Analysis of SWOT and PESTLE Techniques

The assignment requires the extraction of relevant information from a list of references related to business and management. The task is to provide detailed information about the assignment, including specific details and information provided in the original text. However, it seems there was an error in the provided output format, which resulted in an empty summary.

BUSINESS AND
BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION..........................................................................................................................1
TASK 1............................................................................................................................................1
Explain different types, size and scope of the organizations......................................................2
Definition of Sole trader.............................................................................................................2
Advantages and disadvantages....................................................................................................2
Example and sector.....................................................................................................................2
Definition of Partnership ...........................................................................................................2
Advantages and disadvantages ...................................................................................................2
Example and sector.....................................................................................................................3
Definition of Limited company...................................................................................................3
Legal entity and responsibility....................................................................................................3
Advantages and disadvantages....................................................................................................3
Examples and sectors..................................................................................................................4
Definition of Public limited company.........................................................................................4
Legal structure ............................................................................................................................4
Advantages and Disadvantages...................................................................................................4
Example and sector.....................................................................................................................4
Definition of government and charity .......................................................................................4
Purpose........................................................................................................................................5
Example and sector ....................................................................................................................5
TASK-2............................................................................................................................................5
TASK 3............................................................................................................................................8
TASK-4............................................................................................................................................9
CONCLUSION:.............................................................................................................................11

INTRODUCTION
Business management is necessary to meet the expectations and details to attain them.
It helps in the allocation of the resources at the correct places in the, market place. There are
different kinds of organisational structure. Business plan should have outlined, straight and
specific. The expectations of the company demands actual growth prospects, actual panning,
talented and skilled team, investment. All internal, external factors which includes supply and
demand, Management, employees, customers etc. It should be changing and dynamic all the
time. This file explains about two companies Iceland Ltd. And British Petroleum whose SWOT
analysis has helped them to achieve their goals. Business environment determines the growth of
the company. New frontiers of business firms get opened up due to the interaction with business
environment. It helps the leaders to deal with business challenges (González, and et.al., 2014).
They get motivated and update their knowledge and understand the realism of business.
PESTLE analysis helps the organization to know its political, economical, technological, legal
and environmental factors. Changes in socio-cultural happenings are not predictable. All the
factors including suppliers, competitors, government, social, legal, are covered in business
environment. These factors affect the functioning of the business enterprise. Every business ha
its own goals and objectives and it regulates accordingly and SWOT analysis detects various
areas of the companies where it can operate its ideas.
TASK 1
An organization is known to create a team of individuals who are aiming to work
together for attaining a specific goal. It consists of an administrative structure that helps in
determining the relationship among distinct set of activities and the individuals involved in it.
Also, it clearly defines the roles and responsibilities of stakeholders involved in the
business to avoid any state of misconduct and unclear obligations. They also represent a
collective group intending to attain shared objectives by working together in a social unit,
which ultimately represents the purpose of an organization (Hillary, 2017).
In UK, all 3 common types of sectors namely primary, tertiary and secondary tends to
exist. The primary sector businesses involve both commercial and subsistence form of
agriculture along with mining, fishing and farming, etc. The secondary business sector includes
the manufacturing of finished goods such as construction, processing and production, etc.
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Lastly, the tertiary businesses comprise with the services provided to general public and
represent the service sector.
Explain different types, size and scope of the organizations
Definition of Sole trader
Sole trading is defined to be one of the most common business structures and is the
easiest for the entrepreneurs to start their own business set up (Peel, 2016). The sole trader
operates privately owned businesses and represents themselves as an individual owner of the
firm or a self-employed who is free to own the entire profit shares, once after paying the tax.
Advantages and disadvantages
Sole proprietary business consists of both benefits and drawbacks where the advantage
to the owner is to entirely control the business with own set of decisions and no involvement of
others. However, there together exists a significant drawback of liability where the owner will
be held accountable for all debts and losses. This is for example on considering the sole
proprietary business of a well-known trade in UK named Kurt Geiger, the owner which is
solely responsible to take all business related decisions and benefit organization which in turn
results in entire control of the business. However, there are disadvantage of bearing associated
debts and losses.
Example and sector
An example of sole proprietorship is farming, fishing, agriculture or any such small
business enterprise that generally belongs to primary industry. Kurt Geiger is an outstanding
example of sole trader in UK running a shoe business.
Definition of Partnership
There exist 3 distinct partnership companies in UK where each one of them is being
governed by distinct set of laws (Warner and Sullivan, 2017). These are conventional
partnership, limited and unlimited partnership. Such type of businesses exists when 2 or more
individuals with an agreed consent approve to earn together in a specific proportion of shares
and parts the generated revenues.
Advantages and disadvantages
A significant benefit of such type of firms is low cost of starting up a business with
equal or proportionate investments of the involved parties agreed to initiate the partnership
enterprise. This also allows more amount of capital with better capacity of borrowing and
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saving tax. Though, there exists a major disadvantage of high risk of disagreements from the
involved partners with unlimited liability to pay the debts. For instance on referring to the
partnership business of Google, both of its owners namely Brin and Larry will be benefited
from a low or equal proportion of capital investment to attain an improved ability of borrowing
as well tax saving. Although, any discrepancy in the thoughts and opinions of both the partners
can lead to business clashes where they together have an unlimited liability towards debt
payment.
Example and sector
Such type of companies usually belongs to the secondary sector and involves
manufacturing or production related businesses, which can be operated as small to medium
business establishment. A fine instance of such partnership firm is Google which has been
founded and established by 2 famous individuals representing as partners named Larry Page
and Sergey Brin.
Definition of Limited company
Limited company is the one whose owner will be duly accountable for paying its debts
only to the amount of their invested capital.
Legal entity and responsibility
Such type of companies represents a business structure which has been integrated
at Companies House. After which, it is represented as a lawful entity (Sun, Ding, Guo and Li,
2016). It is totally discrete from its proprietors and can get into the contracts that are formed in
its own title. It will be thereby accountable for its own financial possessions, actions as well as
liabilities.
Advantages and disadvantages
Limited liability of the stakeholders involved in such type of businesses with a
responsibility of paying losses and debts only in the proportion of their invested capital amount
is the foremost advantage. However, there together exists certain drawback of restricted capital
raising and dilution of powers due to any disputed situation. There exists 2 distinct type of
limited companies namely private and public where a public limited company must have a
minimum of 2 appointed directors with 1 minimum director in private company. Likewise, the
minimum number of shareholders in a public limited company must be 7 with no maximum
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numbers. However, in private limited companies, there should be at least 1 shareholder as per
the statutory norms of UK with added stipulations mentioned in the company’s articles.
Examples and sectors
Examples of such type of organisations involve those who are operating in service
sectors or tertiary sectors and offering services like retail, transportation, healthcare, hospitality,
distribution, banking, entertainment, etc. Iceland Ltd is one such example of Limited company
in UK.
Definition of Public limited company
Public limited companies in UK are those that are governed under the Companies act
1980 with a constitutional requirement of minimal capital investment by the public who can
also own the shares offered by such type of enterprises (Tricker and Tricker, 2015). Herein, the
shares that are offered to the public are also subjected to the conditions of possessing limited
liability.
Legal structure
These represent the form of incorporated businesses and a kind of Joint Stock Business
Corporation with a separate identity of the business from its owners. Public limited companies
are also represented by PLC and are those which are listed on the stock exchange with some
control of the government over it. PLC possess minimum turnover of £50,000.
Advantages and Disadvantages
One of the most beneficial aspects of such companies is the ability of raising shares by
publically issued shares. This broadens the base of the shareholders by together spreading the
risk with an ease of transferability of shares. However, it together necessitates strict regulatory
requirements to be fulfilled with a compelling force of the government and needs more
transparency as well.
Example and sector
Example of one such corporation involves Petroleum Company named British
Petroleum operates in oil and gas industry.
Definition of government and charity
A charitable establishment is a kind of non-profit organisations, also termed as NPO
with philanthropic goals. There is a slight difference between governmental and charitable
organizations where a governmental organization is which is known for a nonprofit enterprise
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does work having direct control of government over them. NGO’s are termed as non-
governmental organizations and has no such tie up with the government. These are also known
as charitable institutes. A fine example of such nonprofit establishment in UK is National Trust.
However, there together exists a vital instance of Afasic as a parent led charitable organization
that believes in demonstrating children’s and young people’s interest.
Purpose
This is for instance any charitable institute operating in religious, educational or other
type of activities that is serving in public interest or for a common good of society as well as the
community people (Maier, Meyer and Steinbereithner, 2016). This serves it main purpose of
aiding others with assistive means, as per the individual’s needs and requirements.
Example and sector
A realistic example of such charitable firm is Cancer research UK, operating in
healthcare sector.
TASK-2
There are various types of organizational structures which includes line, functional, line
and staff, committee, divisional, project, matrix and hybrid organizational. Iceland and British
Petroleum have uses matrix structure to achieve their objectives. There are various objectives of
Iceland Ltd (Aithal, 2016). Like to achieve long term profits for the welfare of colleagues,
charities, shareholders, and other communities and they operate these objectives by following
the matrix structure. Matrix structure helps in decision making which is decentralized among
the employees and it has the horizontal and not the vertical set of dimensions which helps in
reporting the relationship into a hierarchical functional structure. Iceland Ltd has matrix
structure which for the rigid project coordination or production level. It is a permanent
organization (Bohari, Hin and Fuad, 2017). They provide informal or formal policies for the
alignment of company's functions. The width and length of rights, laws and authority are based
on the organisational structure of the company.
Matrix structure provides a dynamic environment and flexibility in work performance.
While British Petroleum is a company which follows the same structure and is independent
towards change It believes in excellence in the work performance which comes under the
objectives of the company and matrix structure provides the same. These both are growing fast
with these in the changing world with their goals and objectives. They have improvisation in
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environmental monitoring of the market and keeps eye on the changing demand and supply of
the products. The speciality of both the companies lies in the way of responding towards the
change. They have good support systems and they efficiently use their support system (Bull,
and et.al.. 2016). They focus on the availability of the resources and have the flexibility to use
them. British petroleum has the primal belief to make difference in the changing world with lot
of hard work and passion.
They have hierarchical structure for the constitution and good relation between different
divisions within the organizations so that there is clarity in commanding the departments. By
following Matrix structure the company makes itself responsible for patents, licensing,
compliance, trademark and other legal functions (Zoo, Lee and Yoon,). Their responsibilities
are compliant and safe. British petroleum's access is based on long term activities and resources
appraisal campaigns. Exploration is the main part of the organization. The company has worked
for different positions has proven successful. For the whole team, organizational team is the
accumulation of traditions, ideas, practices and this collection pass from one employee to
another. They are very progressive and responsible. Iceland Ltd. Make effective usage of their
resources and are rapid in transforming information in the project in which they work. They
make their own project goals and are very clear and straight in their project objectives. They
combine functional objectives with the project objectives in a very workable way.
Project management is another way of developing a skilled team. It gives training to
become leader with great morale and high spirit. Here employees are positioned on the post
with many members but without any interruption in the procedure of the company. Project
management develops team spirit and leads the company to achieve its objectives (Tricker and
Tricker, 2015). There is possibility of conflicts but that are resolved during project
management. Matrix structure promotes functional structure and also imposes their temporary
projects. Team members of both the companies are very responsible and are continuously in
touch with their leaders and bosses. Every team has almost two bosses which manages the team.
There is immediate response by the employee to their heads and no such delay is allowed. The
supervisors or bosses are allowed to take a look on the project regularly.
They take in employees from different functional areas for the completion of their
project teams. The matrix structure emphasizes on expertise by the leaders. They focus on
managing employees, hiring, and training and project leaders focuses on attaining goals of their
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products and services. Employees are placed in the areas where they have their speciality in
performing their tasks. Functional leaders take the charge of looking after employees of the
engineering and marketing fields.
The leader has to decide the distribution of the project, the way of working in the
project, looking after the operational perspectives (Zalengera and et.al). In project management
coordination is required among the functional members and proper evaluation is dome by the
team leaders. Matrix Structure has helped in the sustainability of different functional area of the
company. There is a rapid increase in the projects that are employed in the functional structure.
There is a separate reporting line to office or to management structure by the project managers
in Iceland Ltd. Both the companies have strong matrix structure and their resources, power,
customers are controlled by the organization. Team leader possess the power and its work flows
horizontally and functions geographically.
Persons here have skills to make the matrix work. It is a type of organization where
work is done in a horizontal manner and this structure is applied in large scale projects. It can
also be applied where the employees are recruited or the development of production process.
Here the grouping of individuals is done through various operational perspectives. This
structure can be said as flexible and complex which is more suitable for big companies running
in different regions of the world. The main benefit is that it brings the employees together by
which new vision is discovered and new ideas are explored between the employees and team
leaders. The discussion goes on a particular goal which makes it exemplary (Sun, Ding and Li,
2016). It has its complexity which is an internal factor as who the supervisor would be for their
projects. Sometimes it has double authority due to which confusion is created. British
Petroleum Department solve their problems easily by communicating with each other closely
and in a more frequent manner.
For communication efficient channels are created which helps in fast decision-making
process. People from various segments implement strategies and execute them. This type of
process then helps the managers to respond in a very fast manner and understand the needs of
the customers in a better way. Employees' view is considered in this structure and all decision
are made on their basis by the managers. Accessibility of all resources is improved by using
this structure. Iceland Ltd. Has enhanced its coordination with the customers and among
employees in the organization. British Petroleum has more multi-skilled workers which provide
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wide range of skills and has increased coordination and communication all over the world.
Iceland has to go with SWOT analysis as well its strength includes its wide range of customers
and quality wise products while technological development are its opportunities. Its competitors
are its threat and its weaknesses are change in government policies and rules and regulations.
TASK 3
PESTLE Analysis of Iceland Supermarket
Political: UK food industry is obliging to many government rules and norms that are taxation
policy maintenance of health and safety norms, food hygiene, political stability, etc. For the
company like Iceland Supermarket it becomes more important to organise all the activities of
company in more systematic and organised manner. The company has to see that there must be
compliance to industry laws. Being on global level company may be affected by terrorism,
intangible property disputes, etc. That can have both positive as well as negative effect on
company.
Economical: The economical dimension of UK based food industry is affected by many factors
such as Exchange rates, Globalisation, cost of living, Consumer spending habits, Economic
growth \ decline, etc. Iceland supermarkets and other related companies are directly or
indirectly affected with these economic factors. However, the company has to look upon the
International economic policies which directly affects the company activities and performance
on large scale. Taxation policy of food industry including income tax for customer and
corporation tax for retailers will further affect the consumption pattern. The decision of
leaving EU may further affect the economic environment.
Social: The demographic, lifestyle, buying habits, change in taste & preferences, recent trends,
are some dimensions which is covered under social aspects. Now days people are initiated to
healthy lifestyle which demands for healthier products, bringing a change in line of products to
be sold at store. Further food retailing is highly affected by social media impact which targets
their young customers so it becomes important for the company to make its presence feel on
such platforms. Further difference culture and traditions of people often food retail industry
serves wider varieties of product to choose from.
Technological: No industry is left untouched from the influence of technology it becomes
important for the company to update itself, which gave the company a competitive advantage
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and makes its position in the global market. More over revolutionary inventions brought up by
the technologies like Bar Code has helped a lot to supermarket companies like Iceland
Supermarkets allowing them to have easy check-out saving up the time of company. Adding to
this the self-check-out machines being both customer friendly as well as free of labour cost
charges (Feys, and Prober 2015). Emerging on global level has made communication process
more effective and faster which is beneficial in long run.
 Legal: There are some strict laws are made to be followed by food retail industry in UK.
The government has made certain laws such as Employee Act,2002, Health and Safety
at Work Act,1974, and The Food Standard Agency set up in 2000 which are guardians
to certain factors such as health standards, employee conditions, food security and safety
at workplace. For its proper and smooth functioning its important for Iceland
Supermarket to follow them, because breaching of any of them can be harmful for the
company.
 Environmental: The growing concern of people towards increasing environment issue
has made industry to build up some environment friendly products. Government has
also been aware of global climatic issue has setup some strict laws that are obliged for
the company to follow. Being engaged in a food retail business it becomes more
important to see that whether company is following the set standards norms set up by
the government (Madhavaram, Hunt and Bicen, 2017). Increasing level of pollution and
sensitivity towards nature can become barriers to Iceland Supermarket so following of
rules and norms will benefit the company as it will attract some potential eco- friendly
customers. More over its a moral duty of company to work towards the betterment of
environment.
Pestle helps to identify opportunities, strengths and weaknesses and thus excel
company's growth and development. Its political factors negatively on business environment.
Environmental factors on other hand effect internally.
TASK-4
To understand the threats and weaknesses of any organization, a process is required
which has its own techniques, this process is called SWOT analysis. It helps to identify the
strengths, weaknesses, opportunities and threats of any organisation. There is interrelationship
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between strength and weaknesses and opportunities and threats. They internally and externally
effect the business. The objectives that provides benefit to the business is called strength of the
organisation. Disadvantages of the company are the weakness of the organisation. And the
unexploited market or rather the fresh project prove to be the opportunities for the organization.
Threats are those factors which are harmful to the business. Depending upon the internal factors
i.e. strengths and weaknesses goals of the company should be decided. This includes
manufacturing capabilities, finance, personnel and many more. The external factors combine of
sociocultural changes, legislation issues, technological matter and macro economic issues.
Strengths of the company includes past experiences, physical resources, financial resources,
processes and activities and human resources. Activities that are performed and funding through
the agencies helps the organization.
Weaknesses hinders the organization from reaching pinnacle. Business has to be
competitive in the areas of supply chain, in capitalization as there is always deficiency of
capitalization in the market. Higher debts level, the objective of industry to go higher than
average turnover are some things which makes stoppage in achieving company's goal.
Maintaining good customer base, strong, balance sheet, and strong branding results in growth of
the company. Opportunities are counted in external factors which helps in building a
competitive range. Threat can be some environmental factors like drought which decreases the
production of the company. From SWOT analysis meetings regarding business strategy can be
leaded. From SWOT analysis overall segments are discovered for business sessions like that of
marketing, sales and production. SWOT analysis is done for the identification of positive and
negative impact on the business. SWOT analysis can be considered as a part of social change
which afterwards turn into list of ideas before the strategic planning is done. There are certain
situations when SWOT analysis for any organization is done. When the organization has to
recognize its obstacles (Warner, M. and Sullivan, R. eds). New obstacles for solutions are
discovered. Limitations and possibilities are revised to make the changes; best plans are made.
SWOT analysis is also necessary for a company to decide whether the company can achieve its
objectives or not at it utmost level. It helps the organisation to produce the effective and long
term results by taking its own visions. In this process main organizational priorities focussing
on raising its funds and cultural diversity.
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SWOT analysis is used for their strategic planning process. Threats are mainly in the
market which can be said as prices of the products, suppliers and competitors. To assess in a
changing environment and to respond actively the present business should use SWOT analysis.
It can be used as part of their planning processes as the new business requires it the most.
Positive thinking or mentality of the working staff, their education background, tangible assets,
technology, patents, reputation all counts in the internal factors of the factors. Iceland Ltd. Has
huge no. employees which is a kind of strength of that company. Iceland Ltd has been benefited
by SWOT in many ways in understanding their business in better ways, they can know their
weakness as they have high rate of products as compared to their competitors.
They make use technology as the means of communication to the customers and
employees. Iceland Ltd. capitalise on opportunities (Zalengera and et.al). SWOT analysis is
very useful for the business and saves time. The main threat of Iceland Ltd. Is from its
competitors. Iceland Ltd. Has developed its business strategies. Iceland Ltd. Uses SWOT
analysis to minimize weaknesses, building on strengths, and addressing issues of each and
every person. That issue can be advertising, searching financial resources, solving staffing
issues. A business should take the advantage by making higher profits and these opportunities
are created by some of the external reasons that can be defined as changes in the market and
new consumer trend. It helps in making hard core decisions like dealing with competitor's
operations, responding to new trends, accepting and then implementing new technology.
Opportunities which include conferences, events, educational classes and project which
explores new skills helps in company's expansion and sales.
So like this SWOT analysis provides the strategic environment relating to the external
and internal factors which are not based on the fine reputation, fabulous access to natural
resources but also on rigid brand names.
CONCLUSION:
This whole project concludes that business environment is a combination of external
and internal factors that continuously affects the company's operating system. It shows that how
SWOT analysis is important in Iceland Ltd. And British Petroleum as both the companies take
maximum advantage to achieve its goal. Various organizational structures are also required for
the growth of the company. Its main aim is to provide surety in organizational performance for
its goals and tasks. Every company should be aware of what kind of task is being handled by
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which kind of people and organizational structure helps in knowing everyone's task. Functions
has to be mapped out, these functions are converted into departments. Iceland Ltd. Follows
matrix structure which is a kind of hierarchical structure which defines clarity in the
department. (Zoo H. Lee H. and Yoon, J. 2017 May). It gives the shape to the department and
smooth end each and every sector.
At some stage it is also important to keep an eye on the staff members. Conflicts arises
many times so it is usual thing to understand by company to know that people should not go
against each other. They should work as an assembled team. Hierarchies include chain and thus
improves the management system wisely and perfectly.
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