I communicate, the characteristics of the environment in which

I have been accepted onto a
work placement in the council in the Economic Development Unit (EDU) at my
local council, the EDU is committed to help businesses to start, grow and

The purpose of this assignment
is to compare and find out two different contrast businesses, I have chosen to
do the business Tesco which is a profit business and the contrasting business I
have chosen to do is Barnardo which is a non-profitable charity organization.
This unit will help gain an overview of key ingredients for business success,
how businesses are organized, how they communicate, the characteristics of the
environment in which they operate, and how this shapes them and their activities.
It will also show the importance of innovation and enterprise to the success
and survival of businesses with the associated risks and benefits.

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P1: Explain how two contrasting businesses?

Net for Profit: 


Tesco is a
British based Public limited company (PLC), A PLC is a company which
sells/trades shares to the public. Tesco, is a multinational grocery and
general merchandise retailer with headquarters in Welwyn Garden City,
Hertfordshire, England, United Kingdom. The purpose of Tesco is to please every
customer and keep them loyal for a life time, as this saying says on their
website. ‘Our Core Purpose is to create value for customers to earn their
lifetime loyalty’. The
main purpose of Tesco is to make profit and expand their business by profit by
selling groceries and other home goods to people. Also, another purpose is to help people
save money by selling their product cheaper compare to other super market
stores. Tesco is defined as a global business because as mentioned before,
it is the biggest employer in the UK with over 310,000 employees and over
3,4000 stores. Their shops are located all around the UK however it also has
stores in 14 countries across Asia, Europe and North America. It was originally
a national business from 1912 until 1992 when it opened its first store abroad
in Poland.


Tesco is a Public Limited Company because the company floated its
shares in the market, this way it was able to raise money for its expansion.
The reason Tesco is a Plc is because of the sheer size of the business, it is
huge. The advantages that Tesco have of being a PLC is that Tesco have a
limited liability for the shareholders, the business can raise a large capital
sum as there is no limit to the number of shareholders unlike a private limited, a plc is able to advertise the sale of
shares and sell them to members of the general public though the stock
exchange. The disadvantages are the original owners may lose
control, there are strict control and regulations to comply in order to protect
the interest.


Tesco is an organization that provides goods and services at a
slightly low price (special offers and discounts) in order to attract
customers. Tesco is a secondary sector because
they make some items themselves like when the products have the Tesco brand
make on it.  It means it’s
made by them. Also, Tesco is a huge retail outlet which
falls under the tertiary sector as it provides goods and services to the public e.g.
wholesales sales, transport ion and distribution. However, they
receive their products from their manufacturers (Tesco Corporation Manufacturing).
They sell various kinds of goods and provide a range of services such as, food,
accessories, medicine, deliveries, customer assistance etc. They sell their
items and provide their services at profit in order to maintain the business.






P2: Tesco’s stakeholders and their influence

is anyone with an interest in a business; this can be invested by individual,
groups or organization. There are two types of stakeholders, internal and
external. Internal stakeholders are groups within a business e.g. owners,
employees and whereas external stakeholders are groups outside a business e.g.
the customers.


Stakeholders influence the purpose of Tesco because if it
weren’t for the investors then the business wouldn’t be able to run. The
investors invest their own money to better the business and receive a profit.
This is how the following could influence the organization; 



are external stakeholders as they want the company (Tesco) to produce high
quality products, customers are interested in buying products from Tesco
because they have interest in the company’s products. The influence that
customers have on Tesco’s is that they must meet customers needs otherwise if they
will fail to develop customer loyalty which they might be losing customers to
rivals and that means they are losing out on money.



employees are the internal stakeholders of Tesco which seek security
employment, promotion opportunities and good rates of reward. Also, the
employees are interested in the business because it provides job positions and opportunities
for the community, allowing employees to gain wages and working experience from
the business. Therefore, the employees also want promotions and secure job



suppliers are also internal stakeholders of Tesco that want steady orders and
prompt payment. Also, they want to feel valued by the company that they are
proud of. Tesco’s suppliers provide them with stock for their stores which is
extremely essential, because without the suppliers, Tesco would have anything
to sell. Tesco ensure they have good quality suppliers who are able to offer
them better stock than their competitors. Suppliers help Tesco because they
provide them with the stock in order for their business to run and be
successful, although Tesco help the suppliers because they provide them with a
lot of money because they have large bulk orders at a time. The suppliers will
gain a good name for themselves because they supply their goods to Tesco and
Tesco is a successful high-street business therefore the suppliers will get
more business.



are the shareholders of the business they have an interest in the profit Tesco
makes. Tesco has shareholders due it’s global business. The owners are being
the one who set up the business and also make the big decision related to the


Trade Unions: 

protect the employees’ rights and improve their working condition and



government is interested in the business because of the opportunities it
provides for job positions and the other opportunity to charge more taxes which
will create more money in the government and to grow and reduce the
unemployment rate.



community are interested in the business because of the job positions that are
provided and the ability to become customers for the business, the business
provides services and products of which are interests to the community needs.


are very aware of their targeted audience and therefore are successful in
meeting customer demands which allows Tesco Plc to expand. The influence they
have on Tesco is the customer service they can give back to Tesco. The
customers have the ability to offer their review and feedback in order to help
Tesco be the best they can be and find ways to improve specific areas within
the business.

customers can recommend the business to their associates and allow Tesco to get
a good reputation because of word of mouth. Therefore, the customers influence
Tesco majorly because they can help towards making the business the best it can
be and allow it to get a better reputation over its competitors.



Pearson National Business (page 12&13)