Business And Business Environment : Iceland Foods Ltd

Business And
Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purpose of public, private and voluntary organisation and legal
structure ......................................................................................................................................1
P2 Scope and Size of a Iceland, Iceland and Welcome Trust....................................................3
TASK 2 ...........................................................................................................................................6
P3 Relationship between various organisational functions and their relation to organisational
objectives and structure...............................................................................................................6
TASK 3............................................................................................................................................8
P4 Positive and negative impacts of macro environment on business operations of Iceland
Foods Ltd ...................................................................................................................................8
TASK 4..........................................................................................................................................10
P5 Internal and external analysis of specific organisations in order to identify strength and
weakness .................................................................................................................................10
P6: Strengths and weakness interrelate with external factors...................................................11
CONCLUSION .............................................................................................................................12
REFERENCES .............................................................................................................................14
.......................................................................................................................................................15

INTRODUCTION
Business environment refers as a combination of external and internal factors that
impacts on operating situation of an organisation. In simple word, business environment
introduces to the surroundings and the internal and external factor of enterprise which influence
the business. It includes different factors which impacts on business decision and operations
within an organisation (Ojala, 2016). These factors includes the customers, government, demand,
employees, laws, governments and other which influence the decision of the business. This
report is based on three organisation which is private, public and voluntary for example: Iceland,
BBC and Welcome Trust. Main purpose of this report is to identify different types, scope and
size of organisations. Legal structure of private, public and voluntary sector will be included in
this assignment. Interrelationship between different functions of an enterprise with its link to
organisational objectives and structures is also included in this report. SWOT and PESTLE
analysis and their relation with them in also covered in this project. Both type of model have
been impacted on decision making power of manager within an organisation.
TASK 1
P1 Different types and purpose of public, private and voluntary organisation and legal structure
There are basically three types of organisation which is private, public and voluntary. All
these form of enterprise will be explained in detail manner with its purpose and legal structure.
Private sector:
It introduces as a main part of economic system of country that is run by individuals and
business rather than the government (Savrul and et. al., 2014). Main intention of this sector is to
gain maximum amount of profit. Iceland Foods Ltd is a chosen private sector organisation which
is a British super market chain in Deeside, Wales, UK.
Purpose of Private sector:
Main purpose of Iceland Foods Ltd is to increase their profitability and market share by
providing quality products at affordable price to the customers.
Types of business in private sector:
Private sector have mainly three types of legal structure which are determined as under:
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 Sole Trader: It introduces a one- person business which is run by an individuals and
companies. In order to run their business, sole trader not require higher amount of
capital. Partnership: To reduce many of the issues of a sole trader, a partnership may be formed
in systematic manner. A partnership is an organisation of individuals and specifically
there will be between two and twenty partners.
 Limited Company: This also identified as a type of joint-stock company where the
companies has an individual legal identity from the business owners. In this business, all
stakeholders has limited liability for the organisation's debts (Schaltegger and et. al.,
2012).
Iceland Foods Ltd has limited company legal structure because this business is own by
themselves with aim to increase profitability.
Public Sector:
It refers as a part of economy which is composed of both public enterprise and public
services. It is mainly comprised of enterprise that are operated and owned by the government as
well as exist to give services for its citizens. Main purpose of public sector is to give public
services includes governmental and good services as the military, public education, police along
with health care. BBC is a selected British public service broadcaster in London, United
Kingdom (Sena Ferreira and et. al., 2012).
Purpose of public sector:
Main purpose of BBC is to give impartial information and news to assist people know
and engage with the world around them.
Types of business in Public sector:
Public sector also have three foremost legal structure which are mentioned as under: Departmental Undertakings: This introduces as an oldest type of public sector
organisation. It has no individual existence than the legal authority. Central government
functions under the whole control of single department of government. Public Corporation/Statutory Corporation: This type of legal structure is formed by a
particular act of parliament as well as state or central legislature. Its limitation, power and
objects are also defined by the the act of legislature.
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 Government Companies: The organisation in which appropriately 51% of paid-up share
capital which is held by the state as well as central government. The government
organisations are ruled and governed by the provision of companies act 2013 (Types of
Companies and Forms of Organising Public Sector, 2018).
BBC has government companies legal structure because it is ruled under companies act 2006.
main purpose is also to provide better services to the community.
Voluntary Sector:
This introduces as the duty or responsibility of social activities which is undertake by an
enterprise that are non-governmental nonprofit organisations. Primary purpose of this sector is to
develop social impact rather than profit (Wach, 2015). Welcome trust is chosen biomedical
research charity based organisation which is located in London, UK.
Purpose of voluntary sector:
Main intent of Welcome trust is to accomplish extraordinary improvements or
betterments in health by helping the brightest minds.
Types of business in Voluntary Sector:
Voluntary sector have different types of legal structure which is associations, trusts,
company limited by guarantee, community interest company etc. Some important structure will
be determined as under:
 Trusts: This refers as a type as an effective type of traditional structure for a charity
based organisation as well as older trusts and charities.
 Associations: This introduces as a common type of unincorporated structure for
community and voluntary enterprise and is favoured by small and new groups (Xavier
and et. al. 2014.). Company limited by Guarantee: This refers as a most common form of incorporated
body which is followed by groups in the community and voluntary sector.
Legal structure of Welcome trust is Trust because their main motive is to provide services not to
gain maximum amount of money.
P2 Scope and Size of a Iceland, Iceland and Welcome Trust
Basis Iceland Foods Ltd BBC Welcome Trust
Size Iceland Foods Ltd operates British Broadcasting Welcome Trust is a charity
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and own food retailing
stores in UK. The company
was founded by Sir
Malcolm Walker in 1970
and based in Deeside, UK.
Estimated revenue of
Iceland Foods Ltd around
$2.8B and have
appropriately 24,294
employees whose work with
to accomplish long term
goals and objectives of an
organisation (Iceland,
2019).
corporation is a public
service broadcaster. The
organisation was founded
in 1922 by John Reith and
headquartered in
Broadcasting House
London, W1. Around
37883 employees have
been worked in this
organisation with aim to
maintain strong position in
market. Revenue of
this company is
appropriately £5.1 B
(BBC, 2019) .
based biomedical research
organisation in London,
United Kingdom. This
trust was founded by Sir
Henry Wellcome in 1936
and located in Eustone
Road, London, UK.
Estimated annual revenue
of this organisation is $
72.9M and approximately
794 employees whose
recently worked and have
motive to provide best
services to needed people
(Welcome Trust, 2019).
Scope Company has wide scope
because of its quality
products and different
outlets in various countries
(Babu, 2012).
BBC is also has broad
scope due to its quality
services and products.
Company provides their
products in all over the
world.
Company has wide scope
due to its different services
and its focus on
Biomedical research which
will also other sector by
providing accurate amount
of fund (Baker 2012.
Bocken and et. al., 2013).
Vision “To be the most extremely
valued business by: the
customers we serve, the
society in which we operate,
our committed and loyal
colleagues and of course our
A globe where empowered
and informed people live
in healthy, inclusive and
resilient communities.
“We help investigators, we
take on big health
challenges or issue, we
campaign for accurate
science, and we support
everyone acquire involved
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shareholders”. with science as well as
health research.
Mission “To continually give our
members with high quality
products and services at the
affordable possible prices”.
With our partners we
reach millions via trusted
media and effective
communications,
supporting large number
of person have their say,
know their
responsibilities, rights and
each other, as well as take
action with intent to
transform their own lives
(Che-Ha and et. al., 2014).
Health promotion as well
as advocacy substantiated
by research is Mission of
Welcome Trust.
Products
and
services
Iceland Foods Ltd mainly
specialise in selling of
frozen, fresh, household,
food cupboard and part food
products, as well as
Christmas products and
drinks.
BBC chiefly specialise in
selling of different
products and services such
as Broadcasting, radio,
web portals, television,
radio as well as online
services.
Welcome Trust mainly
specialise in offering
funding schemes for
research in social science,
health sector and
humanities.
Business
Objective
s
Main objective of Iceland
Foods Ltd is to develop
value for clients to earn
their lifetime loyalty (Glova
and et. al., 2014).
BBC has aimed to deliver
certain strategic objectives
which is, innovate online
to develop a more personal
BBC, serve all audience,
enhance value for money
via a simpler etc.
Main objective of this
organisation is to
accomplish extraordinary
betterments in health by
helping the brightest minds
as well as funding
biomedical research in
assist the public knowing
of science (Ojala, 2016).
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Stakehol
ders
Main stakeholders of
Iceland Foods Ltd is its
customers, employees,
governments, society etc.
BBC has internal and
external stakeholders
including, Owners,
managers, workers,
customers, lenders,
community and suppliers
(Melero and et. al., 2016).
This trust have different
stakeholders such as
Biotechnology and
Biological Sciences
Research Council, Farmers
and livestock keepers,
United Kingdom
Department for the
Environment, Food and
Rural Affairs etc.
TASK 2
P3 Relationship between various organisational functions and their relation to organisational
objectives and structure.
Iceland Foods Ltd is a multinational retailer in the United Kingdom and offers different
foods at affordable price. In this organisation, different departments have to work together with
purpose to achieve long term goals and objectives within given time duration. Human resource,
marketing, finance operations etc. are consider main departments of Iceland Foods Ltd. All
these are work with each other and have common purpose to accomplish businesses goals.
Human resource with finance department: Main role of this department is to recruit
talented and knowledgeable workforce within and outside of the organisation. Human resource
department work is to manage the harmony and peace of workplace (Andersson, Forsgren and
Holm, 2015). This department have interrelationship with financial functions of Iceland Foods
Ltd. For example: finance workers needs specific capabilities of accountancy as well as finance
to excel at their work or task, if candidates is hired without examining their skills or knowledge
set then it will impact overall effectiveness of Iceland Foods Ltd. So human resource team
should select and hire after analysing all their capabilities and then align to the objective and
vision of an organisation. This will assist an enterprise to attain their finance objectives about
capturing maximum amount of market share.
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Research and Development with Marketing department: One of the function of R&D
department is to examine the market as well as analyse the actual requirements and trends which
prevail among clients. This department of Iceland Foods Ltd gives their functioning linked to
examine the capabilities of challenger and actual demand of clients that are further followed
under marketing department to bring modification in their promotional as well as targeting
strategies. This will highly support an organisation in achievement of its marketing objectives as
well as accomplishment of competitive benefits in market (Apăvăloaie, 2014).
Finance with operation department: Main role of finance department is to identify the
requirement of accurate amount of capital for many other department. Allocation of appropriate
fund gives assist to each department within an organisation to optimally and effectively utilise
their resources. For example: operational department needs accurate amount of capital to
purchase raw material and convert it into finished goods. This will assist Iceland Foods Ltd to
achieve their long term objectives by fulfilling customer's needs and wants towards specific
products and services.
Organisational structure of Iceland Foods Ltd: It introduces as an effective system that
outlines how few activities or tasks are directed in order to accomplish the goals and objectives
of an enterprise. These activities mainly related with responsibilities, rules and roles played by
each department within an enterprise (Babu, 2012). Iceland Foods Ltd have to followed
Hierarchical Structure, in this workers are grouped with each and every workforce having one
clear supervisor.
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From the above mention organisation chart, it has been concluded involvement of
different department for success and growth of an enterprise. All these department are work
together with intent to accomplish marketing, finance and operational objectives of Iceland
Foods Ltd within given time period.
TASK 3
P4 Positive and negative impacts of macro environment on business operations of Iceland Foods
Ltd
PESTLE analysis introduces as an effective and essential framework used by Iceland
Foods Ltd to analysis the impact of macro factor on their business operations. This framework
will give the possibility to the organisation to assess the circumstances which are available in
marketplace and make their strategies in effective manner (Baker, 2012). In order to know about
the impact of macro environmental factors on the working of an organisation, the use of PESTLE
Analysis is done. The following analysis is used in order to know about the impact of macro
environmental factors on the working of an organisation. The description of the impact of these
factors are provided as under:
Political Factors:
These are those factors that impacts upon the working of an organisation due to the
changes in the governmental policies, rules and regulations such as the the political stability of
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an economy, employment laws and regulations, consumer laws, labour laws, employment laws
and many more are covered under this factor. On Iceland Foods Company, the impact of this
factor has been drawn as under:
Positive Impact: It is included in the positive impact of political factors that the companies are
impacted by the political stability of the country as it provides the company with the chances to
make suitable policies for Iceland Foods Company (Bocken and et. al., 2013).
Negative Impact: It is about such as change in the taxation policy of the company. In case the
the tax rates increases, then it will impact negatively on the working of Iceland Foods Company
because this will make the company to increase their prices also.
Economic Factors:
These are those factors that impacts upon the working of an organisation due to changes
in the interest rates, disposable income of customers, interest rates and many more. The impact
of this factor on Iceland Foods Company has been drawn as under:
Positive Impact: The positive impact on the company is in case the disposable income of
customer increases than the purchasing power of the customers will also increase and the sales of
the company will be positively impacted.
Negative Impact: Iceland Foods Company could have negative impact from the interest rates as
in case if interest rate increases than it will have a negative impact on the company because it
will lead to increase in and reasonably fall in demand.
Social Factors:
These are those factors that impacts upon the working of an organisation due to changes
in the perception, mindset, feelings and taste and preferences of those people (Che-Ha and et. al.,
2014). The impact of this factors is also provided as under:
Positive Impact: In case the taste and preferences of people are in favour of the company, than it
will have a positive impact upon the working of the company. For example, any new product has
been launched by the company and customers love the quality of the product than this will
impact positively as the demand will increase.
Negative Impact: Along with the taste and preferences of people, the considerations are also
taken into account about the perceptions of people about the particular product or service of an
organisation so this will impact negatively on the working of Iceland Foods Company. For
example, some people before buying any product or service, take guidance from other people
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and perception from people to people are different, so the negative feedback provided by other
people will impact negatively on the company (Glova and et. al., 2014).
Technological Factors:
These are those factors that impact upon the working of an organisation due to change in
the technological factors such as improvement in the ways of producing goods and services,
improvement in the ways of working and many more that impacts upon the company. The
impact of this factors on Iceland Foods Company has been provided as under:
Positive Impact: In case, Iceland finds out some new way of producing good and services in
their organisation which could reduce the cost of production of the company so in that case it
will be able to have the positive impact of this technological change.
Negative Impact: The impact will be negative in case this technological improvement has been
made in the processes of rival organisations. This will impact negatively on the working of the
company as Iceland Foods Company will not be able to deal with this technological
advancement.
Legal Factors:
These are those factors that impacts upon the working of an organisation due to some
special laws and regulation made by the government of a country that impacts upon the working
of an organisation. The impact has been provided as under:
Positive Impact: In case, the government makes any regulation which proves to be in the favour
of Iceland Food Company so this will impact positively on the working of the company such as
related to tariff duties on specific items that has been reduced by the government (Melero and et.
al., 2016).
Negative Impact: These are some laws that impacts upon the working of an organisation in the
negative way such as the false representation of facts in advertising could impact heavy fines or
charges on the company so this makes the company to not prepare any superstitious
advertisement.
Environmental Factors:
These are those factors that impacts upon the working of an organisation due to the
impact that has been created by the working of the company on environment such as emissions
of harmful gases, pollution and many more. However, the working of Iceland Foods Company
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does not create negative impact on environment but the contribution made by it towards
environment will help in increasing the brand awareness of the company.
From the above analysis, it has been found that the company is able to deal with the
impact of these factors and is performing well.
TASK 4
P5 Internal and external analysis of specific organisations in order to identify strength and
weakness
Swot analysis introduce as an effective and useful tool which is followed by an enterprise
for the intent of analysing their weaknesses and strength to make accurate strategies via which
they can accomplish their set goals and objectives within given time duration. This will assist
Iceland Foods Ltd to examine the opportunities or chances available in marketplace and to grab
them via utilisation of their internal as well as external strength. Application of SWOT analysis
towards Iceland Foods Ltd is can be known from the different points which are identified as
under:
Strength Weaknesses
 Company produce quality products at
affordable cost which will help them by
increasing customer base.
 Iceland Food Limited has a big market
for Frozen food products whereas the
actual trends of customer behaviour
seem to be looking for food which are
reasonable and easy to follow and also
decrease the time to process.
 Main strength of Iceland Food Limited
is they followed different types of
promotional and marketing strategies to
promote their products to the
customers.
 Company does not have any global and
international operations which will
negatively impact on business growth.
 Poor infrastructure and supply chain
management is a main weakness which
will highly impact on business
performance and growth of an
organisation (Ojala, 2016).
Opportunities Threats
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 Other market of food is main
opportunity for growth and
development of an organisation.
 Company should also deal in healthy
and beauty product which will assist
them to maintain strong position in
marketplace.
 Overseas return could fall Iceland Food
Limited. Thus, it is a biggest challenge
for company in expansion of its
business operations and functions at
global level.
P6: Strengths and weakness interrelate with external factors
The discussion of the interrelation of the strengths and weaknesses with the macro
environmental factors has been provided as under:
Political Factors: These are the factors that impacts upon the working of an organisation due to
the intervention of government in the working of the company.
Strengths: Iceland Foods Company is following the rules and regulation of the company
in proper manner that prevents the company from the intervention of the government.
Weaknesses: The continuous changes in the rules and regulation of the country has
created negative impact on the working of the company as it is not possible for Iceland Foods
Company to make long term policies for the company.
Economic Factors: These are those factors that impacts upon the working of an organisation
due to changes in the interest rates, GDP, disposable income of customers and many more.
Strengths: The following factors is the strength of the Iceland Foods Company as the
increased GDP and growth rate of the country helps the company in also fostering its growth rate
(Apăvăloaie, 2014).
Weaknesses: During the period of recession, Iceland Foods Company has faced major
issues related to the profit and survival of the company. This has impacted directly on the
working of the business.
Social Factors: These are those factors that impacts upon the working of the company due to
changes in the taste and preference of people.
12

Strengths: The wide variety of products of the company has become the part of attraction
for them and made Iceland capable to capture the market share.
Weaknesses: The taste and preference of people can change at any time and this could
also impact negatively on the working of the company.
Technological Factors: This factor impacts upon the working of an organisation due to changes
in the technology that impacts whether positive or negative on the company.
Strengths: The new and improved ways of working of the company has provided the
company with competitive advantage.
Weaknesses: The innovative technology used by the companies impacts negatively on
the company as the sales of rival firms increases as compared to Iceland Foods Company
(Baker , 2012).
CONCLUSION
From the above mentioned information, it has been concluded importance of business
environment for growth and success of an organisation. In organisation different departments are
work with each other which will help them by increasing its sales and market ratio. SWOT and
PESTLE analysis have been used by an organisation to expand their business and identify
opportunities.
13

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