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Unit 5 Business Organisation and Environment Level 4


Business organisation can be simply defined as an individual or collection of persons that work together in order to acquire specific mutual organisational targets. The main intention of doing this is to earn high amount of profits in return (Sheng, Zhou, and Li, 2011). Entrepreneurs try to establish their commerces in some another nations so as to make their strong presence and gain powerful customer base. The present report is designed in this context whereby a famous firm named Tesco is going to set its business in a completely new country known as Austria. It is a British company which is dealing in retail sector at international level. It has been found that they are falling under third largest retailer across world on the ground of profitability. Along with this, it also secured ninth position in terms of revenues. The main reason of starting business activities in Austria is nothing but the golden opportunity of FDI (Foreign direct investment). In order to carry out this action, it is important to examine the situation of macro environmental factors of the similar place. This project is highlighting such kinds of prospects in detail.

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Background information

Tesco is a public limited enterprise whose headquarter is situated in Welwyn Garden City, Hertfordshire, England, United Kingdom. They are having a large number of stores or groceries in various nations of Europe & Asia. In addition to this, they are treated as a great leader in the field of grocery marketplace especially in Hungary, Thailand and Ireland since they comprise of nearly 28.5 % market sharing at these places. Tesco was set up by sir Jack Cohen in the year of 1919 in the form of integration of market stalls. Afterwards, his commercial actions had attained a continuous enlargement by 1939 as more than hundred outlets has opened across all over nation.

Organisational scope, specialisation & size

This has been observed that currently in 2017, they are including above 6,553 retail stores. In addition to this, Tesco are offering employment to numerous of people. They has engaged approx. 476,000 plus employees in similar time frame. Hence, it can be stated that scope of referred company is too good as they are serving with varieties of goods and services to not only those people who are living in United Kingdom but to all other civilians who exists in another section of globe. Some of the key merchandises designed and delivered by them in are discussed below :

In its supermarket, they are giving wider varieties of domestic appliances such as kitchen items, home appliances, crockery items and food items in an attractive way by organising the similar commodities into aisles. Foodstuffs includes dairy commodities, meats, fresh produces,

In addition to this, different other services catered by them are cafes, banking, insurance policies or fiscal services, petrol stations, mobile phones, photo processing, video rentals, apothecary's or medical shops, and many more to their expected clients (Ball, Lizieri and MacGregor, 2012).

Legal form or ownership structure

Tesco comprised of sole possession since it is being run as well as controlled by single entity. In context to legal structure following data is supposed to be suitable :

One of the main or key members which are playing certain role are John Allan who is Non-Executive Chairman and Dave Lewis , Group Chief Executive Officer. All other employers along with workers performing in Tesco are obligated to report to them as every important decisions are taken by them only.

It includes some internal and internal stakeholders such as customers, workers, banks, investors, government, other communities or intermediaries affiliated with business, etc.
Financial performance & existing international operations

This has been identified after doing deep research that Tesco current fiscal presentation is very impressive. They are having handsome turnover in the year of 2017 which is observed to be £(54) million. In addition to this, Operative financial gain is determined as £1,280 million in similar time frame. This is treated as a fruitful result of its global business as they are running or owning more than 6,553 stores in all over world (Closs, Speier and Meacham, 2011). They are mainly working in UAE, Japan, Korea, Poland, Dubai & many more territories. Hence, it can be said that Tesco is having global presence and could also move to Austria as it is considered as one of the best place for doing foreign direct investment. For doing the similar, they have to take survey of identical country so as to find out current traditions, culture, preferences, living style, taste and some other eminent aspects as this will help them in taking right judgement regarding investment.

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