Business and Business Environment

This document discusses the different types and purposes of organizations, such as profit, non-profit, and non-government organizations. It also explains the relationship between organizational functions and how they link to organizational objectives and structure. Additionally, it identifies the positive and negative impacts of the macro environment on business operations, supported by specific examples. The subject of this document is Business and Business Environment.

Business and Business
Environment

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1 Different types and purposes of organizations; profit, non profit and non government organizations
and legal structures..................................................................................................................................3
P2 Explain the size and scope of a range of different types of organizations...........................................5
TASK 2..........................................................................................................................................................7
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure....................................................................................................7
TASK 3..........................................................................................................................................................9
P4 Identify the positive and negative impacts the macro environment has upon business operations,
supported by specific examples...............................................................................................................9
P5 Conduct internal and external analysis of specific organizations in order to identify strengths and
weaknesses............................................................................................................................................11
TASK 4........................................................................................................................................................13
P6 Explain how strengths and weaknesses interrelate with external macro factors...............................13
CONCLUSION.............................................................................................................................................15
REFERENCES..............................................................................................................................................16

INTRODUCTION
The business environment is a sum of both internal and external factors that influence
business processes explicitly or implicitly. Also businesses depend on these variables for their
production and productivity. Two types of business settings, including such macro and micro, are
typically available. Clients, executives, vendors, stakeholders, legislation, technology, economic
variables and global market patterns are predominantly involved in these variables (Abdixhiku,
Pugh and Hashi, 2018). In this present research, Oxfam is included as a voluntary corporation in
the charitable organisation market, Crown prosecution Services and H&M as a private
organisation. In additional to this, in this study, the size, scope and purpose are defined. In
addition, this project covers the inner and strengths and weaknesses of industry and their
interdependence with macroeconomic environment. Positive and negative effects in companies
have an effect on the micro climate, strengths and limitations of a particular company that states
linkages with macro environmental factors.
TASK 1
P1 Different types and purposes of organizations; profit, non profit and non government
organizations and legal structures
Private organisation: As operated by sole traders, associations, franchises, and a private
citizen, private companies are owned. Private sector corporations primarily operate their
businesses for profit generation. There are at least 2 and up to 50 workers employed in private
companies. Hennes & Mauritz AB (H&M) is a multinational association of apparel retail firms.
This business manages in 62 countries with over 4,500 stores and currently has 132,000
employees, and is the second biggest apparel brand in the world as opposed to Zara's parent
corporation. In 33 nations, this organisation also has an online shopping platform.
Purpose: H&M is a fast-moving retail corporation with the goal of changing its inner structure
in position to take account of energy saving steps, water use and investment in research. H&M's
key aim is to source its manufactured goods from recycled polyester and to engage in technology
efficiently.

Legal structure: The Company follows the sole Proprietorship legal structure and follow all the
guidelines.
Stakeholders: Lenders, providers, managers, unions, staff and managers are shareholders in
private limited companies (Ahmad and Ramadan, 2018).
Public Organization: The public sector includes predominantly those entities owned and
operated by the government. A British non-ministerial government agency is Crown Prosecution
Service. Created in 1986 and based in London, SW1H. The CPS provides officers and other
enforcement bodies with legal advice
Purpose: The primary purpose of the Crown Prosecution Services is to investigate crimes
consistently in criminal proceedings. In England and Wales, they primarily conduct their
business processes. They supply intelligence communities and the police with valuable
professional counsel. In the secondary and tertiary sectors, such workers conduct their services
and collect raw data and then further provide guidance.
Legal structure: It is following State government legal structure that based on non profit
activities.
Stakeholders: The public organization’s shareholders involve public workers, state owned
commercial banks and investors.
Voluntary Organization: Voluntary organizations carry out their functions in order
supply communities with welfare. They are predominantly non-governmental and non-profit
agencies that are primarily involved in delivering community social value and manage their
quality of life. Oxfam is a non-profit organisation that Cecil Jackson-Cole established in England
in 1942. It is a nexus of 20 independent humanitarian organizations that take into account the
ease of global poverty. This business runs the organisation internationally (Bedi, 2018).
Purpose: Oxfam is a group of 20 autonomous humanitarian organizations that carry out the
mission of reducing poverty. Oxfam provides its programmers in areas vulnerable to war and
floods. The organisation focuses primarily on charitable efforts, development work and the
displacement of the vulnerable from society and improving their quality of life.

Legal structure: The legal structure follow by the company is trust based where different people
work together.
Stakeholders: Stakeholders in charitable organizations are the clients they represent, volunteers,
sponsors, grant-enabling organizations and committee members.
P2 Explain the size and scope of a range of different types of organizations
Public organization: Public sector entities are primarily owned and operated by local,
state, or central governments. Instead of producing profit, their primary idea is to please
customers. A central public prosecution organization is the Crown Prosecution Service. In
England and Wales, they perform criminal investigation operations. Crown prosecution, but at
the other side, is a micro company whereby market value of a company does not exceed 25 lakh.
Objective: Legal advice is given by CPS to intentionally provocative organizations and law
enforcement. They delegate raw data and then settle on a suspect for criminal charges.
Size and scope: within them, Crown Prosecution Services handles 800,000 and more cases and
has 2,900 attorneys and 600 employees overall (Bertram and Chi, 2018).
Vision: The Crown Prosecution Service's primary objective is to be separate and give fair
guidance. Organizations value their service publicly and put their expectations in a consistent
manner.
Mission: The mission of the Crown Prosecution Service is to act in a professional way. CPS aims
for quality and provides its advice in a fair way in order to gain the confidence of its peers,
societies and clients. CPS guarantees that appropriate guidance and offender criminal law are
given.
Private organization (H&M)
Product & Services: H&M offers quick-fashion clothes primarily to teens, mothers, children and
men. The goal was to make use of energy sources and develop environmentally sustainable
goods and services.
Size and scope: H&M has ties with other companies and has branches in far more than 4,500
stores across the country in 62 countries.

Mission: The mission of the organisation is to create a unified effort fashion industry that is not
only better for individuals and societies, but also to benefit the environment.
Objective: The key goal of H&M is to use environmentally sustainable materials and to use
sustainable power to develop their goods and services to help groups, individuals and the world
(Boone, Kurtz and Berston, 2019) (Chen and et.al, 2019) (Grubor and Jakša, 2018).
Voluntary Organization (Oxfam)
Product and Services: Oxfam offers essential services in the areas vulnerable to drought and
shortage. They are mainly inspired to eradicate poverty and the standard of life of citizens from
all across the globe. In good exchange, companies sell their goods and services and offer items
such as food, clothes, arts and crafts and games.
Size and Scope: Twenty independent voluntary organizations are collaborating with Oxfam to
alleviate hunger as well as provide health services in areas vulnerable to war and floods.
Vision: The mission of the organization is to make that its customers wear their goods with
confidence and remain mindful of all business decisions. In contrast to this, the organisation also
has a mission and provide as much of the customers with fashionable and inexpensive clothing
(Kahiya, 2020).
Mission: The central mission of Oxfam is to eliminate poverty worldwide and secure people's
rights to health and protection. Business believes in harmony and eliminates inequality between
rich and the poor.
Company goals: The most critical purpose of Oxfam is to eliminate poverty worldwide and
enable individuals to develop self-interdependence.
Difference between profit, not for profit and non-government company
Profit Not for profit Non-government
The main purpose of
making money, these
types of organisation
This organisation runs its
company, not for profits. They
consider people's desires and
These are organizations that
are operated for the means of
furthering welfare by an

conducts its business. offer goods that are not profit-
making.
amount of persons.
Such firms pay taxes
since they make money.
Tax exemption is not for profit
businesses as it serves the needs
of consumers.
These entities are also
deducted from the total
because they operate for
social individuals.
Difference between small, medium and large organisations
Small Medium Large
This implies small
companies owned by a
small number of workers
and operating a small
type of profitability.
This type of company is a
medium-scale enterprise where
less than 250 employees are
working (Khodaei and Ortt,
2019).
This involves a larger-scale
sector where it hires less than
250 customers and makes to
operate the business in
multiple countries.
The size of such a
corporation is limited,
involving a single owner
and a partnership. It
needs limited money and
capital to be created.
It has a medium size that
includes a number of financial
persons and more money and
other assets are needed.
This size is large and the
development of a company
involves a large variety of
assets and other financial
means.
TASK 2
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure.
In H&M, various organizational frameworks are practiced at various work locations. For
instance, at some places, a high-level organizational structure is placed in place where the whole
company is divided into different hierarchies with different areas, including such logistics,

finance, information technology, marketing, customer services and human capital management,
which are controlled and supervised by functional managers. Because in other workplaces, the
divisional structure is practiced where corporate human capital are split into groups in
compliance with their expertise, expertise and so forth.
Mission – The mission of H&M is to offer quality of goods and services by growing both the
product line and the Market distance.
Objectives
• Boost the revenue of the company by 20% by 2022.
• Raise profits and market share.
Finance with marketing function: The function of finance relates to the use of financial
capital in various H&M activities. As per priorities and business strategy, the feature generates
information regarding financial results and positions for other roles (Laubert and Geiger, 2018).
As the finance function assigns financial resources and technologies out marketing campaigns
with no barriers, it is primarily interconnected with the marketing department. At the very same
period, the marketing function offers information about each product for the gathered market
data and takes useful advice from the financial management to establish and operate within the
expenditure for different activities. Therefore, both roles are interconnected to each other, which
allow H&M to accomplish goals by operating within a fixed organizational framework.
Marketing with human resource function: The marketing role depicts decisions and
tactics within the global market for promotions. It associates its initiatives with other
organizations, also including human resources. The market strategy of H&M, for instance, offers
insights into workloads to take about marketing actions for successful accomplishment. At about
the same time, the human resource function assists the marketing function with expertise and
maintains aspects of performance or statements on employees with almost the same objective to
facilitate or eliminate them. This requires both divisions to existing services for the overall
success of the project and to collaborate even within prescribed context in a coordinated regard.

TASK 3
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
In the macro environment, there are important considerations that are unmanageable and
impact the operation of business entities in their decision-making processes. Social
characteristics, legal and political factors, technical factors, economic and environmental factors
are some of the factors involved in the macro climate.
Political factor: There are different policies and rules that a corporation has to abide by in order
to conduct its duties in a lawful and ethical manner. Such political rules, like Union Directives,
Subsidies, the Industrial Revolution in the trade agreements Region and the Corporate
governance Regulation, were set down by the Government of the United Kingdom. This is
important for H&M to comply with its business operations in a highly efficient manner
(Manninen and et.al, 2018).
 Positive Impact: These laws would enable businesses operating in the United Kingdom to
carry out their duties in an ethical and legal manner. While experiencing any government
constraints, H&M will operate its business operations in a good manner.
 Negative impact: Changes in UK government laws and regulations in regard to import
quotas, exchange management and external candidate in several ways hinder H&M's
success. For H&M, this poses too many barriers to borrowing funds from foreign and
domestic banks.
Economic Factor: The economic factor of the United Kingdom involves the accessibility of
credit rates, international purchaser rates and fiscal policies. Any of these variables eventually
affect H&M activities.
 Positive impact: Relaxations offered by the United Kingdom government enable H&M to
adequately market its goods and services in an economical manner that will help them
improve their overall likelihood and profitability (Sewchurran, Dekker and McDonogh,
2019).
 Negative impact: Economic conditions, such as rising interest and tax rates, have a
negative effect on H&M's business functions. Increased interest rates would affect the

accounting department of H&M to lend funds and capital from banks and other financial
institutions.
Social Factor: Social influences in a specific geographical area mean the cultural societal values.
Until marketing their products and services, it is important for H&M to evaluate tastes and
consumption patterns. They are expected to determine society's cultural values and guarantee
that their services and products in that control are appropriate.
 Positive impact: An organisation can benefit from social influences in several aspects. By
pursuing CSR operations and keeping part in social beliefs and ideals, H&M will
magnificently improve their sales performance.
 Negative impact: H&M wants to pursue CSR operations as though they do not comply
with it, so it can lead to a decrease in their reputation and a decrease in the market for
their goods or services.
Technological factors: Changes in global style, patterns and consumer patterns are part of the
technical element. As technology is evolving rapidly, it is important for a company to make itself
responsive and adopt successful strategies in order to make such technological developments
appropriate to its workers.
 Positive impact: H&M will optimize their power outcomes by implementing creative
technical steps in their company. The business offers a broad array of goods and services,
including women's and men's clothes, cosmetics, jewelers and accessory.
 Negative impact: Adjustments entail tremendous expenditure of funds and skilled staff.
With every technological revolution, H&M is forced to alter its inner structure in order to
be competitive with everyone (Standing and Mattsson, 2018).
Environmental factors: Environmental considerations specifically involve raw material
reliability and speed, risk evaluation and current and potential enforcement. All those other
variables can potentially influence the operation of the organization.
 Positive impact: Through using eco-friendly manufactured goods, H&M can make the
requisite changes to their goods and services. This will help the business save its
expenses and improve its brand profile.

 Negative impact: In several different geographic areas, H&M performs its business
activities, resulting in climate change.
Legal factors: In order to perform its business practises in an ethical way , it is important for a
company to comply with all law and regulations. Since H&M is a major company which
performs its operations internationally, all government laws headed by the national government
are enforced by them.
 Positive impact: H&M complies in a major sense with UK laws relating to job rights, fair
pay and medical care acts for labor.
 Negative impact: There are several laws changed by the uk government that H&M has to
comply with as a private industry corporation.
P5 Conduct internal and external analysis of specific organizations in order to identify strengths
and weaknesses.
H&M is a global clothing industry that engages in the manufacture and sale of fashion
apparel for men, girls, women and teens. The company operates in far more than 62 countries
and has 4500 shops worldwide. There is a detailed SWOT analysis of the company listed
following that will support the system to assess its strength and weakness and maximum team
them:
STRENGTH WEAKNESSES

 To create remarkable quality goods and
services, H&M has partnered with new
foreign brands.
 H&M has implemented different
pricing-related strategies that allow
them to be committed to providing an
environment.
 Companies have successfully embraced
technical developments. By taking
advantage of new initiatives that allow
them to attract interest from various
geographical locations from a broad
range of clients, they sell their goods.
 In contrast to its rivals, H&M sells
low-quality goods and services.
 In product consistency, H&M is
marginally deficient.
 H&M invests less on their promotional
campaigns, which leads to less buyers
being attracted to their goods and
services.
OPPORTUNITIES THREATS
 H&M will collaborate with more
companies in the global marketplace to
sell products and services.
 In order to sell their goods and services
and create more customer base for
them, businesses can use more online
interventions.
 H&M will extend its listed company
infrastructure to provide more
geographic areas for their goods and
services.
 The UK economy has a variety more
exchange rates.
 There are several H&M rivals in the
global industry, such as Zara and
Forever 21.
 Political variables carry dramatic rises
in tax rates that can impede the
corporation's working.
 H&M faces global market concerns that
may impact its inner business model.

TASK 4
P6 Explain how strengths and weaknesses interrelate with external macro factors
It is important for an organization to recognize its strengths and weaknesses in order to
compete effectively. This will assist them in an important developmental way to resolve their
vulnerabilities and change their goals and procedures in order to work for successful
development. In connection with this, H&M always aims to prove anything fresh to this
consumer on a daily basis and concurrently grow their business. The interaction of weaknesses
and strength of the macro - environmental is defined in an important developmental way
elsewhere here:
Political factors
Strength: H&M exists in the United Kingdom, in which the political system resides on a steady
basis. It is strength for the distributor as it is conscious of existing practices and can take steps
beyond difficulty to attain the intended condition.
Weakness: Rapid changes in policy variables, such as the introduction of import tariffs or
changes in tax changes are poor for H&M, as all of these would trigger immense difficulties in
trade with countries.
Economical factors
Strength: Broad investors are eager to invest in large numbers of businesses. H&M, by foreign
investments and convincing them to make enormous trade partner, is the power of a specified
retail sector.
Weakness: At a period where adjustments in market cycles are being made, there are adjustments
in acquisitions, taxes and currency exchange, that create tedious obstacles in H&M 's activities to
the desired effect.
Social factors

Strength: H&M analyses consumer desires and, when creating or adding some specific
development, finds the desires that draw the general populace and the enjoyment of their
preferences, income for the business as well as power.
Weakness: As a result of shifting choices, interests and desires, consumers turn to competitive
companies that serve as a vulnerability for companies such as H&M in such a case , the
organisation does not have an acceptable style that satisfies the modified option or desire in the
brief period.
Technological factors
Strength: Promoting company and its products with up-to - date technology channels like social
media is a strength for H&M to establish connection and partnerships with a wide variety of
people and to improve its client base.
Weakness: H&M serves in a multitude of countries because technology is evolving
exponentially. It is not feasible for any company to implement technology in a faster timeframe,
as it needs large monetary expenditures that reduce its resources or the margin of cash
culminating in weakness.
Legal factors
Strength: H&M performs practises in compliance with the law that is strong for it, as distinct
regulatory guidelines allow for ways of selling quality goods in addition to carrying out moral
procedures to meet the needs of consumers and preferences.
Weakness: When H&M implements unethical activities, like increasing massive premiums over
cost, labor abuse, fraud ads as well as many other results in a negative reputation and a role that
has a negative effect on its survival.
Environmental
Strength: Adherence to environmental regulations on the protection and use of resources allows
companies to gain unique brand awareness. H&M, by leading to the fulfillment of social
obligation, is the power of the business

Weakness: Unfavorable environmental variables, such as unpredictable rainfall, adjustments in
climate changes and many other, cause uncertainty in enforcing activities such as delivery and
others, which are poor for H&M as it struggles to produce goods on time.
CONCLUSION
It has been concluded, as per the above-mentioned report, that the business environment is
an amount of all intrinsic and extrinsic factors that influence the operations of the system. In
order to obtain benefits from them, it is important for the organisation to analyze these variables
extensively. In a business system that influences public sector business organizations, private
sector organizations and charitable organizations with their respective operating and legal
framework, there are primarily three categories of business community operating in a business
environment. There are different kinds of department managers employed in such units in
integrated ways in order to improve organizational sales and efficiency.

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