Business and Business Environment Report

This report analyzes the business environment and its impact on organizations, using Zara as a case study. It examines different types of organizations, their legal structures, size, scope, and interrelation between departments. The report also analyzes the impact of macro environment on Zara's business strategy and performance.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types and Purpose of private, public and voluntary organisation and their legal structure. .1
P2 Size and scope of different organisations..........................................................................3
P3 Interrelation between different organisational departments and their link to objectives. .4
TASK 2 & TASK 3..........................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Business environment is a most important factors that has direct impact on operational
and functional activities of a firm. These aspects affect performance, market values, goodwill,
profitability and growth of an organisation. Business environment is classify in two different
factors as Micro and Macro which has direct impact on decision making procedure. These
factors has becoming more complex for different in order to expand their structure in new
geographical regions (Reed and et. al., 2013). This report is based on Zara which is a Spanish
fast fashion retailer. This organisation was founded in the year of 1975 by Amancio Ortega and
Rosalia Mera. Zara is a multinational clothing brand that provide its classy and trends clothings
in several countries. This report include Types and purpose of different organisations as well as
their size or scope. Its also determine Interrelationship between different departments and Impact
of macro environment. At last it represent strength or weaknesses of an organisation and
interrelationship of them with macro environment.
TASK 1
P1 Types and Purpose of private, public and voluntary organisation and their legal structure
For a business organisation, it is essential to accomplish their target goals and objectives
in effective manner. In a economy, different types of organisations are established with specific
purpose and objectives that they wants to attain properly. Types of these companies can be
Public, Private and voluntary that are classify on the bases of their future objectives and goals.
Purpose and types of these organisations can be -
Private sector organisation – These business organisations are basically established to making
money and getting desirable growth on the bases of their products as well as services. For them,
it is require to build positive connection with customers to getting long term benefits easily.
These types of firms is working under private ownership of an individual or group of people.
They also needs to take legal licence from government of the country but proper control is held
by private owners (Reinhardt and Stavins, 2010). For example Zara is a private sector
organisation that provide its quality products to customers on the bases of their requirement and
need.
Purpose of Zara -
1

 Provide classy and trendy clothings as well as services to customers on the bases of their
demand.
 To create higher competition for furthers organisations that deals in same sectors.
 Maximise profitability and growth of organisation in coming years.
Legal structure -
 Partnership- These are privately owned organisation in which two or more candidates
sign a legal agreement on the bases of their mutual understanding to operate business
activities.
 Sole proprietorship- These organisations are basically owned by a single individual who
operate all the business activities by their own efforts and skills. Sole proprietor having
proper control ion such firms (Shigang, 2010).
Public sector organisation – These organisations are basically introduced to provide quality
services to public. Major activities of these organisations are medical facility, education,
electricity, water, transport and police services. Government of a country having proper control
on such organisations. For example NHS is a public sector organisation which was established to
provide health care services to each individual.
Purpose of NHS -
 Provide effective and quality services to each and every client.
 Treating each patients with respect and self-esteem.
Legal structure -
 Central government – These governmental bodies make proper control on public sector
organisation.
 State government – These legal authorities provide funds to manage functional
approaches of firm (Karagiorgos, Drogalas and Giovanis, 2011).
 Local government – They provide several facilities for proper management of firm.
Voluntary sector organisation – These organisations are basically established to social care
services to needy and poor people. Voluntary sector organisation are not established to maximise
profitability and getting income but they work for public welfare. For example Oxfam is a
voluntary sector firm that works for welfare of poor people. Main objectives of this organisation
is to remove poverty from the world.
Purpose of organisation -
2

 Provide long lasting services to poor and needy people.
 Remove poverty from the world.
 Provide educational and health care services for public welfare.
P2 Size and scope of different organisations
For a business organisation, it is require to analyse their market size and scope that can be
distinct to others. These factors can be based on future objectives and targets of firm. Size of an
organisation is consider strength of employees, geographical values of firm and operation
activities of them. Scope of organisation is include treading policy of organisation in several
countries, customers of products and services and brand loyalty in target market. All these
factors helps to mange organisational activities in effective manner.
Zara -
 Size and scope- Zara is a Spanish fast fashion retailer organisation which was established
in the year of 1975 by Amancio Ortega and Rosalia Mera. Firm has approx. 2200 stores
in worldwide (Kolk, 2016). In these stores large number of employees are working who
provide their effective services and contribution on the bases of customers demand and
requirement.
 Vision and mission – Zara is a multinational clothing brand that having several award
winning moments in its history. Main objectives of vision of this firm is to maximise
numbers of customers for the firm to getting long term benefits and growth easily. Zara
wants to design most classy and trendy clothings for their customers to build a impactful
competition for other organisations.
NHS -
 Size and scope- NHS is a Public sector organisation which was established to provide
health care services to each and every individual. This organisation has large business
structure that maximise its services areas in proper manner. For them it is require to
manage their health care activities in proper way (Nishitani and et. al., 2012).
 Vision and mission – Main objectives of this organisation is to provide effective health
care services to each and every individual by analysing their requirement and need.
Through this, they can easily build direct connection with service user in appropriate
way. Main purpose of them is to maximise health care activities and services for each and
every individual.
3

Oxfam -
 Size and scope- Oxfam is a voluntary sector organisation which was established for
social care activities in a country. This firm maximise its structure by providing higher
and quality services to each individual. Geographical area of this firm very vast because
they are working to remove poverty from the world (Osterwalder and Pigneur, 2010).
 Vision and mission – Oxfam is a voluntary sector organisation so for them it is require to
make clear objectives and vision on the bases of their services criteria. Mission statement
of this organisation is to remove poverty from the country. For this they provide
educational and health acre services for individual development and growth.
P3 Interrelation between different organisational departments and their link to objectives
In a business organisation, several employees are working who provides their effective
contribution to achieving target goals and objectives easily. For this management of firm
distinguish them in different department on the bases their skills and abilities. Functional
approaches of these divisions are interrelated to each other as -
Marketing – This is a most important department of an organisation that helps to
introducing products and services in target market. For this they used different techniques and
tools in order to maximise number of customers with their organisation. Main objectives of
employees of this division is to maximising sales and growth of organisation in effective manner.
Marketing and promotional tools of organisations are advertising, e-marketing, door to door
promotion and B2B activities (Pulver, 2012).
Human resources – This department of organisation helps to manage operational and
functional activities in effective manner. For this, they hire new candidates who helps to
accomplish organisational goals and objectives in effective manner. Recruitment and selection is
one most important working approach of HR manager. They also conduct different training
program for their employees to enhance their skills and working abilities.
Operation and production – Zara is a well known clothing brand that provide quality
services to their customers on the bases of their requirement and need. In this procedure
employees of production department helps to provide their quality services to customers on the
bases of their need. In this procedure, research and marketing division helps to provide proper
information related to target market and customers. Production is a most important division of an
organisation that helps to maximise income and profitability.
4

Finance – This department of firm is play a most important role in order to maximising
funds and investment of firm in proper way. For this firm needs to hire a skilled and talented
candidate who manage all cash, expenses, income and investment related transaction of firm.
Through this organisation can easily get higher probability and effectiveness as well
(Avramenko, 2012).
TASK 2 & TASK 3
(Covered in PPT)
CONCLUSION
As per the above report it has been summarised that business environment is a most
important factors that has direct impact on operational and functional activities of an
organisation. For this management of firm needs to make impactful strategy to reduce negative
impact of such factors. Business environment is classify in two different factors as internal and
external. Both factors has direct impact on business procedure and activities. External
environmental factors are beyond the control and has direct impact on decision making
procedure of firm. These factors has becoming more complex for different in order to expand
their structure in new geographical regions.
5

REFERENCES
Books and Journals
Reed, O. L. and et. al., 2013. The legal and regulatory environment of business (p. 328).
McGraw-Hill/Irwin.
Reinhardt, F. L. and Stavins, R. N., 2010. Corporate social responsibility, business strategy, and
the environment. Oxford Review of Economic Policy. 26(2). pp.164-181.
Shigang, Y., 2010. Competitive strategy and business environment: The case of small enterprises
in China. Asian Social Science. 6(11). p.64.
Karagiorgos, T., Drogalas, G. and Giovanis, N., 2011. Evaluation of the effectiveness of internal
audit in Greek Hotel Business.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Nishitani, K. and et. al., 2012. Are firms' voluntary environmental management activities
beneficial for the environment and business? An empirical study focusing on Japanese
manufacturing firms. Journal of environmental management. 105. pp.121-130.
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Pikka, V., Iskanius, P. and Page, T., 2011. The business enabling network–a tool for regional
development.International Journal of Innovation and Regional Development. 3(3-4).
pp.324-344.
Pulver, S., 2012. Business and the Environment.
Avramenko, A., 2012. Enhancing students' employability through business simulation.
Education+ Training. 54(5). pp.355-367.
Bovee, C. L., Thill, J. V. and Raina, R. L., 2016. Business communication today. Pearson
Education India.
Cavalcante, S., Kesting, P. and Ulhøi, J., 2011. Business model dynamics and innovation:(re)
establishing the missing linkages. Management Decision. 49(8). pp.1327-1342.
Hair, J. F., 2015. Essentials of business research methods. ME Sharpe.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Online:
Business Environment. 2018. [Online]. Available
through:<https://www.slideshare.net/NikhilSoares/business-environment-
featuresmeaningimportanceobjectives-porters-model>
6