Analysis of Business Structures, Tesco's Structure, and PESTLE Factors

This report provides a comprehensive analysis of Tesco, a multinational British organization, examining various business types and organizational structures. It begins by defining different scales of businesses, including micro, small, medium, and large enterprises, and categorizes businesses based on their functions, such as sole traders, partnerships, limited liability companies, public limited companies, and cooperatives. The report then delves into Tesco's organizational structure, highlighting its hierarchical nature and the use of committees. Furthermore, it applies a PESTLE analysis to assess the external factors impacting Tesco's performance, including political (Brexit), economic, social, legal, technological, and environmental factors. The conclusion emphasizes the importance of adapting organizational structures and understanding external factors for business success.

Business in Practice

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
SECTION 1................................................................................................................................3
SECTION 2................................................................................................................................4
SECTION 3................................................................................................................................5
Organisational structures and explain how organisational structure affects business
productivity............................................................................................................................5
PESTLE analysis explains how different external factors affect the performance of a
business..................................................................................................................................5
CONCLUSION..........................................................................................................................6

INTRODUCTION
Business environment is changing continuously where there are a number of
organisations which are performing in the business different activity nature and
characteristics (Mougayar, 2016). It includes number of features which has to be identified
according to the requirement and unnecessary to achieve objective. Under the present report
there is discussion about Tesco, is operating as a British multinational organisation.
Organisation is selling number of products and services. The present report consist discussion
about various types of businesses and Organisation. Along with this there is also discussion
about the structure which can be adopted by organisation and identification of external factor
which will impact on organisational performance.
MAIN BODY
SECTION 1
There are number of organisations which are working within the business
environment according to the scale. Some of these are discussed:
Micro business: Micro business can be defined as business enterprises which are
working within the business environment at micro level. This kind of organisational
operating with less than 10 employees as well as their fixed capital is also very low. The
organisation perform local works where are the main example of the front of organisations
are retail shop, local bookseller and many others (Buppert, 2020).
Small business: Small scale business organisation can be defined as in business
which works at small level. This business organisation work with employs between 10 to 25.
Under this kind of organisation the main characteristic of organisation is that they perform
their function with an economy in support of medium and large organisation. One more
major benefit of this kind of organisation is that they are performing their functions according
to the locally available resources and help in achieving better results. Example of these
businesses is local business organisations.
Medium size business: Medium size business organisation can be defined as that
organisation which is performing their business within economy where they are trading with
more than 25 and less than 100 employees (Pearson, 2017). This kind of organisation is

performing their function in order to achieve better profitability and support the linkage
between small scale organisation and large-scale Organisation. There are a number of
medium size organisations which are performing the function in UK. Some of the common
example of medium size organisations includes local manufacturers, service providers and
many others.
Large size business: Large sized business organisation defines an organisation which
is performing their business at larger level which consists of using resources from
international level and working in a larger slot. This kind of organisation and working with
capital investment of more than 25 lakh dollars as well as the main characteristics of this
organisation is that they employ more than 100 employees at a time. In context of present
scenario, number of large size organisation which include Tesco, UBER, apple and many
other (Zellweger, 2017).
SECTION 2
Business organisations can also be divided according to their functions which they
perform within the environment where they are trading. There are a number of business
organisations which are divided according to their functioning and help in achieving business
objective because of their functions. In the current business scenario it includes different
organisations. Some of these organisations are discussed below:
Sole trader business: Sole trader business can be defined as in that kind of business
organisation which is performing its function in an appropriate manner and include a single
seller. This kind of organisational is operating with a single individual who has all the
authority and profitability. The major characteristic of this organisation is that there is a
single owner of the firm and all the profit and risk (Palo, Åkesson and Löfberg, 2019).
Partnership: A partnership business can be defined as a business which involves a
number of activities which are directly related to mutual understanding between two
individuals in order to achieve the objectives and performing together for sharing of profits
and losses in an equal way or agreed ratio. Partnership has number of characteristics we are
one of the characteristics of partnership is related to sharing of profit in pre-determined ratio
as well as working together to achieve the common objectives.

Limited liability business: Limited liability business organisation can be defined as
that organisation which works as a company e where the participating member within the
company has limited liability in comparison to the organisation. It can also define as an exam
organisation which is working on different platforms in order to achieve the objectives and
perform their function according to the needs and requirements. There are various functions
performed by link part limited liability organisation and the main characteristic of this
organisation is that it provides support to its participating members by reducing their liability
(Schallmo, Williams and Boardman, 2017).
Public limited company: Public limited company can be defined as an organisation
which is performing its function at global level and it is essential for this type of company to
perform and achieve its objective. Public limited company is a government owned
organisation where the main characteristic of this organisation is that they are non-profit
organisation which work toward the direction of organisational goals and objective and
achieve better results.
Cooperative: Cooperative can be defined as an autonomous association of person
which is united in order to meet their common economic social and cultural needs as well as
perform some function to achieve better objectives. Major objective this kind of organisation
is that they owned and managed by the people who use their services as well as help in
improving the working conditions (Caldera, Desha and Dawes, 2017).
SECTION 3
Organisational structures and explain how organisational structure affects business
productivity.
Organisation structure can be defined as a system which is adopted by Organisation in
order to manage the function as well as define the roles and responsibilities of different
individual. In context of current business environment, there are number of functions which
are performed by the organisation to meet the objectives and achieve better results. Analyse
the organisation structure consists of appropriate strategies which can be used to achieve the
business objectives. In context of the current report the chosen organisation is Tesco where
the current structure of Tesco which is followed by organisation is discussed below
(Baumann-Pauly and Nolan, 2016).

It is analysed at Tesco is using appropriate strategies which are helpful to the
organisation in achieving the objectives and performing its function in an appropriate
manner. In context of Tesco it is using inheritance structure which comprise of five
communities. These committees are consists of five systems which include 11 members in
the Tesco executive committee which is led by chief executive officer of organisation. Tesco
organisation structure is hieratical which reflect large size of business. In context of this,
organisation use audit committee corporate responsibility committee nomination committee
remuneration committee and disclosure committee. In order to manage the lower level system
organisation also use appropriate hieratical structure which is discussed at the figure
mentioned below:
PESTLE analysis explains how different external factors affect the performance of a
business.
Pestle analysis can be defined as a Framework which is used by Organisation in order
to identify the external environment of organisation and perform the function in an
appropriate manner. Pestle analysis consists of different factors which are political,
economic, social, technological legal and environmental. These are the important factor
which has to be considered by Organisation in order to meet the requirements and perform
the function in an appropriate way. These are discussed below in context of Tesco (Butler,
Delaney and Spoelstra, 2018).
Political: Political factors can be defined as in those factors which are related to the
political condition of the area where organisation is working. In context of political factors,
number of factors like terrorism, stability in government and many other. Contacts of Tesco it
is operating within the environment of UK where there is political uncertainty is because of
BREXIT referendum. Under the BREXIT, government of UK is planning to bring UK out of
United Kingdom agreements. This impacts it positively and negatively on the functions of
Tesco. The negative impact of political factor on performance of Tesco is that it will bring
organisation function in an appropriate Framework which has to be followed by organisation
will bring complexity in working. The positive impact of this factor on Tesco is that It helped
Tesco in getting number of opportunities because of changing policies by the government due
to BREXIT (Brennan, Canning and McDowell, 2020).
Economic factor: Economic factor are those factors which are related to the
economic condition of the area where the organisation is going to launch its business are

currently working. There are a number of factors which impact Organisation in economic
environment which has to be analysed in order to achieve the business objectives. In the
current business scenario, Tesco is operating environment of UK where there is economic
stability as well as better GDP growth which is helpful to the organisation in surviving and
selling the production services in appropriate manner. Here, organisation can also achieve its
objectives and perform the functions in an appropriate manner so that it can achieve better
results.
Social factor: Social factors can be defined as and factor which are related to
performance of organisation and achieving the objectives in an appropriate manner. There are
number of social factors which are related to organisational performance and have to perform
in order to achieve the objectives. In context of current business environment, it is analysed
that task is operating in appropriate manner where continuous changes in the trends of society
are the major social factors which impacting on organisational performance and has to be
utilised in an appropriate manner (Amankwah-Amoah, Khan and Wood, 2020).
Legal factors: Legal factors are those factors which consist discussion about different
rules and regulations which have to be followed by the organisation in order to meet the
objectives and perform their function in an appropriate way. In context of current business
environment, there are a number of functions which has to be performed by Tesco where it
has to follow different rules and regulations like employment act, equality act and many
others. All these are helpful to the organisation and achieve his business objectives and
performing the function in an appropriate manner.
Technological factors: Technology is a major factor within the external environment
which impact organisation directly. There are number of technological changes within the
environment where Tesco is working which are impacting the performance of organisation. It
is analysed that there are various functions which involve high technology and has to be used
by organisation to achieve its objectives (Meyer, 2017).
Environmental factors: Environmental factor of those which are related to
environment where the organisation is working. It is analysed that in the current business
scenario and environmental factors are directly impacted by the organisation. There are
number of environmental factors like changes in climate developing climate situations as well
as pollution which are impacting on performance of organisation. In context of Tesco,
organisation is using appropriate functions which are helpful to the organisation in meeting

the objectives of natural environment and performing the function in an appropriate manner.
This will motivate the organisation and help in promoting the function according to the needs
and requirements (Galea, 2017).
CONCLUSION
It can be concluded for the above-mentioned information that there are various factors
as well as different kind of organisation which are performing their function in an
appropriate. Organisation can choose its functioning according to the needs and requirement
and can perform within the environment where it is working. This is essential for
organisation to improve its function and achieve better results in a meantime. It is also
identified the cluster analysis important for firm to achieve its objectives and perform the
function according to the needs and requirement. This is helpful to the form in achieving its
function and performing this function appropriate way so that better function can be
established.

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