Business and the Business Environment: Report on Tesco, NHS, and Oxfam

This report presents a comprehensive analysis of the business environment, focusing on three distinct organizations: Tesco (private sector), NHS (public sector), and Oxfam (voluntary sector). The introduction establishes the significance of the business environment, encompassing internal and external factors, and highlights the role of government activities. Task 1 delves into the purposes, legal structures, and stakeholders of each organization, providing insights into their operational frameworks. Task 2 examines the scope and size of these organizations, comparing their missions, market shares, and operational scales. Task 3 explores the interrelationships between various organizational functions, such as marketing, research and development, and their alignment with different organizational structures like functional, divisional, and matrix structures. Task 4 applies PESTLE analysis to assess the positive and negative impacts of the macro environment on Tesco, offering a detailed understanding of the external factors influencing its performance. The report concludes with a summary of key findings and a list of references.

Business and the
business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Various purposes and types of different organizations.....................................................3
P2 Explain the scope and size of organisation.......................................................................6
TASK 2............................................................................................................................................7
P3 Relationship between various organizational functions....................................................7
TASK 3............................................................................................................................................8
P4 Positive and negative impacts of the macro environment.................................................8
TASK 4..........................................................................................................................................11
P5 Internal and external analysis of organization.................................................................11
P6 Interrelation of strength as well as weakness with the help of external macro element. 13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business environment defineas the amalgamationof internal and external factorslike
customers, suppliers, owners, needsof consumers, supply aswell as demand & many more.
Apartfrom this, it has also been analysed that there areamplenumber of activities mainly decided
and executed by government. Some of the activities are technological advancements, exchange
rate, employment rate, governmental policiesand manymore. Therefore, it isconcluded that
business environment assist in identifying resources, business opportunities as well as growth for
improving the whole performance of a business entity effectively. In the presentreport, three
main business entities are going to be selected for private, voluntary and public sectors. In
reference to private industry, TESCO is selectedwhich is the fastest leading company mainly
deals in household and grocery items. NHS is chosen as an organization works in public sector
perform its business functions with the aim of reducing poverty and provide social care services
to the individuals. At the end, in case of voluntary organization Oxfam ischosen as the base
company which provides services to the individuals so they can enhance their living standards.
In thisreport, discussion is made about the size, scope and purpose of different sort of business
organization along with there inter-relationship with various organizational functions. Analysis
of macro environment is also going to be discussed which help in identifying their impact on the
business functions.
TASK 1
P1 Various purposes and types of different organizations
Public organization: It is the organisation that is owned and controlled by in a country. It is
providing effective services to their customers for enhancement of overall brand image
(Eryılmaz and Eryılmaz, 2016). In present scenario National Health Services choose an
organisation that is providing various health related Customer services and it was established in
the year 1948.
1) Purpose: National Health Services is public organisation that as a into provide free of cost
health services to all the people living in their country for purpose of improvement in overall
health of people.

2) Legal structure: The overall decisions are taken by the government it involves both Central
and the state government.
3) Stakeholders: All the stakeholders are playing a very important role as they are the ones who
are providing financial investment. All the stakeholders possess influence on the companies
working and it consists of trustee’s local authority and patients.
Private organisation: It is a organization that consists of individuals, agency and partners. In
present case when is the private organisation that is dealing in different grocery items business
operations.
1) Purpose: Tesco is a tuition organisation that is dealing in different Merchandise its
headquarters is present in garden city UK and was founded in the year jack Cohen. It is
organisation that is providing quality services and products at affordable prices according to
demands of customers.
2) Legal structure: Which organisation has a legal structure in form of top authorities consists
of board of directors and CEO. In case of Tesco, all the major decisions are taken by top
authorities with employees as their subordinates and these decisions are affecting functioning of
the different functional departments.
3) Stakeholders: There are different stakeholders that are affecting the business organisation
and their overall performance. In case of Tesco it consists of customers, government, employees
and various other Agencies who are responsible for organisation.
Voluntary organisation:
It is organisation that consists of different set of functions and activities that are involvement of
government (Taiwo, Lawal, . and Agwu, 20160 . What it has of Government and previous other
external members in some of their functioning. In present report Oxfam is organisation that is
being considered for understanding the legal structure and purpose of different voluntary
organisations. Oxfam was founded by Ceicl Jackson in the year 1942. This is organisation that

has other 20 independent charitable trusts and major motive is eradication of poverty across
different parts of the world.
1) Purpose: The major purpose of voluntary organisation like Oxfam is to living standard of
people living in society and reduction of poverty. They have to take decisions for performing
their roles and responsibilities in order to develop equality among all the individuals that are
living in the country.
2) Legal structure: Voluntary organisation has a legal structure that depends on the topic
authorities and trust (Allison,., 2019). In Oxfam all the major decisions are relation to their
vision of development of employees and Society.
3) Stakeholders: There are many different stakeholders that are affecting direct and indirect
functioning of the organisation. These are associated with increasing the overall profitability
achievement of laid down objectives. It consists of different staff members, founders and
beneficiary.

P2 Explain the scope and size of organisation
In every Organisation all the business activities are performed and it consists of three types such
as public private and voluntary such organisations are discussed below:
Private Public Voluntary
Goal Tesco has a mission
statement “we make
what matter better
together”. They have
a vision “To be one of
most highly valuable
business by offering
qualitative services to
communities,
colleagues aren't all
the shareholders that
can the performance
of organisation.
The vision of Tesco is
to become one of the
world's biggest
retailer in coming
time period of 5 year
and they want to be
first choice of their
customers when they
are fulfil their needs
for retail products.
Vision statement of
NHS, to make people
live a Healthy
lifestyle and they
want to provide
healthcare services to
those people who are
not able to afford
them.
The vision of Oxfam
to have a world free
of poverty. They are
willing to provide
people with equal
treatment irrespective
of the caste color,
Creed or culture to
which they belong.
The mission of the
organization is to any
kind of law or
structure that is part of
overall country which
is against injustice of
poverty that is taking
place in a country. It
is also very important
to help people fight
against any practices
of discrimination that
is felt by the people in
the society.
Size and scope Tesco has the wide
scope as they are
NHS is a public
organisation that is
Oxfam is a voluntary
organization that was

willing to provide
high quality of
services to all their
customers
dealing in to health
related services and
was established in the
year 1948.
founded in the year
1995 by a group of
semi Government and
independent
organization
Market share They have market
share Europe and Asia
and market share of
leader groceries in
UK, Ireland, Hungary
& Thailand.
NHS is offering its
services on England,
Wales, Scotland and
Northern Ireland
Oxfam is a part of
global movement of
change and they are
providing services in
order to encourage
people to raise their
voices for any
injustice. All these
efforts by OXFAM as
a voluntary
organization leading
towards their
enhanced scope and
development.
Oxfam is working for
the society and offering
different volunteer
services they are willing
to fight and deal with
issues such as poverty
by long-term
development
No of products and
services
There are different
types of products such
as clothes,, furniture,
petrol, telecoms,
financial services,
They are dealing into
offering emergency
Medical Services and
treatments for
infectious diseases
Oxfam works as a
trade justice,
education. Health,
education debt and
fair trade related

electronics and
internet services.
people of the society.
So, they have a very
wide scope has for
achievement of high
growth to is very
important to keep
better heath of all
citizens in a country.
services for increasing
positivity in the
society.
Stakeholders size 450, 0000 approx
employees working in
this organisation.
There are
approximately 1.4
million employees
working with NHS.
Approx 7000
volunteers are
associated with
Oxfam.
Employees number They are operating
with 7000 stores
across different parts
of the world and are
offering best Quality
Services. They are
having more than
employees as a part of
their workforce.
6,500 employees
working in 50
locations across
England (Newall,
Twomey. and Lima,
2018).
There are 300
employees that are
part of the Oxfam
international
secretariat across
globe and 10,000
employees and 50,000
interns & volunteers
working with Oxfam
affiliates.
Profit volume ROI of Tesco, is 300
million pounds and it
was 1.54 billion in
financial year ending
2019.
NHS has an annual
income more than 2
billion pounds.
Oxfam has a income
total of 408.6 million
pounds in the year
ending 16-17.
Sales/Turnover Turnover of Tesco
63.911 billion pounds.
They are dealing into
providing free of cost
Sales in Oxfam are
more than 19.3

services to people and
helping them in dental
treatment overall
health improvement
(Chan, 2019).
.
million pounds and it
has rise by 7 percent
in year 2018.
Geographical area 3400 stores across
different parts of
world.
NHS is providing all
services free of cost to
different regions
across UK.
Oxfam has 1200
shops across
worldwide.
TASK 2
P3 Relationship between various organizational functions
Organisational functions and structure are different from each other which are needed to
be understood properly.
Organisational functionsinter-relation with structure
Marketing& Sales department with Functional structure- It plays vital role in
establishing relationship between end users and marketers. For example- functional structure
includes marketing, sales production department. Marketing is essential part of business because
it is the way through profit is generated. Main issue with functional structure to these
departments is that any communication error might disrupt the whole environment. In relevance
with Tesco, their functional structure is well organised and is managed by managers as well as
leader in effective manner.(Puurunen, 2020).
Research & development department-divisional structure- In divisional structure, it is
applied to every functions of organisation as because every business have production line and
each of them have different research and development department. In relation with Tesco, it is
diversified company which means that every department is equipped with divisional

structure.The advantage of this approach is that each division of the company has the personnel
to carry out all necessary functions and which results in positive output. In context to Tesco, this
makes them different from their rivals and competitors.
Matrix structure- In entity various types of departments are available and each of them
works in sales, marketing or R& D department. This also means that they can also perform other
activities other than their functional departments. This is beneficial for firm as their productivity
and performance level enhances at rapid level. This structure adapts organizational function to
changing organizational needs Also, through this Tesco is able to achieve their goals as well as
objectives in proper manner (Cheek, 2019).
The above mentioned organisational structures as well as functions are carried out by
Tesco in proper manner so that they run their business in smooth manner. Also, proper measures
are to be adopted by so that everything runs smoothly. Further, it is also seen that decision
making is to be done with proper analysis because in such functions and structures it become
difficult to redesign them again in management. So, when these are adopted analysis is to be
done in proper manner.
TASK 3
P4 Positive and negative impacts of the macro environment
PESTLE ANALYSIS
It is that analysis which is related to the scanning of external factors which have their
direct impact on the functioning of the organisation. In pestle analysis there will be analysis of
political economical social technological environmental and legal factors. It is must for the
organisation to analyse the external factors for getting maximum competitive advantage as well
as making the decisions related to functioning. Tesco is leading British multinational company
which is famous for its products in the retail industry. Therefore, pestle analysis of Tesco where
all the factors related to external environment which has a direct impact on organisation
functioning and decision makes will be analysed below:
Political: political factors are those which are directly related to functioning of the
organisation and the government where the organisation is working currently. It includes all the

rules and regulations which are formed by the government within the recent years and their
impact on working of firm. In the context of Tesco, the major work of companies in UK but it
also operate in number of countries so it have to analyse this political factors closely because of
global operations. The global political factor generally influence the performance of the Tesco as
they include the tax rates act of legislation and force of actions which are determined by the
different government within the country.it also include the factors like terrorism political daily
mass and stability is of government the respected nation where the organisation is working. The
major factor which impact on Tesco in a political view our BREXIT and terrorism. They have
both positive and negative impacts which are stated below.(Le Meunier-Fitzhugh, 2019).
Positive impact: the major positive impact of political factors like bricks it is that company can
formulate different policies. It will also bring number of opportunities in front of Tesco to
increase its business in within the UK as well as expand the profit of the company with
increased market share (Madhani, 2016).
Negative impact: the major negative impact of political factors on the working of Tesco is
because of terrorism. Terrorism directs impact on the working of organisation because it is an
unethical practice which leads to satisfaction and uncertainty within the economy and working
environment of organisation. It also builds the threat in the mind of customer which directly
impact on demand of the products and diversify in the workforce within the organisation.
Economical: these are those factors which are directly related to the economy of the
nation where the organisation is working. Include number of factors which are interest rates
standard of living GDP growth and many more. This is main point of concern for the Tesco, as
they are mostly like to leverage cost demand profit and prices of the company and economy
which are going around the organisation. For this company must avoid and make the effective
policy changes which will help company in dealing with the taxation and other factors which
would effective accessibility of finance within the organisation.
Positiveimpact: Tesco is operating in UK where the GDP growth as well as per capita income is
by which help company in maintain the prices as well as increase its profit margin.
Negative impact: some of the economic factor also act negatively for Tesco as high inflation rate
and unemployment rate impact on the profit of Tesco because it have to deal with the policies of

government where company have to provide high wishes as well as due to high rate of inflation it
have to suffer with loss in product prices (Närman, 2016).
Social factors: social factors are those which are related to the society of the business. It
includes the trend mental thinking behaviour and many other factors which are directly related to
the performance and decision of business. Duty variety of social changes and trend the customer
in the UK has moved towards the bulb shopping and one stop shopping. This is also helpful for
the test score as company can increase the non-food items and offer the number of items to the
customer where it can increase profit of the company.
Positive impact: the major positive impact of social factors on the organisation Tesco is that it is
using customer friendly methods which help company in increasing the sales. Social factors also
acted positively on the Tesco because company offer varieties of the product to the company and
it are a trend to purchase lot of product from a single store.
Negative impact: the major negative impact of social factor is that, duty regular changes in
fashion related item. Tesco is suffering from huge loss because of outdate clothing system and
improper innovation in this sector (Pan, 2019).
Technological factors: it includes the continuous changes within the technology and up
gradation in technology which impact on the performance of the organisation as well as in help
in increasing the effectiveness within the work of different departments. Technological factors
are important part of functioning within the Tesco as company using regular updating techniques
which help it in increasing the customer satisfaction and maintaining good value.
Positive impact: the major positive impact of technological factor on the Tesco is that company
using the self-checkout system which help the customer and increase their convenience.
Negative impact: regular technological updating is also impact negatively on the company
because it increased the cost of production and up gradation which directly reduce the profit of
firm.
Environmental factors: environmental factors are those which include in nature climate
geographical location and other environmental things which are related to functioning of
organisation. Tesco is also operating by considering the environment factor as a core point of
business strategy. It has a clear policy of using zero plastic bag as well as it also set target to
reduce the carbon footprint by 50% before 2020.

Positive impact: environmental factors impacted positively on the Tesco as it increases the
customer support as well as brand value of organisation because of environmental interventions
made by organisation.
Negative impact: the negative impact of environmental factor on the is that organisation failed to
fulfil its obligation of no use of plastic bags which acted negatively on the company and decrease
the share of the company at 10% in recent years (Gürel, 2017).
Legal factors: legal factor include the rules and regulations which are formed by the
authorities of the nation where the form is working. In context of Tesco it is working globally it
has to comply with number of rules and regulation form but different legal activities of every
nation. Company have clear policy of following all rules and regulations which are given by the
respected laws.
Positiveimpact: help company in governance as well as increase the motivation within the
employees by reducing the unethical practices (Phadermrod, 2019).
Negative impact: this can increase the cost burden as well as give ethical legal liabilities toward
the company because of loose policies.
TASK 4
P5 Internal and external analysis of organization
SWOT Analysis
It is framework which is used by organisations to determine and analyse the internal
environmental factors which affects the business to grow and develop in market. This tool
requires accurate information and research about the market so that process is being carried out
in proper manner. In relation with Tesco, they use this tool so that market situations and trends
are known appropriately. Also it helps in implementing strategies as well as tactics in proper
manner. Further, it also assists them in taking decisions effectively. This tool includes several
elements which are discussed below-
Strength
 Tesco is strong brand and is
established across the globe. Due to
this it has been able to compete with
WEAKNESS
 Tesco is entering into unknown
market of their field such as Tesco
mobile which makes their growth

its rivals and competitors in effective
manner such as Sainsbury, ASDA
group, etc. (Gürel, 2017).
 With larger market area and strong
customer base it is easy for them
acquire resources for business from
different retailers at affordable prices.
 Also, firm with expansion of global
operations across different countries
enhances their profitability as well as
goodwill in market.
 By introducing new schemes such as
club-cards for retaining of customers
makes them different from other
brands.
slow in other sector.
 With changing technology, they need
huge amount of cash to invest.
 Moreover, there sales revenue is
decreasing because of lack of skilled
workers and experienced salesmen.
 Another weakness is that they have to
depend upon financial institutions for
expansion of business at global level.
 Entry of new competitors and rivals
making it difficult for them to
increase their product prices in
market. (Phadermrod, 2019).
 Furthermore, due to implications of
Brexit and EU policy it is not possible
for Tesco to expand their activities in
smooth and effective manner.
OPPORTUNITY
 As there business is rising, they also
have opportunities such as they can
invest more in their entertainment
sector at wider scale.
 Tesco can also gain large customers
in new countries with expanding of
technology in organisation.
 Furthermore, with rise in tourism
sector they can develop their business
at overseas also for larger market
share growth.
THREAT
 Many threats are being faced by
Tesco such as they are the global
leader in supermarkets so many other
rivals are planning to get them down
in market.
 Then, expanding business of Walmart
is a big threat to Tesco because
customers may find more affordable
products.
 Local shops in town, areas or locality
are also being problems for Tesco to
run the business and gain profits.
After examining the above table, it is analyse that internal environment factors are crucial
which are to be considered by every firm to deal with market uncertainties. Also, decision
making is to be done after properly going through SWOT Analysis because any errors in process
might lead to use of extra manpower, wastage of resources, more time consuming etc. So it is
responsibility of manager to make ensure that everything is being carried out effectively without
any problems or issues.

P6 Interrelation of strength as well as weakness with the help of external macro element.
The interrelation amongstrength and weakness of the macro environment factors are
going to be discussed as follows:
Basis Political Social Economical
Strength Higher authorities of
TESCO uses all the
legislation and laws in
an effective manner
formulated by the
government of the
country. Therefore, it
has been identified
that all the functions
which are performed
by them are authentic
and appropriate.
On the other hand, it is
said that managers of
TESCO emphasises on
the lifestyle of people
and then produce
goods and services
accordingly which aid
them to attain their pre
determined targets
effectively.
As per this factor, it is
examined that TESCO
is enough capable to
provide effective costs
to their workers with
the help of which their
goals can be achieved
in an appropriate way.
Weakness Modifications in the
legal policies on a
regular basis
influences the whole
working of an
organisation in a
negative manner and
also increases the cost
of company
According to the
present working
environment, it has
been identified that
customers are health
conscious as well as
mainly demands
healthy and organic
food products which
highly influences the
overall functionality of
TESCO at the
competitive
TESCO requires to
maintain all types of
growth rate but on the
other hand in some
cases Tesco have no
idea about the
changing condition of
United Kingdom.

marketplace.
Basis Technological Environmental Legal
Strength Advancedand
upgraded technology
used by higher
authorities of TESCO
so that they can
produce high quality
goods and services to
their consumers.
TESCO is an
organization mainly
adopts all the laws and
regulations related to
environment such as
they adopt eco friendly
technologies so they
can reduce the
pollution from
environment in an
effective manner.
Higher authority of
TESCO uses all the
laws and legal
formalities effectively
while doing their
business functions is
their biggest strength.
Weakness Modifications in
technology on a
regular basis might
affect the overall
performance of
TESCOin a negative
manner as this requires
lot of investmentand
funds.
Top management team
of the organisation like
TESCO are bound by
some environmental
policies and laws
which highly
influences the overall
performance of the
company in a negative
manner.
TESCO is a well
known organisation
across the whole wide
world and is bounded
with some legal
implications which
influences the business
functions in an adverse
manner as it requires
lot of efforts and time
period of the higher
authorities.
CONCLUSION
Accordingto the above stated report, it issaid that business environment highly influence
the whole performance aswell as functionality inpositive and negative manner of an

organization. In thecurrent report, it is examined that there are various types of business
organization, which includesprivate, public and volunteer. Theseorganizations providebusiness
functions in an effective manner which creates value among the competitive marketplace.
Furthermore, it is also said that these organizations have their own size, scope, mission and
vision along with the purpose for which they operate there functionality. For identifying
organizations internal capabilities and external environment SWOT as well as Pestle analysis is
conducted inthis report. This as a result assist in developing and modifying strategies and
policies according to the changing environment. Therefore, alteration in plans and policies help
in attaining organizational goals and objectives of the business organization at the competitive
marketplace.

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