Tesco vs. Waitrose: A Comprehensive Analysis of Business Environments

This report provides a comparative analysis of Tesco and Waitrose, two prominent UK supermarket chains. The report begins by describing the differences between the organizations, their purposes, and the links between them, focusing on their business structures and market positions. It then delves into a case study of Waitrose, examining its organizational functions, objectives, and structures in the modern context. The analysis includes discussions on organizational functions, operational strategies, and the impact of organizational structure. Furthermore, the report investigates the macro-environment of Waitrose, including positive and negative impacts. It incorporates PESTLE and SWOT analyses to assess the external and internal factors affecting the businesses. The report concludes with reflections on the study and the factors influencing Waitrose's business objectives.

BUSINESS AND THE BUSINESS ENVIRONMENT

Table of contents
Introduction......................................................................................................................................3
a) Analysing and evaluating the aspects of the two organisations in the UK including the Tesco
and Waitrose (Refer to PPT)............................................................................................................3
Describing the difference between chosen organisations and their purposes (P1, P2)...................3
Describing as well as analysing the link between the chosen organisations (M1)..........................4
b) Choosing the case study of Waitrose and explaining in-depth the various aspects and prospects
of the company in the modern context............................................................................................5
Describing the organisational functions as well as explaining the way through which the
organisation can be able to achieve its objectives as well as structures (P3)..................................5
Critically analysing the impact slow operation of the of organisational structure and establishing
of its inks..........................................................................................................................................6
c) Analysing and summarising the above mentioned prospects by incorporation of a video
presentation......................................................................................................................................6
Differences between Tesco and Waitrose in regard to their business structures (Refer to PPT)....6
Identifying the interconnection between various organisational functions.....................................7
Part 2................................................................................................................................................9
a) Investigating the case study of Waitrose and analysing its different aspects in the rent context
of their business environments in the UK........................................................................................9
Section 1: Positive and Negative impacts of the macro environments of the business operations. 9
Section 2: External and Internal analysis of Tesco and Waitrose for determining the Weakness
and Strengths (P5)............................................................................................................................9
Section 3: Effect of Strength and weakness of Waitrose in macro external factors (P6)..............10
Section 4:.......................................................................................................................................11
PESTLE Analysis..........................................................................................................................11
SWOT Analysis.............................................................................................................................13
b) Reflection and findings of the study in the course of macro factors and business objectives of
Waitrose.........................................................................................................................................14
References......................................................................................................................................16

Introduction
Business and environment are the two words which describes the whole business environment of
a particular organisation. Human activities like production, sales as well as purchase of products
or services defines particular business aspects of surroundings of a particular business refer the
business environment. Business environment describes the different types of factors which might
effect on business activity of a particular organisation. External as well as internal environmental
factors of an organisation are the two types of business components which are present in
business environment. Money, management, machinery, man and material are the 5 M's which
the different components of internal business environment are. The effective and efficient
business environments allow the company to have their strict and regulated mode of operation of
the business that are managed by the different organisations in the UK and in the rest of the
world. Therefore, this study is based on the different aspects and the commitments that have
been showcased by the two companies of the UK including the Tesco and the Waitrose. They
have been compared and the interconnections have been formulated. In the second part of this
assignment, the environmental factors within and outside the Waitrose have been analysed and
their opportunities for a better business environment have been developed.
a) Analysing and evaluating the aspects of the two organisations in the UK including the
Tesco and Waitrose (Refer to PPT)
Describing the difference between chosen organisations and their purposes (P1, P2)
Public, voluntary as well as private sectors are the three types of business sectors are consist of
different types of organisations. As a result the purpose of these organisations is not same to each
other. Public sector organisations are owned by the governing body of UK. The main purpose of
public sector organization is to provide different types of products or services to the peoples by
which peoples are benefited. Private sector organisations refer those organisations which are
owned by private individuals. As supported by Landers and Behrend (2015, p.163), different
types of sole traders are involved in private organisation. Various stakeholders also involved in
these types of organisations. Voluntary organisations are those organisations which do not any
kind of shareholders or those organisations which are not owned by private individual are named
as voluntary sector of organisation. Particular groups of individuals are responsible for maintain
and achieves the ultimate target of voluntary organisations. This type of organisation basically
involves in various training procedure of animals like dogs etc. Waitrose is one of the leading

supermarket organisations which spread its business in all over the UK. This organisation mainly
employee owned organisation means it is a private sector organisation. Waitrose is the
organization which combines the different convenience of a particular supermarket. It provides
various types of food products, groceries as well as pets food etc. sometimes this organisation
plays as voluntary organisations in UK. TESCO is one of the well-known organisations private
sector organisation. It is a largest merchandise retailer organisation in all over UK. It is mainly
UK’s largest grocery retailer organisation. It is mainly online retail store which consists different
types of products. This organisation also has various branches in all over the world. TESCO have
more scope than Waitrose because it have more stores or branch in all over the world as well as
in all over the UK. Waitrose have business opportunity in voluntary sector because it has
different types of pet services facilities. Through the official website people can buy various
pet’s food products and also pets. But in TESCO there is not present any kind of pet service
facility.
Describing as well as analysing the link between the chosen organisations (M1)
Since both the companies are holding the relation of selling the retail as well as the groceries.
The only difference between the two companies is that Waitrose is a supermarket industry while
the Tesco is the retailer industry. In Spite of having the difference between the two companies,
both of the companies are holding a particular relationship. The entire relationship comparison is
done based on the various aspects that can be on taste, price and the type of product that both the
companies are offering. Based on the type of products that they sell, both of the companies sell
almost similar product. However, as argued by Fliervoet et al. (2016, p.366), there are certain
differences in the price of the products that both the companies are actually selling. From a
review of the price listing analysis it can be found that the prices of the products at Waitrose are
much higher than the price of the Tesco product. Providing information regarding the chosen
organisation and their scope of World the Waitrose and Tesco have, will develop market and
trustworthiness at its peak point in the organisational success the link between Tesco and
Waitrose is in the functioning and the operation of the organisation. It is evident from research
that both companies have proper way of Management and proper way of human resource
development it is assuming that the companies have proper staff and members in maintaining the
quality and the form of business performed by the workers. As suggested by Ciffroy et al. (2016,
p.783), be careful understanding of the size help in understanding the proper way of operation of

the company. It is seen that Waitrose being a grocery Supermarket is related highly with the
retail shop of Tesco.
b) Choosing the case study of Waitrose and explaining in-depth the various aspects and
prospects of the company in the modern context
Describing the organisational functions as well as explaining the way through which the
organisation can be able to achieve its objectives as well as structures (P3)
Managing people effectively in programs is a scheme that is to be required at a constant form in
Planning and developing the extension of programs in an organisation. The the objective of the
organisation needs to be well defined so that the functioning of the organisation is not halted by
the organisational stuff. The applicability of the organizational success depends upon the smooth
development of the small process of the organisation. The organizational success depends upon
the better understanding of the process of the organisation. It is supported by the smooth
operation of the business in terms of the letter fulfilling of the target. The opportunities in the
organisation is fulfilled by the organization of the worker. The greater understanding of the
factors and the better performing of the staff member in the maintaining of the success rate of the
organisation. As mentioned by Medema et al. (2017, p.6), the success of the organization
depends upon the smooth operation of the members of the organisation. The achievement of the
organisation and the creation of the smooth demand in the market is the prime objective of the
organizational workers. The objective of the organization needs to be developed and achieved
through following for of strategies in the organisation. The strategies of organization need to be
so devised that the organization work is not compromised. The organisation needs to be
evaluated regarding the clarification of the mission, policies and the objective of the agency and
the organization. The organization needs to be particular that the sharing of the authorities and
the clarification of the work is managed at a new level. As mentioned by Ravasz et al. (2002,
p.1554), the proper communication should be maintained in the organization with the help of
transparent and better understanding of the values and the objectives of the organisation Making
the staff accountable for the work is the best way on account possible. The reason behind making
the worker of the organization accountable for the work performed is to track the work of the
organisation in a proper manner. The securing of the fund and the managing of the budgets are
another form of strategy to maintain the smooth development of the organisation. The

management of the organisation and the betterment of the management course is based on the
better planning, organisation, staffing directing, coordinating, reporting and budgeting.
The planning is the primary function that is to be followed by every organisation in order to
make the initialisation of the work. As inferred by Ramesh and Ravi (2017, p.239), It is the
prime and the basic form of the organisation work in the operation of the business proper and
smooth in terms of the objectives and the goal.
The organisation means the establishing of the work and the smooth operation in a proper
manner to deliver the work of the organisation at a proper time. The responsibility of the
organisation to maintain smooth record of the work performed.
As suggested by Mills (2017, p.284), the staffing means the fulfilling of the vacancies and the
managing of the places in the organisation in terms of the skills the organisation requires. The
achievement of the organisation and the managing of the vacancies of the organization in terms
of the skills required are called staffing.
The directing is the next stage after staffing. This stage makes sure that the new members of the
organisation are not left alone with null information. The providing the information and this
direction given to the new workers is tremendous the directing
As indicated by Santos et al. (2017, p.242), after directing the next stage of the organisation is
maintain the smooth coordination of the organisation. The availability of the organisational
coordination helps in the better providing f the help in the organization.
The reporting of the organization helps in the better development of the reporting of changes in
the organisation. in the organisation to the higher authority in accordance to the need.
Critically analysing the impact slow operation of the of organisational structure and
establishing of its inks
c) Analysing and summarising the above mentioned prospects by incorporation of a video
presentation
Differences between Tesco and Waitrose in regard to their business structures (Refer to
PPT)
Sole proprietorship
The cases of the organisation are better understood with operational betterment of the
organisation. As mentioned by Shibia and Barako (2017, p.105), the proprietorship business in
the orientation is easy and offers special information regarding the smooth operation of the

organization. The owners and the personal developer determine the smooth operation of the
organization. The financial obligation of the organisation is all supported by the sole proprietor.
Although both these companies operate as sole proprietorship, yet, a number of additional
sponsorships and partnerships have been duly noted in the mode of operations for the company.
Partnership
The involvement of the two or the more people with sole purpose of sharing the profit and the
loss in the terms of the capital contribution or as per the changes in the agreement. The tax
burden and the other liability are borne by the partner of the organization in terms of the support
of the organisation. As mentioned by Baldwin (2017, p.34), The partnership is the form of the
organisations where a number of the other additional members or the other organisations may
enter into a state of mutual business relationship in which the different partners operate
according to their stipulated objectives and aims. Consequently in return for their objectives
being met, they are provided with a certain share or percentage of the benefits and the income
that are generally devised at the time of the formation of the partnership deeds. The achievement
of partnership is based on the better coordination of the workers and the owners of the
organisation and the mutual understanding guiding their motive and the smooth operation of the
business.
As suggested by Kernbach et al. (2015, p.186), in regard to the business structures of the
organisations including the Waitrose and the Teco, it has been seen that although the objectives
of the company has been similar, yet differences continue to exist in their strategies and
procedures for the fulfillment of their goals and aims. In the context of Tesco, it has been seen
that their business strategies are oriented in such a way as to increase the number of customers or
increase the retention of the customers. On the other hand, Waitrose is dependent on the self-
proclaimed advertising strategies that offer their products and services without the extra
additional discounts. As mentioned by Kohut and Segars (1992, p.20), It believes in the fact that
the increase in the quality of the products and services may eventually increase the brand loyalty
among the customers and at the same time, provide them with a competitive edge in terms of the
quality of the products and the services that are made available by the Waitrose.
Identifying the interconnection between various organisational functions
The structure of the organization and the functions of the organization are interconnected in the
organization. The use of the functional structure and the organizational structure are inter

connected and correlated in the organization structure. As suggested by Carim and Warwick
(2013, p.522), The availability of the factors and the business function is depended upon the
smooth operation of the organization as it is provided by the work of the organisational structure
and their management authority of the organisation. The smooth operation of the business and
the greater understanding of the changes in the suctioned in the organisation and the support of
the organisational managers. As mentioned by Barabasi and Oltvai (2004, p.112), the availability
of the factors a the development of their workers are based on the equal opportunities presented
in the functional and the organisational structure presented by the managers of the organisation.
Different organisations have different functions that are evenly based on the methodologies and
the working principles of the organisations. These include the business organizations including
the profit organisations, the charitable organisations, the voluntary organisations and the non-
profit organizations. As opined by Dutton et al. (1994. p.262), these functions of the
organisations are performed by the organisational members including the members of the
hierarchy like the employees of the organisation, the supervisors of the organisation, the human
resource managerial authorities of the organisations. The better understanding of the
organizational structure and the financial structure and in the contradictory organization is based
on the better manager of the smooth operation of the organization. It is provided that the
organization and the partnership ma work hand in hand for the smooth operation of the
organization and the better communication among the workers and the commuter in the society.
This leads to the concept of the similarities in the working methods of the different
organizations, commonly referred to as the interconnection between the different organisations.
In this context, it may be analysed that the different organisations have the common objective of
team working. This allows the organizations to improve the efficiency of their work and involve
the lesser consumption of time, in accomplishing the desired projects in the context of the real
world. Therefore, it may be analysed that the different companies have the different modes of
motivation of the employees. One way is through the implementation of the efficient team
working. The other methods of motivation of the organisational staffs include the rewards and
the incentives scheme (Rowlands and Rees, 2015, p.174). The incentive schemes and the
rewarding options are manifested by the different organizations that desire the establishment of
the additional and specialised skills within their employees. This method further increases the
potential performances of the employees in the organisation.

Part 2
a) Investigating the case study of Waitrose and analysing its different aspects in the rent
context of their business environments in the UK
Section 1: Positive and Negative impacts of the macro environments of the business
operations
The legal administrations have been developed at the national levels that have been aimed at
improving the overall infrastructure of the company. In this context, the case study of Waitrose
has been selected. The legal and the political factors have assumed a greater importance in this
aspect. The major impact on the company has been faced as a result of the company's exit from
the European Union after the Brexit Vote. This led to a severe consequence in the UK as well as
Waitrose. The exit from the European Union led to a number of negative impacts including the
lack of the financial stability for the company (Ohemeng, 21015, p.680). Additionally, it led to
the fall in the level of economic stability for the UK as well as Waitrose. This has negatively
affected the overall management of the company, in terms of the Human Resource Management
and the organisational structure of the company. Moreover, the influx of a large number of
people has led to the increased cultural diversity, thereby making it difficult for the company to
manage their activities.
Section 2: External and Internal analysis of Tesco and Waitrose for determining the
Weakness and Strengths (P5)
The internal and external analysis is always helps to find out the strengths and weaknesses of an
organisation. It can help to accumulate the entire process of the organisation. As mentioned by
Popovic et al. (2012, p.732), there are different analytical aspects that the business can find out
to ensure the process within the market. In context of Tesco and Waitrose, these companies are
mainly operated with the profit making aspects within the market. In the context of Tesco, the
external analysis is done with effect of different plans and procedure to satisfy the external
stakeholders of market. There are different types and forms of strengths that can be available
within the Tesco in order to create the market image and brand name within the business. In the
context of retailing business, Tesco have very strong retailing unit in the market. The strengths of
Tesco can bedetermined as to have large range of products within the market. In worldwide
aspect it can takes the overall about 6784 stores (www.tescoplc.com, 2016). The company have
the wide range of market within the world economy context. The company also have the great

opportunities related with the innovative business ideas within the process. Tesco havre the
innovative and modern techniques involves within the structure of markets. There are different
business units in context of steel production aspects within the world. Tesco includes online
shopping within the different countries in worldwide aspects. The involvement of different
shopping innovative concern, there are wide range of accumulative structure of Tesco within the
market fragmentation.
However, in the context of Waitrose there are different strengths and weaknesses can be stated
with the aspect of business analysis. There are wide range of products and goods within Waitrose
for the marketing aspects of the Huskiness. This can helps to create customers attraction within
the market. As Commented by Varaprath et al. (2006, p.98), the internal and external analysis of
a business organisation are also consider the range of weaknesses within the business process in
the market. The weaknesses of Waitrose are also being stated with the effective external affairs
of business mechanisms. Waitrose have the products, which can only consider the high quality
maintenance within the business (www.waitrose.com, 2016). This high quality of products are
tends to have high prices within the market. This can affect the level of customers to avail the
products of Waitrose. There are various level of customers that cannot able to avail the products
within the price tag of Waitrose in ten different markets. Therefore, it can be said that the
business consist of different internal and external impacts with the process of business strengths
and weaknesses in a particular market.
Section 3: Effect of Strength and weakness of Waitrose in macro external factors (P6)
The formation of the business can meet the needs of different sources of organisational strength
aspects within the market. The internal strategies are linked with the formation procedure of the
business engagement within the market standing of a business. In order to have the business
external and internal analysis, the strengths and weakness are needed to be determined for an
business organisation. In the context of Waitrose, the strengths are mainly determined as the high
quality of products. The high quality of products can able to satisfy the customers in the market.
There are different forces that can helps to analyse the structure of different business formation
within the organisation. The management structure within a business can be said to have the
structure of different analysis the pattern within the business. This means that the external
analysis can be possible with the respect of customer satisfaction within the business process of
Waitrose (www.waitrose.com, 2016). In the context of linked making aspects there is different

effect of business process related with strengths and weaknesses can reflect the external macro
concern within the market in worldwide. There are different external macro factors that are
involved within the process of different identification of strengths and weaknesses in Waitrose
for market process. Levels of customer attraction can be fall the economic analysis with effect of
market price hike for the products of Waitrose. The overall costs in the pricing structure of
Waitrose can linked with the market expansion aspects, which can lead to ha ve the macro
context, the linked between external affairs of the business related with European Union and
worldwide market. This means the three are different effects of Brexit in the business process
with related to the strengths and weaknesses of Waitrose. The adoption of market penetration,
there are different aspects with worldwide economy that are linked with macro sense for business
process of Waitrose. Therefore, it can be said that the businessaccumulation aspects are related
with the price structure for Waitrose which can affect the overall market in world economy as
macro concern.
Section 4:
PESTLE Analysis
Political The major political factor that has been associated with the Waitrose
has been the inefficiency in the citrus food production by their
employee and the farmers in South Africa. As South Africa has been
involved in the preparation of certain products for the company. This
factor has led to the drawbacks in the financial and economic status of
the company. The differences in the efficient production levels have
been observed in this case. The Brexit vote is another important
context, that have gradually led to the decline in the desired levels of
the economic stability of the Waitrose. However, it has been observed
that the economic condition for the company soon recovered on
account of the increased loyalty of the customers for the company
(Bhardwaj and Maharshi 2014, p.96).
Economic Waitrose has been associated with strong economic stability on account
of the dominance in the market of the country and the increased loyalty
for the brand by the individuals for the customers within the UK.

Moreover the flexible plans objectives and the relevant strategies that
have been adopted by the company has provided them with the
comparative advantage over the economy of the company when
compared to the other companies in the UK. It is due to this economic
stability of the company that the separation of the country from the
European Union after the brexit vote has been able to improve its
market stability in the context of the UK (Hussain et al. 2015, p.40).
Socio-Cultural Generally, in the UK, the preferences for the foods with the higher
quality are highly demanded by the people of the country. On the other
hand, it has been seen that their production of foods with superior
quality has been one of the key features of Waitrose. Waitrose has been
connected to the royal society and the Queen Elizabeth’s family, as the
company provides the superior quality of foods and beverages to the
queen's family. Moreover, it has been seen that the influx of the people
from the different countries have made the UK a potential hub for a
variety of people of various cultural backgrounds. Therefore, it has
been seen that the company produces foods and spices of superior
quality (Madu, 2013, p.1).
Technological In the modern context of the business environment for the Waitrose, it
has been seen that the various advancements in the technologies all
around the world have been implemented by the company. In the
context of the UK, this has been aided by the installation and the
incorporation of their offline portals and their online stores by the
exquisite implementation of the technologies. The high graphic digital
boards and the electronic billing systems have been increasingly
adopted by the company. This attracts a large proportion of the people
of the country. Moreover, the advancements in the technology has been
adopted by the company, by the incorporation of their private websites
and their online displays of the markets and the products that are made

available by the company in the UK (Toytari and Rajala 2015, p.110).
Legal It is important for the companies to implement the legal factors in their
working principles through the incorporation of the legal and the
regulatory frameworks that are aimed at proving the company with a
strict maintenance of the standards of their service according to the
required legislations. Since the issue of the Brexit vote, the country is
highly susceptible to the different modes of political and legal
complications. However, the efficient work cultures and the flexible
modes of the legal environment in the country allow the company to
have a significant increase in their stability of the modern retail
markets in the UK.
Environmental The environmental concern is important in this case, as the different
modes of operation is important for the company and at the same time,
the environment are needed to be protected by the company. The
company has proven to undergo its active participation in a number of
campaigns including the campaign for the preservation of the greenery
and to achieve a sustainable way in their business management and
operations. Therefore, in this context, these activities allowed the
people of the country to improve their devotion and have an increase in
their loyalty towards the brand (Xu et al. 2015, p.138).
Figure: PESTLE Analysis
SWOT Analysis
Strengths Weaknesses
● Products of superior quality
● Flexible Management
● Complete white packaging system
● Lack of a sound promotional system
Opportunities Threats
● Food and beverage services to the ● Products have higher prices

queen's house in the UK
● Strong financial stability
● Lack of discounts
Figure: SWOT Analysis
By analysing the strength of the company it has been seen that the products that are offered by
Waitrose are of superior quality as compared to the products that are offered by the other
companies in the UK. Additional strengths of the company include the fact that the management
of the company are made effectively by the employees of the Waitrose. In this context the
weakness include the completely white Packaging of the products that may not be accepted by
the people of the UK as the other companies provide colourful and high graphic images on the
covers of the products (Thompson 2013, p.260). Waitrose may receive setback because of the
lack of graphics in their packaging. However, this has been coordinated by the higher prices of
the products as the other companies of the UK including the Tesco and Sainsbury’s provides the
foods and the services to the people of the country at relatively lower costs as compared to the
Waitrose (www.waitrose.com, 2016). Moreover, the company do not have a stable promotional
system. Therefore, this allows the serious threats for the company by the companies that have
relatively higher advertisement frequencies.
Furthermore, the company has been noted to have efficient services in the recent years and in the
past as it holds the heritage for the supply of the food materials, groceries and beverages to the
Queen's place. This allows the general people to have the taste of Waitrose, over other
companies in the UK. The company has been additionally associated with the inefficient
discounting patterns and this has been accounted by the loyalty of the customers that are
generally attracted to the company and not the lower prices of the products (Stone 2016, p.10).
b) Reflection and findings of the study in the course of macro factors and business
objectives of Waitrose
The discussions with respects to the Waitrose business formulations are mainly avail the
knowledge of the core competence of the business. Factors of macro aspects are always affect
the business objectives fulfilling mechanisms of business organisation.From the above
discussions it can be said that the company proceedings are related to the acquiring concepts of
business organisation. The different strengths and weakness can avail the macro related factors
within the business organisation of Waitrose within UK markets. The effects of different
business objectives with the aspects of expansion and accumulation of business wealth

maximisation are mainly related to the structure business effectively with the aspects of the
business detail formation within the market. In the context of other competitors in the market,
Waitrose have the large range of products as the requirement of the customers. This can help the
company to affect the macro factors with the segment of economic growths of business. The
business outcomes regarding the weakness maintenance and removals are mainly concerned with
the different macro factors related to the business structures in the overall concept concerning
parts are expenses within the business of Waitrose.
The effective economic affairs of the company are regulated with the findings and analysis are
based on the market research for the business organisations the relationship marking with
different commissions and regulations are based on the business process maintenance within the
business. There are different relative aspects with the business objective meetings within the
business are made up with the strength enhancement. The business objectives that are made
within the removal weaknesses within the market expansion techniques in Waitrose effective
engagements within the structure. The different management tools are affect the macro aspects of
the business concerns in accordance with the segmentation and product maintenance in the
market, Waitrose scan avail the opportunities with technological enhancement effects within the
course of business process within the market. Overall, meeting of business objectives are mainly
related with the market gathering aspects in the business. In Waitrose, also the objectives related
with the marker gathering thoughts are elaborated within the objectives of the business growth in
the business. Therefore, it can be said the business objectives are accordingly related with
different macro factors of a business in context of strength and weakness analysis within the
business.

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