Report: Tesco's Business Environment and Organizational Structure

This report provides a comprehensive analysis of Tesco's business environment. It begins with an introduction to the business environment, discussing both internal and external factors influencing organizations. The main body delves into the different types and purposes of organizations, including public, private, and voluntary sectors, and examines their legal structures, with a focus on Tesco as a case study. The report explores the size and scope of various organizational types, interrelationships between organizational functions, and their links to objectives and structure. It includes an analysis of the positive and negative impacts of the macro-environment on business operations, using PESTLE analysis to evaluate external factors. Furthermore, it provides an internal and external analysis of Tesco, identifying its strengths, weaknesses, and how they interact with external macro factors. The report concludes with a summary of findings and references.

Business and Business
Environment

Table of content
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
LO1..................................................................................................................................................1
P1).Different types and purposes of organisations; public, private and voluntary sectors and
legal structures............................................................................................................................1
P2).Explain the size and scope of a range of different types of organisations............................4
L02...................................................................................................................................................5
P3) Interrelationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................5
L03...................................................................................................................................................6
P4). The positive and negative impacts the macro environment has upon business operations,6
L04...................................................................................................................................................7
P5).Internal and external analysis of specific organisations in order to identify strengths and
weaknesses..................................................................................................................................7
P6).How strengths and weaknesses interrelate with external macro factors..............................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment relates with internal as well as external factor such as
employees,customers needs, suppliers, owners, activities which is concerned with government,
innovation in technologies, supply and demand, market trends, economic changes etc (Ahmadi,
Rahimi and Rezaei, 2018). These factor will affect the organisation in their functioning of the
company and will impact on how the company work directly and indirectly. Business
environment involves with various business opportunities, tapping with useful resources, helps in
generating a specific plan for the organisation in respect to their strategic formulation. This
business factor will also enhance overall performances, profitability and growth of the business.
Business environment relates with both macro and micro environment. The forces which
constitutes business environment involves with its suppliers, competitors, government, media,
investors and other working institutes. Business environment depends upon the sum of all
internal and external such factor which will affect the businesses in current and in future aspects
are political, economical,social all these factor will affect the particular business. The below
report is based on Tesco a British multinational retailers of groceries and general merchandise.
Having their headquarter in Welwyn Garden city, England. It is considered to be the third
largest retailers in the world measured by gross revenue. Below report considered with topic is
that different types and purposes of organisations, size and scope of the organisation, how the
strength and weaknesses inter-related with external factors.
MAIN BODY
LO1
P1).Different types and purposes of organisations; public, private and voluntary sectors and legal
structures.
Public sector
Public sector includes with governmental services such as military laws enforcement,
infrastructure which relates with public roads, bridges, water supply and tunnels and electrical
grids these includes public goods along with health care and those who are working for the
government itself (Bencheva and Stoeva, 2018). The public sector provides with services that a
non-payer will not be excluded. Services which benefits all of the society rather than individual
who uses the service. Public enterprises are state-owned enterprise, that are self financed
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commercial enterprise which are under the ownership of public, that will provides with various
private goods and services for sale which relatively operates on commercial basis. The public
sector organisations are consists with three levels: National,regional and local. They work
according to the societal situation and requirement that needed to be cover.
Legal structure of public sector:
They are public sector companies which incorporated under company act 2013. They developed
purely with the intention of business formation and are for commercial purpose. Government
organisation are separate legal entity. They can sue and can be sued. Public sector consists with
government and all publicly and funded agencies, enterprise and other entities that delivers with
program, goods or services of public.
Automatic weapons establishment(AWE)
This organisations are completely work for the country's government of UK that basically having
the tasks of operating under the MoD procurement executive, which are to design, develop
research and produce, provide in services support of the UK's warheads(Hamilton, and Webster,
2018) . This organisation are also responsible for the dismantling of the weapons and disposal of
weapons no longer which is no longer in use.
Private sector: These kind of organisations are run by the individuals and companies
rather than government. The main purpose of private sector organisation is to maximise
profitability and growth in the market. This organisation works independently and contribute in
the national economy of the country. They offer product and services to the customers and
provide them satisfaction level from those product and services. Private sector organisations
plays important role increase the level of gross domestic products in the country and help in the
better growth in international market. They focus on providing best services to the customers and
increase the level of customer base in the market. The purpose of private sector business is to
survive in the business and make profits. It encompasses with all for profit businesses which are
nor controlled or operate by government. Private sector businesses having the aim to work on the
basis of business policies which are consists with legal compliances and regulation but they are
operate by the private bodies.
Legal structure follows by private Ltd company:
This private limited company is formed by a small number of shareholders who works together
in order to make profits and for a social cause. The shares related with private company are not
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traded to the public stock exchange. The private companies includes sole proprietorship,
partnership and relates with limited liability companies. They are legal entity with its own rights
and the company finances will be separate from its owner's finance.
New Look
New look is a British global retailers which involves with fashion wear and having a chain of
high street shops. Founded in 1969, this chain sells and operate in menswear, womenswear and
clothes related to teens as well (Berman and Dalzell-Payne, 2018). They are operating their
business in more specialised manner through maintaining the private value by operating in
approx 895 location. Area of serving in their business is worldwide.
Voluntary sector: The main purpose of these organisations is to create social impact
rather than increasing profit in the organisation. Voluntary organisations works for better growth
of society and country and provide better environment to the population. These are the non-
government and non profit organisations which works for the social purpose and well being of
the community. The main function of the voluntary sector organisation is to provide fundamental
rights to freedom of association, analysing the needs and wants of the individuals, groups or
community. They initiate projects and programmes to meet the needs and wants of the society.
They are basically having the purpose of work for the society, that are non-profit organisation.
Lots of public as well as private sector companies are indulge in the operations of this voluntary
sector whose primary aim is to create social impact rather than focus on profits in the business.
Legal structure of voluntary companies:
In relation to the legal structure used by voluntary groups, they consists with an unincorporated
associations, company limited by guarantee and a trust (Bocij, Greasley and Hickie, 2018). This
process is ideal for small groups with a membership, short term goals, which do not relate with
employ staff and acquiring property.
National council for voluntary youth services (NCVYS)
This was a membership network of approx 200 voluntary and community organisations,as well
as local and network related to regional. NCVYS acted as independent standing company for the
voices of voluntary and community youth sector. Non-profit organisation like voluntary
community they are working to influence public policy and support their members to improve
the quality of their work.
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P2).Explain the size and scope of a range of different types of organisations.
Private company: River island is a high street fashion related brand which deals in
clothing products. Which operates at number of worldwide markets. This is basically a private
company owned by Lewis family. This company involves with women's. Men's and children's
clothing, accessories and footwear. Number of employees working in this company are 3200 and
in part time they deals in 5600 approx.
Mission:
This company having the mission is to provide with quality product to their customers, by having
aim to bring new and original fashion to their customers, by considering with great design at
heart of everything we create.
Vision:
River island having the vision to provide the company with excellent growth in the field of
fashion clothing for men and women on continuous basis (Das and Kundu, 2018).
Objectives:
This company works on the principle of providing with best quality and new fashionable product
which is in trend. They are driven to provide with demanding new looks clothing to their
customers with the objective of setting goals to follow and meet the fashion trends on continuous
basis.
Strategies:
They are working on both the channel online as well as offline through their physical stores and
particular website to cater their customers on large scale through advertising of their product.
Sole Trader
A Sole trader involves with person who carrying a business by himself, but he is not only the
owner of the capital which is invested in the company, but have usually to manage and organise
by taking all the profits and losses responsibility. A sole trader is a self-employed person who
owns and operates their business with own as an individual. They are personally liable to the
debts and about their personal assets.
Partnership
They relates with business where two or more company works together and share ownership, as
well as managing the company and having the responsibility of dealing with losses and profits on
the basis of their contracts. There are three types of partnership is that general partnership,
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limited and joint venture. Partnership company having the formal arrangement of two or more
parties to manage and operates a business and share its profits.
Franchising
It is based on the marketing concept which will be adopted by the organisation as a strategy in
order to expand the business. It is basically the form of marketing and distribution where the
owner of business system grants to an individual or group of individual. By giving them right to
run a business through selling product and services using the franchisor's business.
L02
P3) Interrelationship between different organisational functions and how they link to
organisational objectives and structure.
As per the multinational retailer Tesco, they are continuously working at their products and
services quality by making an efforts in the international market value across the different
country, they are dealing in large number of employees who are operating in across the country.
Organization structure of Tesco are depends upon the business functions relates with
organisation (Katz and Green, 2018). The structure relates with organisation is a system that will
outline how certain activities are directed with the motive to achieve the goals and objectives of
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the organisation. They are depends upon the rules, responsibilities and roles which have to be
applied in the operations process relates with every aspects of the business department.
Tesco a multinational retailing industry works on the principle of providing with groceries
and general merchandise products to their customer so they perform lots of roles which relates
with different department is that finance department will look into funds to be maintain and
records related to the customers billings, operation department deals in the channels of
distribution through which flow of product and services will maintain, HR department works on
regular basis in recruiting the talents in relation to fill the required manpower in the company as
they are working on very large scale. So basically finance, operations and HR department works
on the process of organisation marketing handling.
L03
P4). The positive and negative impacts the macro environment has upon business operations,
In the context of retailing industry like Tesco, they are dealing in international processes to
operate their business in large. They have to work on study the macro- environment factors
which will affect the businesses of this Tesco in both negative and positive manner for that
organisation will analysis the external environment which will be determined through specific
tool which is PESTLE analysis so here are the Pestle of Tesco:
PESTLE Analysis
Its a process or method through which an organisation will determine and analysis the external
factor which will impact the organisation on its operation. In context of company like Tesco they
have to work on the basis of meeting the external factors which is political, economical, social,
technological, legal and environmental (Lee and Lee, 2019).
Political factor
This factor relates with how much government will intervene in the economy as well as on
certain industry. In the context of this retailing industry Tesco , they are having political factor
which is relates with impact of Brexit situation in the country with numbers of uncertainty that
will considered under negative impact. Government supports Tesco on providing with flexibility
policies to them which is there positive aspect.
Economical factor
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These factors relates with determinants of economy performance that will directly impact the
business. This factor involves with interest rate, inflation rate, foreign exchange rate etc. so here
are some of the economic impact on company like Tesco is that fluctuation in global exchange
rates will leads to change in pricing policies of Tesco that is negative impact. By providing with
higher wages and pensions in the economy will impact this company.
Social factor
This factor relates with determinant likes cultural trends, population analytics, demographic
approaches in across the country. So here are some of the social impact which considered in
Tesco is that impact of popularity in relation to social media considered in positive impact.
Technological factor
This factor involves with innovation in technology that will impact the organisation on their
operations. So here are some of the technological impact on Tesco is that by increase in
popularity of mobile payments and increase in demand of RFID technology.
Legal factor
There are certain laws that will affect the business environment in certain countries. This factor
involves with consumer laws, safety standards, labour laws etc. so here are legal factor of Tesco
which will impact them on their operations is that some of the intellectual property laws and
issues related with copyrights having with negative impact and strict rules regarding data privacy
are concerned with Tesco.
Environmental factor
This factor relates with global changes through weather, climate, geographical locations and
influence of environment on the organisation so here the factor which impact Tesco on their long
run like by dependency of plastic will reduce having the positive impact on organisation,
commitment to address the challenges of environment.
L04
P5).Internal and external analysis of specific organisations in order to identify strengths and
weaknesses.
As Tesco a British multinational they have to work according to analysis of internal as well as
external factor which will be determined through the method and tools that is SWOT analysis so
here are SWOT of Tesco is that:
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SWOT Analysis
Its a tool and method which determines the internal as well as external factor that will impact the
organisation in long run on their operations. So here are the analysis of Tesco regarding their
strength, weaknesses, opportunities and threats here strength and weakness are their internal
factor while threats and opportunities relates with external factor (Soegoto and Eliana, 2018).
Strength
 This retailing industry having consistent strong financial performances.
 They have an strong command on innovation in product ranges with quality customer
services.
 They relates with focus on technological aspects as differentiator.
Weaknesses
 Due to the impact of Pandemic Covid-19 they indulge in jobs cutting and cost cutting
through this business operation will affect.
 They are cut down their operation on overseas operation.
Opportunities
 This retailing industry having with multichannel retailing opportunities through getting
popularity.
 By adapting artificial intelligence in retailing.
Threats
 Having increase in retailing competition.
 Due to rapid change in the customer expectations.
P6).How strengths and weaknesses interrelate with external macro factors.
Strength and weaknesses are the internal part of the organisation which depends upon the
analysis of external macro environment as in both SWOT and PESTLE analysis organisation
have to considered both the factor. Internal factor like strength and weakness are inter-related
with the tool of PESTLE analysis cause without obtaining the issues which are concerns with
external factor, no organisation can come to the point of their internal strengths and weakness by
determining the growth of an organisation through factors like political, economical, social,
technological, legal and environmental they are those approaches through which an organisation
will analysis their strength and weakness according to the study of external market.
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CONCLUSION
It has been concluded from the above report is that every business organisation needs to
adopt the changes as per the internal as well external environment. They have to clear about the
specific legal structure which are follow in the organisation during the operational activities.
There are having different types of organisation which involves with public, private and
voluntary sector. By conducting a pestle analysis organisation will determine both the positive as
well as negative impact which will happen in the organisation on their operations. By
determining the SWOT analysis of businesses organisation will get to know about the internal as
well as external factor.
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REFERENCES
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Soegoto, E.S. and Eliana, E., 2018, August. E-Commerce and Business Social Media Today.
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