CompanyThis assessment will cover certain questions which are like:
- What are the purpose, function and legal structure of the business?
- Give the effective size, scope framed in Tesco in relation to working.
- Elaborate the external and internal factors.
INTRODUCTION
Business environment is described as sum total of all internal (employees, directors, customers, etc.) and external factors (political, social, technological etc.) which directly or indirectly affect business in the open marketplace (Ayios, 2018). Scanning of the business environment is done in order to better tap the useful resources needed by the firm and then converting into goods and services. This report is based on Tesco which is a leading retail business in United Kingdom. It came into existence in the year 1919 by Jack Cohen. This successful company has opened its stores in other nation like Asia and Europe. This assignment covers various types of public, private and voluntary sectors purposes size, scope and legal structures. Relationship among organizational functions is studied in order to fulfill the emerging needs of the customers. Macro environment positive and negative aspects is examined in order to make improvements in the loopholes. SWOT and PESTEL analysis is conducted to grow the business in other nation successfully. The strengths and weaknesses interrelated with macro factors are evaluated to attain productive outcomes.
Also Read :- Practice vs Practise
LO1
P1 Discuss Distinguish Types, Purpose, and Legal Structure of Public, Private and Voluntary Sectors.
In order to grow the business in the cut throat competitive world public, private and voluntary sector contribute on their own level. All this sector work day and night to raise the economy standards of the nation. All this three type of business are providing huge job opportunities to a large section of the people and are directly or indirectly reducing employment from the country (Fabus, 2018). They play a vital role in making the nation financially stable. By this other businessman will be interested to expand their business in this particular nation as it is financially strong. Public, private and voluntary sectors purpose and legal structure are explained as under:
|
Elements |
Public sector |
Private sector |
Voluntary sector |
|
Meaning |
Those organizations which are owned, managed and operated by government. In this type of organization works towards the upliftment and welfare of the people living in the nation. |
Private sector are those businesses which are owned and managed by individual or groups. All the decisions for the businesses are taken by the owner, director or CEO of the company. There is no role of government in it. |
In society this type of businesses is mainly working for the upliftment of the community and their people. They help people in all possible way to solve their problems. |
|
Purpose |
The purpose of this type of enterprise is not to generate huge revenue instead to work for their welfare. But in order to run the public sector business smoothly in the open market place they charge nominal fees from the people. |
Private sector main purpose is to maximize huge profit as compare to rivalry. This type of business mainly focusses on meeting the needs and demands of the customers so that sales ratio can be raised and revenue and generated to a large extent. |
This types of business are non-profit firm whose purpose is to serve better for the society people and to raise their living standards. |
|
Examples |
In United Kingdom Network Rail is the best example of public sector. They are held accountable to look after the maintenance of the Great Britain railway network. |
Hennes and Mauritz is a multinational clothing retail company. It is widely well known for fashionable clothing which it offers to their targeted customers across the globe. It is one of the private sector firm in UK |
In United Kingdom Cancer Research UK is an awareness charity who is well known for decreasing the number of death ratio caused by cancer by making people aware about its symptoms. |
|
Legal structures |
The legal structure of public sector are: Central government: With the help of income tax central government is able to collect huge funds from general public (Geissdoerfer and Evans, 2018). Local government: Through council taxes local government are able to accumulate huge cash amount. State government: In this case they hire or own some of the businesses which are not controlled by central government or they interfere in it.
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The legal structure of private sector are as follows: Sole proprietorship: This type of businesses are owned and operated by individual on small scale like, taxi drivers, grocery stores, Hair cut salon etc. Partnership: In this case with mutual understanding contract is signed in which ratio of profit and loss is mentioned. Limited company: This is a legal structure which limits the liabilities of the firm's members in relation to their contribution.
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The legal structure of voluntary sector are as follows: Trust: It provide services to the people based on the trust and faith of the people though it is not a legal entity. Unincorporated Association: Here, group of people come together willingly to form clubs and society in order to meet the particular purpose.
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P2 Illustrate Size and Scope of Numerous Types of Organizations.
In cut throat competitive world organisation need to expand their business so that they can survive for longer time duration in the market. The size and scope of private, public and voluntary organization in United Kingdom are discussed as under:
Hennes and Mauritz Private Sector Business:
Vision:
The vision statement of Hennes and Mauritz private sector is to operate the business in such a way that it is sustainable in all aspects like, economically, socially and environmentally (Hamad and ElGohary, 2018). Employees are motivated to perform the task effectively so that productive outcomes can be attained easily.
Mission:
The mission statement of Hennes and Mauritz is to offer high-quality clothing at best prices to their potential customers. By this set goals and objectives can be attained easily.
Size and Scope:
Hennes and Mauritz has five thousand stores across the globe and are meeting the emerging needs and wants of the customers easily. The scope of this business is too high as the demand for fashionable clothes are raising day by day. In today's world customers are demand quality products as their disposable income has raised (Kaplan, 2019).
Business Objectives:
The objective of Hennes and Mauritz is to render trendy and fashionable clothes to the customers according to the dynamic environment.
Products or Services:
Business provides trendy and high-quality fashionable clothes to the targeted customers and to raise their sales ratio as compare to the rivalry. By this maximum profits can be earned easily.
Legal Structure:
Stefan Persson has owned Hennes and Mauritz and it is a public limited firm in the global market.
Stakeholders:
The different stakeholders of Hennes and Mauritz are, customers, suppliers, government, directors, owners, managers and so on.
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Network Rail is Public Sector Business:
Vision:
Network Rail vision statement is to provide safe and comfortable journey to the travellers till they reach the final destination.
Mission:
The mission statement of Network Rail is to increase their railway network across United Kingdom and to provide safe railway services to the customers.
Size and Scope:
Railway sector manage and handle around twenty one thousand miles of track and forty thousand bridges and tunnels in England, Wlaes and Scotland. Network Railway owns twenty five hundred railway stations and are successfully meeting their needs and wants. Due to the increasing global warming there is need of more sustainable mode of transport which formulate wider scope for Network Rail (Gray and Bebbington, 2019).
Business Objectives:
The objectives of the Network Rail is to provide safe railway facilities to the travellers.
Products or Services:
Comfortable and safe railway services are provided to the general public who uses it to reach out their destination.
Legal Structure:
Public firm's are funded and supported by central government so that they can be operated easily.
Stakeholders:
There are numerous stakeholders of Network rail which are, government, external stakeholders, public and so on (Hamilton and Webster, 2018).
Cancer Research UK is a Voluntary Sector Business:
Vision:
To develop advanced therapies and medical facilities in order to reduce the death ratio of people who are suffering from cancer. In order to meet the vision statement Cancer Research UK is continuously conducting research and development work.
Mission:
The mission statement of Cancer Research UK is to aware general public regarding the symptoms of Cancer in the initial stage so that it can be cured easily.
Size and Scope:
In United Kingdom this is the largest Cancer Research who is working to save the lives of the cancer people as well as work to spread awareness regarding how to identify it in the early stage. The scope of the Cancer Research is wide because they are working to identify the root cause of the cancer as the number of cancer victim are raising day by day.
Business Objectives:
The business objectives of Cancer Research UK is to discover the root cause of cancer and to frame tactics to overcome them in the early stage (Håkansson and Ford, 2012).
Products or Services:
Radio therapy, chemotherapy and so on are services which are provided to the cancer patient so that they can be cured easily.
Legal Structure:
Central government help this organization financially in very aspect.
Stakeholders:
Some of the stakeholders of Cancer Research UK are, suppliers, cancer patients, government etc. (Teece, 2018).
LO 2
P3 Explain The Relationships Among Numerous Organisational Functions and How To Attain Firm's Objectives and Structure.
In the open market place business is able to attain the set standards because various organizational functions have good and healthy relations with each other. By creating transparent and healthy relations among the department tough benchmark can be formulated for others. The relationships among numerous organisational functions are illustrated beneath:
Interrelationship Between Marketing and Sales Department:
Marketing department plays a vital role in the growth and development of the business in the global market. This division is accountable for building health relations with customers for long duration. By this sales ratio of goods and services can be raised accordingly. Whereas sales department focus on raising the sales of the product in order to maximize huge profit so that sufficient funds can be provide to the marketing department in order to conduct market research. So it is very essential to build healthy relations with each other decisions for better results (Hassanien and Dale, 2019). The sales department of Tesco enables them to identify the needs of the customers and to serve them as per their requirements and accordingly marketing department of Tesco formulate various strategies such as promotional strategies that help sales department to approach the customers (Choo, 2018).
Interrelationship Between Sales and Finance Department:
Sales division is accountable to uplift sales of the firm's product and services in order to gather huge profits. While, Finance department assemble sufficient funds from various financial institutions like, banks, friends, relatives and so on. Healthy relations should be there among sales and finance department so that deficiency of funds does not occur and business activities are performed smoothly. The sales department of Tesco determine the requirement of changes within the marketing strategies of the company for creating awareness among the customers and in this the finance department enables them by providing them the funds to carry out their activities with the help of marketing department.
The structure that has been adopted by Tesco is hierarchical structure with the help of this they can efficiently allocate their roles and responsibilities among their employees as per their capabilities. This enables them to perform their roles efficiently and achieve the objectives of Tesco with effective utilisation of the resources. Also with the help of this all the departments and functions of the company can be integrated due to which the flow of communication and information is efficient and this make the capable of taking better decisions and avoids chances of redundancy of the activities (Sawhney, Verona and Prandelli, 2015).
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P4 Application of PESTLE Analysis For Identifying Positive and Negative Impact of Macro Factors
Analysis of external environment is important for large internation organisations as they have to cope up with variety of challenges. Local service market is growing industry in UK and Tesco can enter in this segment for increasing their total revenue. Below is PESTLE analysis of British market:
Political
Brexit brought political instability in the country and it is making a huge negative impact on companies like Tesco as they are failing to make investment related plans for long term. This reason is rapid changes in regular and post Brexit fear of uncertainty. Some between treaties with Asian countries of UK have not changed in many years. Unchanged regulation can allow Tesco to making long term plans regarding importing and exporting. This will be positive for their business in forthcoming time (Tian and Malhotra, 2018).
Economical
Low inflation is a major positive for Tesco as it will increase demand of their products and services. They will not face any major hindrance related to demand in initial period if they start new operation. Although, low economic growth can make negative impact on company's business as they scope of growth will be very limited.
Social
UK has place in top 10 most educated population. This element is a positive factor for Tesco as they can easily get good quality of human resource in less period of time. Trends in marketplace are changing rapidly, this factor can create major issues for company in upcoming time as it will force organisation to bring constant changes in their process. Negative influence of this factor can create more challenge to the firm in initial stage.
Technological
Technological development is happening in every field and Tesco can use latest technology for bring more efficiency in their new operations by using latest technology. The negative factor attached with technology is that some of them are very expensive and they can increase cost burden on organisation (Trisakhon and Peamchai, 2018).
Legal
Strict regulation are not good for business of Tesco as it increases company's recurring expenses. In order to follow regulations relating to Maternity leaves and Minimum wages act, company has to put additional efforts and it directly make a negative impact on their profits. Stable domestic rules are a big positive for organisation as they allow firm to focus on their core activity without creating any legal trouble. Making long term plans become easy for company when government regulation remained unchanged for long period of time.
Environmental
Tesco is committed to reduce pollution and develop a sustainable business. They are investing huge amount in reducing carbon emission so they can attain the target of bringing down their carbon footprint by 50% by 2020. This decision is improving their image in public and influencing their businesses in positive way. “Local or household services” is a business where waste management is important. Tesco may face challenges regarding use proper dispose of waste as some material like plastic is not disposable. These minor but important issues can make negative effect on company's business (Trad and Kalpić, 2019).
LO4
P5 Internal and External Analysis
Tesco is an international organisation which is planning to operate in the services of household in United Kingdom. In order to operate in the industry of household service such as pest control, carpentering, electrician services, it is important for this organisation to consider its internal and external environment. In order to conduct this assessment, SWOT analysis technique is used. By mentioning the strengths and weaknesses of Tesco, internal analysis of this company can be done. And by mentioning opportunities and threats of this company, external analysis of this company can be done.
Strengths
Tesco is one of the largest chain of supermarkets in United Kingdom which has thousands of regular customers. Using a sound brand image and ample regular customers, Tesco can easily market their new operations to the potential customers without spending too much on promotional activities (Hillary, 2017). Another strength of Tesco is its loyal customer base which believes in the products and services of Tesco. This loyal customer base will be potential customers of new operating unit of Tesco.
Weaknesses
Tesco currently deals in a retail industry which largely depends on the operations of selling products of other brands. This company has no experience of providing household services which can result in their weakness which can impact on customer satisfaction.
Opportunities
The industry which revolves around providing household services is at boom in the region of United Kingdom. Every large organisation nowadays is intending to launch their own subsidiary which can provide household services to the customers. In the scenario where the industry of household services is at growing stage, it is a viable opportunity for Tesco to grow their operations in this industry by which their brand equity can even be enhanced and they can acquire customers due to their existing loyal customers (Lu, S, 2017).
Threats
Threats are the elements which generate due to external environment in which an organisation is currently operating. Tesco is a large scale organisation which is planning to develop new operations in United Kingdom. UK is currently in a vulnerable position as the organisations of this country has to pay high costs if they are procuring supplies from states of Europe which is a result of BREXIT. In this situation, developing new operations in UK can be a threat for Tesco.
Above SWOT analysis shows that Tesco is a powerful organisation which can rely to develop their new operations in United Kingdom.
P6 Inter Relationship Between Macro Factors and Strengths and Weakness
Political Factors
These are the factors which are associated with political stability in the region in which Tesco is operating. UK is a developed country which is politically stable which helps companies operating in UK to get benefitted with liberal trade policies. But on the other hand, UK is currently facing trade issues with European union due to BREXIT which is a weakness for Tesco (May, 2019).
Economic Factors
These factors include interest rate, countries GDP, national income etc. Tesco is operating in UK which has high GDP and high spending power of individuals which allows them to earn appropriate revenues which is a strength for them. On the contrary, due to BREXIT, UK has restricted its trade policies which has turned as a weakness for TESCO (Painter-Morland, 2019).
Social Factors
These factors are the tastes and preferences of the people of the UK's society. UK has a progressive society and the people residing into it has preferences of using green and environment friendly products which is a strength for this company as they retail ample green products. As operating in a society which changes rapidly can become a weakness for Tesco.
Technological Factors
These factors are related to technological advancements and upgradation. Tesco uses latest technology when it comes to payment options and other operations due to which they lead to satisfy their customers which is a strength of Tesco. But continuous changing technology influences this company to regularly update their equipment which require high cost which turns to be a weakness for the company (Somers, 2019).
Also read: Creative Thinking And Problem Solving workforce
CONCLUSION
From the above report, it can be concluded that the business environment is the combination of all external and internal factors which impacts an organisation both positively and negatively. From the above report, it has been found that Tesco is a large-scale organisation which has potential to develop new operations in the region of United Kingdom. Get more details about assignment help UK from our experts.
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