Business and Business Environment

Business and business
environment
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1(Covered in PPT)................................................................................................................1
P1. Diverse organisational types, purposes and legal structures.................................................1
P2. Size addition to scope of diverse organizational types..........................................................1
TASK 2 (Covered in PPT)...............................................................................................................1
P3. Relationship among diverse organisational functions in addition to the ways they link to
objectives and structure of organisation......................................................................................1
TASK 3............................................................................................................................................1
P4. Impacts that external macro environment has on operations of firm....................................1
TASK 4............................................................................................................................................4
P5. Internal plus external business analysis................................................................................4
P6. Ways strengths and weaknesses has interrelation with macro environment.........................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Business environment is the total of various factors such as internal and external that are
important for environment to run a business. Internal environment of business consider
employees, owners, investors and managers that understand what people wants and how they can
be satisfied. External environment consider supply and demand, clients, suppliers, government,
owners activities, innovation and technology, economic changes and market trends. These all
factors have affected functions of company and how they works directly and indirectly increases
business performance. The present report is based on Dorchester organisation that is 5 star hotel
in London, UK. It is well known hotel that offers luxury services and have good looking
architect attract customers and tourist who comes from others countries. The present report
demonstrates types of organisation and their purpose, legal structure and objectives which has
impacted in business, size and scope, internal strength involving weakness that helps to maintain
a business. Moreover, this involves SWOT analysis involving interrelationship to external macro
factors.
TASK 1(Covered in PPT)
P1. Diverse organisational types, purposes and legal structures
P2. Size addition to scope of diverse organizational types
TASK 2 (Covered in PPT)
P3. Relationship among diverse organisational functions in addition to the ways they link to
objectives and structure of organisation
TASK 3
P4. Impacts that external macro environment has on operations of firm.
Macro environment – Environment is full of diverse factors that are exist in economy and has
impacted on business. Factors which arises in macro environment are generally uncontrollable
and affect business whether positive and negative. In this situation and improving economical
condition appropriate framework should be used by management that can help to maintain the
business and increase profitability (Cohen and Kietzmann, 2014) . In context to Dorchester hotel,
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PESTLE framework is used that can help to monitor and forecast the influences that can help to
eliminate the negative impacts. The PESTLE analysis is defined as:
Political factor – As the name given, this factor is related political system and
governmental system that contains, trade regulation, tariffs, taxation, import and export duty etc.
that are formulated by government. In UK, all regulation and decisions in relation to hospitality
industry are taken by government.
Positive impacts – After Brexit, the political system of UK has been stable where
government has allowed to business to operate their business in other nation also as it has
formulated free trade practices which impacted business positively as incremental in customer
range, brand image and luxury services.
Negative impacts – At the same time, this affected business of Dorchester hotel negatively such
as after Brexit UK organisation has restricted to eliminate their business from European
countries which impacted negatively as managers has to close their hotel services which wre in
European nation that may reduce operation (Denisova-Schmidt and Prytula, 2015).
Economical factor – This factor is related to UK’s economy that is well developed and
properly established that contains industry life cycle, BRICKS market, inflation rate, interest
rates, foreign exchange etc. that many impacts on Dorchester hotel such as:
Positive impacts – In UK, inflation rate are stable that helps business organisation and people to
increase their spending by using different types of products and services. As inflation are stable,
manager of Dorchester hotel provides hotel services at reasonable rates that attracts customers
and improve organisational productivity by increasing number of customers (Dobrin and Cioca,
2014).
Negative impacts – In cases of changes in the economic cycle of UK, the emergence of
BRICS markets may create a wide range of complexities for business. In this case, Dorchester
Hotel Administrators will make adjustments to the price of goods as well as repayments from
creditors for business activities. These all have negative impacts, as shifting strategies and
implementing new ones hinder the ability to do so.
Social factor- In a nation, different culture of people are living that has different needs
and wants of people, buying habits, education level, density and education level impacted on
Dorchester hotel are explained below:
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