BUSINESS ENVIRONMENTSubmitted By:Submitted To: TABLE OF CONTENTSIntroduction................................................................................................................................ 32. LO1 Understand the organisational purposes of businesses.....................................................................42.1 purposes of different types of organisation !1.1"............................................................................42.2 #$tent to %hich Tesco !lc meets the ob&ecti'es of different sta(eholders ! 1.2".....................................52.) *arious responsibilities of Tesco !lc as an organisation and the strategies it employs to meet the ob&ecti'es of the sta(eholders !1.)"................................................................................................................ 6). +ature of the national en'ironment in %hich business operates LO2"......................................................9).1 ,o% different economic systems attempt to allocate resources effecti'ely ! 2.1"...................................9).2 Impact of -iscal and monetary policy on the acti'ities of Tesco !L. ! 2.2"........................................10).) Impact of competition policy and other regulatory mechanisms on the acti'ities of Tesco !lc ! 2.)".........11).).1 Impact of competition policy O+ T,# /.TI*ITI#S O- T#S.O !L.........................................11).).2 Impact of regulatory mechanisms on the acti'ities of Tesco !lc..................................................120. Understand the beha'iour of the organi1ations in their mar(et en'ironment LO)".....................................130.1 e$plain ho% mar(et structures determine the pricing and output decisions of T#sco plc ! ).1"...............130.2 ,o% mar(et forces shape Tesco !L. U2 responses using a range of e$amples ! ).2"...........................140.) #$plain ho% the business and cultural en'ironments shape the beha'iour of Tesco !L. U2 ! ).)"...........153. Significance of the global factors that shape national business acti'ities LO0".........................................163.1 SI4+I-I./+.# of international trade to Tescos !L. U2! 0.1"....................................................163.2 impact of global factors on Tescos !L. U2 ! 0.2".......................................................................163.) impact of polciies of the #uropean Union on Tescos !L. U2 ! 0.)"..................................................175. .onclusions and 6ecommendations.............................................................................................. 187. 6eference.............................................................................................................................. 198. Bibliography.......................................................................................................................... 21INTRODUCTION In this report9 different organi1ations purpose and responsibility %ill be discussed specifically thepurposes of Tesco!L.that is anU2basedpublic limitedcompany. There are differentsta(eholders of Tesco so the responsibilities and strategies of Tesco !L. %ill be sho%n to meettheob&ecti'esofthesesta(eholders. Ontheotherhand9 nationalen'ironment ofU2%ill besho%n to find out ho% different national factors affect the acti'ities of Tesco !L.. /long %iththe national factors ho% global factors affect the business strategies of Tesco %ill be analysed. /tthe end of the report it %ill be discussed ho% Tesco is affected by the #U regulations among themember countries. 2. LO1 UNDERSTAND THE ORGANISATIONAL PURPOSES OF BUSINESSES2.1 !U6!OS#S O- :I--#6#+T T;!#S O- O64/+IS/TIO+ !1.1":ifferent types of organi1ations ha'e their o%n business policies9 structure9 and strategies and soare their purposes. So9 %hate'er the business organi1ations there must be some specific purposesfor %hich the organi1ation %as established +ordhaus9 2s get commissions and do not ta(e any ris( fromthe local mar(et. The purpose of the franchising is to minimi1e the ris( and cost of beingglobal. d" +ational ,ealth ser'ices +,S" U2: +,Sis a publiclyfunded nonBprofit companyestablished in U2 to pro'ide free health ser'ices for the citi1en of the country. This is anonBprofit public company established in the purposes of pro'iding free ser'ices. So9 thereare no strict rules of ma(ing profit and the organi1ation is operated by the go'ernment fund6adebaugh9 et al.9 2