HND Business - Level 4: Business Environment Analysis of Nisa Retail

This report provides a comprehensive analysis of the business environment of Nisa Retail, a small-sized retail company. The report begins with an introduction to the competitive landscape and the importance of micro and macro environmental factors. It then delves into the organizational structure, functions, mission, vision, and objectives of various types of organizations, with a specific focus on Nisa Retail. The study employs PESTLE and SWOT analyses to assess the internal and external factors influencing the company's operations. The PESTLE analysis covers political, economic, social, technological, legal, and environmental factors. The SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. The report also examines the interrelationship between organizational functions, structure, and objectives, highlighting how functions like marketing, HR, and finance contribute to achieving the company's goals. The conclusion summarizes the key findings and implications for Nisa Retail's strategic decision-making.

Business and Business
environment

INTRODUCTION
In the modern business world companies are having huge competition, they have to look at
their micro and macro environment both in order to sustain in the market for longer duration.
Firms have to make effective strategies that can support them in meeting with the needs of
consumers and provide benefits to stakeholders (Al-Saleh and Mahroum, 2015). Current study is
based on Nisa retail firm which is the small size retail company. It aims to provide quality
products and services to consumers so that it can enhance their satisfaction level. Present report
will discuss objective of different type of organization and their growth in the internal business
environment. Study will explain mission, vision, objective of these entities. Furthermore, I will
apply PESTLE and SWOT analyses models in order to understand internal and external
environment of the company
TASK 1
P1 different types of organisation and their purpose & P2 Size and scope of range of different
types of firms
1

2

3

4

5

6

7

8

TASK 2
P3 Functions of organization and linked with structure and objective
Organizational structure is the essential part of business unit, that reflects power of each
person in the workplace. Each firm has to perform various functions in the workplace these
functions support business unit in accomplishing their goal effectively. Function, structure and
objective are related with each other’s. In the absence of effective functioning entity cannot
accomplish its goal significantly (Carrió-Pastor and Calderón, 2015). As main objective of Nisa
retail firm is to provide high quality services to consumers so that they buy its products and
profit of the firm can be enhanced. For that entity has to perform various functions such as
marketing, HR, finance, administration etc. All these department coordinate with each other’s so
that common goal of the firm can be obtained. The main objective of NHS is to improve
wellbeing of population. For that NHS make its employee aware with the agenda and develop
communication among them so that all departments can perform in alignment and goal of entity
can be achieved (Rong, Shi and Yu, 2013). NHS follows divisional structure, it allocates work to
the employee as per their ability and skills. This equal division of work enhance motivation level
of workers and they perform well in order to obtain common goal of the firm.
The main objective of Nisa is to generate high profit and become the leading retail firm
across the world. Organisational functions are associated with its objective because when
marketing, operations activities work together then entity gets to know the needs of consumers
and they become able to provide them goods according to their requirements. This supports in
raising profit and accomplishing goal of the firm. The short term goal of the firm is to retain
skilled employees for longer duration. For that entity implements flats structure, This supports in
making effective communication with workers and making them feel satisfied. By this way
people stay in the organisation for longer duration. When skilled staff members work in the
enterprise for longer duration then entity will be able to accomplish its long term goal of raising
profit and becoming leading brand.
Nisa adopts flat structure, it gives power to its employees to communicate well and share
their views with higher authorities directly (Schaltegger and Wagner, 2017). This structure
enhances motivation level and minimize communication issues. By this way all people
implement innovative ideas through which entity can enhance its profitability and can expand its
business across the world. In order to maximize revenues of the entity, HR department of Nisa
9

retail firm hires skilled employees those who have great knowledge about retail market and can
deal with consumers well. That supports in resolving consumers complains soon and that
enhance satisfaction level of customers (Wheelen and Hunger, 2017). By this way they become
frequent buyers of the entity. Marketing department of the company helps in promoting products
and services of the entity to the mass audience and making them aware with the benefit that is
offered by Nisa for them. That increase interest of people and they take interest in its products
that support the firm in raising its sales volume and sustaining in the market for longer duration.
Flat organisation structure supports business unit in making effective coordination with
staff members, by this way all people work together. This helps in minimising conflict and
avoiding issues of business unit. Marketing function of Nisa helps in collecting all necessary
information about consumer needs, by this way production team can produce products
accordingly. This helps in raising satisfaction level of consumers and increasing sales of business
which is the objective of organisation. Flat structure supports in increasing coordination and
meeting with objective of business. This supports in performing organisational function
effectively.
Human resource function is the main function that works to provide high quality products
to consumers and satisfy their needs. HR department of Nisa concentres on the skill gap and
accordingly it organizes training for employees so that they can deal with the consumers well
and can meet with their needs. It offers employees flexible environment and give power to them
to share their innovative ideas with the management so that entity can improve its productivity
and profitability (Dima, Grabara and Modrak, 2014).
Finance function is another main functional department which main objective is to utilize
financial resources of the company well and enhance its profitability. It keeps record of cash
inflow and outflow. It looks upon the activities related to budget so that entity can generate
expected revenues. Customer service department of Nisa are responsible to provide quality
services to consumers and resolve their complains soon. It understands requirements of the
customers and make necessary changes in its current process so that entity can meet with the
needs of consumers (Othman and Rahman, 2014). Thus, structure, objective and functions of the
firm are interrelated and support business unit in achieving its goal soon and conducting
operations in smooth manner.
10

P4 PESTLE analyses
PESTLE analyses is the method that supports business unit in understanding external
market condition of the business and external factors that impact on the working of the firm. By
this way entity can make effective strategies so that it can overcome from these external factors
(Rong, Shi and Yu, 2013).
Political factor
Political condition affect overall working of industry to great extent. If political
conditions are stable, then it helps the firm in smooth running of business but if it is unstable
then it creates difficulty for the entity to sustain in the market for longer duration. It impacts on
overall functioning of business unit to great extent. Changing tax rates and their laws affect
operational efficiency of the organization. As Nisa is the small size firm that operates its business
to the limited areas (Business Environment: Nature and Significances of Business Environment,
2016). If government increases tax rate then it will enhance cost of the cited firm and by this way
overall revenues of the entity will get reduced. On other hand if government makes favourable
conditions then it will support entity in running its operations in smooth manner. Changes in
working hour law impact on the business unit, it is in favour of the firm then employees will feel
motivated and they will perform their duties well that will support Nisa in accomplishing its goal
soon (Marketing theories – Pestel analysis, 2017).
Economic factor
It is most important external factor that impact on overall working of the business to great
extent. For instance, if there is inflation or deflation then it will directly and indirectly impact on
the purchasing power of consumers. In such condition people will not be able to spend such large
amount in buying such material (Rong, Shi and Yu, 2013). That will affect overall sales of the
company to great extent. On other hand if there are adequate income sources and employment
opportunities in the market then it will enhance per capita income of the nation by this way
people will spend great amount in such shops that will support the firm in raising its profitability
and it will be able to sustain in the market for longer duration. Growth rate affect the financials
of the company significantly. Thus, economic factors impact directly or indirectly on the overall
operations of the Nisa to great extent.
Social factor
11