Unit 1: Business and the Business Environment- TESCO

Organisations are of several types and all of them have different motive in a commercial ground. It is needed to be understand that at the end of the day all of the organisation perform their business activity to achieve goals so that they can sustain in the market. To understand about the concept of different business organisation, it has been discussed below:

Public Sector Organisation: The sector which is governed by the decision of different government department more then half of the shares are purchased by the government is knowns as public sector organisation. Here, thinking about profit making is never a main concept. In UK the company which falls under the category of public sector is Crown Prosecution Services.

• Purpose: This types of organisation wants to deliver the services at a reasonable price for public welfare.

Central Government Here, main source of organising every single activity is through Income Tax.

Local GovernmentIt is necessary for this types of government to take the help of council tax for managing the fund (Yeh and et. al., 2015).

State GovernmentIt is needed to be understand that state government is required to understand that they must make the policies for state level only.

Crown Prosecution Service falls under the category of central government.

Private Sector Organizations- Those business organisation which is needed to be managed by the general public where they themselves need to develop the new concept. TESCO Plc is the company which has been commenced privately for the motive of earning profit. Different form of business in private sector are:

• Purpose - To earn the better amount of profit by selling the good amount of product and services in the market.

Sole Proprietorship: The company which is requires only one investor to operates its activity (Wood and Logsdon, 2017).

Partnership: This types of firm can be managed in the situation where couple of investor form the agreement to start the business within specific area.

Limited Company: The business organisation where liability of investor is always limited for the amount of their investment is known as limited company.

TESCO Plc perform its activity under the guidelines of limited company.

Voluntary Organizations- These are the team of an individual which perform their activity by forming any of the objectives. Cancer Research is one of the example of voluntary organisations.

• Purpose: To reduce the cases of Cancer in the world.

Trust Here, membership is not needed as it just for the work of charity. Any of the work is needed to be done as per the Trust Act (Quinlan and et. al., 2019).

AssociationIn this, people work for the common objectives but it is needed to understand that profit making is never a objective in it.

Cancer Research UK is a Trust where they are needed to work as per the guidelines of Act.

In present scenario, all of the organisation which are performing their business activity must understand that they must work as per the guidelines of and objective of the company. To understand it in detail, scope and size of different company have been mentioned below:

TESCO Plc

• Background: It is one of the private company which are commenced in the year 1919. It comes in top 5 multinational organisation in retail sector. They have been selling number of products which is able to attract the customers easily.
• Product or Services offered : They offer cloths, electronics as well as grocery items which are essential for any of the family.
• Size: There are around 6800 stores of TESCO which is operating in different part of the world. Number of employees are around 400,000 (Pearson, 2017).
• Scope: Company has the option to expand their business in the market of frozen food.
• Vision: To become of the leading company in the retail sector where they can be easily recognised in any part of the world.
• Mission: To enhances the profitability ratio and meet out all of the basic needs of people.

Cancer Research UK

• Background- The company was incorporated in 2002. The current head office is located in London United Kingdom.
• Services- To look after the patient of Cancer.
• Size- The number of employees in the company is approximately 4000 whereas they have addition 40000 serviceman.
• Scope- They has the option to expand their business to some of the Asian Countries like China, India and many more
• Vision- To become the brand ambassador of Cancer treatment.
• Mission- Make people believe that they can easily fight against the cancer.

Crown Prosecution Service

• Background: This organisation was started by the government of UK in 1986. The main office from all of the activities are being monitored is London.
• Services: To find out the conclusion on the evidences collected by the legal department of a government.
• Size- There are more then 6000 employees are available (Andersson, Forsgren and Holm, 2015)
• Scope- As the result which they have obtained is really well due to which government can easily look for area of UK for effective result.
• Vision- To become the leading department to declare any of the right decision in criminal proceedings.
• Mission- To find out the conclusion of any case just after going to the every single step of case study.

In any of the company, there are several department but all of them have connection with each other so that effective results can be obtained. In context of TESCO Plc, if they faces any of the problem in their working conduction then directly or indirectly they can take the help of other department so that problem can be sorted out. Relation of various departments are listed below:

1. Marketing and Human Resource Department: Both, HR department and Marketing department has a crucial role within the business organisation where performing the task with proper co-ordination is very crucial in it. HR department has the rights to hire the candidate and it is needed to be understand that they are needed hire the skilled and talented candidate who can perform their work specifically. TESCO Plc is able to perform any of the work just because of the better communication system (Khan and Quaddus, 2015).
2. Purchasing Department and R & D Department: Company like TESCO will be able to; expand its business activity only in the situation where purchasing and R&D department have a suitable coordination between each other. R&D department can easily guide to purchasing department that how they can expand the business at a greater platform for attaining the goals of a company.
3. IT Department and Finance Department : It is needed to be understand that IT is one of the sector which can allow company to promote their organisation at a greater platform so that goals can be accomplished. Promotion is only possible if Finance department of TESCO Plc can distribute the fund for IT department which can allow them to do proper promotion of the company (Ehret, Kashyap and Wirtz, 2013).

Organisational Structure

It can be explained as the process where work and every single responsibility is allocated to different department by the organisational for the purpose of accomplishing the goals of a company. Talking about TESCO Plc, they are needed to understand that use of suitable form of organisation structure can guide that how work can be done. TESCO Plc uses Hierarchical organisation Structure.

Hierarchical Organisational Structure

This is the organisational structure where top level management has the maximum power to take any of the organisational decision through which goals of a company can be accomplished easily in future period of time (Golovnev and et. al. 2013). The hierarchical structure of TESCO Plc is divided into different groups where people departmental heads are at the top level who carries the maximum responsibility to conduct any of the business activity.

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CONCLUSION

The concept which can be developed from the above discussion is that commercial sector is one of the sector which frequent changes occurs on daily basis due to which it is necessary to for companies to keep themselves updated. Secondly, business organisation required the appropriate relationship with several other department which can allow them to understand that how any of the situation can be handled. Then, PESTLE is the analysing model which can give idea to business organisation that how they can improve their performance to meet out the goals. SWOT analysis can guide company that how they are overcome the problem of threats and weaknesses.

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