Business and business environment assignment | Burberry Plc

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Different types and purpose of organisation..........................................................................1
P2 Size and Scope of Different Organisation.............................................................................3
TASK 2............................................................................................................................................5
P3 Relationship between different organisational functions and its link with objectives ..........5
TASK 3 ...........................................................................................................................................6
P4 Positive and negative impact of macro environment on business operations........................6
TASK 4............................................................................................................................................8
P5 Internal and External analysis of organisation.......................................................................8
P6 Interrelation of strength and weakness with external macro factors......................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is concept which includes individual, organisation and various
factors which affect activities. Government, technology, economic, customers, competitors and
so on are various components which indirectly control firms. Shareholders, suppliers, employees
are elements which directly regulate operations. Executives need to have complete knowledge of
system abilities and market conditions. This help them to utilise resources that is funds, material
and workforce efficiently by using latest tools and technologies (Buğra and Savaşkan, 2012).
Present report is based on Burberry Plc which are having their headquarters in United Kingdom
and branches in different nations. It is a luxury fashion store which provides trendy clothes,
accessories, cosmetics, sunglasses and fragrances. This assignment defines different types and
purpose of organisation which vary with each other in size, scope, objectives and structure.
Organisation functions have interrelationship which benefit administration to accomplish goals
will also be discussed under this report. Internal and external analysis is done by management to
acknowledge positive and negative impact of macro environment. Thus, strengths and
weaknesses is related with external macro factors.
TASK 1
P1 Different types and purpose of organisation
Each and every corporation require to establish their position in market. Entrepreneur set
goals and objectives which are used as main aim to design system and make it function
accordingly. Private, public and voluntary are various forms of organisation which differs in
respect to their aims which are either to gain profit or to deliver appropriate things and services
in market. The NGO, NPO and profit firms are various sectors which are described below
(Hilton and Platt, 2013):
Basis of
Comparison
NGO NPO For Profit
Meaning These are organisation
which are incorporated
to provide adequate
products and services for
These are enterprises
which individual or
group of people start to
gain appropriate
These organisation which
are established by
entrepreneur to utilise
funds and conduct
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welfare of society. revenue for organising
business and deliver
things to people in
respect to their
demands.
operations effectively;
thereby generate profit
from business.
Area of
Transaction
Large scale operations. Limited area of
activities.
Large and limited scale of
operations.
Objectives Prime goal of this
segment is to improve
society and develop
economy of nation.
Main aim of this sector
is to encourage art,
science and commerce.
Raise customer base and
sales to increase
profitability and sustain
position in market.
Different kinds of organisation which are present in market are as follows:
Public Sector: State or local government incorporate such companies in which resources
are purchased with funds collected from public in form of tax. Crown Prosecution Services is
agency which executes legal action and criminal cases which is functioned by government to
make appropriate decisions and judgements.
Purpose: This segment includes firms which are set up by authorities to enhance
employment opportunities and provide appropriate products and facilities to public (Sena
Ferreira and et. al., 2012). The activities and operations of Crown Prosecution Service influence
their performance as the organisation perform for the verification of victims and criminals
accordingly.
Private Sector: Businessperson invest funds to purchase adequate material and workforce
to conduct appropriate business activities. Burberry Plc is fashion outlet which provides luxury
items that is clothes, accessories and many other things. This help top personnel to establish
appropriate position of firm in market in respect to rival brands.
Purpose: This sector comprises enterprises which are started by individual to generate
good amount of revenue to sustain goodwill and image of company in market. Blueberry Plc
perform their operations to gain revenues and benefits that shapes their performance accordingly
to reach the certain outcome.
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Voluntary Sector: This tactic defines organisation which are incorporated by individual
to conduct business activities and provide things to people in according to their needs and wants.
NSPCC is firm which work for protecting child by organising campaigns and various other
activities to aware community (Craig and Campbell, 2012).
Purpose: This segment's aim is to conduct movement and deliver appropriate things to
public for enhancing society. Along this, another objective is to gain adequate revenue to
conduct activities effectively without government intervention.
Hence, this can be concluded by studying the distinct types of organisation that these
companies affect their operations and shapes their business activities according to their
determined purpose. Organisation, therefore product product, provide service and organise
activities are conducted according to the company's core structure, purpose, scope and
objectives. Thus, the whole performance of company is influenced by their nature and different
characteristic and their functions accordingly.
Legal Structure:
Public sector: Central government: National health service, defence, police, university, social security
and many other operations are controlled and managed by authorities. Local government: Sport facilities, park, library, primary and secondary education are
monitored and operated by regulatory bodies (Bah and Fang, 2015).
Private sector: Sole Trader: This aspect includes firms which are functioned by single person to conduct
activities and deliver appropriate things and services to people; thereby gain profit to
regulate their livelihood.
 Partnership: This concept comprises companies which are started by group of persons so
that adequate resources available with company. Individuals sign agreement and
construct contract which defines complete information about their capital and profit
share.
P2 Size and Scope of Different Organisation
Each organisation that is micro, small, medium and large; differs with each other in
respect to size, scope, objective and structure. It is essential that firm have adequate resources, so
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that business activities are conducted effectively. These are various kinds of organisation which
are stated beneath:
Micro scale: These are organisation which individual start to utilise funds and conduct
appropriate business activities.
Scope: Generate adequate money to maintain their livelihood and become financially
secured. Mission: Referred organisation's mission is to earn revenues and gain benefits as much as
can along with depicting distinct recognition in market. Vision: The company vision is to meet the standard objectives of company along with
meeting 5% of overall market share within 5 years. Stakeholder: People of organisation are counted as stakeholder of company which consist
of consumer, owner, buyer and supplier of services and products.
Small scale: This tactic comprises enterprises which are bigger than micro and have
suitable resources to enlarge operations and deliver things in market in according to demands and
requirements of people (Auzair, 2011).
Size: This scale of organisation have around 50 subordinates which help administration to
gain approx 5 million dollars of revenue from business.
Scope: Small scale firms have extent to increase business operations by using latest tools
and techniques; thereby expand business to medium organisation. Mission: Organisation is focusing over gaining large market share and expand their
business operations all around the globe. Vision: The vision of firms is linked with utilising funds and generate sufficient revenues
from business.
 Stakeholder: These are people who are working in order to achieve set business goals an
d objectives.
Medium scale: This tactic comprises capability to organise business and activities to
target large number of people.
Size: 200 members in approx are available in medium scale firms which benefits
executive to generate 7 to 25 million dollars of profit.
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Scope: This sector need that administration take additional funds to enlarge business and
open new branches in same city and various other countries. This benefits seniors to provide
appropriate things and services to people (Adeoye and Elegunde, 2012). Mission: Firm mission is to expand business and open their stores at different
geographical area to deploy globally. Vision: Organisation is focusing over global recognition management and gaining
revenues by 20%.
 Stakeholder: The company's stakeholder consist of clients, customer, government,
organisation etc.
Large scale: Burberry Plc is retail store which provides luxury items that is clothes,
accessories and many other kinds of things in according to taste and preference of people.
Management have outlets in around 500 stores in over 50 nations which includes London,
England and many other.
Size: This sector firms have 200 to 500 staff which help top personnel to manage and
coordinate branches which are established in different nations. Large amount of profit is
generated by company which is due to large market reach and customer base.
Scope: This segment corporation require to sustain their market position by establishing
competitive advantage which gives help to management to attract people. Enter into different
market segments to provide variety of products and facilities to customers in respect to their taste
and preferences (Commander and Svejnar, 2011). Mission: Firm is aiming over expanding their business internationally achieving standard
revenues amount effectively. Vision: Company is focusing over providing better quality and rendering cost effective
service to satiate consumer. Stakeholder: Government, clients, customer, partners, shareholders etc.
Objectives differentiation:
Micro Small Medium Large
This kind of firms
whose main goal is to
utilise resources to
deliver appropriate
Prime motive of this
sector is conduct
appropriate business
operations and provide
Main focus of this
segment organisation
is to increase market
reach which help
This sector enterprise
goal is to construct
competitive advantage
and position firm
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products to people and
generate sufficient
profit from business.
variety of items and
services to attract large
number of people.
executive to have large
customer base and
revenue.
higher than rival
brands, as outlets are
established in different
nations.
Transnational Company: It is a kind of organisation which have business spread all
over world. Large scale firms that have branches in different nations help administration to have
appropriate market reach. This help seniors to have large customer base which help them to
enhance sales and generate adequate profit from business. For this, businessperson require to
have sufficient resources that is funds, material and manpower which benefit them to deliver
variety of items and services in respect to taste and preference of people (Fernando, 2011).
TASK 2
P3 Relationship between different organisational functions and its link with objectives
Administration responsibility is to utilise resources that is funds, material and manpower
adequately, so that business activities are conducted properly; thereby goals and objectives are
accomplished within defined time. Burberry Plc is retail store which provides trendy clothes,
accessories and many other items. For this management require to organise activities and deliver
appropriate items and services to people in respect to their taste and preferences. Therefore, these
are various units which have interrelationship with each other are stated below:
Human Resource Department: Employer responsibility is to conduct staffing process
so that organisation have adequate manpower (Gebauer,Paiolaand Edvardsson, 2010). Duties and
tasks are provided to candidates in respect to their capabilities which help seniors of Burberry to
conduct business activities properly. Along this, members are distributed in segments so that
quality products and services are delivered to clients. Performance appraisal is tactic which helps
management to assess abilities of members; thereby conduct training and development sessions
and seminars. Employer divide staff in different department and take care that each unit have
sufficient workforce which are skilled and deliver quality items and appropriate services to
customers. Along this, they even conduct training sessions and seminars to enhance capabilities
of members, thereby make them perform activities effectively.
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Finance Department: This segment responsibility is to use capital and purchase
appropriate material and tools for Burberry. Financial statement that is cash flow, profit & loss
and balance sheet are formulated by management to have complete information about expenses
and incomes generated by business. Each unit is given data about funds assigned by seniors to
execute operations in effective manner. Marketing, operational, sales, R&D and IT department
are given adequate funds to conduct business operations and appropriate technologies.
Production Department: It is important segment of every organisation which
manufactures things and help management to provide appropriate items and services to
customers. Burberry Plc is store which comprises latest trendy apparels, accessories and other
things in according to taste and preferences of people. With help of marketing team, operational
people are able to provide adequate items and services in marketplace. Along this, finance
members provide adequate money to use appropriate equipments and technologies.
Marketing Department: Companies require to inform public about variety of products
and services to attract them and influence their purchase decision (Halbert and Ingulli, 2011).
Product, price, place, promotion, people, process and physical evidence are various components
of marketing mix which are designed by team of Burberry Plc in respect to demands of people
and competitors. This is important unit which helps other departments that is production to
provide things in according to demands and choices of people. Along this, they even help
salespeople to construct strong market image and reputation which helps manager to attract large
number of people, thereby enhance sales and profitability.
Organisation structure: Flat, functional, divisional and matrix are various structure which
are used by administration in according to availability of resources and objectives. Burberry is
famous store which has latest trends clothes, accessories and many other products. Functional
organisation structure is used by company. This help owner to utilise funds and deliver quality
things to customers which enhance image and reputation of firm in market. Along this,
competitive advantage to attract large number of people and improve profitability. These are
different organisation structure which are stated beneath:
 Functional organisation structure: This aspect defines that manager conducts different
department that is human resource, finance, operation, production, marketing, sales, IT,
R&D to utilise resources efficiently. These are unit which helps Burberry to distribute
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members in different segment to execute operations effectively and accomplish
objectives within defined time.
 Divisional organisation structure: This tactic specifies that organisation have outlets in
different nations which define that administration uses this structure to organise and use
funds and manpower efficiently. Burberry has branches in UK and various other
countries. Thus, this benefits management to enhance sales volume and profitability as
firm have large market reach and customer base.
 Matrix organisation structure: This is a sort of organization structure that undertake
the reporting relationship which are determined as a matrix or grid despite of traditional
hierarchy. It combine numerous traditional division observed in the functional framework
with distinct project team.
TASK 3
P4 Positive and negative impact of macro environment on business operations
Government, technology, economic, cultural and competitors are various components of
macro environment. These acknowledged by administration to formulate strategies and design
system according to market conditions (Hamiltonand Webster, 2015). PESTEL analysis is
technique used by management of Burberry Plc to anticipate positive and negative impacts on
activities which is described below:
 Political factor: Government of UK frame laws and act to control and regulate business
and its operations. Human resource of Burberry formulate strategies and policies in
according to regulatory bodies which help them to make system function legally.
Positive effects: Authorities of UK makes taxation rates high to benefit domestic firms and stop
other rival brands from opening outlet and influencing sales and profitability of Burberry.
Negative effects: Political instability is tactic which influence on Burberry and its supply of
material from one nation to another.
 Economical factor: Inflation, exchange and interest rate are various aspects which
determine market conditions. Burberry sales and profitability depends upon customer
base and their income which determine products purchased by them in respect to their
taste and preference.
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Positive effects: In UK, public purchase branded things and have adequate money to buy
products from Burberry which gives latest trendy things (López-Gamero,Molina-Azorínand
Claver-Cortés, 2011).
Negative effects: Currency fluctuations which is due to Brexit affect on system functionality of
Burberry. Import and export of items depend upon exchange rate; thus if particular nation have
large changes in rate than management will not set up outlet in that particular nation.
 Social Factor: This component define that people purchase things in according to their
needs and requirements. Thus, Burberry sales and profitability depend upon taste and
preference of people.
Positive effects: Burberry provides trendy clothes which help management to attract large
number of customers and establish competitive advantage over rival brands.
Negative effects: Customer's preferences are never static and changes with time; which
determine that Burberry require to deliver designer things and require skilled and competent
members.
 Technological Factor: This tactic define that organisation require to use appropriate
tools and techniques so that resources are utilised efficiently and appropriate things are
delivered to customers.
Positive effects: In Burberry, latest technologies help seniors deliver quality things and services
to clients which satisfy them and construct loyal customers (Caiand Yang,2014).
Negative effects: Training and development sessions and seminars require to be executed by
management to enhance abilities of staff so that appropriate things are provided to people.
 Environmental Factor: This component defines that administration require to use
appropriate tools and technologies which don't harm atmosphere. Burberry require that
material used in producing products is natural and will not affect customers and their
health.
Positive effects: Burberry to make system function in friendly manner and position firm higher
than rival brands. It is essential that appropriate material is used to manufacture items which are
eco- friendly.
Negative effects: Burberry reputation will be impacted if adequate things are not provided to
customers.
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 Legal Factor: This aspect comprises different laws that is equality act, discrimination and
minimum wages and hours which are formulated by government to protect rights of
members.
Positive effects: Employees are given duties and compensation in according to their performance
and outcomes which help management of Burberry to retain skilled people for longer time.
Negative effects: If administration don't follow norms and provide appropriate treatment to
members; than this will impact on image and functioning of Burberry system.
TASK 4
P5 Internal and External analysis of organisation
SWOT analysis is tactic used by management of Burberry Plc to have complete
information about system abilities and market conditions. Strengths are examined by seniors to
utilise market opportunities and enlarge business to establish competitive advantage; thereby
attract large number of people (Hamiltonand Webster, 2015). Besides this, weaknesses and
threats are examined to overcome difficulties and problems. Quality items that is trendy clothes
are provided to customers in according to their taste and preference.
SWOT analysis of Burberry Plc:
Strengths Weaknesses
 Burberry Plc is famous brand which
provides variety of items that is clothes,
accessories, cosmetics and perfumes.
 Distinctive design products in
according to current market trends are
delivered to clients which enhance
image and reputation of firm in market.
 Company have outlets in different
nations which help seniors to have
large market reach and customer base
which enhance profitability.
 Customers require to get trendy things
which affect sales of Burberry Plc.
Management require to make changes
in technologies so that quality things
are delivered to customers.
 Trained and competent staff is required,
so that designer clothes and in
according to preferences of people are
delivered by firm.
 This consumes large amount of time
and efforts of seniors.
Opportunities Threats
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 Burberry Plc is fashion house which
require to provide different varieties
and trendy products to people.
 E-commerce is appropriate tactic which
defines that management construct
website and give online facility to
customers to purchase things without
visiting stores (Sena Ferreiraand et. al.,
2012).
 Administration require to have trustable
staff which don't disclose designs and
techniques with rival brands.
 Gucci, Prada, Louis Vuitton and Chanel
are various competitors of Burberry
Plc. So, it is essential that adequate
things are provided to customers.
P6 Interrelation of strength and weakness with external macro factors
Administration of Burberry conducts PESTEL and SWOT analysis are techniques which
are used to anticipate impacts of macro and micro components on business operations.
Government, economic, technological, public and competitors are various elements which are
acknowledged by management to assess their impacts on activities. Thus, this is relationship of
external macro factors and its strength and weakness are stated below:
Political: This factor determine rules and regulations which are formulated by government are
considered by administration of Burberry to make system function properly and construct strong
image and goodwill in UK.
 Strength: Authorities frame taxation policies to protect functioning of Burberry and give
helps management to have lower competition level (Hiltonand Platt,2013). This benefits
company to have appropriate number of people which buys thing in according to their
taste and preferences.
 Weakness: Burberry has outlets in different countries which define that administration
require to make tactics in respect to regulatory bodies of nation in which outlet is set up.
 Economical: Market conditions and economy state define rate which are incorporated by
association. Import and export of items from one nation to another depend upon these
tactics.
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 Strength: In UK, there is inflation which determine that people have adequate income to
purchase branded things in according to their taste and preferences. This helps Burberry
to have adequate customer base which buy products that is clothes, accessories and many
other things.
 Weakness: UK has high interest rate which impacts on funds availability of Burberry to
enlarge business and open new outlets and increase market reach.
Social: This factor define that lifestyle, demographic and work ethic determine demands and
requirements of people (Buğraand Savaşkan,2012). Burberry provides variety of accessories,
clothes, perfumes and cosmetics.
 Strength: With help of research and development, management of Burberry have
complete information about trends of market which help them to design things in
according to taste and preference of people.
 Weakness: Customer's demands keeps on varying with time, so it is essential that
changes in products are made to deliver adequate items to clients.
Technological: Modern tactics and equipments are used by Burberry which help management
deliver trendy products to people and even utilise resources efficiently.
 Strength: Burberry provides clothes, accessories, cosmetics and various products in
according to market trends. Thus, company has strong reputation and image which help
seniors to attract large number of people and enhance sales volume and revenue.
 Weakness: Management of Burberry need to make modification in technologies and tools
which affect on availability of funds and business.
CONCLUSION
As per above report, it can be comprehended that business environment
comprises different organisation and factors which directly or indirectly affect
activities. Private, public and voluntary are various sector which provide things and services to
fulfil demands and gain profit. Micro, small, medium and large scale are various organisation
which have different size, scope, objectives and structure. Organisation functions that is HR,
finance, marketing, sales and operation have interrelationship. PESTEL and SWOT analysis is
technique which helps management to conduct internal and external analysis to acknowledge
market conditions; thereby frame strategies and design system accordingly.
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