2. OCR Level 3 Cambridge Technicals in Business
Introduction to
Unit 1:
Business Environment

3. Two very different businesses
In October 1942, following the setting up of a national Famine Relief Committee, the Oxford Committee for Famine Relief met for the first time and Oxfam was born.
Oxfam continues to support relief for poverty via direct action projects all over the world, often in areas of severe deprivation.

4. Two very different businesses
These initials, along with ‘Co’ from Cohen, gave Jack the idea for the name of his own label – TESCO.
In 1919, Jack Cohen started selling surplus groceries from a market stall in the East End of London.
In 1924 Jack sold his first own-brand product. This was tea from a firm of tea suppliers of whom T E Stockwell was a partner.

5. Oxfam
The purpose of Oxfam is to help create lasting solutions to the injustice of poverty.
Oxfam uses a combination of rights-based sustainable development programs, public education, Fair Trade, campaigns, advocacy, and humanitarian assistance in disasters and conflicts.

6. TESCO Tesco’s vision is to be:
a modern and innovative company and winning locally, applying their skills globally
a growth company
most highly valued by the customers they serve, the communities in which they operate, their loyal and committed staff and their shareholders

7. Oxfam TESCO Business Environment
Oxfam and Tesco are both major businesses, but are very different.
Has no commercial or financial aims in its vision statement
Oxfam
Oxfam International is a confederation of 15 organisations
A public limited company with clear aims to grow its position in the market place
TESCO
Performance is measured by profit and revenue levels
Works primarily in the retail sector
A registered charity

8. Oxfam Business Environment Charity Relieve suffering of those in need
No maximisation of profit
Income from donations
Retail Sector
No shareholders
Respond to worldwide emergencies/disasters

9. Public Limited Company Customer satisfaction
Business Environment
Growth
Customer loyalty
Fierce competition
Value for money
Retail Sector
TESCO
Maximise profits
Public Limited Company
Customer preferences
Customer satisfaction
Brand value
Shareholders

10. Business Environment However both:
Oxfam and Tesco represent very different organisations operating in very different business environments.
Operate within a business environment where global economic uncertainty can have a major impact
Have strong core values and strategies which are paramount to their success
Are efficient and effective organisations that achieve their very different purposes

11. What will you learn? After completing this unit you will:
Know how political, legal and social factors impact on business
Understand how businesses are organised to achieve their purposes
Know the range of different businesses and their ownership
Know the impact of the economic environment on businesses

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