Business Environment Analysis & Decision Making

The assignment delves into the importance of analyzing the business environment for effective planning and decision-making. It highlights the use of PESTLE and SWOT analysis as interconnected tools that provide valuable insights into external factors (PESTLE) and internal strengths, weaknesses, opportunities, and threats (SWOT). The document discusses how these analyses influence strategic choices and emphasizes their relevance in contemporary business contexts.

BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
Section 1...........................................................................................................................................1
Types of organization, their examples and their purposes..........................................................1
Explanation of each chosen organization's..................................................................................3
Functions of firm, related to organization structure.....................................................................5
Section 2...........................................................................................................................................7
Pestle analysis of John's Lewis Partnership.................................................................................7
SWOT analysis to identify John's Lewis partnership firm capabilities ......................................9
Interrelationship between SWOT analysis and Pestle analysis.................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment define the combination of external and internal factors that affect
organizations operating situation. It means the collection of elements, entities and group of
people which may be or may not under control of firm. Business environment includes many
factors that influence their business growth and success (Saleem, 2015). In other words BN refers
to all the outer and inner components that influence how firm functions involving consumers,
workers, management and business regulations. The present report explain about different
purpose and types of companies and growth of global business environment. This study clarifies
selected organizations background in detail, products, services, size, scope, vision, mission,
objectives, legal structure, about stakeholders and organisational structure. It justifies functions
for one of the chosen companies and show interrelation of functions. Furthermore, this study
define PESTLE analysis to identify macro environment factors impact on firm and SWOT
analysis to identify capabilities of organization. Moreover, it explains external and internal
analysis and how they influence decision making process.
Section 1
Types of organization, their examples and their purposes
Types of
Organization
Public Sector
Company
Private Sector
Company
Voluntary Sector
Company
Meaning Public sector company
are those companies
its fully owned by
government and
government is
corporate and control
the all activities of the
business. The main
motive behind the
government
companies. it is that
they give the social
Private sector
company is those
companies which is
operated by the owner
of the company. That
means individual or
group of individuals
operates and control
the company and their
shares. Their main
purpose of the
company is it that
Voluntary sector
company are those
companies that they
provide the help to the
people and they focus
on the social issues of
the economy and also
they work for the
welfare of the society.
Their major funds
sources are charities
and government aids.
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benefits to the
societies and they are
not much concentrate
on earnings. also,
company collect the
funds through public.
they generate the high
profitability and
increase earnings.
Private company use
their own funds.
Chosen organization NHS England John Lewis
partnership
British Red cross
Organization's
purpose
 The main
purpose of the
organization it
is
 The main
purpose of to
improve the
health and care
services in the
economy
 The main
purpose of the
firm is
provided the
accurate health
information
and also they
improve the
quality of
services which
they give the
customer. so
its help to
 The purpose of
the company it
is
 Provide the
best product to
the customer
 Satisfying the
employees by
giving the
opportunity(Hil
lary, 2017).
 The main aim
of the firm it is
secure and
build the trust
among the
customer by
providing
outstanding
product
choices, value
and services.
The purpose of the
company it is
 Helps people in
all over the
world provides
the support to
people in the
crisis.
 Provide better
service to the
people also
Learn about the
difference we
make to people
in crisis that
help to
improve the
quality of work
(Kolk, 2016).
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increase the
customer base
 To enhance the
quality of work
and support
the society to
improve the
health and care
services by
using the
advanced
technological
tools and
techniques
(Charter,
2017).
Explanation of each chosen organization's
NHS England
NHS England is an executive non-departmental public body of the Department of Health
and Social Care. Provide the health care services to the customer there headquarters in leeds
united kingdom. The employees of NHS England around 6,500 staff in 50 sites. The legal
structure of the NHS it is substantially governed by the present version of the National Health
Service Act 2006. the objective of the company is they provide the best health care services to the
customer or increase the customer base.
Vision
To deliver better health, better care and better value
Mission
Delivering better health better care and better value
John Lewis partnership
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John lewis partnership it is an uk company it works on John lewis and partnership
departments stores, wait rose and partnership supermarkets, also provides financial services and
other retail services. They provide the variety of products such as Clothing, watches & jewellery,
giftware, cosmetics, housewares, furniture, beds & bedding, audio-visual, computing,
photography, food, direct services, financial services etc. John lewis partnership is a public
unquoted company that it is fully owned by the John lewis PLC. The objective of the company is
increase the sale and satisfy the customer by providing the best services.
Vision
The Partnership aims to deal honestly with its customers and secure their loyalty and trust
by providing outstanding choice, value and service.
Mission
Partnership is owned in trust for its members, they share the responsibilities of ownership
as well as its rewards - profit, knowledge and power.
British Red cross
The British Red Cross Society is the United Kingdom body they provide the help to the
people during the critical situations in the worldwide. There headquarter in united kingdom.
British Red Cross is one of the Voluntary Aid Societies. The main objective of the company it is
company provides the help to the society and provides best services to the people in the crisis.
Vision
Our vision is of a world where everyone gets the help they need in a crisis
Mission
The mission of the British Red Cross is to mobilise the power of humanity so that
individuals and communities can prepare for, deal with and recover from a crisis, summed up by
the strapline 'refusing to ignore people in crisis'.
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Functions of firm, related to organization structure
John's Lewis Partnership is the employee owned company in UK, they operate Waitrose
and partners supermarkets, John Lewis & Partners department stores and provide financial and
banking services. Company also operate retail relates activities which helps to generate revenue
and increase profitability and productivity. They run its business with the help of many functions
or departments which are interrelated with each other based on their work.
There are some functions within organization-
Marketing functions- Marketing is the main function of John's Lewis partnership firm,
with the helps of marketing, marketing department grab the attention of customers.
Human resources- Human resources are specialist, they are responsible for recruiting,
interviewing, screening and placing employees.
Operations- Operation management is one of the major function or department within
company, they are responsible for organizing and managing procedure of creating services and
manufacture products.
Finance- Finance function is section of financial management, it is the action concerned
with planning and control of financial resources (Dima, Grabara and Modrak, 2014). In John
Lewis partnership, finance function includes utilization and acquiring of funds essential for
efficient operations.
Interrelation between these functions-
Marketing department with Finance- Marketing function is interrelated with company
finance activities. Marketing department need fund for promoting their products or services in
marketplace, to attract its target customers. Finance department provide funds to marketing
activities, and advice to work under allotted budgets.
Marketing with Operations- Operations department managing process of creation of
services and goods, they work with marketing functions effectively. With the help of marketing
department operations management promote their products into market, which support to
increase profit margin and gain competitive advantages.
Marketing with HRM- Marketing of resource, is one of the best way to garb the
attention of residential people and potential customers. Marketing section of John's Lewis
partnership organization, accomplish their responsibilities perfectly. For Human resource
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management, they make appropriate hiring plans include policies, procedure and benefits of job
with firm, as it helps to attract people towards them.
Function relation with company structure-
Marketing function, operation function, finance function and human resources functions
are also related to company structure. Marketing department is group of many people's they try to
make effective selling plans and introduce products into market. With the help of their plans they
will be able to increase profitability through attracting customers and drive them towards John
Lewis partnership firm products.
Operations department managed organization products manufacturing procedure as
whole, they coordinate with another team members and control resources required to produce
firm's services or goods.
Human resource management function is to manage group of people and employees, they
try to satisfy each of the individual in workplace and make them comfortable. They hire new and
talented people for company to make their business more powerful and successful in sector or
whole world.
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Illustration 1: John Lewis Partnership Organization Chart
(Source: Organizational chart, 2016 )

Finance department work with many people, they all are try to control use of funds in
extra things, this department managed money and financial budgets. They allocate funds for
another departments of John Lewis Partnership firm and advice all of them to work under this
budgets. With the helps to controlling or managing funds within company, they help to gather
money and increase profit margin the most.
Section 2
Pestle analysis of John's Lewis Partnership
Pestle analysis is a strategic tool which is being used by companies in order to identify the
external factors which impact the business activities and their decision making. Pestle stands for
Political, Economic, Socio-culture, technological, legal and environmental factors (Aithal,
2017). These external factors are as follows -
Political Factor
Political factors are those factors which is related to the government and their policies.
Example of these factors are political stability, tax policy, trade policy and political conditions of
the nation.
Due to Brexit, there is change in global trade policies and tax regulations which impact
the operations of John lewis. Due to exit of UK from EU, the value of pound goes down which
impact the profitability of the company. Also, duty tax policy of every nation (where company is
operating its business) are different and fluctuating which impact the revenue and investment
decision of the company.
Economic Factor
Economic factors are those factors which is related to the economy of nation and their
economic performance. These factors are demand – supply pattern, interest rate, inflation rate and
tax rate etc.
Due to global recession in world economy, UK's economy also has to faced uncertainty in
their economic stability which impact the performance and price of shares of the company. Due
to change in demand of lewis in the global level impact the production of company and helps
company to earn profitability.
Socio – cultural Factor
Socio – cultural factors are those factors which is related to the societies and their
cultures, values, perceptions and religions etc. These factors are such as lifestyle, education,
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language, gender, race and cultural values etc. (Abbott, 2015).
Due to high educational level in UK, there are working women who are comfortable in
jeans. Thus, increase in demand of jeans lead to increase the demand for lewis's jeans. Also,
today's people are more concern about the quality rather than price which also impact the
production and quality standards of the company.
Technological Factor
Those factors which is born by technological changes and digital disruption are come
under the technological factors. It not only impact the business, but also impact the whole
industry.
Due to e-commerce technologies, company's sales are increasing which impact the
business brand value and goodwill. Also, company is now taking consideration into customers'
feedbacks in their production, which helps company to understand and fulfil their needs. It helps
in strengthen their customers base. Also, due to technologies advancement, company is bringing
various styles in their clothing with high quality which attract the customers.
Legal Factor
Legal factors refers to those factors which is related to the legislation impose on the
company by government. Employment legislation, commercial legislation and environment
legislation etc. come under these factors.
Due to operations in various countries, legal framework of many countries are impact the
business and their intellectual property rights. There are various countries where organisation can
sell their products till a certain limits. It affects their overall profits. Also, there are various
internet techniques which helps company to track their demand and supply. This lead company to
fulfil the gap between demand and supply.
Environmental Factor
Due to climates, weathers, natural resources etc., company has one more factor which
impact their activities and decision making. These factors are known as environmental factors.
Change in weather, change in climate, wastage of materials and excess usage of natural resources
etc. are come under the environmental factors (Aithal, 2016).
Company are using renewable resources in their production such as cotton and wool etc.
which are environmentally friendly. There are various countries where standards of clothings
affects the profitability of the company. Company is using new technology in their vehicles
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which reduce the emission of carbon.
SWOT analysis to identify John's Lewis partnership firm capabilities
SWOT analysis is the strategic model or tool, as it helps to identify company strength,
weaknesses, opportunities and threats.
Strengths
 John's Lewis partnership firm is one of the most leading retail stores in UK, they offer its
best products and services.
 Company provide large range of fashion brands to select from and also offer their own
brands.
 They offer option to shop online along with worldwide delivery.
Weaknesses
 John's Lewis partnership firm offer range of items which is limited as compare to super
markets which limits option available to customers.
 The price of their products is higher than other grocery stores and supermarkets which
limit the target clients.
 John's Lewis partnership have lack of international presence that shows its weakness.
Opportunities
 John's Lewis partnership firm offer health food in its supermarket, many people within
UK now drive towards eating health products.
 They are following strategies for expansion that helps to increase profitability and
enhance productivity more than before.
 Formation of strategic partnership in international markets is one of the best opportunity
for John's Lewis partnership firm which helps to build positive image and market
reputation.
Threats
 New legislations make barriers in business growth and expansion process.
 Existing companies in new market.
 New entrants poses threat situation for John's Lewis partnership firm.
External factors impact on company capabilities and strength, new legislations impact
negatively on organization, but if firm adopt these changes in policies or procedure they can run
its business effectively.
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On the other side new entrants in new market bring many challenges for existing
organizations and other, that directly impact on market reputation (Veit and et.al., 2014). John's
Lewis partnership firm can overcome with this situation if they can make strong marketing plan
and offer better products as compare to new entries.
Interrelationship between SWOT analysis and Pestle analysis
Pestle analysis and swot analysis are interrelated to each other and helps John Lewis
Partnership to analysis their business. This interrelationship reduces the negative impact of
various factors which is related to the business environment of company. Pestle is strategic tool
which analysis the impact of macro factors and swot is strategic tool which analysis the impact of
micro factors on the organisation (Moro Visconti, 2016).
Due to its biggest strengths regarding quality perspective, economic factors of the
company doesn't impact the business due to strong customers base. Due to recession in global
market, there is impact on the company's selling, but the demand for the company is not decrease
due to high quality.
Due to its renewable resources used in production of company's products and high
quality, competitive position of company is only increasing which create threats for another
companies. Also, due to sustainability in products and strong customer base, no company can
beat the Lewis company.
Company has a lot of expansion opportunities and there are various nations in which
customers are getting aware regarding quality and standards (Tsangas and et.al., 2019). Thus,
company can take opportunities and grow their business in those countries where standards and
qualities are getting priorities. This will help company to enhance its goodwill and profitability.
CONCLUSION
From the above study, it has been summarized that business and business environment are
interrelated to each other. If there is any change in business environment, it will impact the
business. And if there is any change in business, it will impact the business environment. Due to
different purpose and legal requirements, there are mainly three types of businesses who has their
own different business environment. Different businesses has different business activities,
functions, departmental purposes and environment which lead to different between organisational
chart. There are two environment around business – macro and micro which is impact by various
factors. Analysis of these factors are required for the business in order to plan and implement
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their strategies and decision makings. Thus, for the analysis of these factors, company mainly
used pestle and swot analysis which is interrelated to each other and their interrelationship
impacts the business decision making.
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REFERENCES
Books and Journals
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sustainability. Business Strategy and the Environment. 24(2). pp.102-122.
Niemann-Struweg, I., 2014. An integrated communication implementation model for the post-
2000 business environment. Public Relations Review. 40(2). pp.184-192.
Saleem, S., 2015. BUSINESS ENVIRONMENT, 3/e. Pearson Education India.
Veit, D. and et.al., 2014. Business models. Business & Information Systems Engineering. 6(1).
pp.45-53.
Abbott, R.J., 2015. Pestle Analysis for Students.
Aithal, P.S., 2016. Study on ABCD analysis technique for business models, business strategies,
operating concepts & business systems. International Journal in Management and Social
Science. 4(1).
Aithal, P.S., 2017. ABCD Analysis as Research Methodology in Company Case
Studies. International Journal of Management, Technology, and Social Sciences (IJMTS). 2(2).
pp.40-54.
Moro Visconti, R., 2016. Healthcare public-private partnerships in Italy: Assessing risk sharing
and governance issues with PESTLE and SWOT analysis. Corporate Ownership and
Control. 13(4).
Tsangas, M., and et.al., 2019. The Application of Analytical Hierarchy Process in Combination
with PESTEL-SWOT Analysis to Assess the Hydrocarbons Sector in Cyprus. Energies. 12(5).
p.791.
Hillary, R. ed. 2017.Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Kolk, A. 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development.Journal of World Business. 51(1). pp.23-34.
Online
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Organizational chart. 2016 [Online]. Available through :
<https://www.tutor2u.net/business/blog/organisational-culture-how-partnership-works-
at-john-lewis-partnership>.
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