Business and Business Environment

Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Task 1...............................................................................................................................................1
P1. Discuss in brief about the different types of organisation with their purposes as well as
their legal structure......................................................................................................................1
P2. Illustrate the size and scope of different forms of organisation............................................3
Task 2...............................................................................................................................................4
P3. Interpret the different organisation function along with how they link with organisation
objective and structure................................................................................................................4
Task 3...............................................................................................................................................5
P4. Analyse the negative and positive impact of macro environment has upon the business
operations along with examples..................................................................................................5
Task 4...............................................................................................................................................7
P5. Illustrate the internal and external analysation of specific organisation in order to identify
the strength and weakness. .........................................................................................................7
P6. Explain about how strength and Weakness interrelate with external macro factor............10
CONCLUSION..............................................................................................................................12
........................................................................................................................................................12
REFERENCES .............................................................................................................................13
Books and Journals .......................................................................................................................13

INTRODUCTION
A Business Environment is set or collection of overall individual external information,
entities and other factor, which emphasis to under control of the organisation, but it can impact to
the performance, profitability, growth along with long term sustainability (Ahmadi, Rahimi, and
Rezaei, 2018). Every source of business organisation operates in distinctive environment where
it not prevail to exists in situation of isolation. According to such environment it influences
business that also get affected through business activities. The main objective of business
environment is to focuses on the earning more profit maximisation.
For Considering the organisation is from Automotive industry as, Aston Martin is a
British individual automotive manufacture of luxury sports, sedan and grand tourers. It was
establishment in year of 1913, founders are Lionel Martin and Robert Bamford. The revenue is
generates as 997.3 million pounds as in annually basis along with number of employees are
2,450 approximately in internationally (Berman and Dalzell-Payne,., 2018). In the following
report the topics are highlight as different types of business organisation along with their size and
scope. Relationship between different organisational function as well as their link with
organisation objectives and structure, positive and negative implication about to operation
business within examples. Analyses of Swot to the company to measuring the internal
performance and relate that how strength and weakness are interrelate with external
environment.
MAIN BODY.
Task 1.
P1. Discuss in brief about the different types of organisation with their purposes as well as their
legal structure.
There are three main different types of organisation are elaborated below:
Private Organisation: This is the type of organisation where it comprise about the
partnership or individual person who eligible operates the business operation to earning profits.

Purpose: The motive of private venture is to making more profit maximisation in favour
to create new form of enterprise.
For example: Aston Martin is British automotive business organisation in United
Kingdom.
Legal structure: The private company is having three main legal structure are as follows:
• Sole proprietor: It is simplest business which is managed by individual and responsible
for all debts (Dovis, Zaki and Dovis, 2018).
• Partnership: It is form as two or more person are commence to control to agree of
sharing equal profit and loss.
Public Organisation: On the basis of this organisation is owned and handle by the
government where they enhance to deliver and facilitates the goods and services along with
advantages to the society. This organisation is helps to generates in open market through
different traits of investors who buys the shares as well as monitor to provide outcomes to
government holder.
Purpose: The objective of public organisation is to provide the public services which
involves the product and services is related to the product and services are regulated or optimised
by the government policies, security and health care facility (Fabus, 2018).
For example: NHS (National Health Services) is public trusted health care system of the
United Kingdom.
Legal structure: Public organisation is having two main legal structure that regulated
overall governmental activities driven such as:
• Central Government: This type of government that helps to control the power over a
unitary state with having different power at various level to monitored.
• State Government: As per this framework of government is regulates to optimise the
activities on specific that share the political power.
• Local Government: It is form of public administrative that counted as in form of
majority.

Voluntary Organisation: It is form of organisation where they have common goal and it
can be served as individual as well as group into an agreement or volunteers.
Purpose: They have motive to contribute towards society and influence to other
companies to participate into social causes activities.
For Example: Oxfam is the form of trust foundation venture where they work for
reduces the poverty and brings the improvement towards society.
Legal structure: In voluntary organisation is having two essential model is been
structure are:
• Unincorporated Associations: In this type of voluntary are in well favoured through
new and small group (Gaganis, Pasiouras and Voulgari., 2019). They involves many
people for their objective who dose not looking for profit earning.
• Trusts: It is formed in traditional trust of public organisation for charity purposes where
it operated through welfare trusties which regulated or controlled by them.
P2. Illustrate the size and scope of different forms of organisation.
As the size and scope of specific organisation specifies about to the business expansion in
perspective of manpower, resources, revenue and current capitalisation. It highlight the three
types of organisation that are given below:
Basic Private Organisation Public Organisation Voluntary
Organisation
Size Private companies
having the wider part
where many other
forms of business
venture are optimised
such as small, medium
and large organisation
which determines aims
and goals that
The Size of the public
company is having
limited where the
government is
operated as per their
competency.
By having various
trusties institutions
which is lesser size
than organisation
where it regulates
through other form of
institution.

indicates the
sustainability.
Scope The scope for private
organisation is having
number of employees
are 500 more.
Similarly, the Aston
martin is having 2,452
employees in their
overall branches (Hair
and et. al., 2019).
Public organisation is
having scope to
determines about
above 250 employees.
But in public venture
there is a always a
limited as it regulates
through government
policies.
For voluntary
organisation is having
scope is to be highlight
as it having presence
of social work to
increase the
development in society
perspective (Hamilton
and Webster, 2018).
Oxfam have plan to
more collaborate with
other business venture
to making increasing
of funds.
Task 2.
P3. Interpret the different organisation function along with how they link with organisation
objective and structure.
In organisation there is a different department such as marketing, finance, production,
Human resource where these department is having major role which they contribute to make the
organisation work easier and approach the objective in flexible manner. As in Aston Martin they
are also keeping their roles and responsibility that support to each other working aspect.
Marketing role in Administrative department: In the internal scenario of Aston Marin,
the administrative department is control through Human resource department that enhance to
manage the workforce as well as internal activities of the organisation, while marketing is
support to promote the vehicles of Aston martin in market to creating awareness. The inter

relation with human resource and marketing is to provide effective manpower and training and
development program by administrative department. In another phase marketing helps to
promoting and creating awareness about the hiring for new candidates in different job portals.
Production role in Finance department: The role of production is to manufacturing of
the product and services by utilising the authentic raw materials (Hansen and et. al., 2018). To
control the funds and other financial activities which help to reduces the uncertainty of the
business operation. The interrelation between finance and production department as to a provide
monetary service to the production department where they can buy raw material, machinery and
other items.
Organisational Structure: It is systematic structure that depicts about the different activities
which instruct to accomplish the goal for the organisation. There is proper organise of structure
of Aston Martin as per the basis of top to bottom level of hierarchy where information rotate and
deliver the message to the right level of person.
• Divisional structure: According to this structure derives to utilise leadership team based
on products, project or subsidiary product which they highly operates.
• Matrix Structure: In this structure it comprises about to assigning the job roles and
duties to the employees as per the individual capability to accomplish the goals of
organisation.
As for Aston Martin they follows as well as the suitable organisation structure is Matrix
structure, it is very effectively implies by the top level management where they analyse the
manpower on the basis of their competency and assign them job duties for their project.
Task 3.
P4. Analyse the negative and positive impact of macro environment has upon the business
operations along with examples.
An External environment is set of situation or factor which are connected with outer side
of the organisation that effect in some extent. In business, the relation with external environment
is support to control the dimensions such as society, economy regulation and political procedures

(Hudakova and et. al, 2018). There is a method that helps to measure the external environment is
Pestle analysis which would support to investigate optimised to external environment.
Pestle Analysation is a tool that assort to identify the macro environment scanning to investigate
the opportunities and challenges which impact to the specific organisation. Aston Martin having
a Pestle analysation is following :
• Political: It is the factor that defines the factor of overall government and corporate
policies along with legislative changes of particular country. As the political condition of
United kingdom is stable, as Aston Martin is UK based organisation through which the
policies are well structure designed in terms of fiscal policy, taxation, trade tariffs etc.
But there is some challenges or uncertainty factor that exists in United Kingdom
(Jevšenak, 2019). The Brexit market is one of the negative factor that exists in United
Kingdom which not allows to the Europeon Union to trade. It could affect the Aston
martin business as in negative manner.
• Economic : According to this factor, it derives about particular country economy;s
performance that having directly influence to the company and having long term effect.
The elements which include in economic factor are inflation rates, foreign exchange
rates, economic growth rates patterns etc. All these is having important role in United
Kingdom economy where Aston Martin have a global economic condition impact that
generates positive and negative outcomes. As there is threat involve credit and presence
of risk in foreign exchange rates.
• Social: As this factor explains about to measure the social environment market of
nation . There is different trends that involves in United Kingdom such as culture trend,
demographic and population analytics etc, in which Aston Martin can approach various
consumer preferences as well as it could increase the disposable incomes by measure and
target the consumer on the basis of demographic traits such as age, trend, gender and
consumer disposable income basis.
• Technological: It comprise the factor the innovation of technology that might affect the
operation of industry and the market to favourably. It includes the research development
studies as well as awareness related to the market progression (Krajnakova, Navickas,
and Kontautiene, 2018). There is benefit for the Aston Martin in perspective of

technological factor in United Kingdom where many opportunity is available of advanced
technologies which helps to grow the business in the competitive market. By enhancing
the artificial intelligence features to inherent in the model which make them it effective.
• Legal: This factor involves both influences of external and internal sides. As there are
some certain laws that affect the business environment in certain country's policies which
helps to maintain. The legal structure of United kingdom is very systematically design
where many companies are successful trade and abiding the rules and regulation in
proper guidelines (Luiz., Ganson and Wennmann, 2019). Aston Martin can raise their
capitalism on the basis of new laws that helps to change overall government rules and
regulation. Safety norms are strictly concerned to every automotive manufactures that
increase or decrease the sales and margins of productivity.
• Environmental: In this factor it emphasis about the influence that determines to the
surrounding environment. For United kingdom the environment factor is very supportive
and beneficial to the company such as Aston Martin are involve in CSR activities in UK
environment market (Lulaj and Iseni,, 2018). There is proper sustainability of UK
environment market that involves low capacity engine of new derives technologies.
On above analysation of Pestle in perspective of Aston Martin venture, there is positive
and negative impact of macro environment as Economical factor is having negative factor as
there is presence of uncertainty in economic as in recession, inflation that raise the negative
impact in United kingdom performance in diminishes ways. The positive factor implies the
Technological factor that comprises wider scope in UK market on the basis of United Kingdom
region that improves the automotive product by enhancing highest mobility of specification.
Task 4.
P5. Illustrate the internal and external analysation of specific organisation in order to identify the
strength and weakness.
Swot analysis:-

Swot analysis is a method, which helps to identifying the strengths, weaknesses,
opportunities and threats related to the internal & external environment of the organisation
(Mirabito., Floorwatch Inc, 2018). The swot analysis of NHS and Aston Martin can be
introduced by following tables;
NHS
Strengths Weaknesses
 NHS mainly focuses on the
improvement of quality.
 NHS investing more on research and
development.
 Quality of medical- equipments &
provision of better services.
 NHS has well trained medical staff.
 NHS faces the problem related to the
pay scale of general physician &
specialists.
 The staff of NHS also facing the
problem of overtime, reflects the
weakness of the organisation.
Opportunities Threats
 The business strategy of NHS is an
opportunity, which creates competitive
advantages for the company.
 NHS focuses on building culture based
on performance rather-then
expectations. This creates the
opportunities for company in long run.
 NHS has the provision of different
rewards for different roles.
 Better relationship among employees.
 The economical and political
uncertainty of UK creates the threat for
the company.
 Increasing competition due to
development of new hospitals also
creates the threat for the company
(Morrish and Jones., 2020).
National Health Service (NHS), is UK based public sector medical & healthcare
company. Highly trained staff, modern equipments, flexible rewards, business strategy are the
major strengths & opportunities but, NHS should focus on better pay & rotational system as well
as flexible policies in order to overcome the internal and external drawbacks.

Aston Martin
Strengths Weaknesses
 Aston Martin has good brand reputation
in auto mobile industry due to its hard
work shows historically (Nikitina and
Lapiņa, 2019).
 Highly trained designing and
manufacturing team produced quality
of cars which reflects the major
strengths of the company in order to
gain customer satisfaction and profit.
 High promotion and marketing strategy
is also a major strength of company.
 Aston Martin provides Luxury cars and
comfort to its customers.
 Aston Martin focuses only on their
luxury market or not even tried to enter
into another, this reflects the lesser
market as compare to its competitors.
 Aston Martin has limited models of
cars at a particular time, which shows
the weakness for the company.
Opportunities Threats
 Aston martin covers the heritage and
historical values in their product in
order to attract new customers.
 It is the opportunity for Aston martin to
expand their business in local markets
in order to gain more customers.
 Aston martin have standard customer
base but general public also wants to
experience the luxury and comfort of
Aston martin's cars. This will be
possible through nominal prices.
 High competition from brands like
Jaguar, Bentley, Porsche creates the
threat for the company (Safar and et.
al., 2018).
 Government taxes, increments in fuel
prices creates the drawback for long
sustainability of Aston martin in the
industry.
Aston Martin is an UK based auto-mobile company. Brand reputation, market
penetration, customer attractiveness are strengths & opportunities of company (Trisakhon,

Onputth and Peamchai., 2018). But, company should focus on electronic & battery powered
products, in order to deal with threats.
P6. Explain about how strength and Weakness interrelate with external macro factor.
To making the proper assessment of macro environment, now in this segment there
would discussion of strength and weakness of overall macro factor about Aston martin
perspective:
Political: Through this factor it derives about the overall corporate government
regulation of specific company.
Strength: In United Kingdom their political scenario is stable as well as the government
policies are generates the positive outcomes on the basis of engaging customers, policies and
taxation that are favour towards the Aston martin company.
Weakness: Due to Brexit market and changes in policies could creates the slow down the
company norms progression which could impact on business productivity.
Economical: It defines about the country economic condition in terms of availability of
opportunity and challenges that influence to the organisation (Tung, Tang. and King., 2018).
Strength: There is a high outcomes generates of productivity in automotive market,
where Aston martin is itself a largest growing automotive company based in United kingdom. In
fact they have captured 50%-70% markets globally with optimum retention of customer. There is
high value of pound currency.
Weakness: By having different perspective of high inflation rates, recession that can be
direct impact on Aston Martin business productivity as well as the decreasing of demand and
supply of Aston Martin automotive vehicle that down fall their brand value.
Social: According to this factor it elaborates about the people preferences, culture and
trends in the market that could affect the organisation positively and negatively.
Strength: As there is different people's approaches on the products where some are low
buying and others are high buying purchase of product in United Kingdom. For Aston Martin
they have platform where they can explore the market. The company can eaisly target their
customer on the basis of demographic factor.

Weakness: By having different traits of buying products in United Kingdom, it can
creates the complexity for Aston Martin to making the customer convince about their product .
As their product involves high specification with premium price.
Technology: To having the presence of advances type of resources that could create and
positive impact to the organisation.
Strength: there is high amount of opportunity that prevails the growth and increase the
work flexibility of manpower in Aston martin.
Weakness: Every retail business is relay on technology which makes them dependable
and also allows the high maintenance to maintain the advanced level of equipment (Viriyasitavat
and et. al., 2018).
Legal: According to this factor that emphasis about the forming of rules and regulation
related with the country legislation aspect.
Strength: The United Kingdom is having effective nature of compliances that enhance
the different laws and growth which maintain by the private venture such as Aston martin as they
have implies employment law and Gender Equality law that helps to provide the security
allowances as well as equal pay structure as per the designation of the work.
Weakness: The law structure can distract to the organisation productive growth through
their policies or unethical engaging activities could makes the whole organisation brand value
demolition.
Environment: It describes about the nature, climatic and country culture which require
to adapt to every business that enhance to contribute positivity or development integration.
Strength: It allows the CSR activities which attract and influence to the private
organisation to contribute towards society that helps to form their business name raises in overall
environment.
Weakness: In United kingdom there is unfortunate condition of climatic condition in
United Kingdom and another implication that allows productive value decreases is pollution
factor that would raise the negative influences.

CONCLUSION
On above discussion on Business Environment where it has come for conclude by
describes the three main types of organisation along with their purpose and legal structure after
that to detailed analyse the size and scope of private, public and voluntary organisation. To
explains about the different function exists in organisation with organisation structure and their
two Divisional and Matrix structure. By proper analysation of Pestle for United kingdom region
and relates with the six factor to the organisation to mentioned the information regarding positive
and negative impact. Apart from it by assess the Swot analysation which derives the internal and
external capabilities to the company perspective. At last, there is a short description about macro
factor with their strength and weakness.

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