This sample will let you know about:
- What is Public Organization?
- What is Private organisation?
- What is PESTLE and SWOT analysis?
Business environment define as a combination of internal and external factor which includes suppliers, owners, customers, requirements of customers and many more. In the present report, three main type of business organization which includes public, private and voluntary organization. In context of private organization, chosen company is TESCO which belongs to a retail sector (Chapman, 2019). On the other hand, in case of public sector base company is NHS which mainly work for reducing poverty by giving them social care services to the individuals. At the end, Oxfam is a volunteer organization for which Oxfam is chosen as the base organization. In the present report various sections are included in which size, type and scope of business organization is discussed along with their inter-relationship with different organizational functions. Apart from this, SWOT as well as PESTLE analysis are going to be discussed in this report which highly influence the business organization.
Various type, size and scope of different business organizations.
It is a kind of business organization generally managed, owned & controlled by the government of a nation. For enhancing the goodwill and brand image of the company, managers provide high quality goods and services to the consumers. NHS is chosen as the base company which was founded in 1948 with the aim of providing free health care services to the people. Ask for Assignment help UK from our experts!
- Purpose:In the present context of public organisation, NHS is a business organization which provide services to individuals related to health care so that living standard of individuals will be increased. The main purpose of this organization is to provide services to their customers which help them in order to improving their health related issues.
- Size & scope: It has been said that the size of the business organisation is around 17,197 according to the year 2019. It is said that because of BREXIT staff members of the company leave the nation due to their insecure environment. In NHS, immense scope of the company is that they are planning to enhance their medical training so that they can provide high quality services to their customers (How many NHS employees are there?. 2019).
It refers to the business organisation where all the policies are developed managed and controlled by the individuals and partners. In this context, chosen organisation is TESCO which is a retail sector mainly deals in grocery items.
- Purpose: TESCO is a multinational organisation mainly deals in groceries across the whole wide world. Headquarter of the company is located in Welwyn Garden City, UK by Jack Cohen. The main purpose of this company is to provide best and high quality services to their customers in affordable price. In addition to this, their main purpose is to satisfy the needs and requirements of individuals.
- Size and scope : Scope of the company is vast as they develop high quality services to their customers. In context of size, company have around 500, 000 employees working in mainly 7000 stores across the world (Tesco's number of stores worldwide from 2008 to 2019).
In context of voluntary organization, all the work related to the management, controlling and directed by the government of the nation. In reference to the voluntary organization, chosen company is Oxfam which was established in 1942 by Cecil Jackson-Cole. This is the type of business organization which mainly provide services to the customers so that there poverty will reduced and they can enhance their quality of life.
- Purpose: Main purpose of this type of business organisation is to develop poverty free society so that the living standard of people will be increased. In the context of Oxfam, management team of the organisation take decisions so that all the work will be done according to the requirements.
- Size and scope : It has been said that the scope of the company is quite vast as they wants to grab various opportunities available at the competitive marketplace. It is said that Oxfam provide services with the help of confederation of around 20 charitable business organization.
Interrelationship between organisational functions
In an organisational environment or structure several departments are present, or in other works company perform their activities through dividing its structure in small departmental units. Each function of an entity conduct assigned tasks or duties for contributing towards the end goals of their respective organisation (Barr and et. al., 2018). Therefore, it is analysed that these functional units and their function are interrelated with one another. These interrelationship of tasks and departments enables organisation to attaining their objectives in a prescribed time period and with efficient results, also ensure growth and success of entity. TESCO is retail firm and the third-largest organisation of its own kind. Therefore, in this section some of the relationships in departments of TESCO are described below:
PESTLE and SWOT analysis
This framework is used by an entity to identify the affect of uncontrollable factors on performance and productivity of the organisation. By the assistance of its results, companies get to know its Threats & Opportunities (Chapman, R. J., 2019). The higher authorities of Tesco adopt this framework with an aim to understand the factors that impact on its performance. This framework is mentioned below with relation to company:
This factor determines the level of government interferences in an economy. It involves various factors that is labour law, trade restrictions, political stability and many more. With reference to Tesco, the company operates globally and is influence by many global political elements such as tax rates, legislation act. one of the important factor is stability of company where it operates its business activities. Moreover, the stability of government of UK is strong that assist companies to expand their business globally.
This factor impacts on the business activities and profits of an organisation. It include factors that is inflation rate, interest rate, disposable income etc. In context to Tesco, its higher authorities emphasise on demand, cost, price as well as profits. The company keeps an update regarding any of the alteration in taxation & other factors that impacts on the financial accessibility of Tesco. The company is highly rely on the market of UK and consist of around 30% market share. Change in the disposable income affect negatively on the profits of company. This has changed the focus of company as they emphasise more on advertising that will raise its sales and brand image.
This factor is also termed as socio- cultural factors which includes norms, attitude as well as beliefs of population. Along with this, it also involves elements such as age distribution, growth of population, career attitude etc. With reference to Tesco, change in social trends affect the purchasing behaviour of people of United Kingdom (Gaganis, Pasiouras and Voulgari, 2019). In order to influence attitude as well as belief of people, the company has started offering organic product in market that attract large number of customers. This will also raise sales and profitability level of Tesco in a defined manner.
Advancement in technologies changes the buying behaviour of customers as they to consume those goods and services which is innovative as well as creative in market. This new technologies arise opportunities and increases the sale of Tesco. In order to adopt new technologies, Tesco introduce the facility of online shopping and home delivery for its customers. Along with this, it develops self service checkout which is easy and convenient for customers and decline the labour cost of company. This assist them to raise its performance level and generates higher profit from the market effectively.
It involves factors such as product safety, consumer laws, health & safety law and many more. It is important for companies to follow all the legislations so that functions can be carried out smoothly and in a best manner (Hamilton and Webster, 2018). In relation to Tesco, its higher authorities follows all the rules and policies which is made by government so that they did not face ant hurdles while operating business activities. Furthermore, it assist them to increase productivity that leads to enhancement of profitability level of Tesco. Need Assignment Samples?Talk to our Experts!
The importance of this factor increasing because of lack of raw materials, implementing business activities in ethical manner, pollution targets standard by government and many more. Nowadays, people are demanding for Eco-friendly products and concerned towards the protection of environment (Khajeheian, Friedrichsen and MÃ¶dinger, 2018). With reference to Tesco, the company is promising to decline the usage of carbon footprint at the rate of 40% by year 2020. Moreover, they also focuses on declining the waste level which is developed in its stores as it automatically raise the profitability of Tesco.
SWOT Analysis of Tesco
Influence of globalisation on organisational strategy along with decision making process
Globalisation is the consider as spread of product, technology and information across the globe. The motive of globalisation are idealistic in order to improvise the market, culture and business which help nation to develop effectively. In the context of organisation this help in expand the business and to gain access to the new market in limited time frame. Globalisation has a wider term which include exchange rate, employment legislations and trade laws which ensure the smooth flow of goods and services in a well define manner (Toma and Mirica, 2018). In the result this aid in economic down turn which create an adverse effect through constant trade under globalisation. Therefore, company's has to make their strategies and take work related decisions according to the impacts of globalisation and current scenario of economy. Impacts of globalisation on TESCO business strategy and decision-making are elaborated below:
TESCO, is a global brand serving to worldwide population through its several retail outlets. These outlets are present in different geographical locations or in different countries which has theri unique laws and regulations. Therefore, managers of each outlets has to make plans and strategies for operating their stores according to these laws and regulations served in particular economy. The decisions related to the firm such as product offering, which are made by managers have to in accordance with the needs of individuals of that particular location. As globalisation means dealing in diversified marketplace and with differentiated target audience. Therefore, company's managers have to keep these varied information in mind while formulating plans in order to smooth running of business, ensuring growth and success of entity in new or existing market. Get University Assignment Help Now!!
Globalisation also, has some negative aspects which affects the company and its business. Due to increasing globalisation growth rate of GDP has slowed down along with huge increase in cost of operations. This slow growth of GDP reflects slow growth of economy and it will directly affects the productivity and profitability of TESCO. Reduced productivity will result in slow growth of organisation and even affects company's business (Uluskan and Godfrey, 2018). As economy is affected people do not have money to make extra purchases which will directly affects sales of organisation. This will impact on the profitability of TESCO as sales decrease earning of entity reduces and cost of operations remains the same, sue to which company can earn losses. Therefore, globalisation has sever effects on the businesses, thus TESCO managers have to make their strategies and decisions accordingly for reducing its effects and sustaining in marketplace by earning enough profits.
The information gathered in above report, concludes and describes that business environment is a huge platform. The managers of businesses need to develop their understanding and business abilities according to it for enhancing their performances. The decisions management take will be based on the size and nature of the entity. Tools such as SWOT and PESTLE analysis are used to evaluate external environment for knowing new opportunities and exploring them ensuring growth and success of organisation. These techniques enables managers to know their businesses strength and work with it for attaining competitive edge in marketplace in an effective manner.
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