Detailed Analysis of the Business Environment for Tesco Company

This report provides a comprehensive analysis of Tesco's business environment, examining its purpose, type, and organizational structure within the context of the retail industry. It delves into the evaluation of different organizational types, including public, private, and voluntary sectors, and assesses their respective characteristics. The report further explores the size and scope of organizations, linking these factors to the firms' objectives, products, and services. A key focus is placed on the relationship between various organizational functions and their connection to the organization's vision and objectives, including an assessment of the advantages and disadvantages of interrelationships among these functions. Finally, the report analyzes the complexities of different organizational structures and their impact on organizational functions, providing a thorough understanding of Tesco's operational dynamics.

BUSINESS
ENVIRONMENT
(Project 1)

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.1 Evaluating purpose and type of organisations.................................................................1
1.2 Size and scope of different organisation.........................................................................4
1.3 Link between organisational size, scope and structure with firms objectives or products
and services............................................................................................................................6
TASK 2 ...........................................................................................................................................6
2.1 Relationship between various organisational functions and its link with organisation
vision and objectives..............................................................................................................6
2.2 Advantages and disadvantages of interrelationship among firms function and its impact on
organisational structure..........................................................................................................7
2.3 An analysis of the complexities of different type of organisational structure and their
relation with various organisational functions.......................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Business environment is a wide term which consist various activities that are involved in
conduction business activities in most appropriate manner. Each business organisation is focused
on establishing an effective business environment in order to managing their organisational work
and business activities in appropriate manner, so that goals and objectives could be achieved.
Tesco is world's largest British multinational company who deals in grocery, general, clothing,
electronic and home products. It is famous for providing high quality products and services to
their customers in order to satisfying their needs and wants (Bryman and Bell, 2015). This report
contents the study about different purpose and type of business organisation such as public,
private and voluntary sectors. The size, scope and range of variety of busies organisation will
explained because these are more appropriate in evaluating the performance of firm. The
relationship among business functions and how they are effective in attaining organisational
goals and objective will also explained in detail.
TASK 1
1.1 Evaluating purpose and type of organisations
In the economy there are different firms who are performing various business activities as
per their purpose and type. The major purpose of each business organisation is to generate more
profit and revenue through proving high quality products and services to their potential buyers
who are willing to taking advantage of offered services of firm. Business firms are mainly
categorised among three different sectors which are more reliable in order to conducting all plans
in effective way. These are usually classified as per their legal status, type of industry and
organisational structure. In today's scenario mostly firms are privately owned by some people or
group of people but some are still funded by private sector.
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(Source: Type of Business Organisation, 2011)
TYPE OF
COMPAN
Y
Company Information Legal Status and year
of establishment
Purpose of
firm
Name of
activities
products and
services
Private
Company
This type of
organisations are
owned by any
individual, partner or
group, who are
contributing their best
in achieving some
common goals and
objectives which are
helpful in gaining
profit and growth for
company. Tesco is a
well established private
Tesco is privately
owned super market
chain which provide
high quality goods
and services to their
potential buyers and it
is the biggest listed
supermarket company
in United Kingdom
(Chavis, Klapper and
Love, 2011).
The company was
founded in the year of
The basic
purpose of firm
is to providing
high quality
goods and
services to their
customers in
order to gaining
more profit and
revenue at
market place.
The company is
focused on
The company is
providing variety
of products and
services to their
potential buyers,
Tesco deals in
different sectors
such as:
Grocery, general,
electronic,
clothing and food.
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Illustration 1: Types of Business organisation

sector who deals in
high quality grocer,
general, electronic,
home products, food
and clothing. It is
British multinational
company retail firm
which is famous for its
high quality goods and
services.
1919 by Jack Cohen
as a group of market
stalls.
establishing
competitive
advantage
through
offering variety
of goods and
services.
Public
sector:
These type of firms are
established as to ensure
their clients and
customers about better
and secure services.
This firms are funded
by government and
public taxes. These
firms have a prime
goals to being a
qualitative service
provider in very less
cost which is
affordable by public.
BBC is most popular
public sector company
which is considered as
the oldest media house
across the world. The
actual revenue of firm
is 4 billion pounds.
This is publicly
owned company and
focused on run on the
basis of government
rules and legislations.
This company is
enacted on royal
charter. The company
was established in
1922 in London,
United Kingdom.
The basic
purpose of firm
is to work as
per government
rules and
providing
services and
products in
very less prices
in order to
satisfying needs
and wants of
general public.
The purpose of
organisation is
very easy and
clear, it conduct
various
programmes
that are related
with news and
The major
activities that are
performed by
BBC are related
with media and
broadcasting.
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other regional
issues which
are taking place
in the world.
Voluntary
sector
These type of firms are
not owned by single
entity and they are
providing beneficial
services to public
without any profit.
Oxyfam is a most
popular voluntary
sector which providing
free and effective
services to the needed
people.
These type of
companies are
providing services
according to
government rules.
Oxyfm was founded
in 1965 in Canada.
Each voluntary
sector are
focused on
providing quick
services as per
the demand and
need of
customers
without any
profit. The
major purpose
of Oxyfm is to
providing food
services to
needy people.
The company is
work on right to a
sustainable
livelihood, work
on social services
or life and
security.
1.2 Size and scope of different organisation
It is required for each business organisation to evaluate their business performance in
order to identifying the actual position of company at market place. The major scope of firm is to
gaining more profit through offering variety of goods and services in order to gaining
competitive advantage (Chow and et. al., 2012). The classification of firm are relay on its size
and structure. Each business fir are run their business activities in different structure and size
such as big and small firms. The organisation are categorised in different parts, a following
description is provided as under:
Private firm: These type of companies are privately owned by an individual, partners or group.
These can be considered as the all profit firms which are not operated by government and its
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authorities. The major purpose of private organisation is to earn huge profit through rendering
extra beneficial services to their customers and clients who are very much interested in taking
advantage of products. Tesco is a private company which deals in variety of goods and services.
It is worlds largest retail firm who conducting its business activities across the globe. The size,
scope are described as follows:
Size Tesco is the largest British multinational retail privately owned company,
who deals in grocery, general, food, electronic and clothing industry.
 It is the grocery market leader in the United Kingdom.
 It has its stores over 12 countries including Asia and Europe.
 Tesco has a market capitalization of nearly £ 18.1 billion which is
high as compare to their pas profit (Collis and Hussey, 2013).
Structure As a private company there is not any involvement of government bodies,
Tesco is completely privately owned company and they run business
activities as per their own rules and regulations which are not controlled by
government. It has divide their business activities among various
departments which are contributing their best in enhancing profitability of
firm.
 Number of minimum employees are 2
 Number of maximum employees are more than 100.
Public company: These type of organisation are owned by government bodies, there is a huge
involvement of government and its authority. These companies are based on government rules
and regulation.
Size BBC is the oldest media broadcasting firm across world. It was
established in 1922 by the royal charter and is a public funded
company. The firm sells its shows in most of the countries across
world and is well known as a qualitative media distributor
(Commander and Svejnar, 2011).
 The total profit of the banking giants is stated to be 47 billion
pound and it has approximate assets of more than 2 trillion
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pound.
 The profit of bank was near to 2 billion pound which makes it
7th biggest firm across the globe.
Structure The banking sector is one of the biggest recruiter over the UK and it
has huge man power who are working in the firm.
 The number of employees currently working in organisation are
331,458.
 It has working staff of more than 35000.
Voluntary sector: This type of business plays most effective role in developing well-being and
customers services in country or nation. This can be considered as the non profit firm who are
focused on providing free services to the public who are very much willing to taking advnatge of
that without paying money. They are mainly concern towards providing financial services to
people in order to improving their condition at market place. Oxyfm is concern on providing best
food facility and health products in order to satisfying the needs and wants of old age people who
are alone or facing any kind of issue. They are also influencing the term, safety of birds and
animals.
1.3 Link between organisational size, scope and structure with firms objectives or products and
services.
The evaluation of firm are effectively done by measuring their scope, size and structure.
The profitability of firm are directly connected with its size and structure. The major scope of
firm is to gaining high profit and revenue through providing high quality products and services to
their customers in order to achieving their goals and objectives (Weske, 2012). The size of each
business are different from each other, they work in variety of structure which is more suitable
for them to generating competitive advantage at market place. The effective implementation of
firms activities are relay on firms growth and success.
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TASK 2
2.1 Relationship between various organisational functions and its link with organisation vision
and objectives
Tesco is biggest multinational company who running their business operations in retail
sector and gaining profit and growth through providing high quality goods and services to their
potential buyers. They are having sufficient capital to spend in making effective business
operations. They are focused on creating plans that are more appropriate an nature and most
suitable for managing all business activities in well planned manner so that competitive
advantage can be achieved. The various organisational functions and their relation with
objectives are described as under:
Human Resources: It is the major assets of firm in which employees, higher authority, manager
and subordinates who are contributing their best in respect of generating more profit and revenue
for company are included. The higher authority of firm are focused on recruiting well educated
and experienced people in their firm, so that productivity could be increased.
Finance: This can be considered as the fundamental need of firm which play most essential role
in conducting all business operation in most appropriate manner. It is the major duty of finance
manager to set out monthly, quarterly and yearly budget as per the availability of funds and
capital and apply most suitable tool and techniques for promotion (Zalengera and et. al., 2014).
Administration: It is required for each business to maintaining their operation in order to
managing whole organisational activities in right manner. It can be considered as the most
essential department of firm which plays effective role in establishing whole business and its
activities in suitable manner so that work has to be done in significant direction. Tesco is concern
on implementing plans in order to establishing an effective and friendly environment for their
employees.
2.2 Advantages and disadvantages of interrelationship among firms function and its impact on
organisational structure.
Organisational functions plays most effective role establishing effective working
environment which helps in enhancing companies performance through carry out their business
activities in right direction. Advantages and disadvantages are described as under:
Advantages Disadvantages
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The major advantage of organisational
functions is that they are helpful in providing
proper assistance to all business activities
which are effective in gaining high competitive
advantage (Srdjevic, Bajcetic and Srdjevic,
2012).
Tesco is focused on investing their funds and
capital in appropriate activities which are
significant in generating profit and revenue.
It is required for firm to implement all function
in appropriate a wrong decision may cause loss
and down fall in profit.
Management of finance is the major function
of firm, if in any case organisation is not able
to arranging appropriate funds that it may
directly impacted on productivity of firm.
2.3 An analysis of the complexities of different type of organisational structure and their relation
with various organisational functions.
There are so may type of business structures are available such as functional, divisional
and matrix which are widely followed by organisations as per their business requirements. Tesco
is focused on applying their activities through matrix structure, which is more effective in
implementing all business activities in most appropriate manner (Trompenaars and Hampden-
Turner, 2011). As a big organisation Tesco has large number of employees who are working in
similar business environment and it has impacted on decision making of firm. Another
complexity is lack of communication channels, so that employees are not able to communicate in
effective manner.
CONCLUSION
As per the above discussion it has been concluded that each business organisation is
focused on establishing an effective environment in order to developing employees performance
for generating more profit and revenue. Business environment is a term which states that the
factors that are connected with internal or external business environment are very much essential
for carry out whole business activities in well planned manner.
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REFERENCES
Books and Journals
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Chavis, L. W., Klapper, L. F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp.486-507.
Chow, A.T., and et. al., 2012. Computer readable medium with embedded instructions for
providing communication services between a broadband network and an enterprise
wireless communication platform within a residential or business environment. U.S.
Patent 8,155,155.
Collis, J. and Hussey, R., 2013. Business research: A practical guide for undergraduate and
postgraduate students. Palgrave macmillan.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Srdjevic, Z., Bajcetic, R. and Srdjevic, B., 2012. Identifying the criteria set for multicriteria
decision making based on SWOT/PESTLE analysis: a case study of reconstructing a
water intake structure. Water resources management. 26(12). pp.3379-3393.
Trompenaars, F. and Hampden-Turner, C., 2011. Riding the waves of culture: Understanding
diversity in global business. Nicholas Brealey Publishing.
Weske, M., 2012. Business process management architectures. In Business Process Management
(pp. 333-371). Springer Berlin Heidelberg.
Zalengera, C., and et. al., 2014. Overview of the Malawi energy situation and A PESTLE
analysis for sustainable development of renewable energy. Renewable and Sustainable
Energy Reviews. 38. pp.335-347.
Online
Business environment. 2017. [Online]. Available through:
<http://www.investorwords.com/19252/business_environment.html>. [Accessed on
13th September 2017].
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