Business and the Business Environment

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Contents
Introduction................................................................................................................................3

The different types, size, and scope of organisations.............................................................4

The interrelationship of the various functions within Tesco PLC and how they link to
organisational structure..........................................................................................................8

Conclusion................................................................................................................................11

References................................................................................................................................12

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Introduction
The study concentrates on the different types, sizes and scales of organisations, which by
various corporate roles are aligned with their structure. In the study, more attention is given
to the positive and negative impact of the macroclimate of a particular organisation
(Worthington, Britton and Thompson, 2018). The purpose of this analysis is to establish a
thorough understanding and experience of the chosen organisation and the tasks carried out in
wider industry environments. The various institutions have been directed to their types and
sizes and the way they can work.

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The different types, size, and scope of organisations
 Non-profitable, Charitable organisations and NGOs

The first category is a private owner, a non-governmental corporation engaging in scientific

research, education, voluntary or community support programmes and the use of the profit
received in sustaining, enhancing and extending its operations (Baron, 2013). Yet NGOs are
organisations, unions, social councils and welfare boards.

National Health Service

Figure 1: Objectives of NHS (NHS UK, 2020).

The first organisation to review is the National Health Service (NHS). It was established by
the government in 1948 as the country's primary health system. Her primary goal is not the
biggest benefit, but people's wellbeing. It offers care for all legal citizens of British Columbia
free of charge and every citizen has medical services even though they just visit (NHS UK,
2020). The following services are available: primary care, GP, dental services, services in the
areas of mental wellbeing, reproductive health, hospitals and pathology. Any medications,
oral treatment or vision examinations may be available to patients (Worthington, Britton and
Thompson, 2018). Their goal is to help people with higher health care survive, and they aim
to deliver the care people and their families want to use. To enhance and learn continuously,

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 the consistency of its services is most critical. Secondly, people need to hire highly trained
workers to provide services that are following the company’s vision.

 Micro, Small and Medium companies (SMEs)

In terms of capital criteria, employees and inventory turnover, micro, small and medium-
sized businesses are analysed. The main task is to trigger the economy, such as small
businesses. It also retains the position of economic stability and attracts big companies.

Tesco PLC

The next company of the author’s discussion is Tesco PLC. It is the industry leader (approx.
2.5% market share), opening 7000 shops around the world in less than 20 years and providing
nearly 500,000 people with a turnover of £50 billion (Tesco UK, 2020). All are eligible to
invest and become a shareholder of the London Stock Exchange. Tesco visions are a growing
organisation of resources that empower their clients, employees and communities of creative
ideas (Worthington, Britton and Thompson, 2018). The new goal of Tesco and its mission is
to support the champion for consumers and help them benefit from a higher quality of life
and smoother way of life, "serves Britain's shopping a little higher every day."

Tesco's got four business plans. They would like to be a powerful and distinct source of long-
term value, recognise saving chances, reduce the running costs by £1,5 billion and look at
extracting £ 9 billion in cash from group companies (Brooks, Weatherston and Wilkinson,
2011). In 2017, the retailer of the year award was awarded to them for introducing a Free
from Selection items. They have invented many effective strategies in the current retail
market. They plan to continue to listen to the demands and patterns of their consumers to
innovate their goods and processes.

High Suppliers Shareholders

Distribuitors Customers
Competitors Employees
Affiliates Board commitee members
Power
Government
Media Employer Associations
Analysts Community
Low
Creditors

Low Level of interest High

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 Figure 2: Stakeholders Mendelow Map (Tesco UK, 2020).

First low interest and low power group from this diagram have a limited impact on the policy
of the organisation so that they can therefore be limited and only be updated by the press
releases made on the website of the company.

The second category is of high importance with low influence in the business, such as the
government laws or unions of employees. To prevent complications later, the organisation
must notify about any strategy. They will also assist with the execution of the scheduled
plans.

The third interest group is high power with low-interest rates, where vendors, rivals or other
firms in the group may be present. Any business strategy concerns them, so Tesco can make
them comfortable. They would not become more involved in the party (SALEEM, 2015).
Tesco is the next large retailer in the county and has 2 major rivals in the United Kingdom,
Sainsbury and Morrison. Tesco wants its vendors to have a strong link. The society is critical
too since Tesco has a green energy environmental policy or a primary responsibility is to
deforestation 0 from its suppliers.

The core community, where the owners, consumers and the staff find themselves, is high
power and high interest. The three shareholders have full control and stake in the firm. It all
depends on them (Tesco UK, 2020). The partnership must be focused on the confidence
desired, so disputes which exist when workers are entitled to higher pay and shareholders to
higher benefit. Besides, consumer preferences and expectations shift such the creativity in the
business needs to be stable. This is why Tesco is researching its clients' actions using the
Tesco Club Card and adapting it to improvements.

 Corporate forms: sole proprietors, partner organisations and private businesses

There are three types of business firms such as independent entrepreneurs, alliances/partners
and private limited corporations. Next, the easiest and least costly type of business is the sole
trader. There are also advantages for sole traders, for example, low spending and raising
funds. Secondly, collaborations include two or more socially connected people. This is more
beneficial than troublesome (Brooks, Weatherston and Wilkinson, 2011). They will allow
people to broaden and enrich their social networks. Teamwork is strengthened to make
beginning simpler. If the start-up succeeds, capital and energy are allocated to the venture.
Third, there are also drawbacks of private limited corporations. It produces a market that is

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agile and easy to manage. Also, it promises anonymity, all corporate gains are theirs and do
not exchange company knowledge or partnership with others.

Rachel’s Organic

The last company the author would discuss is Rachel’s Organic. In 1942, Rachel Rowlands
began this business as a family farm from Wales. It has since then been a secondary business
that is a joint venture with Nestle, a Lactalis Nestle Chilled Dairy Group. It produces organic
yoghurt of various types, such as sweet or blackberry, first children's yoghurts, natural
yoghurts of Greek kind, cakes, milk and butter.

Each of these products is produced with natural materials and thus has a magnificent taste.
Their mission is to be a leader in worldwide development through sustainable technology of
luxury organic milk products (Rachel's Organic, 2020). The goal of Rachel Organic is to
provide a high-value supplier to every individual and the workplace of choice for employees
(SALEEM, 2015). They know how to appreciate people working hard for their business.
They are looking for new ideas to expand their business. Their products are characterised by
their production of organic milk, which gives higher quality milk products on the market.

This company's goal is to create a trust relationship with all its players. -- category has special
criteria, for which - category is tailored. This organisation conducts ethical activities, for
example in good communication with clients, to promote their employee expertise, providing
the best ways to improve their performance. Rachel's Organic provides the Free Breakfast
Club to its group as well as external shareholders for all underprivileged children (Rachel's
Organic, 2020).

The organisation, therefore, has a strategy to please all its stakeholders through CSR. The
society and health groups, which are now a joint venture between Rachel's Bio and The
Nestle Group, are quite significant, as consumers from France can also enjoy their goods
(Rachel's Organic, 2020). European health requirements must be met by Rachel's Organic. In
brief, it must prioritise its stakeholders to address their needs from higher to lower power in
the Business. The interest of everyone could be at odds so that the board will find a
consensus.

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 The interrelationship of the various functions within Tesco PLC and how
they link to organisational structure
Everyone already knows, however, that Tesco PLC is structured to effectively accomplish the
company's plan. The author will now review the key functional areas of the business and see
how Tesco PCL ties its aims with the various divisions.

Tesco PLC

Head Office

Human Research and

Marketing Accounting Production
Resouces Development

Distributio
ICT Customer Sales Administration
n
Service

Figure 3: Functional Areas of Tesco PLC (Baron, 2013).

Marketing

The marketing role of Tesco strives to satisfy its consumers ' desires and wants their loyalty
to be sustained. Tesco would boost its revenue and therefore its market share by the
marketing campaign. According to Kantar Worldpanel, it currently has 30% of the market
share of fruit and much of the market share of UK foodstuffs (Mohamed, 2015). Tesco has
included the 'Clubcard' technique. Tesco knows, employing that wallet, all customer
information, such as an address, the amount of money that it spends on the store regularly or
which items it typically purchases (SALEEM, 2015). Tesco will then operate its shops on this
basis and guarantees that its consumers can have the goods they want.

Besides, Tesco rewards its clients' card with discounts or coupons depending on their accrued
points. This technique illustrates why in certain stores and others they have noticed some
items not. The marketing department must, without any hesitation, collaborate with the other

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divisions of the organisation to produce the anticipated outcomes of this campaign and pursue
the company's general plan.

Marketing, for example, collaborates with the department of management accounting, which
needs to approve the budget for executing the marketing plan and meeting the planned goals.
The marketing role also interacts with the production department and the manufacturing
department can produce new goods thanks to marketing research (Baron, 2013). The
cooperation with the Department of Human Resources has to be emphasised that workers
must have studies and expertise to carry out the study in the new segments. The Marketing
Department also functions in contrast to the company's other divisions. This is the best way
to accomplish its aims and accomplish the growth of the business.

Human Resources Management

Recruitment, recruitment and disciplinary work are primary areas addressed by the human
resources feature. The Human Resource at Tesco is structured to hire individuals who are
ideally qualified to the various roles at Tesco. The recruiting role is critical as Tesco must
ensure that it has the best people to work in its company such that it is a great success. The
staffs at the Department of Human Resources have to try very hard to locate the best
applicants for their positions by publicising placements in local journals and interviewing
potential career seekers (Mohamed, 2015). Having found the best applicants for various roles
in the organisation, the department of human resources must continue to improve its expertise
and talent by taking them to train in which new credentials have been taught to experience the
role they hold in Tesco. This could be just as critical as being a store manager or just as quick
as a shelf stacker. Conservation is the mechanism of keeping workers comfortable in Tesco.
Paying or rewarding workers will help the company remain whether it is bored or dissatisfied
in what it does.

Customer Support Service

Customer service workers are allowed to welcome customers to the shop, be polite and
familiar, answer any questions from their customers and support their customers in any way
possible. They were qualified to support all consumers in particular. They often have to wear
a dress different from most workers so that clients can quickly find them to answer customer
questions. Customers who come at Tesco usually demand friendliness and compassion from

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the employees when they purchase or receive a service. Employees are equipped to handle
and behave with consumers when a customer is out of hand or annoyed.

In each of its departments, Tesco assists. For starters, if you want to cut a certain loaf, the
customer will let a staff member know and in minutes he will do so. Tesco also offers
consumers the chance to sample the food before they buy. Assistants in all Tesco stores will
taste a free preview of items before they decide to order.

Accounting and Finance Services:

The department of accounting is responsible for the compilation, classification and reporting
of facilitation activities and external financial records (payroll, cash, financial statements,
general record) as well as quality control and business decision making. Accountants,
therefore, share in all business money decisions (Mohamed, 2015). Also, all financial
operations affect the business, such as evaluate new tactics, financial results or the absorption
of new firms. At Tesco, accounting and finance entail the following: the transaction of
corporate transactions (daily book record); the making of adaptations of the general ledger;
the closure of books; the preparation of financial statements. For example, the marketing
department needs to approve the budget for the marketing campaign next year, as long as it is
the financial department. The same happens with the divisions of manufacture, research and
development.

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Conclusion
Business owners and supervisors who cover regular decisions are very good at managing the
operational environment of the enterprise. They pick the equipment they manufacture, the
employees they hire, the products they sell and where they are sold. They use the experience
and capital to grow the existing and future customers' goods and services. 

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References
Baron, D., 2013. Business And Its Environment. Singapore: Pearson.

Brooks, I., Weatherston, J. and Wilkinson, G., 2011. The International Business

Environment. Harlow [etc.]: Financial Times Prentice Hall.

Mohamed, A., 2015. The international business environment: a proposed analytical

framework. International Journal of Business Environment, 7(2), p.168.

NHS UK, 2020. The NHS Website. [online] nhs.uk. Available at: <https://www.nhs.uk/>
[Accessed 29 October 2020].

Rachel's Organic, 2020. Rachel’S Organic | Faithful To Nature Since 1952. [online] Rachel's
Organic. Available at: <https://www.rachelsorganic.co.uk/> [Accessed 29 October 2020].

SALEEM, S., 2015. BUSINESS ENVIRONMENT. [Place of publication not identified]:

PEARSON EDUCATION INDIA.

Tesco UK, 2020. [online] Available at: <https://www.tesco.com/> [Accessed 29 October

2020].

Worthington, I., Britton, C. and Thompson, E., 2018. The Business Environment. Harlow,
United Kingdom: Pearson Education Canada.

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