Business Environment Report: Tesco PLC and Macro Environment

This report provides a detailed analysis of the business environment, focusing on Tesco PLC. It begins with an introduction to the concept of the business environment, outlining both internal and external factors influencing organizational operations. The report then delves into the impact of micro and macro environmental factors on Tesco, a UK-based grocery and general merchandise retailer. It examines the relationship between organizational functions such as human resources, finance, marketing, research and development, and IT, and how these functions contribute to achieving the company's objectives. The report further explores the different types of organizations including public, private, and voluntary sectors, along with their purposes and legal structures. A SWOT analysis of Tesco is presented, along with a discussion of how strengths and weaknesses are interconnected with macro environmental factors. The report concludes with a summary of the key findings and references relevant sources.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between organisational functions with objectives and structure......................1
TASK 3............................................................................................................................................2
P4 Impact of macro-environment................................................................................................2
TASK 4............................................................................................................................................4
P5 Swot analysis of Tesco...........................................................................................................4
P6 Interrelation between strength and weakness with macro factors.........................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment is one of the important part for the organisation. There are many
factors that have impact over the operation of organisation. It covers internal and external
factors. This is important for business to consider such factors in effective manner so that it can
not affect operations in negative manner. These factors may also be related to employees,
customers, management, supply, demand and business rules and regulation. Tesco PLC is the
UK based company that offers their services at large level. It is British multinational grocery and
general merchandise retailer in UK market (Commander and Svejnar, 2011). This is retail sector
company where they offer grocery product to its customers. There are many stores that Tesco
Has opened in various location so that they can target their customers at large level. This
company provides their product to supermarket, supra store and Hypermarket. They have main
focus to remain competitive in market by providing effective product and services top users. In
the present report, the impact of Micro and macro environmental factors over business and the
strength and weakness are also stated.
TASK 1
Covered In PPT
1

Notes-
Many companies are in market that are effectively providing their services at large level.
Some of them are privately owned and rest are public. There are some organisations that are
under the control of government.
Some firms operate for the objective of profitability whereas some are working that have
primary motive to have the welfare of society. Such business entity perform different activities
for their different purposes. They have their own values, views and purpose. The difference can
be identified in term of their size, purpose, objective and belief.
2

Notes-
Public Sector Organisation
This sector organisation offers their services to people free of charge as School fees and
amount is charged for other services as swimming pool, sports facility and other curriculum
activity. Chairperson and Board of directors are appointed by government ministers. They have
main duty to perform their duties on behalf of government.
There are some national and international business firms as MFI, Vodafone and BT.
Franchising is the essential factor that is commonly found in restaurants like McDonald's. They
provide food and other services as 24 hour plumbing.
Example
3

McDonald's is American based public sector organisation that has business centres
worldwide. Its hamburger is very famous. They are continuously trying to expand their business
by opening many centres in different regions. They have covered market area in around 119
countries and have outlet (in number) around 35000. They deal with around 70 million
customers in a day.
Purpose
The main purpose of McDonald's is to provide their services in effective manner and to
retain number of customers for longer period. They promise to provide their services when and
where it is needed by users. They have main purpose to attain the satisfaction of customers
toward their product and services. Further more, they use best quality product and raw material
in their production, that is why they provide surety in term of quality measures.
Legal aspect of Public sector
Government has power to regulate all the activities and functions of this business
organisation. Central government pays for goods. Local government makes the payment for
services that are offered by Council tax.
4

Notes-
Private sector organisation: Different type of business are under this sector as sole trader,
partnership, companies and franchises.
 Sole traders are most common in UK. They are the person who have full control over
the business and they perform different activities (like window cleaning, plumbing,
electrical work and busking). There are around 20 sole trader are in UK.
 Partnership is another form of private entity. In this, two and more than two person
collective work for the common goal. They share profit and loss of their business.
 Private company is owned and control by shareholders and directors. New shares are
sold on its face value i.e. £1 per share. Such business units are generally smaller than
public company. It is important for these business sector to register and fulfil the
guidelines of Companies Act, 2013.
 LLP (Limited Liability Partnership) is the form of partnership where partners have
limited liability. In this partner are not responsibility for the act and misconduct of other
partners. There are many many advantage to the LLP as comparison to company.
Example- Virgin group is an investment company which is operating their business in global
market. No inter-fear is made by government authority.
Purpose
 This has objective to treat customers effectively so that they can provide maximum
satisfaction to its users.
 To enhance profitability.
 To expand their market area so that they can provide their services to large area that help
to enhance its profitability.
Legal requirement of private companies
To file Confirmation statement and require to maintain PSC register every year at
registered office of company. It is required to inform to companies house regarding the changes
that occur in business.
5

Notes-
Voluntary Organisation
This business unit where people perform their function for specific purpose. They have main
task to make the welfare of the society. They do not have main objective to earn profit and such
firms are considered as non-profit organisation (NPO).
Example
Oxfam is voluntary association that has main operation to consider the welfare of society. It
is founded in 1942. They have connected to number of organisation and people to
address the problems of social group.
Purpose
 To address the problem that is faced by society and to make welfare of them.
 This is Non profit organisation that work for the development of social group.
6

Notes-
Public sector-
This organisation provides adequate support to society and they have main role to address
the issues that are faced by people. They continuously work to provide healthy environment so
that social welfare can be made. These business sector consider CSR activities so that they can
provide maximum assistance to others. Government has vast impact over the performance of
such organisations because public sector organisation has main role to make the growth of
country. It has large market area as comparison to private sector entity.
Size of McDonald's:
The market size of this business is large and there are more than 4 Lack employees are
working in around 120 countries. Estimated 150 outlets are of McDonald's so that they can
provide their services at large level.
7

Stakeholder:
Ministers and advisors, Political parties, Local government council, Courts, business houses.
Objective: They have target to provide quality product and service and to enhance the
satisfaction level of its customers by providing their services. They promise to avail the product
when and where it is required by consumers.
Notes-
Private sector-
This business unit tries to create positive image in society so that they can be effective to attract
large number of customers. Private sector organisation is not under the control of government. It
is required for them to follow all the affected laws and Acts. It is the main goal to meet market
demand. They are effective to enhance their activities so that they can be able to provide more
satisfaction to its users.
Size of Virgin Group: This organisation is providing their services in around 50 countries. They
are performing their operation with the help of 5000 employees. Number of customers are
continuously increasing.
8

Stakeholder: Developers, Centre owners or operators, Carriers, Industry and advocacy groups
Objective: They have key objective to enhance their market area and to increase its profitability.
This organisation has main objective to provide luxury experience to its users.
Notes-
Voluntary Organisation
This organisation has main goal to enhance the level of satisfaction of its users. They are
providing their services for the welfare of the society.
Supportive factors are as-
 Funder- They provide financial assistance to individuals and business ordinations. They
have main role in the operation of business and provide assistance so that firm can be run
more effectively.
 Trustees- They have important role to provide guidance and support to organisations so
that they can perform well. Such persons have main task to provide assistance to people
who are facing an issue in this regard.
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 Volunteers- They provide help to society and do not charge money for this. Such person
try to devote their best effort so that they can provide maximum assistance.
Size of Oxfam: Many services are offered by this organisation. Number of people and
corporates are associated with this organisation so that they can provide support to society.
Around 20,000 people are associated with Oxfam and many big organisations are also associated
with it.
Stakeholder: Volunteers, Children, Donors, Other NGO, Parents
Objective: To provide effective services to the individuals who are living in poverty striving to
exercise their human rights, provide them dignity as they are full citizen and take control over
their lives.
TASK 2
P3 Relationship between organisational functions with objectives and structure.
Tesco PLC is the company that is providing their services in retail grocery sector. The
key functional area of the company is grocery service. They are providing their product and
services to large number of people and its market sector is enhanced. They have main objective
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