Business and Business Environment of Waitrose Ltd Assignment

Business and Business
environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
P1 Different types and purposes of organisations.......................................................................3
P2 Size and Scope of various types of organisations .................................................................6
TASK 2............................................................................................................................................7
P3 Relationship between different organisational functions and its link with organisation
objectives ....................................................................................................................................7
TASK 3 ...........................................................................................................................................8
P4 Positive and negative impact of Macro environment on Business operations.......................8
TASK 4..........................................................................................................................................10
P5 Internal and External analysis of Waitrose limited..............................................................10
P6 Interrelation of Strength and weakness with external Macro factors in context of Waitrose
private limited...........................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment is very important factor that need to be scan regularly in order to
know all the market opportunities and modification which were made in the organisation
structure that allow them to beat all the challenges of rivalry. Further, company need to perform
different function and they are various purposes which required to be implemented properly in
order to accomplish daily targets of business. Apart from it, various strategies and policies which
has been formulated by HR manager on the basis of market demand and needs, suitability of
internal employees company implement it on the proper manner. Under this assignment the
company which is preferred i.e. Waitrose Ltd. UK based retail organisation structure deals in
grocery and clothing sector comprises of large employees work in different stream which need to
managed accordingly (Afzal ,2011). Further, this project discuss about type size of organisation,
interrelationship of various function within an organisation and strength weaknesses of specific
business environment.
TASK1
P1 Different types and purposes of organisations
In every organisation there are different kind and type of company dealing in different
sectors with an utmost objective of earning huge amount of profits. Company provide variety of
goods and services on the basis of taste, choices and preferences of customers which facilitates
sales maximisation. But in reality there are only two type of organisation I.e. public and private
sector which discuss below:-
Comparison basis NGO NPO Profit based
organisation
Meaning The term NGO can be
describe as such non
governmental body
whose major goal is to
uplift the standard and
welfare of society and
this type of company
is set up by the group
These type of
organisation deals with
different varieties of
goods and services
with the aim of
earning sufficient
amount of profits
which can be used for
The main objective of
this kind of
organisation is to earn
huge amount of profits
by offering different
products and services
to large audiences
which leads to huge

of independent people. society welfare instead
of distributed among
team members.
market share and
goodwill.
Area of operations This type of business
is generally operated
on large scale.
This type of company
operate with an aim of
operating at limited
scale.
They are planning to
expand their business
at global level.
Objectives and goals The most important
goal and objective of
this kind of
organisation is to
enhance the living
standard and thinking
of business.
This kind of
organisation is set up
with the aim and
motive of promoting
art, science and
commerce.
Their establishment is
generally done with an
motive of earning
huge profit by
providing different
varieties of products
and services to large
customers at global
level.
Three main sector of organisation are stated below:-
 Public sector:- This type of organisation is set up by the government authorities in which
all the rules, regulation and policies are formulated by them only with an aim of uplift the
standard of society by providing them different varieties of goods and services at
affordable prices to large audiences. Apart from it, speculation has been planned by the
people in general which is found in various assessment and various instalment. For
example Waitrose comprises of large workforce whose main target is working for
standard class of people (Al-Swidi and Al-Hosam ,2012).
Purpose:- The main purpose of this type of organisation is to provide different type of facilities
to people which help in enhancing the overall welfare of society which increase their living
standard also.
 Private sector:- This type of organisation is generally establish by the private people
only who made their own rules and regulation on the basis of which overall working

condition of business has been carried out smoothly. All the matter related to policies
formulation, strategies and tactics are discuss by them only and to make it legal common
seal of business made in which all the decision are properly implemented externally. For
example Waitrose Ltd. Is one the largest MNC that provide different varieties in their
product segment in all around the world.
Purpose:- The main objective or goal of this kind of business is to provide different kind of
products and services in different segment with the motive of earning huge amount of revenue
and also focus on maintaining standard quality of goods and services which maintain their
goodwill and brand equity.
 Voluntary sector:- This kind of organisation is generally establish with an objective of
increasing the overall welfare of various communities. For example Oxfam one of the
famous company that carry out their different programmes for well-being of people at
global level.
Purpose:- This sector main focus is not earn profit but they give main priority to conduct
such welfare programmes through which they satisfy needs and wants of customers.
Legal structure of the sector
Private sector:- Under this type of division private company can be consider sole individual and
running such type of partnership which discuss below:- Sole proprietorship:- Under this kind of organisation is basically establish by single
individual only who earn the profit solely only and bear all the losses due to unlimited
liability. Partnership:- Under this kind of business group of people come to form partnership
business in which all the terms and condition related to profit loss, capital sharing ratio
and working hours define in legal document known as partnership deed.
Public sector:- This consider as such type of large organisation which comprises of large
employees base whose work according to the guidelines and standards which are enforced by
government in advance only which stated below:- State government:- This is one of the effective organisation whose aim is to maintain the
overall standard of business and consequently they also keep properly all the
administration system and various project for the growth of economy.

 Local government:- This kind of government is mainly concentrate on providing all the
necessary items that help in satisfy overall needs of local people.
 Central government:- This kind of business is generally establish with the main aim of
maintaining and administrating all the working conditions of whole division I.e. local and
state government for better productivity.
P2 Size and Scope of various types of organisations
In every kind of organisation the whole organisation structure is divided on the basis of
size and overall scope of business. Further overall size of business is basically divided into
different size like small, medium and large sized organisation. Here is the description of size and
scope of various kind of organisation are stated below:- Micro scale:- This kind of organisation is generally carry out their operations on small
scale and they basically carried out their business operations with an objective to satisfy
their basic needs and secured fully in financial term. Small scale:- This kind of organisation carry out their overall business operations on
large scale as compare to micro level and they comprises of at-least 50 members and total
amount of revenue they generated is around 5 to 6 million dollars. The main advantage
they get is huge market share because of operating for many years and due to sufficient
profit they plan to expand their business at large scale in different countries. Medium scale:- This kind of organisation having an employees around 250 to 500 and
profits they generated will be minimum 6 to 24 million dollars and the best example
which covered under it is Exponential-e which is world class digital company work in
medium operation only (Ballard and et. al., 2012). Large scale:- This kind of company carry their business operation and activities at large
scale and it comprises of around wide number of workforce who work with the aim of
generating profits around 250 million or more. For example Waitrose large type of retail
organisation offered wide variety of products and services at both national and
international level and comprises of around 91000 employees.
Objective differentiation
Micro Small Medium large
The major aim of this
type of company is to
Under this kind of
division the main
Under this kind of
business organisation
This type of
organisation already

gain huge amount of
revenue from which
they satisfy their basic
lively-hood.
objective is to enhance
the living standard and
knowledge level of
people so they get the
knowledge regarding
external environment.
the major objective is
to diversified or
expand their product
and service varieties at
various countries in
order to establish the
brand value at global
level.
establishes brand
loyalty and goodwill
among target
audiences and plan to
create innovative
products services in
order to beat all the
challenges of
competitors.
Scope of different types of organisation Micro level:- This kind of businesses have limited scope for overall growth and plan for
expanding their market segment within that particular region and town. Small scale:- This kind of organisation generally work with the aim of diversified their
business within an limited area and different tools and techniques has been used with an
objective to shift their company status from small to medium sized. Medium size:- Their main objectives is to expand their product and services operation at
different international level. Large scale:- They generally focus on adherence of all legal rules and regulation in order
to avoid huge penalty.
 Transactional company:- These kind of business is immense in which all the operations
and task of business which divided into different nations and their income level is more
high then some economy of nation and from above articulation one might say that
transitional kind of organisation has to coordinate with the conserve impact of economy.
TASK 2
P3 Relationship between different organisational functions and its link with organisation
objectives
Every organisation is segregate their whole organisation structure on the
basis of various size, structure and on the basis of their market objectives and
divide the whole work into different department among various workforce on the
basis of their specialisation which allow whole organisation to accomplish their

daily targets in effective manner. Waitrose is private limited company having
headquarter in UK comprises of 91000 employees which force them to adopt
decentralise structure in which decision making is done on the contest of all level of
employees which also boost up their morale (Georgescu ,2012). Apart from it
Waitrose organisation divided their functions into different divisions which include
HRM, marketing, accounting, sale department and finance through which they carry
out their activities in effective manner so they gain better position in market.
Therefore, in order to establish better interrelationship among different organisation
structure along with functions that performed by Waitrose Ltd. Which stated
below:- Marketing department:- This is one of the important department through
which organisation can promote all types of goods and services they are
going to launch innovative in market place that attract large audiences.
Further Waitrose in order to maintain sustainability utilise digitalise
processing in their market structure. Human resource department:- This division utmost responsibility is to select
or hire professional candidates for vacant job position and Waitrose HR
manager used external source in order to hire people for empty spaces. Production and operations:- Under this function whole team of production
and operations need to regularly scan the external environment to know the
demand of their products services in market on the basis of which
productivity has been done through optimum utilisation of resources.
 Accounting finance:- Under this function accounting department require to
formulate an specific budget during the year in which all the data related to
revenue and expenditure has been made through which financial position of
company is evaluated.
Therefore, it is essential for Waitrose Ltd. To conduct all the function of
organisation in better and effective manner that leads to better productivity and
accomplishment of goals and objectives.

Figure: Organisational structure Source: Organisation structure,2018
TASK 3
P4 Positive and negative impact of Macro environment on Business operations
In every organisation there are different types of components and elements
that affect the condition of business atmosphere. Further, there are various activities
which need to perform by organisation in order to control both the internal and
external factors that directly impact on overall efficiency of business (David , 2011).
Both the factor have their positive and negative impact which the Waitrose limited
need to evaluate through PESTEL analysis and it will discuss below:- Political factors:- Their are different political component on the basis of
which policies has been evaluated by government of that country which
require to compile by various companies at the time of production of goods

services for their target audiences and changes need to made that affect their
overall operations.
Positive impact:- Waitrose Ltd. get the benefit in the form of reducing cost due to
the announcement of free trade policy.
Negative impacts:- Rapid changes in the tax rate structure will also affect the
working style and production operation because company need to incurs huge cost
on resource availability. Economic factors:- Various economic factors and elements which include
inflation, deflation and growth rate affect economically overall condition of
business therefore, Waitrose limited need to scan all the conditions and use
such digitalise operations that reduce negative impact of economy.
Positive impact:- Due to drastic fluctuation in economic cycle the condition of
inflation leads to increment in purchasing power which enchance company sales.
Negative impact:- Due to huge competition in global economy local market has to
face the problem of low sales and profit and currency affect because of Brexit. Social factors:- Now market is customer oriented therefore along with profit
objective Waitrose limited focus on spending money on CSR for the purpose
of welfare of societies.
Positive impact:- CSR contribution is utmost solution to establish ethical position
and brand loyalty for Waitrose among customers.
Negative impact:- Using such marketing promotion techniques that hurt the culture
of particular religion will negatively effect on company business. Technological factors:- Technological and digital advancement in overall
services which has been provided by company to their target audiences.
Positive impact:- After Brexit it is mandatory for all local companies of UK to
insert such working operations which are innovative and provide easy services to
their customers.
Negative impact:- Those company for which digitalise techniques are not affordable
will become hurdle in their sustainability.

 Legal factors:- Their are some compulsory legal regulation that need to be
followed by all companies who establish their business in UK especially
Brexit guidelines (Gilboy , 2016).
Positive impact:- Waitrose require to follow all the legal conditions in order to
carry out their work ethically.
Negative impact:- Non compliances of legal laws will leads to huge penality and
dilute image of company. Environmental factors:- In order to carry out all operation smoothly
Waitrose limited need to understand all those operation that increase global
warming and try to reduce the use of such items.
Positive impact:- Establishing standard limit of emission reduce the amount of
carbon footprints.
Negative impact:- Huge pollution from production of retail items affect negatively
to whole business.
TASK 4
P5 Internal and External analysis of Waitrose limited
In order to understand quickly both the internal and external factors that affect their
business operation can be done through Swot analysis of Waitrose limited which
describe below:-
Strength:-
 This company get the royal warrant in order to supply groceries to queen
Elizabeth and prince Charles.
 Company enjoy huge market share and open different stores more than 300 in
UK. Also do their marketing promotion by building up strong brand identity
through sponsoring English cricket team.
Weaknesses
 Huge competition due to price wars which leads to less margins. An article has been publish regarding social media backlash regarding
Waitrose kitchen.
Opportunities

 Company used the packaging in white colour for its success. Apart from it organisation building up royal heritage and expanding their
markets at global level (Goleman , 2017).
Threats
 Not successful in establishing better position at local and global level.
 In retail product company find failure at the time of justify in free coffee
scheme.
P6 Interrelation of Strength and weakness with external Macro factors in context of
Waitrose private limited
Organisation like Waitrose limited comprises of various type of strength and
weaknesses which affect business both internally externally and also discuss about
their positive and negative impact both in overall growth and objectivity of
business. Apart from it, Waitrose limited engaged in multinational retail store
expand their whole operations providing different grocery items and clothing sector
which allow them to increase the revenue of business (Hilton and Platt , 2013).
Waitrose limited is also effected by the term Brexit an important political incident
that create different regulations and also prohibited them for rapid expansion and
overall growth. It has been concluded that major product of company is sale from
Europe region only but due to enforcement of Brexit regulation Waitrose has to face
different types of complexity that at what manner they enhance their sales due to
conditions of unemployment and inflation in whole economy that induces Waitrose
to scan all the market changes and then implement these modification in their
organisation structure in order to beat all the challenges of competitors.
But in such diverse conditions Waitrose need to formulate such type of policies and
tactics through which they make innovative and digitalise changes in respect of
their products and services which attract large customers. Further they must incurs
expenditure on CSR activities for the purpose of welfare of society apart from profit
maximisation which allow them to increase their goodwill and brand equity.

CONCLUSION
From the above assignment it has been concluded that environment in
external atmosphere affect the business operation in different manner therefore, it is
essential for company to scan all the modification which has been made in respect
of choices, thinking and perception of customers on the basis of which they also
make alteration in their working style and manager need to guide their employees
regarding the benefits of different changes which also help in overall growth and
development of business. Apart from it, Waitrose need to research all the primary
secondary data through which they satisfy niche requirement of customers.

REFERENCES
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Online:-
SWOT Analysis of Marks & Spencer.2017.[Online].Available
through:<https://businessteacher.org.uk/swot/marks-and-spencer.php >.
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