Business and Business Environment Report

This report analyzes the business environment of John Lewis Partnership, a leading retail company in the UK. It examines the different types and purposes of public, private, and voluntary sectors, the size and scope of various companies, and the interrelationship of different business functions. The report also explores the positive and negative effects of the macro environment on business operations, conducts an internal and external analysis of John Lewis Partnership, and examines how its strengths and weaknesses interrelate with external macro factors.

Business and Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
LO 1 ................................................................................................................................................1
P 1 Different types and purposes of public, private and voluntary sectors and its legal
structure ......................................................................................................................................1
P 2 Size and scope of range of different kinds of companies.....................................................2
LO 2 ................................................................................................................................................3
P 3 Interrelationship of different functions and link with objectives and structure of
organization.................................................................................................................................3
LO 3 ................................................................................................................................................6
P 4 Positive and negative effects macros environment has upon operations of business ..........6
LO 4.................................................................................................................................................9
P 5 Internal and external analysis of particular company in relation to strengths and weakness
.....................................................................................................................................................9
P 6 Strengths and weaknesses interrelate with external macro factors ...................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment refers to collection of all individuals, companies and other
elements that can or can not under the control of the firm. But, can effect their execution, profits,
growth and even survival. Each and every business organization runs in different environment.
Such environment effects business and also gets influenced by their actions (Prajogo, 2016).
This study is based on John Lewis partnership. It is the employee-operated company in UK
which provide the retail goods and services to the consumers. Report will explain types and
purposes of public, private and voluntary sectors and its legal structure. It will state the size and
scope of range of different kinds of companies. It will explain the internal and external analysis
of company as well as identify the interrelationship with external factor.
LO 1
P 1 Different types and purposes of public, private and voluntary sectors and its legal structure
Basis Public Organization Private Organization Voluntary Organization
Meaning Public sector is the
portion of economy
combined of both
public services and
companies. It involves
public products and
services. Public
companies are self
financing commercial
firms which are under
public ownership that
gives different private
goods and services for
sale.
Private sector is portion
of the economy,
sometimes referred to
as the citizen sector that
is operated by private
individuals or group
normally as refers to
firm for profits which is
not controlled by state
(Charter, 2017).
Voluntary sector
organization is also known
as association and society
which is unit of people
who enter into an
agreement normally as
volunteers to kind as body
to achieve objectives. For
examples: trade union,
learned societies,
professional and
environmental units.
Example National Health
service is public
John Lewis partnership
is private organization
Cancer Research UK is the
charitable organization in
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limited company in
the UK.
in the UK. the UK.
Purpose The purpose of public
sector company is to
provide the public
services instead of
making profits. The
mission statement is to
deliver better well-
being for communities
through population
wide and single
person focused
initiatives.
The aim of private
sector company is make
higher profits and
increasing market share
within industry in
which they operates.
The mission statement
is the feeling of all
members through their
worthy, satisfying
employment in
successful business.
The purpose of voluntary
organization is to make
social effect instead of
profits. For that, the
mission statement is to
prevent, control and cure
cancer and reducing the
number of death from
research (Hair Jr and
et.al., 2015).
Legal Structure The public sector
means to all the
companies that are
responsible to central
or localised
government. Selected
company is the
publicly funded
national healthcare
system.
The private companies
are small, family run
businesses that are
owned by shareholders.
Chosen company is the
partnership firm.
The voluntary groups are
fixed in constitution,
precise from of that
depends on legal structure
followed. There are mainly
three legal structure like
unincorporated
association, trust and
company limited by
guarantee. Selected
company is charitable
organization.
P 2 Size and scope of range of different kinds of companies
Basis Public Organization Private Organization Voluntary Organization
Size The UK's national The John Lewis group The cancer research UK;s
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health service system
runs severally which
is politically
responsible to the
relevant government.
The sum of health
sector manpower
across the UK was
2165043. In 2017,
69100 nurses
registered in UK. At
that time , there were
47800 advisors
working in the UK of
that 15700 were
physicians. About
20% of advisors work
less than full time.
is third biggest private
firm by sales in the
Sunday Times top track
100 for 2016. The
chain's image is
upmarket and it appeals
powerful to middles
and upper class
shoppers. The net
income of company is
£172 million and 83000
employees are working
in the organization.
Also, company operates
Waitrose & partners an
upmarket supermarket
chain that has 336
branches and 61000
partners.
work is almost wholly
funded by the public. It
increases money through
donations, legacies ,
community fundraising
and retail as well as
corporate partnerships.
Over 40000 people are
regular volunteers. There
are 3964 employees
working in the
organization. The revenue
of firm is total £634.81
million.
Scope National Health
service is small sized
business which is
provide the public
service rather than
making profits.
John Lewis Partnership
is large organization
which highly make
efforts to generate the
profits and revenue to
business.
Cancer research UK is the
medium sized company
which is provided the
services to cancer patients
for reducing the number of
death from cancer.
LO 2
P 3 Interrelationship of different functions and link with objectives and structure of organization
There are many functions involve like human resource,marketing or sales, production or
operations in the John Lewis Partnership.
Marketing Functions:
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The marketing department will study consumers needs to evolve strategy and good to
satisfy that consumer wants. Marketing department can research the market for purpose of
making consumer kinds like age, background and so on. In order to marketing department also
interrelate with human resource, production within the John Lewis Partnership. In relation to
human resource, marketing department needs to skilled and qualified employees which
contribute for promoting and advertising the goods and services within the marketplace. In
relation to production, marketing department needs to appropriate packaging and labelling of
goods which aid to attracting more consumers towards it (Trigg and Trigg, 2016). These
interrelationship aid to increase the sales of goods and services within the company. Also, this
can aid to raise the market share and competitive advantage within the industry in which firm is
operated. Through this, company easily accomplish their goals and objectives of business.
Human resource Management Functions:
The main accountability of human resource department is the recruiting, hiring, selecting,
training and development of employees in the workplace. This can includes developing workers
to raise their potential in effective ways which further objectives of company. Human resources
can also require to follow with legislation implement to the nation in which they are based. In
order to that, human resources function are interrelated with marketing, finance and production
within the John Lewis Partnership. In relation to marketing, human resource department needs to
focus on hire those people who are eligible for promoting and advertising the goods and services
of company in front of consumers in the marketplace (Akter and et.al., 2016). In relation to
production, human resources department needs to focus on recruiting those people who have
knowledge and skills about the designing and producing the attractive goods of company. These
interrelationship aid to increase the sales of goods and services within the company. Also, this
can aid to raise the market share and competitive advantage within the industry in which firm is
operated. Through this, company easily accomplish their goals and objectives of business.
Finance Functions:
The finance department will keep manual records of money received and paid out by the
company. This data will be utilised to produce different financial statements for tax purposes and
to follow with legal requirements. The info will be utilised to produce different financial
statements for tax purposes and to follow with legal requirements. In order to that, finance
functions are interrelated with marketing, human resources and production department in the
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John Lewis Partnership. In relation to marketing, finance department needs to focus on collected
all data and informations about the money which they spend on promoting the goods in the
marketplace. These interrelationship aid to increase the sales of goods and services within the
company. Also, this can aid to raise the market share and competitive advantage within the
industry in which firm is operated (Lee, ed., 2017). Through this, all the departments make
efforts to accomplish the goals and objectives of the business.
Production department:
This department will responsible for designing, packaging, labelling and producing the
better quality goods and services of company. In order to that, production department also
interrelated with human resources, finance and marketing department within the John Lewis
Partnership. In relation marketing, production department needs to provide the attractive goods
and services to marketing department, so that they can be promoted and sold the goods to the end
users. In relation to human resource department, production division needs to people who are
able to design and produce the goods and services which aid to increase the sales and profits of
business (Clarke, Li and Xu, 2016). In relation to finance, production department needs to funds
for producing and designing of the best products for selling in the marketplace. These
interrelationship aid to increase the sales of goods and services within the company. Also, this
can aid to raise the market share and competitive advantage within the industry in which firm is
operated. Through this, all the departments make efforts to accomplish the goals and objectives
of the business.
Organizational Structure:
The functional organizational structure of John Lewis Partnership will help to accomplish
the objectives and goals of business. Effective organizational structure help to raise the market
share and competitive advantage within the industry in which firm is operated. Through
functional organizational structure, all the departments make efforts to accomplish the goals and
objectives of the business. Also, functional organizational structure aid to build relationship
between all the departments that impact on operation and performance of company in the retail
industry (Hallward-Driemeier and Pritchett, 2015). With this structure, employees works
effectively in relation to accomplish the goals and objectives, build relationship and improving
the productiveness within the company in the industry in which they operates. With this
structure, company needs to focus on following up regulations and laws for running the business
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effectively or carefully in the marketplace. This can aid to improve the brand image, reputation
and productivity of business in the industry.
LO 3
P 4 Positive and negative effects macros environment has upon operations of business
Macro environment is the situation which exist in economy as entire instead of specific
sector or region. Macro environment includes gross domestic product, employment, inflation,
spending monetary and fiscal policy. For determine factors, John Lewis Partnership utilise the
PESTLE analysis of business environment in which they operate business. This model can be
utilised for evaluating the macro environment which effects on operation and performance of
company. Like:
Political Factor:
It involves government policy, political stability or instability, foreign trade policy,
labour laws and trade limitation which impacts in both positive and negative manner. For
example: modification of trading policies and tax regulations which has positive impacts on
operations and performance of John Lewis Partnership. On other side, there are high level of
corruption that impacts negatively on the operations and performance of organization. These are
all elements which need to be taken into action when assessing the attraction of possible
marketplace (PESTEL Analysis, 2016). These kinds of factors effect on market share and
competitive advantage in the market as well as industry in which they operates. Furthermore,
government can have intense effect on education system, infrastructure and health regulations.
Therefore, company needs to follow all the regulations for running the business effectively or
carefully in the marketplace. This can aid to improve the productivity, reputation and brand
image of business in the industry.
Economic Factor:
It includes economic growth, inflation rate, disposable income of users, unemployment
rates which effects in both positive and negative manner. For example: the raised political and
economic certainty in the nation which has reasoned sharp fluctuations in the currency
marketplace. John Lewis across different areas in UK that makes them uncovered to variant in
currency which impacts negative on operations and performance of company (Appelbaum and
et.al., 2017). On other side, there are increased foreign direct investment which impact
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positively on operations and execution of John Lewis Partnership in the UK. Also, it impacts on
prices of company of their goods and services. These kinds of factors effect on market share and
competitive advantage in the market as well as industry in which they operates. Company needs
to focus on all economic factor for running the business effectively or carefully in the
marketplace. This can aid to improve the productivity, reputation and brand image of business in
the industry.
Social Factor:
In includes demographic features, custom and values of population which company
operates. This involves populations trends like population growth rate, age, distribution, income,
life style and cultural barriers which effects in both positive and negative manner. For example:
changes in taste and preferences as well as trends which impacts negatively on operation and
performance of John Lewis in the UK. On other side, today's people are health conscious and
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Illustration 1: PESTEL Analysis
Sources: (PESTEL Analysis, 2016)

high standard of living in the UK that impacts positively on operation and performance of
company because they trying to give the health and safe goods and services to the consumers
(Tchamyou, 2017). These kinds of factors effect on market share and competitive advantage in
the market as well as industry in which they operates. Company needs to focus on all social
factor for running the business effectively or carefully in the marketplace. This can aid to
improve the image, reputation and productivity of business in the industry.
Technological Factor:
It involves innovation in technology, automation, research and development action,
changes in technology which effects in both positive and negative manner. For example: There
are high quality innovation skills and information technology which aid to run the operation
effectively. This can impacts positively on operation and performance of John Lewis Partnership
in the UK. On other side, there is slow development of technology as compared to other nation
which effect negatively on operation and performance of company in the UK. For controlling of
this factor, company will spend lost of money on technology which also effects on positively on
the business (Clarke, Li and Xu, 2016). These kinds of factors effect on market share and
competitive advantage in the market as well as industry in which they operates. Company needs
to focus on all technological factor for running the business effectively or carefully in the
marketplace. This can aid to improve the image, reputation and image of business in the industry.
Therefore, organization requires to follow all the regulations for running the business effectively
or carefully in the marketplace. This can aid to improve the productivity, reputation and brand
image of business in the industry.
Legal Factor:
It includes discrimination laws, employment laws, consumers protection and healthy as
well as safety regulation which effects in both positive and negative manner. For example: if the
company follow the health and safety regulations in the workplace, so that employees work
effectively in relation to contribution in operation that impacts positively on the execution of
John Lewis Partnership in the UK (Lee, ed., 2017). On other side, changes in employment
regulations which effects negatively on the operation and performance of company in the UK.
These kinds of factors effect on market share and competitive advantage in the market as well as
industry in which they operates. Therefore, firm requires to follow all the regulations for running
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the business effectively or carefully in the marketplace. This can aid to improve the brand image,
reputation and productivity of business in the industry.
Environmental Factor:
It includes raising the scarcity of raw material, pollution targets, carbon footprint targets
fixed by government. These factors involve biology and environmental views like weather,
culture, climate changes which effects in both positive and negative manner. For example:
government and charities have taken variety of initiatives to make environmental awareness and
decrease the negative impact of growth economic on the atmosphere. This impacts negatively on
operation and performance of company in the UK. On other side, if the company do not follow
all regulations relating to environment which impact negatively on operations of John Lewis
Partnership in the nation (Akter and et.al., 2016). These kinds of factors effect on market share
and competitive advantage in the market as well as industry in which they operates. Therefore,
company needs to follow all the regulations for running the business effectively or carefully in
the marketplace. This can aid to improve the brand image, reputation and productivity of
business in the industry.
LO 4
P 5 Internal and external analysis of particular company in relation to strengths and weakness
John Lewis Partnership needs to focus on internal analysis, so that they can utilise the
SWOT analysis which is related to strength and weakness of business. SWOT stands for
strengths, weakness, opportunities and threats in relation to business. It is effective strategic
analytical technique for company analysis.
Strengths:
John Lewis Partnership is one of the most upmarket in retail store in the UK. Also,
company offer broad range of fashion brands to select from and also their own brands which is
strong strength of business. Organization has over 35000 workers who help to accomplish the
objectives and goals of company. There are strong brand image and online presence which help
to increase the number of consumers (John Lewis SWOT Analysis, 2012). Company also make
efforts to build relationship with employees which also aid to effective operation of business.
This can impact directly on sales of business as well as performance in the industry. These kinds
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of strengths impact positively on the market share and competitive advantage of the John Lewis
Partnership in the industry.
Weaknesses:
The absence of global business experience to John Lewis Partnership which is large
weakness for business. Company do not adopt the effective marketing strategy, so that they can
not effective selling and promoting of goods and services in the marketplace. This can directly
impact on the performance of company in the industry. Due to marketing strategy, company can
not compete with another company in the marketplace. The prices of goods are larger than
grocery stores and supermarkets that can limit the target group. This can impact directly on sales
of business as well as performance in the industry. These kinds of weakness impact negatively
on the market share and competitive advantage of the John Lewis Partnership in the industry.
Opportunities:
John Lewis Partnership will make effort on development of new and specific selling
proposition that will create chances of business growth. Also, company make and formate the
strategic partnership in international market which is also large opportunity for business in
relation to growth and development (Trigg and Trigg, 2016). This will aid to raise the profits and
market share within industry in which they operates. This can impact directly on sales of
business as well as performance in the industry. These kinds of chances impact positively on the
market share and competitive advantage of the John Lewis Partnership in the industry.
Threats:
The robbery efforts and other threats lead to larger priority security concerns of loss of
property which highly threat for business. Also, the safety of workers working late into night by
which employees do not work effectively and comfortably. There are high level of competition
from corner stores, supermarkets and grocery stores and other competitive stores which also
large threat for business (Hair Jr and et.al., 2015). There are many competitors of John Lewis
Partnership like Marks and Spencer, ASDA Group Limited and Tesco Plc. This can impact
directly on sales of business as well as performance in the industry. The impact of competition
regulations due to lack of large scale development space. It is leading to merger of many
comfort stores. These kinds of threats impact negatively on the market share and competitive
advantage of the John Lewis Partnership in the industry.
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P 6 Strengths and weaknesses interrelate with external macro factors
The strength and weakness of John Lewis Partnership which interrelate with external
macro factor in the business environment where company is operated. The strengths of company
is to high online presence, so that firm provide the goods and services through online. This can
aid to increase attraction and expectation of consumers towards the goods and services of John
Lewis Partnership in the retail industry. Through online presence, company understand the recent
trends by which they focus on quality and design of goods. This can aid to fulfilment of needs
and wants of consumers according to their taste and preferences. In order to that, there are
effective relationship with employees which helps in different ways like utilization of
technology, follow regulations effectively, improving consumers services etc. These can aid to
control and understand factors that are highly threats for business (Charter, 2017). Also, these
can impact negatively on operation and performance of John Lewis Partnership in the UK. In
relation to that, effective employee relationship will aid to raise sales and profits of business.
Also, this can aid to increase the competitive advantage within the industry in which they
operates. This can assist to enhance the productivity and market share of business in the retail
industry.
The weakness of John Lewis Partnership is to lack of marketing strategy and competitive
advantage. Therefore, company do not understand international market expansion and new
product development within the existing and new marketplace. This can impact negatively on
profits and market share as well as competitive advantage. The weakness of company is to slow
development of technology as compared to other nation which effect negatively on operation and
performance of company in the UK (Prajogo, 2016). This can reduce the number of consumers,
decrease sales and profits as well as competitive edge in marketplace. For example: changes in
employment regulations which effects negatively on the operation and performance of company
in the UK. This kind of weakness highly impact on the strengths which is effective relationship
of employees in the workplace.
In this context, company must have follow the regulations like government policies, legal
rules, environmental laws for running the business effective and smoothly in long run. This can
aid to improve the brand image, reputation and productivity of business in the industry.
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CONCLUSION
This report has summarised that types of organization like public, private and voluntary
and its purposes as well as legal structure. It can be concluded that size and scope of different
types of organization such as public, private and voluntary. It can be discussed that
interrelationship between the different functions like human resources, marketing, production
and finance within the organization. It can be concluded that company determine the macro
environment factor like government regulations, inflation rate, employment regulations,
environment issues and culture of business environment which impact on operation and
performance of business on positive and negative manner. Furthermore, report has completed
that determine the strengths and weakness which interrelate with various external factors of the
business.
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REFERENCES
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Clarke, G., Li, Y. and Xu, L. C., 2016. Business environment, economic agglomeration and job
creation around the world. Applied Economics. 48(33),. pp.3088-3103.
Hair Jr, J. F. and et.al., 2015. Essentials of business research methods. Routledge.
Hallward-Driemeier, M. and Pritchett, L., 2015. How business is done in the developing world:
Deals versus rules. Journal of Economic Perspectives. 29(3). pp.121-40.
Lee, I. ed., 2017. The Internet of Things in the Modern Business Environment. IGI Global.
Sun, H. and Richardson, J.T., 2016. Students’ perceptions of the academic environment
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Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production
Economics. 171.pp.241-249.
Tchamyou, V. S., 2017. The role of knowledge economy in African business. Journal of the
Knowledge Economy. 8(4). pp.1189-1228.
Trigg, D. and Trigg, M. C., 2016. International business–operating abroad. In The Global
Business Handbook (pp. 35-48). Routledge.
Online
John Lewis SWOT Analysis. 2012. [ONLINE]. Available through. : <https://research-
methodology.net/john-lewis-swot-analysis/>.
PESTEL Analysis. 2016. [ONLINE]. Available through. :
<https://www.business-to-you.com/scanning-the-environment-pestel-analysis/>.
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