Analyzing Business Environment of Tesco, Pentland & British Council

This report provides an analysis of the business environment, focusing on Tesco, Pentland, and the British Council. It explores the different types, sizes, and scopes of these organizations, including their public, private, and voluntary sectors, as well as their legal structures. The report examines the int...Read More

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1 Type Size and Scope of Organisations....................................................................................1
P1 Public, private and voluntary sectors and legal structures................................................1
P2 Size and scope of a range of different types of organisations...........................................4
LO2 Interrelationship of the various functions within an organisation and how they link to
organisational structure....................................................................................................................5
P3 relationship between different organisational functions and how they link to organisational
objectives and structure..........................................................................................................5
LO3 Contemporary examples to demonstrate both the positive and negative influence/impact the
macro environment has on business operations...............................................................................6
P4 Positive and negative impacts the macro environment has on business operations,
supported by specific examples..............................................................................................7
LO4 Internal strengths and weaknesses of specific businesses and their interrelationship with
external macro factors....................................................................................................................10
P5 Internal and external analysis of specific organisations in order to identify strengths and
weaknesses...........................................................................................................................10
P6 Strengths and weaknesses interrelated with external macro factors...............................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The enterprise surrounding environment is the market-extensive outside and inner elements that
affect an organisation’s functioning. The commercial enterprise environment includes monetary
or non-economic factors that growth or lower the performance and effectiveness of a business
enterprise. It is lifestyles-saving for an organisation to constantly analyse various conditions that
avoid the commercial enterprise surroundings with clean capabilities and comfort. This file is
used in reference to TESCO a public organization running inside the retail enterprise that was
established in the year 1919, a private organization the Pentland organization (established in
1932), and a voluntary company of the British Council (on account that 1934). This report
suggests different types, sizes, and sectors of groups, in conjunction with interrelated functions in
the organizations, and links them along dreams and structures. The report additionally focuses on
the numerous capabilities of the business enterprise and, finally, how those functions have an
effect on the achievement of the agency's achievement.
LO1 Type Size and Scope of Organisations
P1 Public, private and voluntary sectors and legal structures
There are numerous companies within the global market economy that perform at the very
best stage in many departments together with their operations. These groups have their very own
goals and targets that need to be carried out in their respective regions of labour. The
departments that could classify organizations are:
Public Sector Companies: The enterprise below is the best example of the companies managed
and controlled as public sector enterprise. They’re known as joint-stock companies, with direct
public participation inside the business, thru the issuance of shares or the creation of
arrangements for the active involvement of price range in the commercial enterprise
(Anzenbacher and Wagner, 2020). TESSCO is a retail company based in Welwyn Garden City,
London and was established in the year 1919. The organization promotes and sells edibles,
mobile telephones, groceries, garb, accessories and customer merchandise through a ramification
of shops in the course of the United Kingdom.
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Purpose: The reason of this employer is to offer human beings with an all-spherical
product that may be used in a single keep. This lets in clients to store conveniently in a single
step without having to go looking the entire marketplace.
Legal Structure: The following factors are essential to influencing the activities that an
organisation can carry out the legal structure can be categorised as follows:
 Central: On this type of organizational structure, the valuable government manages,
controls, and owns maximum of the organization's operations due to the fact the size of
the corporation's operations is so massive.
 State: On this legal enterprise, the nation’s government is involved in directing, owning,
and handling the operations of a corporate organisation along with publically owned
shares.
 Local: Companies adopting this legal structure are normally controlled by using the
nearby authority’s organization that controls their enterprise activities (Arsawan et al.,
2020). In widespread, local governments alter the sports of SMEs that are not but fully
grown.
The various above legal structures, the imperative Parliament is the sort of legal structure
adopted through TESCO due to the fact it is a massive agency whose primary government
manipulate wishes to function efficiently.
Private Sector Companies: Agencies directed and owned by way of one or a group of those
who prioritize delivered cost without direct interference from the government or the majority are
subordinate to private corporations. The Pentland institution is a textile shoe organization
centered in Finchley, England, courting back to 1981. The institution operates footwear, apparel,
exercising equipment and workout device groups in lots of shops in greater than 20 regions.
Purpose: The Pentland institution is centred on maximizing wealth by means of
manufacturing items that provide more margins to manufacturing prices, extra through excessive
high-quality products and ubiquitous marketing strategies. Allows generate plenty of income and
sales (Benabdellah et al., 2021).
Legal Structure: The driving force is the basis for changing the work your organization
can do. Legal structures can be divided into the following areas:
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 Sole- Proprietorship: A sole proprietorship is an organisation managed and managed by
means of or more individuals who operate, direct, and control the corporation and its
activities for the purpose of creating wealth.
 Partnership Firms: On this form of enterprise, sure folks that are entirely managed by the
proprietor, directors, and executives of the organization's operations are in fee of control.
 Limited by Shares Companies: There are certain groups that boost money with the aid of
providing stock for most of the people to buy, which allows raising a big amount of cash
for his or her business sports.
 Cooperatives: Co-operatives are groups fashioned via mutual corporations of agencies of
humans geared toward meeting social, cultural and economic needs.
Voluntary Organisations: There are certain agencies that actively work for extra advantage
with the aim of enhancing the usual of living of human beings. These consist of non-profit
businesses, trade unions, social organizations, environmental businesses and enterprise
institutions (Chatterjee, Ghosh, and Chaudhuri, 2020). One such company is the London-based
British Council, which has been operating to enhance and develop humans through instructional
activities in the United Kingdom and many different regions since 1934.
Purpose: The British Council is dedicated to teaching people to reap sustainable growth,
social nicely-being and the introduction of high ethics, and to stay thankfully for earnings and
poverty. We make fundamental facilities available to all who cannot help themselves.
Legal Structure: Those volunteer businesses, established to serve and work to improve
humans, ought to undergo prolonged methods and authorities approval to initiate offerings
(Chege and Wang, 2020). .. It includes two forms which could form the volunteer company
shown below.
 Trusts: This form of structure is supported with the aid of people who support these
companies through charitable funds, trust budget, and envelope finances, and helps those
in need of the organization.
 Unincorporated associations or Self-help Societies: On this structure of volunteer
organisation, two or extra people work collectively to tackle various demanding
situations and aid society and people till the challenges are absolutely resolved.
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The British Council is a voluntary agree with funded by means of many charities throughout
the UK to educate humans, assist those in need, and work to improve them.
P2 Size and scope of a range of different types of organisations
Basis Public (TESCO) Private (Pentland
Group)
Voluntary (The British
Council)
Size TESCO's reach extends to
maximum of the
supermarket chain and
operates stores throughout
the United Kingdom,
supplying lots of ranges.
The corporation's
business covers a
massive place with
approximately 500 stores
worldwide, imparting
sports products to all
types of players.
The British Council is a
group of non-income
groups dedicated to
developing people for
the destiny through
schooling and
educational activities.
Scope As the portfolio grows, its
scope grows, with a wide
sort of products and
improvements with the
ultra-modern advertising
techniques.
The Pentland institution
is a mid-sized
organisation that gives
retail offerings in many
shops to maximise
income on large-scale
sales.
The dimensions of the
British Council are
extreme and not as
simple as it performs
complicated activities to
relieve poverty and teach
people.
Background Founded in 1919, TESCO
is one of the united
kingdom's biggest
supermarkets, working as
a royal employer serving
people.
A mid-sized agency that
has been supplying retail
services and products to
its clients since 1981.
A volunteer enterprise
based in 1934, operating
to remove poverty and
educate human beings.
Objective TESCO brings
convenience to people
with excessive high-
The organization's
principal goal is to
acquire growth and
The main motive of the
Council is to teach
humans to deal with
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quality products and one-
step buying.
increase earnings through
providing the first-class
products.
poverty and lead a
terrific and liveable life.
LO2 Interrelationship of the various functions within an organisation and
how they link to organisational structure
P3 relationship between different organisational functions and how they link to organisational
objectives and structure
The organizational structure may be described as a hierarchical shape including all members
of the company's management, supervision, and lower levels, rhythmically sporting a series of
verbal exchange among exceptional departments (Saide and Sheng, 2020).
1. Functional: On this shape, small agencies of individuals are formed in line with roles,
abilities, and responsibilities beneath the supervision and route of a unmarried manager.
On the one hand there is centralization of power, one man or woman has electricity and
the alternative operates beneath his manage (Severo and et al., 2020). This form of
framework is rigorous in companies in which everybody desires to report less than one
supervisor.
2. Divisional: This sort of structure helps the division of people into special departments,
depending on their area of know-how and work knowledge. A head is appointed for each
department mentioned with the aid of his subordinates. In this shape of hierarchical
division, authority and duty flow from pinnacle to bottom. This is the highest-ranking
person has final obligation and authority.
3. Matrix: The flow of data is not restricted to the conversation of superior subordinates;
however the feature of free flow and the structure of department are combined. With any
such structure, many managers can manipulate their personnel, disrupting the drift of
statistics and facilitating their work.
4. Flat: SMEs in most cases undertake this form of structure, following a single chain of
horizontal chains for command and reaction flow (Singh and et al., 2020). Boss and
subordinates have comparable authority and responsibilities in the flat structure.
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TESCO is a retail-centric organisation and has a matrix structure as it does require special
skills or action plans to increase sales. Matrix structure allows the organisation to achieve greater
efficiency and adequate flow of activities throughout the organisation.
Functions interrelated HR and Finance: Those functions inside an enterprise are much intertwined and have a
remarkable effect on them. Businesses need money to run human assets activities, and
organizations want human beings to generate money (Zhang and Chen, 2020). In
TESCO, the agency manages its skills and management wishes to allocate sufficient
funds to its talent department to reward its employees.
 Marketing and R&D: advertising is effective whilst strategic and technological studies
and development is completed inside the excellent feasible way. Considering R & D is
the key to effective marketing, and it can be conclude that they're interdependent. TESCO
is devoted to effective marketing through research and development of merchandise and
the technologies for promoting them.
LO3 Contemporary examples to demonstrate both the positive and negative
influence/impact the macro environment has on business operations
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P4 Positive and negative impacts the macro environment has on business operations, supported
by specific examples
Macro surroundings elements are referred to as the exterior elements which can generate
nameless affects either wonderful or treacherous effects on the enterprise operations (Cooley and
Hansen, 2021). Tesco has become the trendy supermarket to withdraw Russian related products
from United Kingdom shops in response to the Russia’s invasion of Ukraine. The move from the
grocery store large comes when they obtained strain from customers to do away with Russian
merchandise from shelves as the conflict in Ukraine intensifies. With a tremendous purpose to
examine these external factors, PESTLE analysis may be initiated via firms like that of TESCO.
The elements have high-quality and poor impacts upon the company which can be said under:
Political factors: The focal point is in particular on distinct elements which include political
instability, financial policy, overseas exchange and so forth, which affluence the operating of
business. These are required to be cantered with the aid of TESCO to search for approximately
terrible and high quality influences of these, which can be as follows:
 Positive Impacts: Unsuitably of political situations may additionally result in
inappropriate execution of business and lowers growth of organisation.
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 Negative Impacts: The Corporation tries their level nice to keep up to date with the
framework and political guidelines of UK to make ultimate use of it of their enterprise
operations.
Legal factors: Extraordinary regulatory frameworks and legal guidelines regarding fitness,
labour regulation, environment, safety, advertising requirements and so on are such components
which should be noted by the managers in TESCO group so as to carry business operations
fairly. Negative and positive influences are given beneath:
 Positive impacts: All the rules and rules are followed nicely in the organization which
assists to set up a good marketplace image. Therefore, TESCO also withdrawn its
operations from Russia.
 Negative impacts: If laws aren't complied by managers then it could result in government
interference in operational activities.
Economic factors: Inflation or deflation, interest charges, forex price and fees are monetary
elements that could expand high quality and negative reactions in business operations of the
enterprise due to conflicts of Russia and Ukraine (Dahiya and Rangnekar, 2020). These impacts
are clearly discussed underneath:
 Positive impacts: Preserving document of market fluctuation and forecasting market
research with the aid of managers might assist to replace pricing and marketing
information by the enterprise.
 Negative Impacts: Changes like inter border conflicts may additionally outcome in
instability in prices set earlier than because control won't be able to act speedy in keeping
with fast converting situation.
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Technological factors: Updated improvements, technological development, studies and
development etc. ought to assist upgrading its nice of labour and universal operations can upward
push, if it's miles taken in to appropriate consideration (Gonzalo-Hevia and Martín-Peña, 2020).
Each positive and negative impact of it is as follows:
 Positive impacts: The Company should attention towards upgrading technology or
obtaining new ones to achieve aggressive benefit within the market with faster workings
and business operations.
 Negative impacts: If managerial branch cannot execute on time research and
improvement operations in step with timely necessities then it could bring about lowering
down the operations for organisation.
Social Factors: Consumer’s tendencies, choices, locations, seasons, cultures and so forth,
influences their shopping for behaviour. Those factors that affect society like Russian Aggression
have to receive attention by TESCO organization to perform organisational goals. As those
elements creates negative and positive have an effect on the organisation which are as follows.
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 Positive Impacts: The regulations regarding client pride and pleasant their societal needs,
the company formulate plans in step with those social elements like need for freedom for
Ukraine.
 Negative Impacts: If the lifestyle and ethics of society in which commercial enterprise
operates are not tested properly the organisation may not withstand the market at any
region.
Environmental Factors: Organisations have a moral responsibility in the direction of
environment due to the fact without right norms in regards to environment no enterprise will be
allowed to perform its activities (Ismanto and et. al., 2020). To smoothly go with the flow the
business, surroundings norms have to be observed strictly by the TESCO. There can be results of
not regulating environment norms which can be as follows:
 Positive Impacts: As TESCO organization is a retail corporation so the managers make
certain that its activities are not growing pollution and harming surroundings which are
right for its company image. Negative Impacts: If one institution or corporation breaks through the moral behaviour
for maintaining environmental fitness the alternative organisation can also decrease its
values.
LO4 Internal strengths and weaknesses of specific businesses and their
interrelationship with external macro factors
P5 Internal and external analysis of specific organisations in order to identify strengths and
weaknesses
The SWOT analysis for the TESCO group is demonstrated below:
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P6 Strengths and weaknesses interrelated with external macro factors
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CONCLUSION
From the above files it was clear that there are various businesses including private, public,
or voluntary with unnamed goals, lengths, areas of fate, but they enable market’s growth. It
identified internal or external element to make an operation. In addition, there are numerous
features of the business unit that can be linked to maintain friendly coordination that will
definitely affect the business system. In addition, for micro-macro environments, there is a
company analysis by PESTLE and SWOT that focuses deep insight and attention on core
functions that benefit from excessive market percentages and works well to achieve long-term
profits more and more sustainable development.
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