Tesco's Business Environment: A PESTLE Analysis and SWOT Analysis

Desklib provides past papers and solved assignments for students. This report analyzes Tesco's business environment and operational strategies.

BUSINESS AND THE BUSINESS
ENVIRONMENT
1

Table of Contents
LIST OF FIGURES.......................................................................................................................3
INTRODUCTION........................................................................................................................4
BODY........................................................................................................................................ 5
LO1........................................................................................................................................... 5
P1 & P2 THE DETAIL DISCUSSION OF THE LEGAL STRUCTURES, SIZE AND SCOPE OF PUBLIC,
PRIVATE AND VOLUNTARY ORGANIZATIONAL SECTOR........................................................5
M1 TO ANALYSE THE LINK BETWEEN THE STRUCTURE, SIZE AND SCOPE OF DIFFERENT
ORGANIZATIONS AND ITS OBJECTIVES AND PRODUCTS AND SERVICES OFFERED BY THEM
........................................................................................................................................... 12
LO2......................................................................................................................................... 13
P3 THE RELATIONSHIP BETWEEN DIFFERENT FUNCTIONS OF TESCO AND THE LINK
BETWEEN THE OBJECTIVES AND STRUCTURE OF TESCO....................................................13
M2 TO ANALYSE THE ADVANTAGES AND DISADVANTAGES OF INTERRELATIONSHIPS
BETWEEN THE TESCO’S ORGANIZATIONAL STRUCTURE AND ITS IMPACT UPON THE SAME
........................................................................................................................................... 15
LO3......................................................................................................................................... 17
P4 & M4 THE EVALUATION OF POSITIVE AND NEGATIVE IMPACTS ON THE BUSINESS
OPERATIONS OF TESCO DUE TO MACRO ENVIRONMENT USING THE PESTLE MODEL......17
LO4......................................................................................................................................... 20
P5 & P6 THE ANALYSIS OF INTERNAL AND EXTERNAL FACTORS OF TESCO TO IDENTIFY ITS
STRENGTHS AND WEAKNESSES AND ITS INTERRELATION..................................................20
M4 THE APPLICATION OF SWOT ANALYSIS IN INFLUENCING THE DECISION-MAKING
PROCESS............................................................................................................................. 22
CONCLUSION.......................................................................................................................... 23
REFERENCES........................................................................................................................... 24
2

3

LIST OF FIGURES
Figure 1: Types of Business Organizations................................................................................5
Figure 2 TESCO Corporate Governance Structure....................................................................8
Figure 3 TESCO Organizational Structure at Store Level...........................................................8
Figure 4 Organizational Structure of NHS...............................................................................10
Figure 5 Organizational Structure of Save the Children.........................................................11
Figure 6 Organizational Structure of TESCO...........................................................................13
Figure 7: Interrelationship of Functions of TESCO..................................................................14
4

INTRODUCTION
The direct or indirect impact on the functioning of an organization is created by the overall
factors of internal and external environment i.e. business environment. The performance of
the organization and effectiveness of the organization is influenced by different
environmental factors and it also affects the productivity and business objectives at the
workplace. So this report consists of all such business environment factors that affect
different types of organization such as public, private and voluntary organizations and on
the basis of the history, scope, organizational structure, products and services of such
organization, and the bifurcation of these organizations will be discussed.
5

BODY
LO1
P1 & P2 THE DETAIL DISCUSSION OF THE LEGAL STRUCTURES, SIZE AND
SCOPE OF PUBLIC, PRIVATE AND VOLUNTARY ORGANIZATIONAL SECTOR
As per the responsibility as Business Analyst of TESCO, the role assigned includes to survey
the insights and analyze the interdepartmental relations and the functions of three different
types of organizations; public sector, private sector and voluntary sector (Bullock et al.,
2015).
TYPES OF ORGANIZATION:
There are mainly three types of organizations; public, private and voluntary based that are
classified as under.
Figure 1: Types of Business Organizations
(Source: Bullock et al., 2015)
6

7

Private Sector Organizations
The organizations that are controlled and managed by the individuals or group of people are
defined under private sector organization. The main aim of such organization is to earn a
profit as they work for their personal benefit (Johnson et al., 2017).
Example: TESCO PLC is a private sector organization; UK's largest supermarket selling
groceries and providing banking as well as telecommunication services.
Public Sector Organizations
The organizations that are controlled and managed by the government; local or central is
defined under public sector organization. Such organizations are abiding by the rules and
regulations, defensive organization, etc. that works for serving the society without the aim
of the profit motive (Johnson et al., 2017)
Example: NHS is a public sector organization, providing health services to UK residents by
collecting funds from the government.
Voluntary (Non-governmental) Organizations
The organizations that are established to help people without the aim of earning profit
which is managed by a voluntary group of people who works for a common goal. No
revenue generation is there and the money raised from funds collection is invested in the
charity for the betterment of the people (Butler and Wilson, 2015).
Example: Save the Children is a type of non-government organization that aims at
promoting the rights of children by providing them with better education, medical care and
other emergency services.
GROWTH OF INTERNATIONAL BUSINESS ENVIRONMENT
There is a rapid increase in the growth of international business environmental factors
which requires managers to deal with the same with the continuous monitoring as they are
affecting the objectives of the organization. The growth in such an environment is caused
due to the importance of strategies and changes occurring in the environment. Increase in
competition in various sectors has emphasized the business organizations to expand the
business across the world so that the growth is entitled.
8

DETAIL DISCUSSION OF EACH ORGANIZATIONAL SECTOR:
TESCO PLC (PRIVATE SECTOR ORGANIZATION)
Background:
TESCO PLC is a British multinational retailer of groceries. TESCO was incorporated and
founded in the year 1919 by Jack Cohen. The headquarter of TESCO is in Hertfordshire,
England, UK. Apart from groceries, it also provides banking and telecommunication services
(Tesco, 2019).
Vision:
The vision of TESCO is to be among the top businesses that are highly valued by serving and
operating the customers and communities respectively and by maintaining trust and loyalty
from the colleagues and shareholders (Tesco, 2019).
Mission:
The mission of TESCO is to achieve the overall objective of the business by implementing
effective strategies within the business unit (Tesco, 2019).
Objectives:
The main objective of TESCO is to stay at the leading position in the supermarket of retailers
and to provide best quality products and services that are affordable for the customers and
cheaper than the competitors (Tesco, 2019).
Size and Scope:
The size of TESCO implies with the large number of supermarkets in the town as well as
outside the town. TESCO's scope is to the extension of the market by selling a huge number
of products and services. Though having the business established in the market of Europe
and Asia other than UK it aims to expand the business in other nations like the US (Tesco,
2019).
Products and Services:
The products and services provided by TESCO are mainly groceries. But apart from this it
also provides high range of products and services like books, clothes, electronic items,
furniture, petrol, toys, software, telecommunication services, financial services and internal
services (Tesco, 2019).
Key Stakeholders:
Shareholders, employees, government, suppliers, financers, customers are the key
stakeholders of TESCO (Tesco, 2019).
9

Legal Structure of TESCO:
Figure 2 TESCO Corporate Governance Structure
(Source: Tesco, 2019)
Figure 3 TESCO Organizational Structure at Store Level
(Source: Tesco, 2019)
10

NHS-NATIONAL HEALTH SERVICE (PUBLIC SECTOR ORGANIZATION)
Background:
NHS was founded in 1948, for planning and managing daily activities in HSC (Health and
Social Care) and also financing these operations and services. It is a public organization
providing health and care services in the UK (NHS, 2019).
Vision:
The vision of NHS is to enable people towards healthy and independent life by assuring
better and perfect quality care (NHS, 2019).
Mission:
The mission of NHS is to provide the health care and services to the people who are in need
(NHS, 2019).
Objectives:
The objectives that NHS pursue involves that to ensure every child begins his life with the
best start, to prevent and monitor the quality of life by reducing health-related issues, to
improve well-being and to deliver the efficient services with the help of available resources
(NHS, 2019).
Size and Scope:
NHS values each other by providing benefits to the patients by practising a higher standard
of integrity. It provides the best and optimum quality of health care services (NHS, 2019).
Products and Services:
NHS is the largest health curing organization with huge employees i.e. 1.5 million people
across the world. It provides best quality services of health to the people living in various
communities (NHS, 2019).
Key Stakeholders:
There are internal as well as external stakeholders involved in NHS such as government,
management, unions, suppliers, employees, customers and communities (NHS, 2019).
11

Legal Structure:
Figure 4 Organizational Structure of NHS
(Source: NHS, 2019)
SAVE THE CHILDREN (VOLUNTARY SECTOR ORGANIZATION)
Background:
Save the Children is an international voluntary (non-governmental) organization was
founded in 1919 by Eglantyne Jebb and Dorothy Buxton in London. Save the Children
focuses on promoting the rights of children and providing them with better quality life in
developing countries (Save the Children, 2019).
Vision:
The vision of Save the Children is to make every child attain their rights such as survival,
development, protection and participation (Save the Children, 2019).
Mission:
The mission of Save the Children is to develop the inspiration in the world to treat the
children and make better changes in their lives (Save the Children, 2019).
Objectives:
12