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Business and Business Environment Brief

University: Kensington College of Business

  • Unit No: 11
  • Level: High school
  • Pages: 15 / Words 3764
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 361
Question :

This sample will let you know about:

  • What is business enviorment?
  • Explain the Type of private sector organization.
  • Discuss scope and size of various type of organization.
Answer :
Organization Selected : Tesco


Business and the business environment plays an essential role in growth and development of any organization.

TESCO is biggest super market chain in the whole UK. It had huge market share across the supermarket sector. The above report includes the stating several type, size and the scope of organization. Demonstrating interrelationship of several function across the company or how they are link to structure of organization. Report further carried froward with the demonstration of negative and positive impacts macro environment on business operations. The report ends with determination ODF strength and weakness of particular business and stating relationship with macro-environment factor.

There are different type of companies that are private, public and voluntary who had the own vision, objectives and missions. These are described below-

Private Sector Organization

Private company is partnership, corporation, individual or agencies which is not run by any national body. This includes all business which are for the profit which are not operated and owned by government. For example- TESCO, Sainsbury etc., Get Assignment Examples.Talk to our Experts!


The purpose of TESCO is for creating value to the consumer for earning their loyalty lifetime. They provide huge range of goods and services from household products, grocery and clothing etc.,


The main objective of this company is to produce new product and service and improve the existing one. By which they can fully satisfy their consumer and gain creates a brand loyalty among consumers (Petrescu and Petrescu-Mag, 2016).

Type of private sector organization


Partnership is done when two of the individual agreed to sharer profit equally in the business through partnership deed. Along with profit all the partner are responsible for risk as well as profit in the business.

Joint Stock Company:

It is kind of private sector organization which is owned jointly by shareholder. Certain amount of stock has been purchased by these shareholders that better-known as share. This company have separate legal entities.

Legal structure

TESCO's legal structure is that they deal with quality of the product and service. For performing function or activity of company effectively, department that is finance, HR and some other which can contribute for gaining goal and objective of company.

Public Sector Organization-

Public sector organization are those which are operated and owned by government body and exist for providing services to the citizens. These are the part of economy which is composed of public enterprise and services. For example- BBC


The major function of BBC to offers broadcasting service to the customer around world. They also try to satisfy their consumer and making great experiences for them.


The objective of company is to building sustainable, consistent along with profitable business. They make surety for meeting need and demand of the shareholder.

Type of Private Sector Organization

Government Company:

This type of organizations are wholly or partially owned by state or central government. The main advantage of this government organization is that it can be easily constituted than the public sector company.

Departmental Undertakings:

This is oldest kind of the public company that has no single entity other than governments (Evans and et.al., 2017). Role of the departmental undertakings had whole controlling on departments of the governments.

Legal structure

BBC's legal structure state that it render products and services world wide. The pricing of their products are reasonable which can also be afforded by medium income group.

Voluntary Sector Organization-

These organizations are known as non-profit organization which major purpose is for helping and serving individual by rendering them products or service rather than gaining profits. This organizations could be NGOs, charity etc. For example- NHS England.


The main purpose of NHS is to serve free healthcare service to the needy people. They also try to give best services to their patient.


By better authorization, enhancing national and local outcome of the health, reducing inequalities in health. To helping in creating safest and the high qualities of health care services to patient.

Type of Voluntary Sector Organization


These are non-profit organization where individual sold their property for third party benefit. Trusty could be hired for various reason such as charity (Virglerová and et.al., 2017).


It is voluntary organization which deal for the welfare of citizen along with keeping in concern with taste and preference. Resources which falls under charitable activity has been controlled by these organizations.

Legal Structures

Legal structure of NHS is it is non-profit organization which is situated in England and along with that it has multi stakeholder independent organization.

Explaining scope and size of various type of organization-

Private Sector Organization-


“To be the most highly valued business by: the consumer we serve, the community in which we operate, our committed or loyal colleague or the shareholder.”


“We make what matters better, together.”


It provides product and services across the world, and employ over 450,000 employees in their stores and shops (Abdullahi and Zainol, 2016).


It is operating its business globally and also wants to expand further to various nations.


TESCO belong to the tertiary sectors.

Public Sector Organization-


To casting powerful complementary brand so that they can easily reach to consumer for maintaining their potential growth and development.


To become unit leader in the luxurious marketplace at global stage along with keeping quality of good or service.


It had approximately 900 workers working with company and further contributing their effort for gaining its aim and objectives.


It operates business at huge level and has their own plant of manufacturing in Italy or Florence.


Respective company belong to the secondary sectors.

Voluntary Sector Organization-


To providing a social and health cares to localized individual of the England and providing them great health service or well-being.


To connecting organization and people for developing environment which enable innovations or changes for person well-being or health.


It has more than 870000 staff in the organization that includes health care professional and nurses.


It is situated in England and at various locations in United Kingdom and further expanding to the other locations as well (Dey, 2019).


This organization belong to the tertiary sector.

There are different department in the organization which are responsible for the company's overall growth and development. These departments can be Finance, Human Resource, Marketing etc., Every department has their own key functions or importance, play a major function in the organization. Each of the department are interlinked with each other so that company's all activities can be effectively performed. Thus, the goal and objective of company can be efficiently fulfilled. If any one of the department is not performing better than functioning of other department will also be affected by this. In respect of the TESCO, interrelationship with various departments has been explained.Want to get Assignment help? Talk Our Expert Now!

Marketing and Finance-

These two departments are interconnected with to each one among. For promoting and advertising goods and service to the consumers, marketing department will require help from the finance. By this they can easily perform their activities in appropriate manner. For example- TESCO is introducing organic product range for their customer as per the demand of their potential customer and for this they are launching a campaign so that sell of the product could be enhanced easily (Clarke, Li and Xu, 2016). For performing these activities they will need to advertise their product n social media and many other channels. To perform this they will need fund which is been acquired by finance department of organization.

Finance and Human Resource-

These both department are interlinked with each among. For performing recruitments or selection procedure, this is essential for having supports from the financial departments. This will be helpful for in performing their operation effectively. In context of the TESCO, for employee behaviour HR department is responsible. For retaining employee for long time company will need to give appraisal that are bonus, incentive etc., So finance department will be helpful to them for providing appraisal to the employees and effectively recruiting and selecting employees to the company.

Marketing and Human Resource-

The Marketing and Human Resource department are interlinked. As for hiring or recruiting candidate, marketing department will need to analyze area for which candidate are being selected. For recruitment process, the marketing department will require assistances of the HR department will be hiring candidates as per requirements. Example, TESCO needs to hire capable and talented employees who had communication skill and having experience ion respect field. In order to meet needs of organization, department of marketing is accountable for guiding HR by which they could recruit who fit to the position as need by company.

Therefore, it can be determined that, it is essential for a company to had effective communications or the strong relations among various departments through which goal an objective of organization could be fulfilled in highly effective manner (Mawejje and Okumu, 2016). This will also be helpful for them in gaining competitive advantages in market and enhance the image of brand.

Identifying negative and positive impact macro environment on the operation of business-

The negative or positive impacts of macro environment in TESCO could be identified on the basis of the PESTLE Analysis. It is stated below-

PESTLE Analysis-

It is the tool or framework which can be utilized for analyzing and monitoring macro-environment factors which had profound impact on company's performance. It can be stated below-

Political Factor- This factor could be defined as fluctuation in the government policy, labour law and any other segment of politics. This factor had direct and indirect impact on the operation and function of organization. This has both negative and positive impact on the TESCO which are as follows-

  • Positive: Tesco had been greatly benefited from promotion on the free trading blocs by government. Further immersion of the 10 more countries into European. Thus, the political changes in United Kingdom had positively affected the company.
  • Negative: Whereas if the political change are avoided by company then this could have impact the sale of their stores, and so they won't be able to provide goods and service as per the consumer need and demands (Bendre and Acharya, 2020).

Economic Factor- This factor refer to fluctuation in the exchange, interests and taxation rates etc., that can effect the operations of organization. It can have negative and positive impact on the company that is described below-

  • Positive: TESCO has contributed in growth of the economy by enhancing GDP along with living standard of consumer. So this had a positive impact on the growth and revenue of company if country had good economy.
  • Negative: Due to the situation of Brexit in country there is recession in market and thus it could have a negative impact on the sale and profit of TESCO.

Social Factor- There are several social factors that can be age, population, distribution, culture, taste etc., This factor is most essential for the growth and development of organization. These can have positive and negative effect on the TESCO which is described below-

  • Positive: As per the consumer demand TESCO had introduced the organic food for their consumer so that their needs could be fulfilled and sale and revenue could also be enhanced. This had an positive impact on growth of company.
  • Negative: But if these factors would be avoided by TESCO further than they can lose their potential consumer and thus sale & profit of company will significantly affected.

Technological Factor- Adopting technologies is helpful for a company to enhance their quality of product along with modify strategies through which goal and objective of organization can be meet out (Okeyo, Gathungu and Peter, 2016). There are several technological factors some of them are R&D activity, innovation etc., The positive and negative impact can be described below-

  • Positive: Using effective technologies into the TESCO is helpful for them in increasing quality of goods and service so that more and more consumer can be attracted.
  • Negative: Whereas if TESCO uses outdated technology in their business then the quality of their product will be adversely affected and can create barriers in the growth or sustainability.

Environmental Factor- There is several environmental factor that are climate, natural resources etc., This could have negative or positive impact on the TESCO which is stated below-

  • Positive: By adopting various sustainable business practices into their operation help TESCO to gain huge consumer loyalty base and thus by this they had gain huge revenue and sales.
  • Negative: Use of the earthy resources and the material which are eco-friendly can tend the TESCO to bear high production cost.

Legal Factor: It is most important factor which should be considered by each and every business for operating their business in legal manner. Legal factor could be law, regulations related to the business etc., this could have both positive and negative impact on TESCO which had described below-

  • Positive: TESCO follows all the law and regulations which are formulated by government by this they can render quality products and service sot their consumer and can conduct their business activity in legal manner effectively (Kanyugi and Gudda, 2019).
  • Negative: If laws ad regulation are neglected by TESCO then they could have to pay some amount of fine and suit which could effect the reputation of brand and the goodwill of company.

Conducting external and internal analysis of particular organization for identifying its strength and weakness-

SWOT Analysis-

It is strategical planning method which is utilized by organization for identifying strength, weaknesses, opportunity and threat which are affiliated to the planning of business. These can be described below-


  • It is the biggest grocery retailer and the No.1 supermarket in whole UK.
  • TESCO has high revenue and sales as compare to other supermarkets.
  • Company has leading market share that is 27% in retail sector. Take Management Assignment Help from professional experts!


  • TESCO's had faced a failure in the market of US and Japan and had exited from these country in 2012.
  • In 2017, they are charge with fine for false accounting deceleration which had and impact on company reputation.
  • As company had low cost strategy due to which they had less profit margin.


  • They had an opportunity to expand further into global Asia market.
  • Strategic partnership could also be developed by TESCO with the repute company through which they could continue in the marketplace for long time (KoiÅ¡ová and et.al., 2017 ).
  • They could grow and upgrade their online shopping business and home delivery as well.


  • TESCO had a major threat from the big supermarkets present in the marketplace.
  • Due to the impact of Brexit the trade deal and cost have created a threat to company.
  • They also have threat from credit crunche and economic crisis present in the market.

Stating strength and weakness interrelation with the external macro factor-





TESCO had adopted political changes in such a way that there sales has been enhanced as they had got support from government. Thus brand image of company can be gained by political factor.

If it is not adopted by TESCO then the sales of the company will be adversely affected. Along with that some time they had to pay penalty to government and can also have cancellation of their licence. By which brand reputation of TESCO will decline.


If the economy of the country is well then they TESCO will also have huge number of sale and could easily operate its business activity. They are always working for enhancing GDP of county and standard of living.

If TESCO could not adopt the economic changes they can face problem in conducting transaction globally. This can affect organization's productivity.


TESCO renders organic food products to their customer which is demanded by their consumer thus this is helpful for company to sustain their existing consumer as well as attract new one.

Whereas if company is not following the trends in market and consumer preference then their consumer can shift to another brand which will decrease sale and profit of company.


TESCO must update themselves with the advance technologies which s helpful for them to render quality product and service to their consumer (Marijs and Hulleman, 2019). Thus, there sale will be enhanced.

If new technologies and innovations are not updated by company then they could not fulfil render quality product to their consumer and further they will be dissatisfied by company.


Implementing sustainable environment practices is helpful for company to gain huge loyal consumer base.

If the company dose not implement this the consumer attraction towards company will decline and thus sake of company will also decrease.


Law and regulations are widely followed by TESCO by which they can conduct their business operation in legal manner.

If they don't follow any law and regulation then they could face any legal obligation and restrictions by government further which could affect rand reputation and goodwill of company.


From the above study it business environment has an essential part in growth and development of the any enterprise. Company can only sustain in market if they had effective strategies and plan while keeping in mind all the factors which could affect their business. Organization could gain huge consumer attraction if they had implemented the policies as per the consumer demand. Thus, company can gain huge revenue and profit if they analyzed the business environment and implement their business operation as per that.

For More - Managing a Successful Business Project Nowadays

L/508/0485 Business and Business Environment in TESCO

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