HND Business - Level 4: Tesco Plc Business Environment Analysis

This report provides a comprehensive analysis of Tesco Plc's business and business environment. It begins with an introduction to business and the business environment, followed by an examination of different organizational types and their functions, specifically focusing on Tesco Plc. The report then delves into the interrelationship of various organizational functions, such as Board of Directors, Human Resources, Finance, Administration, Marketing, and Customer Service, and how they contribute to achieving organizational objectives. The report then analyzes the positive and negative impacts of the macro environment, including political, economic, social, technological, environmental, and legal factors, on Tesco's operations. Finally, the report conducts an internal and external analysis of Tesco Plc, including a SWOT analysis, to identify its strengths, weaknesses, opportunities, and threats. The report concludes with a summary of the key findings and their implications for Tesco's performance and future strategies.

Business and Business
Environment

INTRODUCTION
Business is a legal entity which is often made for exchange of goods and services in
return of capital. Business environment is made of two words which are business and
environment. Business offer assets or commodities in exchange of money or some good (Barter
system). Whereas environment refer to the surrounding activities which occur (Welford, 2013).
Hence, business environment is the combination of legal, social, political, technological and
other factors that affect it in one or the other ways. An organisation is influenced from two kinds
of factors, one within their surrounding which is internal environment which consist of
consumers, employee, supplies and distributors and other is external factors which refer to
environmental, social, legislative, economical and many other factors.
There are three types of organisational bodies that includes Private, Public and Voluntary
sector which have different structure, size and scope along with various merits and demerits. and
This report studies different types of organisations and their range. The purpose of this report is
understanding the interrelation of various functions of Tesco as well as their impact on
environments and external and internal study along with their interdependence (Craig and
Campbell, 2012).
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TASK 1
P1 & P2
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TASK 2
P3 Relationship of different organisational functions and its link to objectives
Introduction
Tesco Plc is a multinational retailing merchandise which deal with grocery products and
services operate business in many countries. This is the 3rd largest company of which render high
quality products with cost effective prices (Wild, Wild and Han, 2014).
Main body
This company concentrate over providing better quality of commodities to its customers
to accomplish their main objectives which is satisfying needs of consumers in order to evolve the
standard of living. Through this company can meet their vision enabling expansion of company
in other market also. Instead of attaining customer expectation, organisation can easily deploy its
business to increase competitive advantages for building better recognition of brand. Following
diagram explains all functions which are performed in organisation for function of operations
that is mentioned as below:
Source 1: People at work, Employers, Employees, 2012
Board of Directors -
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Tesco Plc.'s board of directors includes 120 members which is working for reaching
desired results and heights of success. BOD appointed new members between 2014 – 2015
which was a significant change that include one new chairperson and seven other crew of BOD
after the retirement of previous members (Wheelen and Hunger, 2011).
Relation
BOD of a company determines major decision and is the main members of organisation
who interact with subordinates employed in various stages of operational department as well as
order management to managing directors of company. Board of members are often directly
connected with different functions of an enterprises who can make required changes in their
objectives or mission. They play an essential role and if needed they handle the situation of crisis
including financial or other.
As it is their duty to create an effective plan or strategies in sake of development of
organisation in international traffics, which is significant for board of director for the
accomplishment of set goals more efficiently influencing the market.
Human Resource -
This is the essential function of company either Tesco involving many important people
including manager, recruitment employer, human resource director etc (Bryman and Bell, 2015).
It is the duty of those individual to hire bets or skilled employee for the company who can
support organisation and provide their best efforts. Human resource manager of Tesco. Plc
design the polices and terms for worker undertaking all important aspects consisting laws and
legislation of country for managing relation as well as hiring talented labours.
Relation
This function of Tesco. Plc is interrelated for accomplishing of objectives of business
which is main aim of all operations. Effective and bright employee hired by HR of company
render the raise in productivity of commodity supply increment in sales insights resulting in
increase in overall profits with a span of time. It not only saves the time and efforts of company
but lessen the expenditures. This expands the operation's efficiency and effectiveness impacting
overall conclusion positively.
Finance -
The funds are being used in management and operations of a company which play a
crucial role in functioning of organisation. Tesco. Plc 's function of finances is related to the
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administration of funds for activities. This includes accountants and finance mangers for settings
all practices being regulate in department. Manager of Finance determines the strategies of
expenditure and arrangements of funds and economical resources and allocation-of those
capitals. Accountant whereas, document all reports of data and information of monitory
expansion and related things for cited company. Budget building is done by these bodies.
Relation
This section helps organisation in deciding the requirements of funds in present or future
context as well as allocation of those capital assets balancing all factors which may affect
positively and negatively (Cavusgil and et. al. 2014). It helps in management of monitory
exchange of organisation more effectively and efficiently which assist in achieving goals of
business and expand in market.
Administration -
This functions often accompany the clerical programmes that consist of management of
records of consumers, safety of documents, monitoring the conflicts situations with users etc.
This is connected with the cited organisation's security, maintenance and administration
departments.
Relation
Administration function solve issues of mismanagement by supporting Tesco. Plc
customers satisfaction problems and facilitating them better and enhanced services. The
company is one of largest organisation which is main reason of effective management system of
it (Zott, Amit and Massa, 2011).
Marketing and Sales -
It is the most important function of organisation which is directly related with the sales
and marketing of manufactured commodities. This aids in building effective marketing plan for
the promotion of goods and services in oThe GDP of company is increased approx. 2.7% in
gross than pre-crisis peak. rder to launch and relaunch of new services in industry. to meet the
desired goals and objectives, they have to follow the culture as well as policies of organisation
which is made in context of increment for the overall performance.
Relation
By undertaking promotional activities or tolls in the advertisement or communication of
cited organisation massage, this function use marketing plans to increase seals of product that
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facilitates a medium to portray a better image with market if enterprise want to deploy business
in other trades.
Customer Service -
Customer services and related issues resolution programmes is operated within this
function. The major motive of this department is assuring the process of delivering, customer
satisfaction, and solving their problems related to products through advising them.
Relation
This aids in meeting the satisfaction level of consumers and increase sales of products
and services. This boost the profitability and revenues amount which render help in attaining and
determining business goals and objectives.
Conclusion
These different function supports company in functioning properly and more effectively
through reducing complex situations that helps in gaining new potential buyer. This helps
organisation to solves issues of consumers and grievance that assists firm to evolve among
competitors and portray positive recognition. Board of director in functioning of all those
operations and departments of Tesco. Plc which are the major bodies that assist in taking legal
decisions of company.
TASK 3
P4 Positive and negative impacts of macro environment of business operations
Macro environment includes those factors survival outside of organisation but affect the
major parts of its functions. These elements directly or indirectly influence the growth and sales
of company which consist of political, social, legal, technological. Environmental and
economical (Williams and Naumann, 2011). This can be advantageous for trade of firm or may
bring risk in terms of threat. These factors determine the internal strength and weakness of
Tesco. Plc as well as identifies upcoming opportunities for development and threats that can
affect the sustainability or expansion of organisation. Here are external; environment analysis of
cited organization mentioned as below:
Political -
Marco environment is able to bring the change in situation or positioning of organisation
within a period of time. Political factors of UK created positive as well as Negative influence on
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development of Tesco. Plc. Government of country have formed new taxation policies which
have decreased the profit rates of organization (Boons and Lüdeke-Freund, 2013)7). For
recovering from this condition, firm have to build and maintain relations with each political party
for sake of enterprise.
To get support in economic situation of United Kingdom, this taxation polices was
amended but these increased tax rates is decreasing company benefits as well as customer
purchase if commodities. Thus, less sales lead to lesser revenues which refer to no growth.
Economical -
United Kingdom was facing some economic issues recently which affected the various
elements and organisational existence in nation. In are of retail industry, this can increase the
growth of company by the help of country. United Kingdom is facing unemployment which
have deceased consumer's purchasing power. It have impacted to the firm's sales more negatively
as services delivering insights have fallen.
Social -
Social factors of community influence the company growth and determines the image it
that affect the consumer rate of organisation. UK have high standard of living in their society
which and more senior citizens which signifies diversification of preferences as well as interest
of people. Tesco should identify expectation of target audience and use effective strategies to
influence society.
Technological -
Understanding the need of Medfield technologies in the scenario of digitization, this has
impacted on system of Tesco Plc (Rose, Hair and Clark, 2011). The affect can be measured in
more positively and negatively on the operation of company which can defiantly affect the
competitive objectives of enterprise. Tesco have more modified and advanced delivery system of
services with help of new gadgets, smart phones, tablets and laptops though internet technology.
Despite of utilization if advanced tools, the competitors are affecting the sales of
company through providing the same facilities as Tesco Plc. The company have to come up with
new and more modern technologies for attract ting consumer and creating more potential buyer
in order ton sustain in market (Vahlne and Johanson, 2013).
Environmental -
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Environmental factors are related to pollution, waste and recycling of wastages in regard
of business productions. Organisation required to changes some of their operation in order to
function according to legislation of United Kingdom which have catered some laws for
controlling harming to nature. Company have announced to adopted some effective production
technologies which can reduce the hazard which can affect ecological framework. They perform
CSR activities in respect of Ecology, better transportation system and recyclable plastic bags for
their packaging. This may create some positive environment in future for Tesco. Plc to merge in
market.
Legal -
Tesco. Plc is adversely influenced by the laws and legislation build by government of UK
in context of larger organisation. This company also provide some credit acres, saving, loans and
financial practices to the customer. In the area of finance, government of UK enacted law i.e.
Financial Services Act, 2012 which have impacted those companies which provide these
facilities. Its stringency stresses the operations of respected company.
TASK 4
P5 Internal and external analysis of Tesco Plc to identify strengths and weaknesses
External factors of an organisation determine the internal elements which can crate
positive or negative impact according to the situation. Strengths of cited organisation will affects
its culture or profit in favourable way whereas weakness of it will influences their growth
negative way. Internal body involves components that influence company's micro details that
consist policies and terms, management, strategies as well as its structure.
To recognise company's positive and negative aspects, it often conducts SWOT analysis
which through which enterprise can transform their threats and weakness in their opportunities
and strengths to develop more furiously. Tesco. Plc is most known retailing company of UK
which spend more than quarter of its revenues within market research to identifies their business
situation (Cavusgil and et. al. 2014). Here are few elements which builds the strengths and
weakness of an organisation:
Political -
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The crucial gain in the taxation polices established by United Kingdom government
which has reduced the buying ability of customer resulting in loss of sales rates has effected to
productivity in range of revues of Tesco. Plc. This will be considered as the weakness.
Environmental -
Government have come up with certain laws and legislation in order to protect their
environment to reduce amount of emission of greenhouse gases has restrained the growth of
company as it require to changes most of packaging systems and other thus it will be considered
as weakness. The GDP of company is increased approx. 2.7% in gross than pre-crisis peak.
Social -
The changes in preferences and expectations of pubic of specific places where company
functions is connected with this factors. They determine company products sales as they are the
purchasers. More senior citizen prefers traditional style of products and services which reduce
the demands of company assets in market (Drucker, 2017). This will be understood as one of the
weaknesses of Tesco. Plc. Despite of this, youngsters of UK expect company to render more
innovative and advanced commodities for development of society which Tesco. Plc prefer to
manufacture. Hence, it will be considered as strengths of firm.
Technological -
The cited organisation is utilizing technological products such as mobile phones, laptop,
advanced technologies of check-in, payment services others are increasing the accessibility of
commodities of services in market helping in attaining targeted customers (Schaltegger, Lüdeke-
Freund and Hansen, 2012). It supports organisation in helping increasing the sales of consumer
aiding in customer satisfaction rates.
Micro Environment
Consumer
Consumer are the major part of organization which is responsible for the functioning of
the operations and financial flow of capital assets. Tesco is one of the largest retailing companies
which aims to modern customer and pubic which have cater the company so far.
Suppliers
These are the one of the major strength which provide raw materials, gods, and finish
products to the enterprise on which Tesco relay. Tesco have maintain a good relations wit the
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providers which have trimmed the expenditures of organisation which have created company
more powerful.
Intermediaries
Marketing intermediaries are the back bone of large amount, providers and elements to
reach the target consumer in appropriate way. They are the connection between consumer and
organisation which is very crucial for Tesco. Plc . The company deal with other companies
products in market and they aloes relay over the it as well.
Competitors
These are able to crate major drawback for the organisation which have to control and
study the movements of their rivals and competitor. The company is facing various competitor
including Walmart, Sainburry, Aldi on the the consumer of company is shifting.
On the respected factors the determination of upcoming strengths and weaknesses as well
as threats and opportunists is done which is explained as below:
Strength -
The company have global recognition and its is one of the most leading retailing
organization renowned internationally. The products are popular for its value-added quality and
cost-effective process (Holliman and Rowley, 2014). It has been listed in top 100 amazing
retailing brand in London Stock Exchanges. This have powerful financial condition in market
more than their competitors like Sainsbury and Asda. Company use recyclable packaging
process which create a goodwill of company among community.
Weaknesses -
The cited organisation is providing customer broad range of commodifies including
apparel, furniture, insurance, networking and food services. This has increased the
responsibilities of management of entire department which has become more complex. Services
of finance which Tesco. Plc supply to their consumer have caused for large amount of debts
enabling more loss in economic conditions. Also new taxation terms have affected company
market system is not affecting it positively. The technologies have been expired not modified
accordingly influencing consumer choices and preferences.
Opportunities -
In scenario of open market in most countries, Tesco. Plc can supply their services in
many nations have open traffic for such organisation such as India, S. Africa etc. This have
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increased the opportunities of deployment of business assisting in collecting resources and
expanding them in new market. Also internal marketing and online shipping is the new trends
through which company can promote theirs services as well as raise customers by providing e-
shopping offers.
Threats -
Tesco. Plc is facing many threats after new entrance of competitors. In UK there are
many leading companies which is competing Tesco. Plc rendering same commodities which is
also in good quality such as Sainsbury, Asda. The closest rival is Wal-Mart along with effective
resources and abilities that can be cause of emerging hurdles in operation functioning of cited
organisation (Sena Ferreira and et. al. 2012).
Some external factors of Tesco. Plc in regard of deciding weakness and strengths can be
done with the help in macro analysis with PEST which have explained as followed:
P6 Interrelation of strengths and weakness with external macro factors
Environment in context of business is consist of both macro and micro condition of a
company which impact over revenues and growth rate of it. These elements determine the
strengths and weakness of enterprises of Tesco. Plc. External environment component involve
social, legal, poetical, environmental, economic and technological factors which are interrelated
with weakness and strengths of firm. As these changes, the positioning of enterprise and
economical condition vary which can explains the traits of dynamic market.
Here are briefed how external factors contour strengths and weakness of an organisation:
Political Factors -
The unfavourable conditions of political factors can raise the weaknesses which depend
upon tax rates and other political situation (Business Environment Assignment Unit 1, 2016). In
contrary condition, it will become the strengths of it.
Economic Factors -
Tesco. Plc have a powerful appearance of economics in market despite of rivalries which
create one more strength in favour of organisation. If the debts increase, they will become
weakness.
Social Factors –
Cited organization require to sustain in society by selling their commodities in Marketa.
There is diversity in preferences, interests, expectations and tastes of people. According to their
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interest, products will be produced when they become strengths otherwise violating services can
causes weakness.
Technological Factors –
Technologies advancement run system or functions more smoothly thus it will increase
strengths of company. In order of having older techniques, weakness of cited organisation will
increase.
Environmental Factor -
Environment factors directly influence the social and legal elements of consumer thus its
nature will determine the strengths and weakness of an organization. Increase of better
production system, it will be abilities otherwise that will affect negatively.
Legal Factor -
Legal act and laws regulated by the government of United Kingdom can affects the
company positivity and negativity (Discuss the Scope and Importance of Business organization,
2016). In case of more favourable policies it will be considered as strengths and restriction and
limitation will become the weaknesses.
Micro Environment(SWOT Analysis)
Strength  Largest supermarket enterprise
 Powerful financial situation
 Broad range of goods and services
Weakness  Complex process of management cause of wide products range
 Strong rivalries
 Financial Loss
Opportunities  open market and Globalisation
 new development opportunities
 franchisee and deployment opportunities
Threat  Financial crisis at UK
 Competitors are evolving
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CONCLUSION
From this followed study, it can be concluded that organisation are of many types
according to size, scope and purpose. Some of these is formed to serve the society and some of
these aims to earn profits and increase their revenues. It is clear in this report that for
understanding the actual situation of organization in market, an enterprise requires to analyse
their environment including macro and micro environment. These conclude some factors that
involves external and internal which significantly influence each other as well as entire
operational and management system_1505909899 (1).. To administrate functions of a firm
properly, one requires to evaluate these elements after a span of time for further assistant.
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