Business and business environment assignment | H&M

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
P.1 Various Type Organization..............................................................................................1
P.2 Scope and size of organization.........................................................................................3
P.3 Function and Structure of organization............................................................................5
P.4 Pestle analysis of Hennes & Mauritz ..............................................................................7
P.5 Interior and outside investigation for the selected structure in order to determine the
capability and failing .............................................................................................................9
P.6 SWOT analysis to your organisation to identify their key strengths and weaknesses and
macro factor interrelationship between ...............................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment is important part that affect the whole internal and external factor
that would be impact on their functions such as Employee, business activity, operations,
customers and management of company. External factor are not be control by the company
because the government can be handle the whole business process in which the internal factor
are handle by organization because the company policy are managed by management that will
handle the business activity in proper manner. In this report, it will determine the different size of
organization and their scope in the future. In this report, it can be identifies many factors that
affect the business activity. In H&M, The aim of organization to increase their share value in
market and they are understood the impact of whole business process in United kingdom.
Hennes & Mauritz AB is a Swedish multinational clothing-retail company known for its fast-
fashion clothing for men, women, teenagers and children. It will analysis business operation such
as Pestle and SWOT analysis. These are business model used for analysis the operation in proper
manner. In this way, It can be easily identified the negative and positive impact on this
organization in UK.
PART 1
P.1 Various Type Organization
There are different type of organization that has different role in society as following:
Basis Voluntary public private
Ownership It is basically used for
the human society that
would provide services
for people welfare.
This organization is
basically founded by
particular person and
who has owned
The private
organization is
established by one or
more person. The main
1

They are providing the
best services for those
people who has
insufficient money so
that they are helping to
those peoples.
For Example- NGO's
and DCA there are
organization are
located in United
kingdom and it can be
doing work as a
voluntary company
company but the
funding is provided by
government.
There are many
organizations in
United kingdom who
has founded by
particular one person.
For example- NHS
organization are
located in united
Kingdom.
aim to increasing a
profit and earning a lot
of money. They are
only focus on profit
and maximizing their
productivity in market.
For Example- H&M is
a private company and
it is based on a retail
business on
supermarket.
It is based on their
target to earning a lot
of profit and it can be
enhancing their
business quality for
development.
Meaning This organization is
very small scale firm
and it can not be
required a large
funding and land
areas. This is not a part
of particular company
This organization is
useful for exchanging
their share values in
market. They are focus
on their product
quality and it is public
organization so that
The private sector is
not considered as
public because they are
sharing their values in
the form of lists. They
are increasing their
2

in which they have
own organization that
would not to be part of
government.
every one has to know
about their product
and firm in market.
selling prize in market.
Objective The main objective of
voluntary organization
to provide the services
for the people welfare.
They are earning a
profit for the human
being because they are
focus on their profit to
development of human
being.
The main objective to
increase their business
in all over the world
and they are
maintaining the people
and provide the
services. They are
increasing their
business for
development. There
are many enterprises
in United kingdom to
earn a profit.
There are always focus
on the profit and they
are investing a lot of
money for business
development. In this
sector, they are
concern about human
welfare and
community. There
motive to establish a
effective business so
that they increasing
their product value in
market.
Motive DCA is a voluntary
company that vision to
helping those people
who has very poor.
They are earning a
The vision of Health
organization to
provide the best
services in united
kingdom and they are
There vision to
expanding their
business in
supermarket and it is
becoming a leading
3

profit for company.
This money is used for
the social community
and personal growth.
check the people in
time to time and
giving a treatment
brand in the world.
P.2 Scope and size of organization
Basis Micro business Small business Medium business Large Business
Operations This business is
very small and
their activity are
start with the
initial point. There
capital of business
is very small and
it generating a low
revenue in market.
Small business
are started from
the initial point
and there size of
firm is also small
that would be
control by the
owner of
organization that
can be manage
the whole
business in very
efficiently. Small
business are
generating small
revenue in
This organization
is medium scale
when they have
performing their
task and function
in medium level.
The size of this
firm is minimum
and usually they
are investing
small amount of
money but
generating a large
amount revenue
in market.
They have large
scale organization
and that would be
invest a lot of
money in market.
There are many
operations
performing a
different task and
generating large
revenue in market
because they have
to do work on
large project so
that the amount
invest is also very
4

market. high.
Turnover Micro scale
business has small
structure so that
they can invest
low amount for
business in which
the actual
turnover is $2
million.
Small business
generating $1
million to 30
million in every
year.
Medium scale
organization are
creates $25
million to $300
million in every
year.
Large
organization is
generated large
turn over in every
year is $360
million.
Workforce Micro business is
handle by the one
or more person
and particular
group that has
been control the
whole business in
proper way. There
is no employee in
this organization.
In small business,
there are 20 to 30
employees
working together.
They have to do
work on a
particular place
in which all
employee are
working in very
efficiently.
In medium
business, they
have approx 130-
200 employees
are working
together. They
have specific time
hour to do their
work on under
this time
allotment.
In large business,
they have many
employees
working together
approx 300-500
because this is a
multinational
company so that
they have lot of
projects are there.
They have some
specific goals to
achieve their
5

targets.
Market share
Profit share
The micro
business has very
low market share
value.
The profit rate of
micro business is
low and that
would not be
covered all
market.
The share value
of medium
business is
medium but not
high.
The small
business has low
profit share in
market as
compare to
medium
business.
The share value
of medium
business is also
medium as
compare to small
business.
The profit rate of
medium scale
business is
average they can
earn more profit
as compare to
large business.
The value of share
more than high
because it can use
very high share
value in market.
The large
business has high
profit share in
market because
they are spending
a lot of profit in
market.
M.1 Analyse how the structure, size and scope of different organisations link to the business
objectives
Micro scale business has small structure so that they can invest low amount for business
in which the actual turnover is $2 million. The main objective to increase their business in all
6

over the world and they are maintaining the people and provide the services. They are increasing
their business for development. There are many enterprises in United kingdom to earn a profit.
D.1 Provide a critical analyses
The large business has high profit share in market because they are spending a lot of
profit in market. This organization is medium scale when they have performing their task and
function in medium level. The size of this firm is minimum and usually they are investing small
amount of money but generating a large amount revenue in market.
P.3 Function and Structure of organization
The Structure of organization on basis of their size and scope- there are different type
of structure of organization are classified as Matrix structure, Functional structure and Divisional
structure. The matrix type of structure is H&M has different functionality in market. In this
company, they are providing different type of product and it is a basis on merchandising
department that provide an effective good services (Igarashi, 2015). The manager will explore
their business activity in all over the world. It is a matrix type of structure to perform different
role in business process. Every company has to followed a particular structure in proper manner
that can be determines on the basis of their level and operations.
International and Global company structure- these type structure are useful for the
market profit and deciding the share values in market. In international structure are included for
import and export business that has to be no investment in our country because they can be using
as domestic process (Nozinovic, 2014). Global organization is very important because they will
expand their business in all over the world. This organization can be invested fund in global
market. The transactional structure is very complex because these is based on foreign
investment.
7

Interrelationship between objectives and goals of organization-
H&M is very popular leading brand in United kingdom that has specific functionality are
following:
Human resource management- It is very important part of organization to manage the
whole business process. It can be control the operation of business activity. It will maintain the
whole department in proper manner in which this organization is very popular and leading in all
over the world. In H&M, there management system can be perform so many operations like
recruiting process, secure the detail of employee in accurately (Haim, 2017). Human resource
management is very important part of organization because they are managing the whole
business process in every effectively and efficiently. They will conduct many training program
for development in which it is very crucial part to handle the management. Training and
development program are very important for employee in which with the help of this program,
the employee easily developed their skill and knowledge (Deville, 2014). This program is
managed by human resource. They will provide information related policies, term and
conditions, Agreement etc.
Finance- Funding is very important thing for every organization because they can start
their business through investment in which it is a needed part of each and every organization
because without any funding cannot be established a new business. Every company has own
finance department that would manage the financial conditions (Allen, 2015). They will
determine actual requirement of business process. Financial team are directly interacted to
investor for funding that would creating a effective relationship with investor because they are
provided amount for business development.
Marketing- Marketing is process to explore their product in market and it is very easy
process to expand in all over the world. They will provide more opportunities for customer. They
8

are planning a different market strategies for production in which H&M are planning a special
type of strategy that are very helpful for organization and it also increasing their productivity in
market. Marketing is the best approach to understand the need of customer and most of the
customer are directly interacted through internet so that it is the best medium to explore their
product information on internet with the help of website (Falk, 2017). Digital marketing is good
approach to directly interacted to customer and identifying the actual need.
M.2 Analyse the advantages and disadvantages of interrelationships between organisational
functions
The matrix type of structure is H&M has different functionality in market. In this
company, they are providing different type of product and it is a basis on merchandising
department that provide an effective good services. Financial team are directly interacted to
investor for funding that would creating a effective relationship with investor because they are
provided amount for business development.
P.4 Pestle analysis of Hennes & Mauritz
The first Hennes store opened of women clothing at Sweden. In 1952 they started
expansion. After 1968 Mauritz joined that company and they called Hennes & Mauritz. Today
they have more than 2000 stores in 38 different countries across the world. The various brands of
H & M is cheap Monday, COS, Monki, Weekday and many more. In importing this company
name comes in the largest one (Aebersold, 2016). It is the second in line in becoming the largest
retailer in the world. After IKEA this is most recognised company in Sweden. In UK, the
Economy growth has been increasing in United Kingdom market and they will contribute for
marketing purpose. In this way, It is very important factor when it is generating a high revenue in
market. Every business have their two types of environment that is micro environment and
macro environment. The micro environment is the internal environment of the business and
9

macro environment is one of external environment. Determining the effect of macro environment
there is a model, PESTLE analysis which is used here for business operations of H&M. The
pestle analysis are as follows - Political Factors – H&M is a global brand and number of stores across the world so the
monitoring of political related risk is so much important. The political factors that are
affecting to the H&M is related to import and export and related to location problem of
production facilities (Dessein, 2017). For basic needs and different circumstances, the
policies and regulation is change and affect to their business from lower level to higher
level. United Kingdom present political circumstances is destabilised because to
BREXIT. This factor is affect the business operation in United market that has to affect
their revenue and profitability. In this factor, they are followed the government rules and
regulation is very important to affect their activity. In H&M, their functions are control
by the government and it generates an effective sustainability to get over the critical
situations.
 Economical Factors – all the Economical factors which are affect any business are
interest rates, inflation rates, exchange rates, unemployment rates and many more factors.
From these factors the over all performance also affect of any organisation. It is a basic
compulsory things for increasing the profitability and efficiency is to analyse the
economic condition of the nation in which the organisation want to run their business.
This factor is control their business activity in efficient way due to this factor, it reduces
the capability of their workforce and it can control their cost that are required in business
operations (Mohagheghi, 2017). They are directly impacted to their country economy and
reducing the revenue. This is important factor for development of enterprises because
they will handle the country economy and which are used for the growth and
10

development in market. Some times, it has positive impact for economy and negative
impact affect the organization.
 Social Factors – any business also affected by its society that includes social preferences
and tastes. Customer's nature is dynamic. Every time of they purchase they want
innovative and new product for them. If the organisation is fail to give the products and
services to their customers they can not survive in this competitive type of culture.
Organization must be run according to their customers preferences and fulfil their needs
and wants for achieving more profit (Levin, 2016). Social factor affect their community
and functionality of firm. In H&M, the social factor affect because some times, they will
face such critical condition and the business has created risk on the job.
 Technological Factors – Technology is also affected to the business. After evolution in
digital technology it is need of computer systems, cloud computing and proper use of
internet. These things help in any business to reduce manpower of the company, time
saving and reduce extra operational cost. So this factor is also affected any business in
current scenario. Technology is directly affected the business because most of the
organization are used modern technology while they are expanding their business with
the help of technology (Parízek, 2017). They will explore their product in market through
digital marketing. It is very effective approach and every firm are used these techniques
that would be essential part of organization to control their product information in
market. it is every easy to identifying the need of customer.
 Legal Factors – in every case organisation is bounded from the legal laws in that country
which they run their business. There are also noted that all basic laws will be
implemented regarding the recruitment of employee on his or her self will. There should
be full safety with fire alarms and emergency exits and also other required equipments.
11

All manpower should be given proper salary, employee benefits and rewards that they are
deserved and according to their post and work (Teigeler, 2014). Legal factor is control
the employee security in which the organization are followed some law for employee
welfare that would be generated by government. This is important factor for each and
every employee that has been doing job in organization.
 Environmental Factors –This is factors related to environment are affected to the
business. In current condition pollution level is too much increase continuously and
substantially. In the process of production and supply chain the emission of CFC gases
negatively affect to the environment and earth's upper layers so it is a big reason of global
warming (Lancaster, 2017). For sustaining and earning more profits by any organisation
it is mandatory to optimum utilization of resources and save earth. It is a big challenge to
survive in this polluted environment so this environmental factors are more affect to the
enhancement of organisational growth.
M.3 Apply appropriately the PESTLE model to support a detailed analysis of the macro
environment
H&M is a global brand and number of stores across the world so the monitoring of
political related risk is so much important. All the Economic factors which are affect any
business are interest rates, inflation rates, exchange rates, unemployment rates and many more
factors. Business also affected by its society that includes social preferences and tastes.
Customer's nature is dynamic. Technology is also affected to the business. After evolution in
digital technology it is need of computer systems, cloud computing and proper use of internet.
D.2 Critically evaluate the impacts that both macro and micro factors
In this way, It is very important factor when it is generating a high revenue in market.
Every business have their two types of environment that is micro environment and macro
12

environment. The micro environment is the internal environment of the business and macro
environment is one of external environment.
P.5 Interior and outside investigation for the selected structure in order to determine the
capability and failing
In the report, those factors are good in market should be focus and giving direct impact
on performance. On the other side, in the business organisation the two factors conclude that
internal and external factors are the important in this. Internal factor is focusing on the to identify
the strength and weakness in the company, and the other side, the external factor defines as
whatever is going outside how to influence the working environment (Phadermrod, 2016). In the
workplace to assist and place the weakness of person is to focus on interior to carry out in the
H&M organisation. In the job the worker well guide in the guidelines of the work in the
company. In this reason intrinsic examine is inbuilt theory and help to change the level in
business.
Strength Weakness
A good and honest person do the work
appropriate in manner.
Employee has a bad quality is that no time
management, and not done proper work in
work place.
In work place negotiation is giving employee
property (Phadermrod, 2016).
Some clip retail plane figure is give more than
advertisement.
In retail sector, they are increasing their
revenue in market because they will provides
best services in market. In past year, the value
The weakness is when they are using traditional
method and that are not suitable for
development in this way, the cost of share is
13

of product in market is fast growing. They can
be explore their business in International
market.
down in market because they have many
chances to decreasing their productivity.
In the above table, in the market of the growth rate is improved and in environment the work is
done by which internally is to be focus. Therefore, internal working mode considered to be
internally guide the employees and focus on their performance and guide each and every
individually worker on the company in the company. To implement all this a positive result
mention and come out (Igarashi, 2015). In this state, in the large and small method the position
and state of the business organisation are accompanied in affairs factors. In the large
environment frequently the comparison between strength and social control compares are
established.
As compare to internal factor, the external factor is totally different that external factor is
concluding that some methods of legal system are to be focused in this external factor. Whatever
the work is done it should be compared with legal system. To kept measurement rate is well the
legal surroundings is least crucial is playing a role in it. In court serial plan of action is opinion to
the interest state of personal matters in definite land and certain law are kept up them constant in
the marketplace. In the system incorrect activity is done the law should be extend. In this
decision the focus point of law and labour law and constant or condition in work place. In the
organisation, the same policy are considering In the political factor to rate is growing and impact
in it (Aebersold, 2016). All the hinder authorities in economic system is to be focus. The
authorities give the new tax policy is very negative factors for the organisation to come out into
action In it. The H&M company is following the tax policy and follow the governmental factor
and other are facing the problem because they are not followed. By the researcher, he or she
14

researches to help in to do work and get ideas to increase the market growth in it and using
different kinds of technology to increase in the market place. In the market, technology is few in
nature. In the external factor, some changes are very helpful to create some new and impact on
growth development rate. This all has to give the directly impact on decision making in the
workplace. When the decision is making the internal and external factor is to be considering the
most part in this.
P.6 SWOT analysis to your organisation to identify their key strengths and weaknesses and
macro factor interrelationship between
The H&M organization is mainly focused on their the internal factor and external factor
should focus on this in the workplace to get succeed in the future and get benefit in this for the
future. In this manner, rules and regulations of the H&M are maintaining the large and small
factors. Social control compares strength of the beginning with paramount large environment
cause like societal, economical, engineering, governmental and appreciation and then explicate
strategic and functional policies (Phadermrod, 2016). Relation between macro condition factors
and organisation place and imperfectness. On the other state, in the workplace the external factor
and internal factor are should be focus and in external factor can do the work in the workplace.
 Economic factor: This economic factor can including the inflation rate, chemical
phenomenon rate, and change in interest rate in the market zone. In H&M, the financial
statement is always clear and maintain then in future whenever the financial condition
occur it may not harmful and tough for the company (Nozinovic, 2014). And rapidly
change the rate of product and evaluate the plan of action in the arrangement criteria.
Sudden changes in the Hennes & Mauritz, they should face the various types of problem
15

in this, but in hence organisation should always maintain the component in the work
place environment.
 Political and legal factor; the very useful and important factors are political and legal
factors are considered to be changes in some external working environment. Both the
factor legal and political is directly changes in growth rate and in market the performance
should improved. During the time of exporting, the factor which will change sudden is
legal factor, so it can occur the performance in the market place (Haim, 2017). And in
internal factors the Hennes & Mauritz may affect to perform and improve in manner.
 Social and cultural: in this state, the cultural and social factors are facing the act of
speech. In the company, should have natural resources, good staff, viable financial
resources. The H&M always follow the demands and fulfil the needs of the customers to
attract with the company product and their strength should always more and more in
respective manner (Deville, 2014). H&M preferred to value and beliefs. Social culture
affect the whole organization because they are provided the best services to the customer
and they will understand the requirement of customer. Most of the companies are fulfilled
the need of customer and they are provided a customer services in 24 hours.
 Technological Factors: in the technology factors, the new technology is adapted to
create something new in Hennes & Mauritz. If the huge amount of business is there and
get successful in this then should be bring a new technology to improve old technology in
the company by the new technology. To adapt a new technology it is profit for the
company and gain some new method to improve the business (Allen, 2015). In the
software company different types of technology used in that so create an innovative idea
to the market environment.
16

 Environmental Factors: In the environmental factors, each and every business natural
resources for develop a goods and services rapidly. If some wooden company is there in
that using of wood is there to follow the laws and not misuse of the natural resources. In
the environmental factors should be follow the rules and regulations of the government
and scheme whatever is make by the company. The relating and affecting with each other
the relevant is strength and weakness factor in the market place (Falk, 2017). If the plan
is make and it was not appropriate it will fall in environment. To make a success plan.
Falling will negatively impact the organization if the formation is not able to execute the
by which demand by activity adequate of product than it affects profitable of the
organization.
M.4 Apply appropriately SWOT/TOWS analysis
A good and honest person do the work appropriate in manner. On the other side,
employee has a bad quality is that no time management, and not done proper work in work place.
This economic factor can including the inflation rate, chemical phenomenon rate, and change in
interest rate in the market zone.
CONCLUSION
In this report, it concludes that the business process can be done by marketing strategies
and it can be followed by environmental factor that affect the organization. It is highly impacted
to business operations and their functionality. In this report, they will identify different type of
organization on the basis of their structure and functions. As per discussion, the deeply study on
Pestle analysis that has specific role on particular environment with the help of analysis it can be
determine the actual strength and weakness of business. These factor are directly affect the
macro business in United Kingdom. In SWOT analysis, it determines the actual condition of
business in market that would be affect the retail business in United Kingdom.
17

18

REFERENCES
Books and Journals:
Igarashi, M 2015. Investigating the anatomy of supplier selection in green public
procurement. Journal of Cleaner Production, 108, pp.442-450.
Nozinovic, S 2014. The importance of helix P1 stability for structural pre-organization and
ligand binding affinity of the adenine riboswitch aptamer domain. RNA biology, 11(5),
pp.655-666.
Haim, L.B 2017. Functional diversity of astrocytes in neural circuit regulation. Nature Reviews
Neuroscience, 18(1), p.31.
Deville, A 2014. Measuring the performance of hierarchical organizations: An application to
bank efficiency at the regional and branch levels. Management Accounting
Research, 25(1), pp.30-44.
Allen, B.L 2015. The Mediator complex: a central integrator of transcription. Nature reviews
Molecular cell biology, 16(3), p.155.
Falk, S 2017. Hierarchical organization in the temporal structure of infant-direct speech and
song. Cognition, 163, pp.80-86.
Aebersold, R 2016. Mass-spectrometric exploration of proteome structure and
function. Nature, 537(7620), p.347.
Dessein, W 2017. Organizations with power-hungry agents.
Mohagheghi, P 2017. An industry experience report on managing product quality requirements
in a large organization. Information and Software Technology, 88, pp.96-109.
Levin, M.D 2016. Scope and mechanism of cooperativity at the intersection of organometallic
and supramolecular catalysis. Journal of the American Chemical Society, 138(30),
pp.9682-9693.
19

Parízek, M 2017. Control, soft information, and the politics of international organizations
staffing. The Review of International Organizations, 12(4), pp.559-583.
Teigeler, J 2014. Market Analysis of Red Bull based on the countries Germany, Switzerland and
Austria.
Lancaster, G 2017. The development of a strategic approach to marketing: its culture; internal
macro-and external micro-environmental issues. In Essentials of Marketing
Management (pp. 11-42). Routledge.
Phadermrod, B 2016. Importance-performance analysis based SWOT analysis. International
Journal of Information Management.
20

21

22

23

24

25

26

27

28