Impact of Business Environment on Organizations

The assignment delves into the effects of business environment on different types of organizations. It highlights how external large-scale factors influence organizational functions and priorities. The report also emphasizes the importance of adapting to changing environmental conditions to ensure success.

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Business and Business Environment

Contents
Introduction...........................................................................................................................................2
Task 1....................................................................................................................................................2
LO 1: Explaining the different types, sizes and scope of the organizations...........................................2
Overview of different types of organizations: public, private and voluntary sectors and growth of
the international business (P1)...........................................................................................................2
Explaining the size and scope of a range of different types of organizations chosen for the purpose
(P2)....................................................................................................................................................4
LO 2: Demonstrate the inter-relationship of various functions within an organization and how they
link to organization structure.................................................................................................................7
Relationship between various organizational functions of Aldi and their linking to structure and
objectives (P3)...................................................................................................................................7
Task 2....................................................................................................................................................8
LO3: Use contemporary examples to demonstrate both the positive and negative influence/impact the
macro environment has on business operations.....................................................................................8
Identify the positive and negative impacts the macro environment has upon business operations,
supported by specific examples (P4).................................................................................................8
LO 4: Determine the internal strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors.....................................................................................10
Conduct internal and external analysis of specific organisations in order to identify strengths and
weaknesses (P5)..............................................................................................................................10
Explain how strengths and weaknesses interrelate with external macro factors (P6).....................11
Conclusion...........................................................................................................................................12
Reference.............................................................................................................................................13

Introduction
The business organization is depicted to be the institution where different people coming
from different backgrounds are employed or sometimes employs people for felicitating the
set objectives asserted by the organization to earn business competitiveness. The
organizational objectives are set forth by the organizations by basing over the business
requisites and professional context and this aspect makes the organizations to be differing in
their identity and attitude towards setting business objectives and goals in business world
(Armstrong et al., 2015). Therefore under this concept, it can be supported that organization
set on their priorities as they also enacts for the size, scope and structures to be contemplating
with the business objectives. In today’s business world, the divisions of the organizations are
based over the objectives settlement and this creates to formulate their missions and visions
statements to be aligned with the business objectives and purposes. The scope of business
organizatio0ns to be enacting different business perspectives, the global podium of business
dimensions are contributing to the greater economic, social and other benefits and thereby
making a country successful in the world. The following report will identify the various types
of organizations and their scopes relating to size which has been significantly impacting the
business scenario. This will help the business organizations from different sectors to verify
functions according to business objectives as well as their impact over the internal and
external business environment of a country.
Task 1
LO 1: Explaining the different types, sizes and scope of the organizations
Overview of different types of organizations: public, private and voluntary sectors and
growth of the international business (P1)
From the business analysis of different organizations, it can be identified that as every
business organizations possess their own business objectives, therefore they try to do
different things under priority of the business objectives and the leaders and managers
involved with the business organizations are responsible for making the business objectives
fulfilled according to their set goals. It can be also seen that organizations are set up in
predefined ways for accomplishing their goals and the structure of the organizations lies to be
an important factor for consideration for accomplishing goals (Epifanova et al., 2015). The

business dynamics also establishes the fact that the survival of the business organizations
depends over the customer being satisfied and their prosperity of the different products or
services entailed by the organizations. The main ideology of the business organizations being
divided into different types can be crafted through their possession of resources, way of doing
business operations, profit making business activities or their entity being prioritized due to
society, customers or profit. In a country like UK, the organizational sector has been divided
into three different types of organizations which are mainly, private enterprises, public
enterprises and voluntary enterprises. All of them contribute to be an important one as they
denote for a unified business context in an economic positioning of a country like UK.
Public Organizations – The public enterprises are the organizations which are
essentially run by the government of a country which is solely entitled towards
affecting the benefits of the people of the country. The economic resources of such
type of companies identifies to be coming from the taxes paid by the people of the
respective country to the government and this money is thereby utilized by the
government for financing most of the public sector organization of a country. The
basic objective of the public sector organization is to provide quintessential services
to the public of the country. They also aim towards utilizing the resources at its best
for benefitting the community or the particular people of a country. In most of the
cases, it can be identified that the public sector organizations are participated by
cooperation from the public, some statutory agencies as well as by the local
government. In a country like UK, NHS stands to be the most recognizable public
sector organization in the country. The organization wholly runs on by the UK
government (Bah, & Fang, 2015). The organization is set up with the motto of
defining and providing health services to the people of the country.
Private Organizations – The private organizations are asserted to be those who
vehemently reciprocate to the idea of being run by an individual owner or partners or
groups or franchises. The main objective of these companies stands out to be gaining
profit at its maximum which can enhance their growth opportunities. It can be
identified that most of the private sector organizations are aimed towards capturing
the maximum share of the market than its competitors and improvise on augmenting
sales for their company. The private sector companies also seem to acquire funding
from the personal savings, investors, governmental grants and trade credit. In UK,
there have been many private sector companies under varieties of ownership and

contributes to 84% to the economic criteria of the country. In the airline industry, Aldi
Ltd occupies to be one of the largest private sector retail and supermarket chain in the
country and has been contemplating for earning a high revenue for the country as well
as for the company’s stakeholders for many years and thereby making their ground in
the retail market of UK. The company is emancipated to be earning a heavy amount
of revenue for the country through its joint proprietorship and in UK its growth has
been seen to be quite impressive among the other competitors in the retail business
identity of private enterprises.
Voluntary Organizations – the voluntary organizations are the business entity which
is not owned by any proprietor or group of entity, rather these business organizations
are inclined towards responsiveness for ensuring that they can set up targets as well as
budgets which is set up for doing. One of the main purpose of these organizations is
that they are inclined towards helping a particular group of people within the society.
These organizations are mainly adhered to be the charitable organizations or
sometimes depend on the voluntary service of the respective community for whom
they intend to do something fruitful. The basic objectives of these organizations are to
ensure that they can help in making society a better place and their business activities
are inclined towards enrichment of the people life. The voluntary organizations are
mainly non-profit making ventures or sometimes predicted to be non-governmental
institutions (Cull et al., 2015). The business objectives by these organizations are to
help the deprived part of a society so that they enhance the particular aim of their
business in a fruitful dimension. These organizations take little support from the
government of the following country and their initiatives are mostly adhered to the
interests of the people of the community. In UK, the Cancer research Company is
regarded to be the most recognized voluntary organization as they project their aim to
be imbibed within the people being influenced for leading a better life against a
deadly disease like cancer. The main funding of this type of institution come from the
NGOs and some part of the governmental grant, but the main proportion of their
business activities are run through the financial grant by big and commercial business
players of a country who grants fund as a social service to these institutions.
Explaining the size and scope of a range of different types of organizations chosen for
the purpose (P2)
NHS

The national health service of UK demonstrates to be the largest sector providing health in
UK and assigns an annual budget of £116 million by the respective government for wellbeing
of public. The organization
has been formed in the year
1948 at Park Hospital in
Manchester. The
organizational scope lies to
be serving about 64.9
million UK people within
the healthcare framework of
the country. The
organization provides free
services like prescriptions to the patients, ophthalmology services and dental services. In spite
of that the company holds up a strong workforce unit with 1.5 million people working in the
framework of health care service. The organizational structure of the company comprises of
Public health England, Clinical Commissioning Groups, CQC or Control Care Unit,
Secretary of State of Health and also the Well-Being Boards (Savrul et al., 2014). The legal
structure of NHS determines that the clinicians under the framework assigned to be following
the guidelines of health and safety of UK by Health and Safety Act 1974. The stakeholders
consist of the Councils and Board members defining medical activities, media also plays an
important stakeholder for the interest of the patients to be circulated, patients from UK,
Voluntary Sector, regulation and Scrutiny Committee, primary care organizations and other
NHS organizations who actively take part in hospital trusts and ambulance trusts.
Aldi
Aldi a German based Discount retail chain stands to be the fifth largest supermarket chain in
UK. The company has turned over an important private retail enterprise in UK with their
turnover standing around 53 billion Euros and operates in UK. It conquers about 29% market
share with 1500 stores in different parts of UK. The main aim of Aldi stands to be attracting
UK customers than its competitors with a considerable low price strategy and also providing
them a vehement product quality. The organizational orientation also stands to be depicting a
vehement marketing orientation and sales oriented business visions which can establish their
foreground among strong competition. The products which mainly deals and provides to the
people of UK are clothes, stationary items, health and beauty products, household useful

goods, electronic products and other soft tools. The business structure of Aldi mainly
represents that they are based on “decentralization and delegation” as this helps them to
decrease the bureaucracy and other conflict management issues within the company (Bothai
et al., 2014). The legal compliance of the company in UK stands for maintaining a contract
through franchise between the producer and the channels mediators so that it can define the
rights and obligation of each of the members within the company. The prime stakeholders of
the company stand to be the customers and employees and then come with other stakeholder
engagement like employers, managers, CEOs, Board of members and Directors.
Cancer Research UK
The Cancer Research UK stands on to be the a charitable and awareness creating voluntary
organization in UK after it has been founded in the year 2002. The company has been formed
in a merger strategy of The Cancer research campaign and Imperial cancer research Fund.
The vision of the company stands for the providence of awareness programs to the people
against cancer as well as to reduce the rate of cancer growth among the patients. The mission
of the company identifies to be researching on cancer disease and to prevent and restrict
people of the country as well as global people to become aware about different treatments
and affects of cancers. The financial backup of the organization is entrenched by fund raising,
donations from corporate sectors and governments etc. There have been about 3964 people
working for the community within the organization and engage about 40,000 volunteers at
regular interval of service (Eling, & Schaper, 2017). The organizational structure is purely of
a hierarchical form which constitutes of stakeholders like Executive Board, Chief Executive,
CEO leading the Science Executive Board, Directors, Trustees, Chief Scientists and
Clinicians, patients, Corporate partners like Tesco. The legal structure of Cancer research
adheres to be dedicated towards imbibing with various researches data to be kept secured by
the Data protection Act of UK so that other organizations cannot utilize those data and
information which can defame their native’s integrity.

LO 2: Demonstrate the inter-relationship of various functions within an organization
and how they link to organization structure
Relationship between various organizational functions of Aldi and their linking to
structure and objectives (P3)
The organizational structures play an important role in defining the various functional units
of an organization as they helps to define their goals and objectives to be set up in accordance
to their defined structure. For a retail supermarket chain like Aldi it can be identified that the
company follows on a decentralized structure and it can be seen that the lower-level
managers are clearly useful in playing their skills and aptitudes to the business decisions all
by them. This helps the company to identify the business needs that is attaining the customers
with productive gods and services with a cheaper cost. The decentralization structure of the
company also helps the company to bring on autonomous corporations or stores to be
enacting within the country that helps in expanding the company in a healthy fashion.
Moreover, it can be seen that the marketing functions of the company Aldi is also benefitted
through this structure as it can be seen that the company is able to bring their marketing
campaigns in various demographical and geographical dimensions of the country in a
dispersed way which ultimately reproduces organizational successive growth and brand
promotion of their products in regional areas. Moreover the company being operating ina
smaller target areas are able to generate maximum revenue from the local market because of
their less bureaucratic control and it can be seen that all the issues are well-handled at root
level by utilization of the local market (Cascio, 2018). This certainly helps the company to
retain its objectivity of demonstrating a larger customer base within the extensive competitive
retail market of UK. On other hand, it can be also seen that the managers are allowed to
extend their control over the employees which leads them to define for specific small target
goals and responsibilities. The structure of the company being a flat one, the managers get the
full control of enacting power to monitoring and evaluation of business operations for
marinating the culture and exercise authority of the company.
The inter-relationships of the various organizational functions in ALdi can be enacted to be
benefitting the company in different ways. It can be identified that there have been enough
flexibility of the employees due to the managers being exerting an autonomous control. This
definitely helps in brand promotion of the company in many local areas and attracting the
customer base with their terms of cheap and quality products they present in different
demographic segments. Moreover the company being entitled to manager’s responsiveness,

they depicts a unified commanding process over each store which helps their business to
grow in the respective economy of UK. But there also comes up some disadvantages with
these functional variations of the managers being autonomous, as it can be adhered that they
are sometimes autocratic in their decision making process which can hamper the self- interest
of the company to attain their business objectives and goals. In many cases, it has also been
identified that there is a possible chance for conflict as the managers showing supreme
control creates non -discretion in rankings and promotional instances of the employees which
demotivate the employees and hinders a smooth workplace atmosphere for the company to
attain their business objectives.
Task 2
LO3: Use contemporary examples to demonstrate both the positive and negative
influence/impact the macro environment has on business operations
Identify the positive and negative impacts the macro environment has upon
business operations, supported by specific examples (P4)
The PESTLE examination of United Kingdom has showcased in the retail segment will
distinguish the positive in addition to negative impact which the economic situation of the
nation UK forces over the business tasks of Aldi.
Politically United Kingdom is very unstable after UK' choice of leaving European Union in
the year 2016. The effect of Brexit has a noteworthy effect over the exchanging boundaries of
the organization ALDI. They will confront fewer pieces to the market of retail industry due to
the Brexit issue. Also the nation like UK is very liberal in their approach of the nearby
administering bodies in various piece of the nation and this has decidedly affected over the
opening of different stores in staple and money related administrations in various parts of
UK. Besides the administration of UK infers over some sound national approaches about
work openings, bosses law and numerous other which makes the business tasks at Aldi by the
store chiefs and different managers of the organizations to be strict in administrative
consistence (Laszlo, & Cescau, 2017).
Economically, the monetary state of United Kingdom determines to be smooth in its setting
in general picture. Be that as it may, the retreat time of 2008 and the Brexit choice in 2016
has essentially affect over the UK financial situating which involves the way that the

organization is very pernicious to sack workers from various positions to hold the general
benefit of the organization through less loading their individualistic weights. In any case, the
retreat time of UK has likewise supported Aldi decidedly, as it can be discovered that client
maintenance in their retail outlets have been most extreme as opposed to getting costly
retailers like Tesco along with other retail firms of United Kingdom. Nevertheless, general it
can be distinguished the broad developing of UK economy; Aldi has the full plausibility of
extending their business situation in a superior position.
Socially, state of United Kingdom decides the way that the nation has a place with a
gathering of well accomplishment among the client base and along these lines the
organization like Aldi has the vast majority of the likelihood to immerse their grocery store
chain in various parts of the nation. Besides the social gathering of the clients are slanted
towards natural items which guarantee that Aldi can extemporize their natural nourishment
contributions in their general store puts away getting together the client needs (Belás et al.,
2015). The maturing populace of the nation is another vital factor of thought for Aldi as it can
be recognized that the accessibility of the workers after the Brexit issue can adversely
influence their business situation due to the deficiency of staffs.
Technological aspects regarding the mechanical upliftments within a nation like UK has been
sure in all conditions. There have been unfaltering development of innovative upliftments
like internet business, e-promoting, client brilliance advancements like EDLP, intranet and so
on in the retail segment of UK which certainly impacts over the advertising, client
administrations, circulation system of the organization like Aldi. In any case, with the
innovative upliftments, the organization needs to ensure every one of their information and
data of the clients are secured in their correspondence arrange for instalments as this can
involve the notoriety of the organization to be profoundly powerless against the gatecrashers.
Legally, the lawful structure of United Kingdom's business law is very strict and forces upon
stern compliances over the businesses and administration of different associations. Also the
Brexit submission has forced upon a touch of vulnerability over the lawful effects of the
nation as there is a wreck up in the nation's legitimate state of mind towards work law and
business rules. This can fundamentally influence the business structure of the organization to
enlist new workers from remote market. Be that as it may, the typical lawful compliances of
the UK work law likewise suggests for appropriate representing exercises alluded for the

businesses and individual administration of Aldi so they can maintain a contention free
climate inside the business working.
Environmentally, United Kingdom holds on a moral natural perception for each retail based
organization and as retail mammoth Aldi is gone along to such conventions like condition
agreeable state of mind toward bundling, feasible items advancement, utilizing recyclable
things for bundling and so forth (Hillary, 2017). This influences the organization decidedly in
keeping up eco-accommodating states of mind among his workers and the entire esteem
chain. Be that as it may, it additionally brings about upon some negative qualities like clients
giving more significance to moral and ecological inviting items which expands the general
income for bundling other supplementary item for valuation.
LO 4: Determine the internal strengths and weaknesses of specific
businesses and explain their interrelationship with external macro
factors.
Conduct internal and external analysis of specific organisations in order to
identify strengths and weaknesses (P5)
The inward investigation of the Aldi is a critical factor for considering its association with the
full scale components of the retail business in United Kingdom. The inside examination of
Aldi contains it assessment of inbound and outbound coordination’s, tasks administration and
other strong administrations of the business measurement. Aldi is similarly one of the least
expensive retailers in UK market and this is done through their proficient requesting
framework and monetary size of the organization, which helps with conveying items with
least cost and acquiring most extreme benefit for the organization. Besides, a portion of the
activities administration cases of Aldi like their broad "venture asset arranging" framework
guarantees that the organization can accomplish their business choices in opportune place to
right clients (Eling, & Schaper, 2017). Moreover, the interior operational developments of
Aldi recommend that the organization don't depend over the physical stores, yet the online
stage like e-retailing, e-advertising procedures and web based business stage displays that the
organization is exclusively followed towards client advantageous, which lies as their centre
goal. Thus, the SWOT analysis for the firm are represented below:
The strength has encapsulated about the wide system of various stores crosswise over United
Kingdom with offer of more than 17%. Strong mark name in retail industry in United

Kingdom. The organization profits by financial scale fitness. Give quality items to the clients
at similarly low costs.
Weakness has applied the circumstances of lack of worldwide extension methodologies,
which influences their image name in worldwide market. The less expensive value situation
influences the client to be prominently determining to low nature of items, which isn't useful
for the organization's image picture in United Kingdom. Burden of little stores in various
parts of the nation limits client base to grow in a particular zone of the nation (Porter, &
Kramer, 2018).
Opportunities to extend in new zones like pharmaceuticals, jewelleries, opticians in various
nations in Asia. The budgetary administrations of the organization determine for decreasing
their working expenses and opens for new business openings. The enhanced scope of
administrations gives chance to securing client base from various parts.
The threats has encompassed that the increased rivalry from Morrison's along with Tesco can
defeat their business ground in UK. The ascent of Tesco and Sainsbury in UK's piece of the
overall industry can be an extensive foil for organization's client base to be isolated in various
measurements of these gatherings. The Brexit issue can force upon a climate of vulnerability
for the organization's future prospects to develop in UK.
Explain how strengths and weaknesses interrelate with external macro
factors (P6)
Aldi works in the monetarily stable countries. This guarantees the organization can
recuperate any budgetary emergency inside a little time traverse. The organization has its
own particular assembling unit in United Kingdom where greater part of the creation are
finished. As United Kingdom has a business benevolent condition, it doesn't offer must
limitations on the import and fare of crude materials and items starting with one nation then
onto the next. The organization additionally has a decent showcasing group and the
administration. The administration guarantees legitimate basic leadership process and the
workers execute the thoughts laid by the administration. The showcasing group helps in
advancing and publicizing of the results of the organization, which fundamentally helps in
expanding the clients base of the organization and in this manner deals (Botha et al., 2014).
The Organization likewise has a decent association with the providers, which guarantee that
the organization gets the crude materials required to build up the toy stuffs on time and is of
unrivalled quality. These qualities are connected to the full-scale ecological factors and help

the organization to become throughout the years. Then again the shortcomings of the
organization is additionally connected to the outside large scale factors. For example, United
Kingdom is a country of very propelled innovations, anyway Aldi can't use such advances to
create items with no imperfections. The organization regularly acquires a misfortune because
of defective items and consequently it should utilize most recent innovations, later on to
expand the proficiency of generation and decrease the quantity of flawed items.
Conclusion
From the following analysis, it can be entailed that different organizations relate to various
scope and business objectives depending over their business structure and culture. The report
also reciprocates the fact that under the connotations of different types of organizations, their
functionality and purposes are distributes which help them to identify the business priorities
in global dimension.

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