and goods
lines offered. Evaluate the all company structure which is considered to be analysable but it is
very supportive for cited company as to insure that all duties of workers are properly managed.

Source 1: TESCO Annual report,2017

There are various functions and departments in TESCO, as satiate in image above.
Different functions support enterprise in ensuring that all activity are fulfilled and several
objectives are attained in a specific time duration. All purpose are sated above with an
explanation of how they help another departments.
Product: It is a important department because it looks after the shelf as well as goods offered by
companies super store (Teece, 2010). It also maintains the all stokes and insure every services
and products is present for consumer and their past experience at per.
Source 2: Organisational structure, 2016
Marketing and sales: Those functions are play an essentials roles and responsibilities in giving
important as well as necessary information related to customers needs and wants. These
departments huge money so they highly promote their services and products (Robbins, Judge
and Campbell, 2010). They involve in supporting other different sectors regarding modification

in the market surrounding. One of the best example is it help in research and development
department in selecting unique technologies for making management of supply chain.
Finance: These department is necessary for the all organisation because it managers all the
revenues and expenses that is earned by an enterprise in a financial year. It is also gives needed
finances amount to all functions of business as to support then in launching at their best and high.
Customers and Channels: It is a important department because it concerned with the customer
satisfaction (Siewiorek and et. al., 2012). It will defines as different grievances and give accurate
data about their services in a proper way, so that modification can be successful in the facilities
and they can be developed as well as improved.
Legal: This department understood the all activities or functions that are running as the the
government legislation. It help economy by assembling a good framework which can be used by
TESCO and making a standardised platform for all tasks.
These are important functions that are interrelated with each other and attains its
objectives and goals in a given time period.
TASK 3
P4 Positive and negative effect of macro environment on TESCO operation
Company macro environment which can be includes various factors that are not monitor
on an economic. They have indirect as well direct effect on enterprise activities. It will also
involves different components such as political, technological, economic, social, environmental
etc. Which charge with time and they have large effect on enterprise in a both manner such as
positive and negative. Cited company also determine these elements with the assist of PESTLE
analysis which is a fee that is crafted for determining external envelopment and their impact on
TESCO. Their effect which can support management in strategy for implementation as they will
also have a contingency idea to avoid any combat from market. The PESTLE analysis is as
below:
Political: There are different range of elements that have impact over cited company. These
company presently operating in foreign market, which make it much assailable to these factor
(Guglielmetti, 2011). They highly impacted enterprise inability to perform as imbalance in basis
of Britain political factor which is making it very complex as well as difficult for businesses to
functions. Legal authority has to take important steps as to protect that no company gets effected.

Cited company plays an essentials as well as vital role in giving job opportunities and developing
person living standard in the country. Political factor has positive effect that it is a favourable
then firm will be capable to flourish its running will be fast and negative impact there will be
slow decision making which will impede enterprise ability to perform.
Economical: This component which can effect enterprise in a positive as well as negative way
that is might even collapse (Gebauer, Paiola and Edvardsson, 2010). Cited company has to keep
on determining economic environment as to protect that it is capable to select and it will be
flexible enough to overcome whole problems that are presenting in environment of an economic.
People income, inflation rate, prices deflation of products, recession, bank report, and stock
market are several components which required to be assesses by leaders in economic
environment. Different modification in these sources cab effected all enterprise functioning and
can losses of cause. In year 2008, there are several recession which affected business revenues
hard and they fell on the ground as person were largely focused on saving of money spending
instead. UK governments was capable to contain this condition and invested a less amount of
money in marketplace. The positive impacts of these factor than enterprise will be capable to
attain high level of the productivity and sales profit (Fernando, 2011). Negative will define as a
cause of dis balance in economic and its productivity.
Source 3: Turkey,I., 2014

Social: There are several charges that keep on taking better place within person as well as
community. It is a dynamic factor as with boost in globalization, the exchange among person has
maximised. It also leads to modifications in values, ethics, lifestyle, culture of population living
in a area. Cited company manager need as well as required to keep on determining this source as
to understand the consumer wants and needs who consume enterprise goods and services.
Technological: This source is very important to help in improving efficient functioning and
support in decreasing factors consumptions (Erving and et. al., 2011). In today environment is
very competitive and it will plays a essential role in increasing enterprise effectiveness and
efficiency. The need of cited company to select technologies as to develop its management of
supply chain. So that it can supply their qualitative services to buyers. The positive effect of this
source that it rise business capability to fulfilled its activity in a specific time period. Negative
effect is that it buyers a less of factors in adaptation process.
Legal: In UK, there are various legislation which are in coexistence with European Union. Cited
business is effected by these constitution as it has its division in EU countries and UK.
According to the Brixit, it is very complicated for business to control various branches and
resources at once. There are legislation attendant to food retailing, safety and health which
required to be followed by TESCO as to check that they do not into various legal trouble. There
are different constitution which states that economic has to inform buyers about different
products modification. If these business analysis whole low in a proper way then it will be
capable to attain a best situation in market but any rules and regulations breaking will hamper its
goodwill in the customer mind.
Environmental: There are different treaties that are being used by different countries as to
ensure environment from exploitation as well as pollution (De Jonge, 2011). It is very necessary
for enterprise to determined that business follows whole government path as well as guidelines
of sustainable improvement as to ensure. It will do not pollute envelopment of society and keep
surrounding safe.
TASK4
P5 SWOT analysis of TESCO
It is necessary as to determined as well as evaluate enterprise ability, micro environment
and its all productivity are as below:

SWOT:
Strength
The TESCO company is well formed in UK and EU market. It has a best as well as multi
faced approach to cater to the customers needs and it will also offers services and products via its
hyper and super market as well as convenience and hard discount stores. It serves different kinds
of grocery, general merchandise and food related products to buyers. It has top level of brand
equity in marketplace and is reasoned to be very good brand.
Weaknesses:
There are some weaknesses of an enterprise which are linked with the present
controversies about to destructive media coverage and damage to image of public. In this way
accounting trouble has fall investors trust in business (Cronan and et. al., 2011). It is inactive
suffering from weak existence in improving states which have much opportunities to exploit.
TESCO has their history of credit card arrears, insurance claim and financial debt to be given.
Opportunities:
There are several opportunities which requires to be exploited by cited company, such as;
it wants as well as required to determined innovation in digital marketing as to rebrand its stores.
They needed better advertisement and promotion for attracting buyers towards them. Cited
company has several options of incoming into improving market via getting tie ups and small
chains. Apart form the TESO was focused on rising its grocery products and their sale which
wants to modification.
Threats:
The cost of raw material in food as well as non food items range are reducing its revenues
margin. It has to keep less cost which are forbidding its profitability and productivity. Also
boosting opposition is becoming threat for business.
Impact on decision making
SWOT analysis define as strength, weakness, threat and opportunities etc. they help
managers in implementing and formulating strategy. Enterprise knows about what his
capabilities and productivity level (Cordes, Richerson and Schwesinger, 2010). It can be
introduce modifications as per the variances and requirements. All process of decision making
which is based on these weakness and strength. It also rise leaders ability to accomplish different
activities by taking effective judgements.

P6 Explain how strengths and weaknesses interrelate with external macro factors .
Every organisation demands to analyse their strength, weakness and opportunity to grab
and threats. In the order to their performance in the global market. There are some of the
environmental factors which are interlinked with the SWOT analyses. This process should adopt
by Tesco the macro environmental factors. This process is very helpful for the cited firm in the
identify these factors which having impact of the entire operations and functions of company.
Strength and weakness are interrelated should empower the strength and try to recover the
weaknesses. Some of the macro factors of Tesco is shown below :-
Political :- Overall, all the entire operation and function of Tesco has been affect by these
unstable Political elements in the UK.
Economical :- Fluctuation of inflation and deflation index rate is quite having impact on
the beingness of this company (Commander and Svejnar, 2011). This will directly and indirectly
affect to firm.
Social :- Due to unequal arrangements of income cited company is capable to accomplish
their targets and as well meet to their objectives. Through this company make sure about the
quality of the products.
Technological :- Tesco already adopted many advance technologies, in order to reduce
their cost and through this boost up the profit margin. So on through these members can develop
their own supply chain management system to achieve their respected goals and objectives.
Legal :- There is always amendments and changes in these laws, rules and regulations
and policies too. So these also affect directly and indirectly in the firms. So as according to that
company ensures that they should follow all these legal procedure and enacted as the authorities.
Through all these process they also attain to organisational targets and goals.
Environmental :- Treaties has already framed by various countries as according to their
culture and environment. They have various countries which is protect and prevent the
surrounding. In this entire process two or more are consult with each other and frame some of
legal agreements for reducing these carbon emission which is signifiant techniques. There fore,
Tesco members adopted such various types of the tactics which help them to protect their
environments (Chow and et. al., 2012). As, this is quite beneficial for this company in order to
meet their long term as well as short term objectives and goals of the company.

CONCLUSION
As per the above report, it can be concluded the business environment and they has to be
support by leaders as to ensure that enterprise do not achieve effected by it at future and present.
There are various kinds of sources that lays in a company surrounding, such as macro as well as
micro factor. They are determined with the assist of SWOT and PESTLE analysis which support
managers in linking different functions of enterprise and rise their decision making process. At
the present private company has over mature public company in scope as well as size.

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