External and internal business environment impact operations of all the organisations and if companies do not respond according to the situation then they may have to close their stores or lay off their employees. Tesco is a big name in retail sector but they also need to analyse business environment so they can make plans accordingly.
1. Explanation on various types, size and scope of organisations.
2. Demonstration of relationship between different types of functions and their connection with organisational structure of Tesco
3.To identify impact, both positive and negative, of macro factors on business operations of Tesco.
4. To find strengths and weaknesses of Tesco and its relationship with external factors.
Business environment comprised of all the external and internal factors affecting company’s functions and employees, which include management, consumers, supplier and demands and business regulations. It also comprised of environmental effects on the size of business and their goods and services. Business environment includes strengths and weakness of organizations. On the other hand, industry means collection of all individual, entities and other factor, which some time under the control and some time not. This organizations impact on their profitable performance or growth. In this report, all factors of business environment is defined with improved growth and achieve goals.
P1 Differences between profit, not for profit and non-governmental and purpose, supply of goods and services of organisations:
Organization is described as a group or structure set up with the purpose of different needs and achieving goals in business. Now a day’s, different kinds of organizations have different aims. Each organization serves unique purpose with various needs. Some organizations earn profit and others operate on social causes or well-being of society. There are some organizations differentiated as profit, not profit and non-governmental organisations which are discussed below
- For profit organization- Tesco is the third largest retail organization in UK. It offers goods and services like food, clothing, banking, fuel, insurance, online shopping, mobiles etc. It operates under four banners namely express, metro, extra and superstore and have stores in 14 countries .It mainly deals with the people and fulfils customer’s needs. People who cannot visit Tesco stores, they provide them an online delivery service.. The main aim of Tesco is to maximize profit and earn profit through people.
- Not for profit organisations- Fairways delivers service to young people, children, including social care, support, training and education service etc. fair ways is provided service those people who are helpless and young people who are not trying to achieving goals in life. Fairways helps people to give social care and take 100% responsibilities they are established business for care people but not for profit, they only carte people not earn any kind of money from there. The owner of Fairways aim to established company create a true measure of workplace engagement so they learn how to build happier and develop world class methodology.
- Non-government organization- Non-government organizations are mostly known as NGO. ACTED Lebanon has given social facilities to people. They provide services for health and care with accommodations for poor people. Non-government organization is any non-profit, voluntary citizen group which can be organized at a local, national or international level. Different types of NGO provide different types of service. However, NGOs reliant on external funding that comes through donations, membership’s dues and grants etc.; the main aim is to serve people who are helpless.
P2 Difference between micro, small, medium-size and large enterprises and Market share, profit share, growth and sustainability
Small business enterprises are a very important part if the economy. Company present around 99% of all organizations and employ an increasing number of persons. Many of enterprises are independent and they not trying to belong any groups, but the small enterprises are very crucial part of those group. Business that are set up with the primary motive of profit exoneration do not necessarily need a large multinational corporation with huge workforce. They must be micro, small, medium or large. Those factors involve numbers of business. Numbers of business owner share their market place. This is advance categories shared business as small to medium-sized organizations. There is 95% of the business in many countries. The main determining factors are small business enterprises staff are headcount and turnover. For micro size organization the staff head count is little then 10 employees with a turnover of less than 2 million. In small company the staff headcount is less than 50 employees with turnover of few then 10 million and for medium-sized organisation, the staff count is less than 250 employees and a funding of less than 50 million. Those based on eligibility, small business adopts funding and do support that might not be otherwise available for largest business. Each of enterprises described their legal structure as wide ranging implications on how the business operates, there having many types of legal structures that a business can adopts, but one of the most similar role in partnership and private limited companies.
Market share, profit share, growth and sustainability-Any successful business adopts profitability and growth. These are most important and necessary aspects for a company to survive and remain attractive to investors and analysts. Profitability is crucial for business and their environment as well. A company runs in profit is the most important part of the business, for profit and growth each employees of business they trying to better work in their business they try to achieve goals in their life and increase business as well. Organization growth is depended on their management and their employees work skills. Market share For profitability in market share each company invest their share in market and earn profit. However, some time company faced to many ups and down, some time market share going to down and company has loss in business. In small business area they not face market share problems and loss they only focus on business how to increase. Tesco faced these types of problems. Company invest their share in market some time is going to the profitable and some time not. They increased their market share and earn profit.
P3 Different kinds of structures relating to size and scope of operations
Organizational structure is set to achieve specific tasks to increase business progress and accomplishing their goals. They can achieve higher sales and other profits by needs who similar to their organization. There are three main types of organizations structures-
- Functional structure- Functional structure is based on each portion of the organization is grouped according to its purpose, those organizations involved sales department, production department, marketing department. The functional structure working very profitability, in the functional department having any drawbacks nut the department change continuously and having change as well. Each department can rely on the talent and knowledge of its workers and support itself.
- Divisional structure- The divisional structure mainly based in large companies. The largest company involve small business in their company. The benefits of this structure is that need can be met more rapidly and more specifically each division can work individual in the company. The divisional structure has large size and scope so they became costly.
- Matrix structure- this I the third type of organisational structure, the matrix is mostly use in multinational company. The matrix structure allows for gain benefits of functional structure to exist in one organisation. This can create a power of struggles because most of area of the company will have a dual management and products or divisional manger, functional manger. They working in similar level and covering some same managerial level.