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RQF Unit 35 Business and business Environment UK College of Business & Computing

Introduction

This report explain their different types of business and environment it is related to micro and macro environment. Micro environment add various factors like competitors, customer,

investor, stakeholder and macro environment includes economic environment, technological and cultural environment factors(Al-Debei and Avison,  2013). This repost also giving a comparison between profit making business organisation and non profit making organization and showing  business strength and weakness also.

P1. Different types of organizations

Organizations are entity comprising different types of peoples working together to achieve predetermine goals. There are various types of organization which are working in a market to provide a services and goods to people ( Drucker,  2017). Most of the common types of organization are  Profit organization, Non profit organization and Non governmental organization (NGO).   

Profit organization are those associations whose main aim is to make profits out of its investments. Its primary goals are achieving profit through its operations for company and its investors (Felin, Lakhani and Tushman, 2014). This organization usually operate in private sector they have to maintain goodwill and reputation in the market.

Non profit organization are also known as non business entity which are operates to motive of well fair for society as well as achieving organizational goal. It is tax exempted organization or do not pay income tax on the money that they receive for there organization. This organization are using surplus of the revenue to achieve its ultimate goals and objectives. This organization serves services to public in some way like hospitals, universities, charities etc. This organization worked with the intention of provide good, services without to aim of private gain. They help to increase public and public confidence is a factor in the value of money that this organization is able to raise, its result is that they can make more money for the organization.

Non governmental organizations (NGO) are that association which are founded by the citizen for fair of society, it is a voluntary citizen group which is organised to operate social welfare activities on a local level, national level and international. It is operated by the public not by the government, this are active in humanitarian, educational, health care, public policy, human right, and many areas (Vveinhardt, Gulbovaite and Streimikiene, 2016). This organization provided services benefits and premises only to members. Its is task oriented operate by the people with a common interest.

Particular

 Profit organization

Non profit-organization

 

Non governmental

organization

Purpose

For profit organization main purpose is to generate profit with develop useful and quality product and services that are valuable for customers. It focuses on achieving a goals and objective of company as well as to fulfill the customer demand.

In non profit organization the main purpose is to solve life threatening problems and issues of people. These organizations are not concentrated on profit. Its  aims to remove basic human problems and accomplished its mission.

The main purpose of the NGO's are development of society welfare of society. Providing a social services to peoples. They fulfill  the public need and improves a life of people.

Funding

In profit organization, initially they take a funding through bank loan, local investors and revenue generated from sales.   

In non profit organization are used to method of funding through private donations, corporate sponsorship, and government grant, crowd funding is a form of online fundraising is popular method (Altuna and et.al., 2015.).

NGO's get there funding from charities, donation, foundation. In some countries the local government are also provided funds for  entity.

(P2) Size and scope of the organisations

Difference between micro, small and large enterprises

Micro enterprise in assist with minimal employees and minimal capital it usually operates with less 10 people and it is start with small amount of capital. Micro enterprises help to develop countries and local areas. Micro entrepreneurs to represent their large majority of small business for earning more profit. Micro enterprise commonly start their business with small capital and providing lots of opportunities to the peoples like giving jobs. Micro business is the source of income a number of people start their own business with low cost.

Small enterprise refer to limited in size and its revenue is depending on their industry. Small enterprise normally start with 10 people or a manufacturing unit 50 people (Othman  and et.al 2014). It includes owned restaurants, law firm, engineering firms also. Small business start with very small size, its revenue is also very small, some people start this business their home  accounting business , may only requires a organisation licence. Small enterprise main purpose start work nth small part and gaining a profit and developing their local area as well as people also. Nisa is working as small firm in the UK.

Large enterprise is made-up of employ more than 250 people these enterprises come out from slow and dependable growth of successful small businesses. Large enterprise earn more profit and expand their business. These companies are very helpful to generate their profitability and providing various types of job opportunities in the market. It helps to develop their economic , it creates a bridge between small and big corporations. Tesco is working is private big size firm which is conducting its operation globally.

Market share, profit share, growth and sustainability

 TESCO is very fast growing organisation its market share is 27.8 percent in 2017. This company is a large scale and expanding their businesses. Its main motive to earn profit and giving a number of jobs opportunities. It is retailing industry and selling their qualities  products  in UK  super market. This industry focus on their customer and growing their business through promotions they gave attract new shopper. It is profitability organisation and aim their to earn mote market share.

NHS  is non profit organisation its play a role non healthcare and transferring public sector to hospital to non profit industry. This company improve their efficiency and quality of services. It refer to government funded medical and heath care services in UK. These non profit organisation  scope getting help to their customer and giving quality treatment to the customer. NHS has generally increase their expenditure 7.4 percent on the GDP and its market share 9.7 percent. These organisational has  wider scope providing their service all over the world.

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EUROPE AGAINST DRUGS( EURAD)  is non government organisation  it main motive to develop their country and providing growth opportunities. Europe against drugs is non profit policy and recover drugs policies , leading organisation promoting a drug fee and generates cost for people health and giving a treatment, healthcare and hospital treatment. The value of this company  European market 12 billion.

Complexities of transnational, international and global organisation structures

These are the complexities in the organisational structure of TESCO which has blocked their capability for managing various operations which are the roles of every units are not uniform and symmetrical which does not allows them  to manage various businesses functions and operations operated at national level. Another complexity is the headquarter and subsidiary relationships which is not clear and has ambiguous patterns for dependence and interdependence  and other complexity is regarding decision making and control where management does not plays an effective role to take decisions uniformly. These complexities interfere with the efforts which aims to achieve coordination and integration at various level of an organisation. It becomes difficult in balancing the needs of different aspects related to functional, geographical and product stakeholders. The command structure used by this organisation  creates ambiguity and conflict in various areas.

Also it hinders the process of decision making because it involves many individuals having different views and not agreeing on the particular thing. These delay in decision making can potentially increase the cost of administration and out weighs  the benefits associated with the coordination. On the other hand there are complications which are associated with the transfer of knowledge which creates many problem. For solving these complications one has to adopt a new organisational structure such as modular or virtual one in which one can separate core and non- core functions of the business and can focus on the functions which are core  while eliminating other non- core ones.

 functions relate to overall organisation mission and objectives

Both mission and objectives are related to the TESCO's purpose .These are the statements which answer all the questions such as who are they, what do they value and where they are going. A mission of the company determines why they exist and how it aims fro serving its key stakeholders. These  has a following role which includes providing a great working environment  and treating each employee with respect and  dignity, embracing the diversity which is an essential component, applying the standards which are high in the field of purchasing and delivering the product, developing enthusiastic customers and contributing to the communities and surroundings, also recognising the importance  of profitability for the future success.

They have a very effective role such as communicating the purpose of the company, informing the development of the strategy  and developing various measurable goals and objectives which would help to facilitate the company for getting success by implementing those strategies. They helps to promote strategic planning in TESCO  which includes changing the structure or various aspects of the company with respect to the change in environment. A successful change helps to prevent employees from getting discouraged when hey  face small failures on the way. This helps the leaders to perform their role very efficiently and continue to highlight the strengths of the company. Engaging them can lead to take ownership of the change and changing others mind to move forward and work in a coordinative manner.

Micro enterprise in assist with minimal employees and minimal capital it usually operates with less 10 people and it is start with small amount of capital. Micro enterprises help to develop countries and local areas. Micro entrepreneurs to represent their large majority of small business for earning more profit. Micro enterprise commonly start their business with small capital and providing lots of opportunities to the peoples like giving jobs. Micro business is the source of income a number of people start their own business with low cost.

P3) Organisation structures and functions

Different kinds of structures relating to size and scope of operations

There are two types of organisational structures first is functional and other one is divisional structures. These are structures set up particular ways to establish their different goals and increase organisation progress. Large enterprise and small business achieve their goal  and increase their sales and earn profit through these structures.

Functional structures  is the part of marketing department, sales department and productions department of company. The functional structures work in proper way each portion of the organisation is classified according to its goal. For example TESCO  each department doing  work  well and each department can trust on their talent and knowledge and this company worker to supports their work. This company aim to cover all over area and expand their business . Each department doing work with coordination and every department  work in separately.

Divisional structures it is commonly used in large scale business that operate in a broad area. This structures cover different kinds of product or markets areas. Divisional structures is very costly because its size and scope are very large and useful for employees. Small enterprise can  also use a divisional    structures on a smaller  scale, having different business office in different part of city. For example  Tesco  increase their sale in different geographic areas.

P4 positive and negative impacts the macro environment in UK retail sector

Macro environment refer with those external factors which are difficult and also effect decision making, strategies and performance of the business. These external factors includes political factors,  economical factors, social factors, technological changes,  environment changes and legal  legal aspects. These are directly effect on performance of the organisation. TESCO  is retailing of books, clothings, electronic, furniture, petrol and internet services. This company affected with these external environment forces.

Political and legal factor  political and legal factors consider with change in the government rules and changes in legal policies. These factors directly affect marketing decision of the Tesco. UK  government giving subsidy  or low rate of taxations of retailer business. Its  directly impact on the marketing decision corporations. Political forces add some forces that is possibility of election and accomplished outcomes. The important of the this company business follow all the rules and regulations and company earn more profit.

Economic factors it is related to the mixture of national and international environment. TESCO are working under complex  economic environment which is  directly affect  by organisational production and consumer decision ,making process

Environmental factors TESCO use some important natural resource for their business such as forest, agricultural products and sea product. So there are non renewal resources used by this industry and make decision available these resources.  

Social and culture factors social and cultural factors focus on target customer of the organisation, changing in their  client taste and preferences, customer attitudes and values. Tesco  deals with changes social structure of the uk and these factors long-familiar with  behaviours of the customer, taste and living standard of their country people. Age and gender is the people also effect on buying pattern.

TESCO face these macro environment factors with lots of changes these factors are commonly outside the control of the business so it important for that company management should be able analyse these factors and make good decision these effect are analysis by apply PESTLE analysis method.

P5 Conduct internal and external analysis of UK supermarket in order to identify  its strength and weakness

external environment factors and internal environment factors affect the business corporations (Xavier, and et. al 2014). Environment is very term in  business operations, it the part of planing and helps to identify the strength and weakness of the business.  Tesco company designs supermarket sells their product and facing several loss in their revenue .  They identifying their business need and weakness through swot analysis.

Swot analysis of Tesceo corporation

Strength

· this company business is very wide and diversified on customer base it is include  number of customer services and it is one of the largest and most gainful supermarket.

 

· The company has wide range of portfolio their property , it provide a strong finical position to all kinds of economic cycle.

·   This company various supermarket store and it giving a more offer to their target customer.

· TESCO  improved their use of technological through its  operations and their service experience.

Opportunities

· this company underperforming there could be opportunities for joint ventures in their local industry. It is very help full to improve their performance those area.

· There are opportunities in the private market and this organisation already offer but that give better access to the western goods  and full fill these are people demand.

 

Weakness

· consumer are not buying their product to having less available income

· this company subsidiaries are not working well as they were compromising with certain external factors.

·  The retailer is highly dependent on its sale they people has not spent time their resources on developing the other area.

Threats

· economic recessions refer to the credit crunches , market share and profit.

· competitive threats are coming in other retails  who may offer low prices and sells their product variety.

· food prices are rise around the world , it also reduce their consumer buy power.

    Internal and external analysis organisation may find its strength and weakness which may include following

strength it include some feature of the TESCO  organisation, the most important sthenth of this company us clear in its vision which is generating more profit and provding customer satisfactions and expand their business with quality product.

Weakness

Weakness  this company work in different countries so its a weakness is that it is difficult to follow and control all over the operations. Weakness are those factor which  corporation has do more work so similarly TESCO  do  more work its not easy to handle so some time this company run their business not properly they face many problems like reduce their product demand, product qualities issues and customer are not satisfied.

 Explain how strengths and weaknesses interrelate with external macro factors

Strength and weaknesses of the TESCO  businesses are related with micro and micro environment factors. Company  compare own strength  with frequently macro environment factors like economical, political, social culture technological and then its business strategies.

Economic factors  are also interrelate with company external macro environment. It includes change in interest rate, inflations, exchange rate in market. If this company is financial strong it has sufficient its financial resources then changing in these rate and these rate will not affect their products pricing and  their market strategy (Rong, and et.al 2013). Tesco  always ready to face all the challenging arises changes in economic factors.

Political and legal factors it refer to the government rules and regulations policies. This company face some legal challenges and  follow  some legal polices like change in prices, making new decision and consumer awareness.

Social and culture  it include all those factors which direct influences  cultural factors and this company should have good staff, feasible financial resources   and natural resources. This organisation main strength giving full satisfactions their customer according their demand , taste and preferences.

Technological factors   if this company upgrade its existing technology with new application than TESCO  can change their coming technological factors.

Environment factors  this company use natural resources for giving product and services to the customer. For example company  manufactures cloths then it has to follow environment rule and regulations and do not misuse the natural resource. So management of this company already its business strategies .

Conclusion

This  reports can be concluded deeply knowledge of micro and macro environment factors in which business organisation. It also describes TESCO  company business analysis tools such as PESTEL and  SWOT analysis and explain business strategies it is very important aspect to the business. This company main motive to increase their business efficiency and providing customer satisfaction.

References

  • Drucker, P. F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard Business Press.
  • Al-Debei, M. M. and Avison, D., 2013. Business model requirements and challenges in the mobile telecommunication sector. Journal of Organisational Transformation & Social Change.
  • Altuna, N., and et.al., 2015. Managing social innovation in for-profit organizations: the case of Intesa Sanpaolo. European Journal of Innovation Management. 18(2). pp.258-280.
  • Felin, T., Lakhani, K.R. and Tushman, M., 2014. Special issue of Strategic Organization:“Organizing crowds and innovation”. Strategic Organization. 1. p.2.
  • Othman, Z. and Rahman, R. A., 2014. Attributes of ethical leadership in leading good governance. International Journal of Business and Society. 15(2). pp.359.
  • Rong, K., Shi, Y. and Yu, J., 2013. Nurturing business ecosystems to deal with industry uncertainties. Industrial management & data systems. 113(3). pp.385-402.
  • Vveinhardt, J., Gulbovaite, E. and Streimikiene, D., 2016. Different Values Forms in Organization: is the Congruence Possible?. Montenegrin Journal of Economics. 12(2). p.117.
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