Tesco's Business Environment: Ventures, Functions, and Macro Factors

This report provides a comprehensive analysis of Tesco's business environment, examining different types of business ventures (public, private, and voluntary) and their purposes. It delves into the scope and sizes of these ventures, focusing on examples like the BBC, Tesco, and Wellcome Trust. The report explores the relationships among various business functions within Tesco, such as marketing, production, finance, and IT, highlighting their interdependencies. Furthermore, it includes a PESTEL analysis to assess the macro environment's impact on Tesco's operations, along with a SWOT analysis to evaluate the company's internal strengths and weaknesses. The report concludes by discussing how these internal factors interrelate with broader macro factors, offering a holistic view of Tesco's strategic position.

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Types plus purposes of business ventures.............................................................................3
P2 The scope and sizes of different types of business venture...................................................5
P3 Relationship among different business venture functions.....................................................8
P4 Theanalysis of macro environment along with positive effects and negative effects on the
operations of Tesco.....................................................................................................................9
P5 Evaluation of internal as well as the analysis of external environment in thebusiness
ventures to evaluate strength plus weakness...........................................................................11
P6 Discuss strength plus weaknesses interrelate with macro factors.......................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment includes various internal and external factors that offer significant
level of competition to the organisation as well as has impact on their business operations. The
environment in which business operates is dynamic due to which consistent changes in the
policies, rules and regulations, procedures adopted by the companies have to be managed. Tesco
is a UK based retail organisation that has been offering a wide variety of products throughout the
world which includes grocery and general merchandise, furniture, various financial services etc.
Tesco is a renowned and well established firm and thebiggest retailer in the world that meet the
needs of individuals. This report is based over different types and determines countries of a
business ventures as public, private plus voluntary. This report includes analysis of internal and
external market with the help of SWOT and PESTEL analysis that enable the organisation to
determine the changes taking place in the business environment. The interlink among different
levels engaged in a report in different aspects such as human resources, finance, marketing plus
so over as each department operate different functions plus responsibilities
P1 Types plus purposes of business ventures
The roles and responsibilities to the people working within the organisation on the basis of
their competence, capabilities and skills so that efficiency can be achieved and accomplishment
of objectives can be ensured for gaining the prosperity among organisational people. There are 3
different types of company like public, private and voluntary venture that are describes as below:
Public business venture: Public limited organisation possess significant amount of
various resources including financial resources which are contributed by the people and on the
basis of their contribution their liabilities are determined. The public companies often takes a
enough value of shares in the capital investment form people plus it does also creates them
partners in the profits as well as inn losses of the business venture. The most effective system of
BBC Company plus its working transparency creates it more effectual name among the public
industries ofUnited Kingdom Itfocuses over providing the service that benefit the entire society
plus also play the crucial role in the services of public. BBC is considered as one of the leading
public limited firm in United Kingdom.
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Purpose: The main purpose of search for organisation is to ensure the benefit of the
society as well as their well being rather than increasing their profitability. For this they
emphasizes upon overall economic development by considering various growth opportunity
prevailing in the economy.
Legal structure: The structure of public is such in which work is allocated systematically
for achieving efficiency but for this various documentation must be done as per the requirements
which have impact on their operations. The legal structure of public company is described as
below:
Local Government: It is considered to be owned and governed by the local parties of the
specific regions. They are responsible for the overall development of the community and
collection of taxes from local organisations as well as other related tasks.
Central Government: It is the government that is owned and governed by the ruling party
having entire control over the decision making as well as managing the nation.
State Government: It is owned by the state as it has separate department to overall
functioning of the state that involves education, agriculture etc.
Private Business venture:Tesco is one of the private retailing firms in United Kingdom.
The company is a successful retail chain store that is well; recognised presence in the market of
United Kingdom. Private nature of the firmcreates it solely profitable to the owners only. Thus
here as a private firm the owners gain the value of return over investment but along with
thatliabilities are alsohigh in this type of business venture.
Purpose: The aim of private businesses is to earn profit so that they can ensure the
growth and survival of the organisation. For this they have to take effective decisions for
procuring funds and other resources on the basis of their personal connection with other business
houses as well as they have to ensure better relation with their employees who supported them in
ensuring profitability.
Legal structure: Private organisational considers to be separate organisation from their
shareholders. The shareholders are considered to have limited liability on the basis of their shares
in which they have invested. These organisations are operated and managed by board of directors
that are recruited at the time of formation of company through article of association and
memorandum of association. The benefit of private company is that they can operations by
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taking prompt decision for managing the situation but it increases their cost due to which their
cost structure gets effective and thus their profitability is influenced.
Voluntary Business venture:Well come Trust is one of the leading charitable business
ventures in UNITED KINGDOM.This is a non-profitorganisationwhich
hascertainliberationsfrom the authorities as well as it also has the most effectivevalue of support
from the society. Well come company has certainly less or nilintention to gainmore profit as
thatcreates this as moreeffective n plus most effective in terms of firm’s sustainability. Whereas
over the other hplus thebusiness ventures hassupportfrombigindustrialists plus financial bodies of
the country to do the workings.
Purpose: The main purpose of voluntary company is to fulfil themission plus work
towards the effective goodsinstead ofcreating the chances of earning profit. It creates a social
wealth instead ofgaining the funds.
Legal structure: The structure for voluntary company includes various organisations that
contribute for the welfare of the people and in helping others. But the activities of the
organisation get influenced true various participants involved in the process of decision making.
The major three legal structurespracticed by voluntary groups are as below:
Trust: It is considered to be the organisation whose responsibility is to manage the funds
for the specific purpose that they have received for.
Limited Companies: It is an integratedcompany plus has a separate legal ownership of its
owners.
An Unincorporated Association: Organisations such as Unincorporated Association not
have their existence as per law but their main aim is to work together for the wellbeing of others.
P2 The scope and sizes of different types of business venture
Different types of business ventures operate as a part of the economy. These entities vary
from each other over the basis of the size as well as scope. Thus, it is essential to understand the
following types of business ventures in accordance with thesize plus scope to determine the
differences underlying among them.
BBC (Public limited Firm):
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Overview of firm: British Broadcasting Company is considered to be one of the oldest
company broadcasting in different languages and it is awarded as Queen's Award to Enterprise
(Bill, Fearer, plus Karman, 2020). It givesfast plus innovative technology to gives an ease of
convenience among the consumers.
Goods plus services: A wide range of services that has been offered by them includes
broadcasting news on various web portals, radio channels, television channels and other online
platforms.
Size: The number of people employed in the organisation is around 22000 while on the basis of
analysis the number of customers they are serving it is identified that 1.172 billion with income
of 69 million throughout the world.
Scope: BBC is oldest Broadcasting Company which came into existence in UK and
expanded in 200 countries and planning to expand their business in the countries where they do
not have their operations.
Vision: The vision is to be the most creative plus innovativecompany in the world.
Mission: The mission statement of BBC reflects the aim to increase better quality
broadcasting as per the growing needs of the customer along with various entertainment and
informational programs.
Objectives: The objectives of BBC are very clear among the workers that comprises of
trust, respect, quality plus value, creativity plus togetherness.
Tesco (Private Firm)
Overview of firm: Tesco is UK based multinational retailer that has been operating in
various countries with a wide variety of goods and services that includes general merchandise,
electronics, books, clothes along with various telecommunication and financial services.
Throughout the world it is considered to be third largest retailer in terms of revenue. They are
operating their business within the territorial boundaries of Britain.
Goods plus services: The number of goods in case of Tesco involves supermarket,
hypermarket, and superstore plus convenience group.
Size: Tesco has employed around 450000 people in different segment with effective
trainings that has contributed them to increase their net income to 1320 million and revenue by
639111.
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Scope: The scope of Tesco can be defined by there are a number of shops which is 6800
shops within the country they are operating in.
Vision: The vision statement of Tesco is to offer high quality and desired products to the
customers that can enhance the value to them with fair commitment in the peripheral boundaries
of UK.
Mission: The mission of Tesco is described by the statement that is “Wecreate what
matters better, together.”
Objectives: The main objective is to gives the best plus effectual quality of goods plus to
deliver best services among the consumers with full of modern plus innovative ideas.
Well come Trust (Voluntary business venture)
Overview of firm: Well come Trust is one of the charitable business ventures inUnited
Kingdomwith the objective of improving the mental plus human health. It is one of the
wealthiest charitable institutions after the American Bill.
Goods plus services: This charitable association gives funds in different areas such as
biomedical science, humanities plus its services include grant management, education plus
investments.
Size: The particular institution has 2,057 individuals are associated with it plus its
financial endowment consist of 25.9 million that is the biggest funding within the confine sector
of United Kingdom.
Scope: This trust engagesbig market segment plus overseas ofUnited Kingdomas it is
well renowned trust plus it support public sense of science.
Vision: The vision of a particular association is to contribute to the society through
pursue of gainingcapabilities plus education at an intercountryal level.
Mission: The mission of Well come Trust is to promote health in order to gives the
guidance to the students by using research plus development.
Objectives: The objective is to improve the overall well-being of big number of
individuals especially themental plus physical health.
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P3 Relationship among different business venture functions
The dependency of decisions over different considerations involving other business
functions plus it is important to evaluate the outcomes ofinterlinks. In the context of Tesco, the
interlink shipamong departments that are elaborated as below:
Marketing plus Production: Because of the changing environment and its need, it is
difficult for the organisation to manage the change quickly and this is a greater threat to the
organisation. In Tesco, the roles and responsibilities of the department of production are to
develop the work as per the requirement of the marketing team so that they can accomplish and
satisfy the needs of the buyers. The marketing plus production department has a well observed
interlink ship with each other. Marketing team in the Tesco is responsible to providing all the
information that are related to the supply ad deem plus need if tag market thus it supports to the
production significantly by stating the right need of the production iin the market. Along with
that the production department of Tesco has multiples level under that it requires certain value of
promotion that is only possible by giving the executive value of marketing principles in the
operational level.
Finance plus Information Technology:The finance management of Tesco does not
create optimum utilisation of resources that tends to wastage of funds plus also does not h plus le
consumer complaints properly plus effectually (Rusuand Roman, 2020).Company creates the
most effective relationship among the finance plus information technology to create its working
quote smooth plus iinandmost effective flow. The finance is termed as the lifeblood of any
business while the information technology is certainly considered as the backbone of all the
essential operation in Tesco. The IT department in Tesco takes certain financial aids to enable
the department with latest technologies thus along with the finance level at Tesco is relied over
the IT team to the most effective running of the systems plus software’s of financial
calculations.
Marketing plus Human Resource: The HR management of Tesco does not
giveseffectual training that absences the confidence of thestaff plus declines the most
effectiveness plus growth of the firm. The marketing plus human resources both depends over
each other in order to most effectively attempt all the business venture’s motive plus goals, thus
in relation to Tesco the HR management takes supports of the marketing team to mark the
effectual vacant positions of market where they can identify the most effective and potential as
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well asindividuals Thus exact as with the marketing the marketing department of Tesco needs
certainly the most effectualindividuals those who are experienced and well qualified have the
entire required skill to manage the business venture.
P4 Theanalysis of macro environment along with positive effects and negative effects on the
operations of Tesco
The macro environmental factors are comprised of the following elements which are
effectively analysed with the help of Pestle modal. This reflects the current and complete
scenarios of external surroundings in respect of business.
Political: Thus to an instance, the recruiting plus selecting process in the firm because of
the Brexit criterion. The absence of human resources in domestic states plus the restriction to
employing new plus ideate from any country in European Union territory emphasis the
productivity of the Tesco. In addition to that it brings some positive emphasis over the particular
company that are as below:
Positive – The policies which are formed by government parties for any of the
commercial sector which allows the entity like TESCO to perform effectively within the market
of UK for attaining the goals of a company.
Negative – Although there are number of positive side for the country but at the same
time there are disadvantages as well for TESCO. The country has an immense level of
disturbance through BREXIT criterion which has reduced the source of income for employee
and any of the other daily basis wages workers.
Economical:The following example can state the clarity of the economical factor of
Tesco in United Kingdom, as the high range of gaining in the United Kingdom of population.
The current workforce needed requirements at particular range of rise in the wages plus salary.
Positive – The economic condition of UK is stable which forces the investor to invest
their capital with United Kingdom. This will certainly improve the performance of the company.
Negative – In order to give competition to rivalry firm, organisation has been selling
their products at low profit margin but effect of Brexit has certainly created huge problem for the
organisation because of unreliable market position is creating problem for them in accomplishing
their goals and target.
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Social: The market of UK likes to enjoy the services and product where latest
technologies has been used because of the current trend of market. In order to fulfil the
requirement of customers, TESCO should be able to meet out the requirement of every
customers.
Positive – As company like TESCO wants to deal in latest technology which is also
preferred by customers which certainly provides them the advantage for attaining the target.
Negative – Working according to the trend of market always increases the overall cost of
a company which certainly increases the cost of company in providing training as well as in
other specific field as well.
Technological: For any of the organisation, technological factor plays the most important
role because it certainly guides to business that how they are needed to perform in any of the
situation. Adoption of new and advance technology will improve the efficiency of employees
performing within the company.
Positive – Technological factor simply improves the working condition of the company
through which high level of competition can be created in the market.
Negative – Introduction of any technology within the business increases the overall cost
for company which certainly reduces the profit.
Legal: Laws and regulation plays crucial role within the business organisation because
decision making process becomes easy. At the same time if any of the amendments are done then
company needs to changes it working style according to the law. It is important for TESCO to
consider this factor as the most important factor while taking any of the decision.
Positive – It will allow the organisation like TESCO to take correct decision which will
certainly improve overall goodwill of entity.
Negative – If in case, organisation fails to work according to the law then huge penalty
can be imposed through which company might have to suffer from financial losses.
Environmental: It is one of the external factor which simply explains that organisation
must focus on environment while taking any of the business decision. In context of TESCO Plc,
this factor can play huge role for them in attracting the customer towards the organisation.
Positive – Company like TESCO working according to the guidelines of Environment
factor will automatically improve their overall condition of the business.
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Negative – Working the favour of environment will not allow the organisation to utilise
natural resources in effective manner.
P5 Evaluation of internal as well as the analysis of external environment in thebusiness ventures
to evaluate strength plus weakness
SWOT of BBC
Strength:
Bight Broadcaster:BBC is the biggest plus oldest broadcasting inUnited Kingdomwith
almost 23,000 workers.
Modernised: This is the most vital strength that BBC is ahead of its competitors. It is one
of the biggestplayers in the market that gives new things such as Colour TV, HD channels plus
so on.
Technological Advancement: This is one of the main strengths of BBC that gives high
technical web design, software design plus graphic design that hold the excellent position in the
market.
Weakness:
Biased opinions: One of the main weakness is that there is chance of biasness in the
opinion plus views among the debaters.
High operating cost: The operating cost of BBC is high as compared to its competitors
within the market.
Opportunities:
Rise in Revenue: BBC is one of the popular broadcasting inUnited Kingdomthat results in
rise in the revenue around the world.
Large packaging: In this, the BBC is updating itself plus viewers prefer to get traditional
information plus packaged in a new style.
Threats:
Strong competition: There arebig number of playersas CNN within the market that owns
a larger threat to a firm.
Introduction of domestic channels: There are different domestic channels that give rise to
the competition within the market.
SWOT of Tesco:
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Strength:
Big market share: Tesco is one of the leading retailer plus supermarket inUnited
Kingdomthat has expel plus end its operations plus gives the overall shopping experience.
Brplus Equity: Tesco has considerable brand value with global acknowledgment plus in
terms of quality, selection plus service.
Weakness:
Price wars: There are lot of competitors in the marketas ASDA, ALDI, Amazon, etc. that
tends to decline in costs of goods.
Less expansion: This retailing firmheavilyrelied over theUnited Kingdom to its sales does
not spent time plus resources over developing the other market.
Opportunities:
Online shopping: Tesco could introduce the online shopping that gives an ease of
convenience among the consumers.
Joint venture: There is opportunity to the particularfirm to allow joint venture with local
companies that improves the overall performance within the peripheral boundaries of UNITED
KINGDOM.
Threats:
Rise in food costs: One of the main threats to a firm is rise in the price of food that impact
the purchasing power of consumers plus thisdeclines the needs of clients.
Pressure of stakeholder: There is larger pressure from the side of stakeholder whomain
emphasis over the social responsibility and it also impact negatively.
P6 Discuss strength plus weaknesses interrelate with macro factors
There are different factors that impact on the functions of company such as political,
economic, social along with technological main role and responsibilities in determining the
changes that has taken place in an enterprises. In this relation of Tesco, the interlinkamong
macro factors iselaborated as below:
Political factors: The management of Tesco prepare an appropriate planning so that it
could capture the big market share all over the world. The vote to Brexit has impacted the Tesco
negatively that tends to inflation plusimpact the financial sources of the firm.
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