BUSINESS ENVIRONMENT

Business Environment

Business Environment

LO1: Understand the organizational purposes of businesses

Brief background of the Organization

Tesco PLC is a British multinational retailer headquartered in Cheshunt, Hertfordshire, England founded by Jack Cohen. Tesco PLC is one of the largest retailers with operations and stores in 14 countries, employing over 520000 people and serving thousands of people per day. Tesco is ranked third largest retailer in the world in terms of revenues (after Wal-Mart and Carrefour) and second in terms of profits after Wal-Mart. Carrefour) and considered as second largest in terms of profits (after Wal-Mart) (Tesco PLC 2013, pp.1-25).

Mission, vision, short- and long-term objectives

Tesco PLC's vision is to become the most highly valued business by the customers they serve, communities in which it operates trustworthy and dedicated colleagues and shareholders. The company has aspired five key elements: 1. Wanted and needed around the world. 2. A growing business, full of opportunities. 3. Modern, innovative. 4. Winners locally whilst applying skills globally. 5. Inspiring, earning trust and loyalty from customers, our colleagues and communities (Tesco PLC 2013, pp.1-25).

It has been a year of noteworthy and remarkable change for all companies operating in United Kingdom as well as Europe especially Tesco PLC as most of the countries were experiencing recession. The management took important decisions on key issues for the organization: reorganizing the opportunities for the UK, announcement of set out the business in Japan. The company has trailed substantial elements of the changes as the Investment program has already started, the Big Price Drop in September 2011; they are making changes which are more than the price. The international business of Tesco has performed very well, profits are up by 18% or 22% before the bang of crisis tax levied in Hungary and experiencing progress in other regions such as South Korea, Central Europe and Thailand. The devastating floods in Thailand caused Tesco to close more than 150 stores and all distribution depots temporarily (Tesco PLC 2013, pp.1-25).

Comparison of Tesco PLC's purpose with British Petroleum

The main purpose of the organization is to create highest standard of value for customers in order to earn them lifetime loyalty. Tesco PLC's purpose which makes it unique is “We make what matters better, together, allows us to deliver this. Beside Tesco, the core purpose of British Petroleum is to deliver energy to the world by finding, developing and producing essential sources of energy and become a world class operator and great employer (Bp.com, 2006). Stakeholders

Stakeholders may refer to a person, party, organization or system that affects or can be affected by the actions of the organization. Tesco PLC believes in caring of its stakeholders by doing right things. The main stakeholders of Tesco are Customers, Colleagues, Suppliers and Investors. All stakeholders expect that the company will attempt to satisfy their demands (Spider, 2009).

Meet their needs

Customer

Key player

Shareholders

Least important

Colleagues

Show consideration

Suppliers

Influence of stakeholders

Interest of stakeholders

Stakeholder analysis matrix shows that investors have an interest and influence on the business because they own company, and so want it to make ...