Understanding Business Environment and Organization

The assignment focuses on analyzing the various types of organizations, including their purpose, motive, size, and scope. It highlights the significance of studying the business environment to help companies perform their operations effectively. By considering government rules and regulations, businesses can minimize mistakes and achieve their goals in a timely manner.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Covered in PPT...........................................................................................................................3
P3 Interrelations between organizational functions and with company structure and objectives
.....................................................................................................................................................3
TASK 2............................................................................................................................................5
P4 Positive and negative impact of PESTLE analysis................................................................5
P5 SWOT analysis of chosen organization.................................................................................7
P6 Interrelationship between micro and macro factors of an organization.................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is a study of external and internal elements in order to run a
smooth business organization by satisfying the need or demand of distinct clients. In fact, these
factors are totally interrelated with each other and have a major impact on a company
performance because overall company policies are designed on the basis of government rules
and regulations (Burns and Winter, 2011) . For instance health and safety is a seen as extrinsic
factor which influence the business operations in various manner. Therefore, assignment is going
to highlight the various types of organization which are existing at a marketplace but having
distinct objectives as compared with each other. Although they all are distinguish on the basis of
size, scope and legal structures as well as motive of establishing business entity. Thus, main
company which is selected in this report is Maybelline which is involved in offering best
clothing services to their desired clients. Moreover, PESTLE and SWOT analysis is also outlined
in this project for identifying the current position of an organization
TASK 1
Covered in PPT
P3 Interrelations between organizational functions and with company structure and objectives
Maybelline involves distinctive authoritative functionalities in order to gain maximum
profits by satisfying consumer needs. There are various number of hierarchical functions that are
available in single business association that is connected with its set destinations and points in
powerful and productive way . Thus, it has been understood that every department of an
association are having a major connection with each other and having impact on performance of
business entity. Hence, overall descriptions which shows the interrelationship is discussed as
follows:-
Research and development department:- This section of Maybelline perform vital
business operations that is assessment of present economic situation with the goal that they could
ready to take judgement in powerful and effective way. They consistently need to analyse macro
factors in order to study the positive and negative effect on the association framework. Their
prime obligation is to assess all the working procedure that is occurring with the goal that general
capacity of the organization will be performed in viable and effective way (Chow, and et. al.,
2011) .
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Marketing team: This division assume a fundamental part by performing number of
advertising exercises that is specifically connected with the achievement of conclusive objectives
and goals of Maybelline. It is the duty of advertising supervisor to perform activities with the
goal that they can easily affect the clients for enforcing them to buy specific products. Its
essential point is to pitch the organization's item so as to accomplish high benefits and results
and build up supportable market picture and generosity.
Manufacturing department – It is fabricating division of an organization that create
diverse kinds of items and administrations for their coveted clients. For an association, it is vital
for understanding their creation methodologies and ideas which help with lessening the extra
wastage and cost that can help in improving powerful merchandise in way. Before assembling
some item, it is required for organization is to investigate the clients needs and request after that
they can distinguish target clients.
Human resource management – It is the imperative piece of an association which help
in overseeing and keeping up all elements of the office in appropriate way. Human asset
administration is doing work for creating and expanding aptitudes or learning of representatives
by giving preparing and improvement program. With the assistance of this, they are proficient
for picking up and accomplishing wanted objectives and destinations in viable way. The
principle goal of this division is to give preparing and learning sessions, procure competitors,
oversee business exercises and creating profession heading for workers. This division work for
decreasing question and clashes from authoritative capacities and exercises (Commander and
Svejnar, 2011) .
Accounting and Finance – It is the real division of an organization which are producing
for dealing with all accountancy and monetary exercises in better way. With the assistance of
this, organization chief can oversee income, fund flow, capital administration, budgetary control
and exchanging accounts which required for overseeing according to precise way. It is secret
branch of organization that oversee money related proclamation for increasing future
development and achievement.
Hence, it is analysed that company needs to focus on each or every department of an
organization in order to control possibilities of mistakes and errors. There are distinctive
occupations which are accessible for association start to finish administration to representatives.
This is partitioned into a few sections, for example, CFO, human asset chief, and so forth.
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TASK 2
P4 Positive and negative impact of PESTLE analysis
Macro environment is all about analysing the external elements which are not controlled
or managed by business entity. In fact Maybelline is a most successful organization in cosmetic
industry due to their qualitative products across the international boundaries. Along with this,
facilitating numerous of females with outstanding goods for enhancing the beauty of a person.
However, company is engaging in various foreign products for increasing their revenue by
acquiring minds of domestic as well as foreign clients. Although, it is not easy to analyse the
external factors due to presence of governing bodies which is not regulated by anyone across the
borders (Cronan and et. al., 2011) . Beside this entire corporate world are following major rules
and regulations of government in order to reduce the chances of fraudulent activities. Apart from
this, it has been analysed that PESTLE is having negative as well as positive impact on
organization that is discussed as follows:-
Political:- Government is liable to make policies or norms for organization in order to
help them while designing their company strategies. In fact, corrective direction is given by
advisory bodies only by considering necessary facts or figures. Thus, positive and negative
influence of political norms are described under:-
 Positive :- One of the major benefits which is encountered by Maybelline is that
fundamental rules or regulations of government helps them while dealing with various
types of consumers. As by considering norms chances of fraud get minimized and
negotiation procedure as price and tax rate is mentioned on product. Along with this
neither buyer nor seller can cheat while engaging in a process.
 Negative:- Sometime beliefs of governing bodies restrict company while involving in a
beneficial contract and consume long process which may affect the success of a business
entity. For instance; increase in taxation rate minimize the company profit.
Economic:- Changes in currency rate and fluctuation of gross domestic product is fall
under this factor as it shows the current positioning of a nation due to development of corporate
park.
 Positive:- Restrict the unusual trade which helps in controlling losses or wrongful
conduct. Along with this, sometime inflation or deflation is profitable for organization in
various manner.
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 Negative:- control the maximum profit of an organization due to changes in currency rate
as well as affect the future contract with foreign companies.
Social:- Final user of products are overall community which means public are seen as
most indispensable aspect for Maybelline while running a business. As final products are
consumed by them only.
 Positive:- One of the major advantages is that products is consumed by whole society
which means it is essential to focus on understanding need or requirement of consumers
in order to design products as per their choice or preferences. Additionally, it helps in
controlling the possibilities of organizational loss by focussing on society needs
(Fernando, 2011) .
 Negative:- Sometime it is not easy to attract consumer towards organizational products
because consumers always want something new or unique with high quality but at
affordable price. Thus, this element create problem for Maybelline while introducing
goods as per their choice or preferences.
Technological:- World is converting from traditional to modern due to emergence of
various advanced technologies which helps in enhancing the performance of an organization by
accomplishing business activities in a minimum time period. Thus, some of the benefits and
drawbacks are highlighted further:-
 Positive:- Modern tools aids in understating the need of consumers by creating positive
relations with them as well as make connection with long distance clients also. As a result
it aids in establishing the positive image of Maybelline at international marketplace by
satisfying needs or domestic as well as foreign customers.
 Negative:- It is not easy to handle or manage complicated tools due to its complex
features as less skilled employees are not aware about the process of handling complex
tools.
Legal:- Legitimate bodies are engaged in designing various types of acts and enforce
distinct laws at entire nation as it is applicable on whole region. For example; registration
process must be accomplished for running a ethical organization.
 Positive:- laws and acts are designed for reducing changes of wrongful conducts and
misinterpretation which is increasing day by day. Along with this several acts supports in
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minimizing criminal acts at marketplace which helps an organization to run their business
in a smooth manner without encountering any legal problems.
 Negative:- On the other hand, sometime laws are also considered as major obstacle for
company success because it controls the company while expanding their business across
in various regions (Gebauer, Paiola and Edvardsson, 2010).
Environmental:- Resources are considered as most indispensable aspect for entire
corporate world because it helps managers in various situations such as; labour, plant or
machinery, land or building, money hence forth. In fact, these resources are having a major
impact on company performance.
 Positive:- It is essential to acquire major resources in order to perform business
operations in more effective way without harming others. Aids in attaining set objectives
in a desired time frame.
 Negative:- Sometime changes in environment affects the existing company in various
aspect such as; fluctuate the decision of consumers.
Consequently, it is understood that all the above factors plays a very eminent role in
business operations as it hamper the overall running of a firm as well as control an enterprise in
various manner. Although company is not able to regulate it but needs to run their business as
per terms and conditions of macro factors in order to minimize the possibilities of losses.
P5 SWOT analysis of chosen organization
Maybelline is a major brand across the international boundaries due to its qualitative
products and marvellous items which helps in enhancing the beauty of a person. Along with this
managers of company is trying to improve their current positioning by expanding their business
as well as focussing on introducing innovative ideas for capturing consumer attentions.
Moreover, it is indispensable for company to conduct internal audit in order to understand their
hidden barriers and potentiality (Halbert and Ingulli, 2011). Hence, by analysing it they can
easily make changes in their existing plans or strategies as well as able to improve things which
is required. Thus, an appropriate SWOT analyses of Maybelline is discussed as follows:-
Strength:- Its all about organization inner
capability
 First or foremost power of an
organization is their qualitative beauty
Weakness :- Its all about failure of company
and drawbacks which affect the organization in
negative manner.
 Ineffective communication between
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products which enhance the personality
of maximum clients.
 Company always designed their
products as per consumer choice or
preferences which helps in reducing
unusual losses.
 Having branches at global marketplace
which resulted in profit maximization.
 Company is a cash rich which means
Maybelline is having maximum amount
of funds due to increment in their users.
 Succeeded in establishing goodwill of
an association at distinctive foreign
markets.
 Offering innovative ideas
 Having an association with L'oreal
which is a very popular brand at global
market.
employees affect the overall
performance of business entity .
 Chances of disputes due to unhealthy
environment at workplace.
 Work load get increases due to absence
of maximum employees.
 Difficult to manage a branch due to the
presence of large number of employees.
 Focussing on traditional approach of
marketing due to weak websites are
designed.
 Chemicals is also identified in beauty
products.
 Lack of differentiation which means
consumers have numerous of
substitutes.
Opportunities:-
 Consumer behaviour is changing
because in today’s scenario almost 99%
of women’s are using cosmetic
products. Due to which organization is
having major chance to attract clients.
 Increment in working women’s
 Enhancement of per capita income
which resulted in maximization of
shopping behaviour of females as they
are becoming more rich due to increase
in national earnings.
 Introduction of various modern
Threats :-
 Increase in competition level is one of
the major threat for Maybelline because
number of cosmetic companies are
emerging and engaged in offering close
substitute. For example; Rimmel, Mac,
L'oreal and so on.
 Economy recession is automatically hit
the fashion industry as maximum
number of consumers lost their job. As
result they are not able to buy cosmetic
items.
 Negative publicity is one of the major
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technologies is also useful for an
organization to create a personal
relations with long distance clients and
make them habitual of specific product.
danger for company because presence if
chemical is seen as major threat in
products.
P6 Interrelationship between micro and macro factors of an organization
Micro and macro factors have a major connection with each other due to their eminent
role played towards company success and growth. In fact, it is indispensable to understand each
or every elements which is connected with an enterprise development in order to control
probabilities of mistakes and errors. However, company have the ability to control the internal
elements but can’t able to regulate external components due to the presence of governing bodies
which is itself is a major authority. Thus, major relation between both the factors are described as
underneath in order to attain organizational goals or objectives:-
PEST
analysis
Description Strength Weakness
Political Governing bodies are
playing very eminent role
in designing norms,
beliefs, rules and
regulations which is
applicable on association
in order to run a smooth
manner.
Supports in reducing
fraudulent activities which
affects the success of an
enterprise.
Restrict company while
expanding business across
various regions and at
international marketplace.
Economical Economy of a nation is
all about increment in
employment
opportunities for various
unemployed person in
order to raise the living
standard of common
Trade policies, fluctuation
in currency rate sometime
increase the profit level of
an association.
Whereas, on the other
hand changes in currency
value have a negative
impact on a future and
existing contract of
Maybelline.
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people.
Social It is essential to consider
societal choice and
preferences for
controlling chances of
mistakes.
Aids in acquiring
consumer trust or loyalty
by designing products as
per their choice or
preferences.
Increase the cost of an
organization while
assessing consumer
requirements.
Technologic
al
Emergence of several
advanced technology
have a major impact on
company performance.
It helps in accomplishing
business operations in
minimum time period.
At the same time modern
technologies are having
complex features due to
which it is not easy to
understand it. Therefore, it
may increase the training
and programme costing of
Maybelline.
CONCLUSION
From the above report it has been summarized that study of macro and micro
environment is very much indispensable because it helps in designing company policies in
corrective manner. Along with this supports in improving the current position of an enterprise by
designing product or services as per consumer choice and preferences. However, it is essential to
consider government rules and regulation because it helps in controlling the chances of mistakes
and errors. As a result, company can easily attain their desired goals and objectives in a
minimum time. Although, main objective of assignment is to show various types of organization
which are different in various terms such as; purpose, motive, size and scope. Thus, it has been
understood that entire study of environment plays a very eminent for Maybelline because it helps
company while performing their various business operations.
REFERENCES
Books and Journals
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