Business Environment Analysis using PESTLE and SWOT

This assignment involves analyzing the external market environment using PESTLE analysis, identifying the strengths and weaknesses of TJ Morris organization through SWOT analysis, and concluding that these factors help in making strong strategies for gaining more profit. The references provided include books, journals, and online resources.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Different types and purpose of organization. .......................................................................3
P 2 Size, range and scope of different organization. ..................................................................3
LO 2.................................................................................................................................................3
P 3 Interconnection of different organizational functions. .........................................................3
LO 3 ................................................................................................................................................3
P 4 Positive and negative influence of macro environment........................................................3
LO 4.................................................................................................................................................3
P 5 Internal and external analysis of organization......................................................................3
P 6 Interrelation of internal strength and weakness to the macro factors. ................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................4

INTRODUCTION
Business environment can be included all the factors of the internal and external that
affects the all the environment of the business organization. In this internal factors include the
products and services of the organization, its employees. Whereas external factors consist of
competitors, market condition and all external stakeholders. This project is based on the TJ
Morris company, which is based on the united Kingdom. This operates in Home bargains, Far
eastern ventures and property ownership.
This project will include the different types, size and scope of the organization and
purpose of all the organization in the market. Interrelationship of different functions in the
organization is also going to be described. Positive and negative effect the business organization
is also going to be identified with the help of the PESTLE analysis. Lastly internal strength and
weaknesses of the organization will be evaluated with the help of the SWOT analysis.
LO 1
P 1 Different types and purpose of organization.
There are different types of organization operate in the market, with having the different
purpose. Theses are:
Public organization — These kinds of organization referred as those organizations which are
operated by the government of the country. These are the part of the economic system of a
country. This includes the different services like, public goods, military, law enforcement, public
health care and education etc (Hamilton and Webster, 2018).
Purpose of the public sector organization is to provide goods and services to the citizen of
the country in very economical way, which are not being provided and fulfil by the private
company, as private organization's services are little expensive. For example National Health
Service company is public company which is operated and run by the government of country.
And its aim is to provide services to public.
Legal structure of the public organization includes at least two shareholders and have
£50,000 minimum share capital. These companies must have lettered PLC after their name.
Minimum two directors and one secretary is necessary. Company have to be registered under
Companies law 2006 of UK.

Private organization — Private sector organization can be referred as the important part to
increase the economy of a country. These organizations are being operated and run by the
individuals rather that the government of the country. These companies handle all the profit
share by its own, there is no government intervention. Some times it also called the citizen
sectors. For example, sole proprietorship, partnership, trade union, large cooperation and
multinational companies (Cepel and et.al., 2018).
The purpose of the private organizations are to gain more and more profit from the
market. And also the employs more number of people than the other sectors that can contribute
to making the profit and image of the company in the market. For example TJ Morris is privet
organization of United Kingdom, there is no government or little interference in its operations
and decision-making process.
The legal structure of private organization includes minimum 2 members and maximum
50 shareholders. Company must have initial share capital of about £100. There must be at least
one director and having a secretary is not compulsory. This company can not be traded publicly
and have to be registered under companies act 2006 that governs company law in UK.
Voluntary organization — Voluntary sector organization referred as the non-governmental and
non profit organization. This voluntary sector is separated from the private sector organization
and are operated with the help and integration of the government and it supports to deliver the
services and programs to the needy people of society. In this examples of voluntary organization
are charities, NGOs, foundation, community groups, social welfare organization etc. which
provide the services and programs to needy people of country in order to improve their life.
The purpose of voluntary sector organization is to enrich the society and living standard
of the people. For example, Red cross is voluntary sector organization which is multinational
humanitarian movement which have approximate 17 million volunteers.
The legal structure of voluntary organization includes trustees and not members and if
charitable £5k, threshold will be required for registration with a charitable commission.
Profit organization — These are the organization which only operate in the market with the aim
of earning profit for their owner.
Non profit organization — These are the organization which operate only to make their society
better by providing services and products.

P2 Size, range and scope of different organization.
Different types of organizations like public, private and voluntary have their different
size, scope and market share. These types of the organization help to provide the services to their
customers and gain more -profit by achieving its target (Teece, 2018).
Basis National Health
services:
TJ Morris group: Red cross:-
Operations This organization is
being operated and
funded by the
government of the
England. This helps to
provide the free
emergency health
services to the public
of the England. This
public group have
2017 commissioning
group.
This TJ morris is
private limited
company founded by
Tom Morris in 1976
and is operating in
different retail
businesses.
Red cross in
multinational
humanitarian
movement. It is
considered as the non-
profit organization as
well. There are some
principles of this
organization such as
impartiality,
neutrality, humanity,
independence, unity
etc. (Das and Kundu,
2018).
Mission Mission of the
company is to provide
quality care to each
and every person and
every day.
Mission of the
company is make
quality products and
make it reach out to
potential customers
Mission of red cross is
to mobiles the power
of the humanity, so
that individuals can
prepare deal with any
crises and can be
recovered easily.
Vision Vision of the company
is to deliver the better
health care and value.
Vision of the Tj morris
group is to deliver the
best quality products
Vision of the company
is to encourage,
promote and facilitate

to their customers and
also provide the best
online services.
all the forms of
humanitarian activities
by national societies.
Size  It is worlds
fifth largest
employer by
having 1.7
million
employees.
 These
treatments are
free to the
patients. There
are about
150,000
doctors in total
and over
320,000 nurses
and these
skilled
employees are
actual strength
of this
organization.
 Organization
was ranked as
best of 11 well-
off countries
and 4% budget
hike can lead
to
 They are the
fastest growing
and highest
rated retailers
having over
400 stores and
selling variety
of household
items like
clothing, foods
and games and
have almost
4,000 product
lines.
 There are
10,000
employees
working in the
organization,
that helps in
achieving its
target.
 Net operating
income of the
company in
2018 was £203
million and
revenue of the
 Around 17,000
volunteer
working for the
Red cross
group to enrich
the quality of
the needy
people. Its
interactional
committee has
12,00
members.
 Revenue
generated in
the year 2018
was 271.42
crores USD
and is
receiving
money from
government to
carry some
aspect of relief
efforts.

improvement
in number of
mental health
patients.
company was
£2.1 billion in
the year of
2018.
 Company is
trading all
around the
country and is
having 500
stores.
Scope  They provide
quality care to
people by a
single payer
that is British
government
and is funded
by taxpayer.
 It gives
primary care,
inpatient-care,
long-term
health care etc.
 They ensure to
keep workforce
healthy and to
reduce
premature
deaths.
 It is having a
broader scope
 It is the biggest
employer in
Merseyside and
Morris.
 It is having
UK's fastest
growing
discount
retailers that
are scope of
this business.
 It also includes
Home
Bargains,
property
ownership and
Far eastern
ventures.
 This includes
its employees,
customers,
 It is having 14
permanent
regional office.
 Organization
provide help to
people by
fulfilling their
needs relating
to food, water,
clothing and
shelter.
 They also
provide first
line disaster
response
services to
prevent human
suffering and
protect life and
health of

with a focus of
elongate life.
 NHS is having
its records
keeping either
in paper
records or
computer
records system.
 Company is
getting scope
in market with
the help of
government
department that
is Department
of health and
social care.
stakeholders
investors in its
legal structure.
human beings.
Organizational
structure
NHS is having
hierarchical structure.
TJ morris is having
Hierarchical structure.
Red cross is having
flat organizational
structure.
Stakeholder This NHS includes the
number of stakeholder
such as employees,
academy of health care
science, North West
health care science
network, national
school of health care
science and academic
Morris is the largest
shareholder of TJ
morris and is having
more than three
quarters of stake in the
company.
Red cross is having
employees as its stake
holders and people
also people who
volunteer with red
cross.

healthcare science
networks.
LO 2
P 3 Interconnection of different organisational functions.
In the TJ Morris group, there are various functions like marketing, human resource,
production and many more that help the organization to operate effectively in the market and to
achieve the target of the company. These functions of the TJ Morris group are interconnected
with each other in order to provide help and support to make strategies for their operation
performance.
Marketing and production
As TJ group operated and service their services in different areas like home bargain,
property ownership, and far eastern ventures. Its marketing department helps the TJ morris to
promote its products and services in the market. As the marketing department of the TJ morris
conduct a market research about the customers, demand, wants and need. Then on the basis of
that research, marketing department manager give the support to the production department of
the TJ group by providing the relevant data and information about market needs and customer
choice. These informations and data are being used by the production department to manufacture
their products as according to the market and customers demand. This help the TJ group to
increase its products demand in the market and image of the TJ group by delivering products
according to the customers and satisfied them (Beatty, Samuelson and Abril, 2018).
Human resource and marketing
To bring the quality and skilled employees in the TJ group, Human resource department
helps it by recruiting and selecting the best employee for the organization. This human resource
department helps each and every department of the TJ morris group by delivering the best
employee to them in order to fulfil the target of the company. As this linked with the marketing
department of the company, when marketing department need employee for their vacant post,
they provide full specification to the human resource department of the company. According to
that they give job advertisement and conduct interview to select skilled employee who can
contribute in achieving the goal of the marketing department. In this way human resource
department helps other department of company as well by providing skilled employee. Skilled

employee helps the company to fulfil its target and increase its productivity in the market
(Kopnina and Blewitt, 2018).
Research and production
Research and production of the TJ group is also interlinked with each other. As the
research and development department's main aim is to identify the the market opportunities, its
strength, competition in the market and global opportunities. These informations about the
market help the TJ morris group and the production department of the company to make
effective and strong strategies for the products and services and also help the marketing
department in setting price of the products as compared to the other competitors in market.
As the company also operated in property ownership, then research and development
identify the target group, its policies by the government of the country, strategies of their
competitors and many more. As according to those research management gets help to build its
strategies for their property and setting the rates as according to the location of the property.
Finance and sales
Finance and sales department of the TJ morris group is also interconnected with each
other and helps to increase the profit share in the market. Sales department of the TJ morris
company have all the selling and buying details of the company. It have all the selling buying
information of all the operations which is being operated by TJ morris group. Sales department
give the details of selling and buying to the finance department to maintain its balance sheet and
identify the overall profit and loss by the company (Crane and et.al., 2019).
By having all the details of finance and other finance related activity, finance department
prepare the budget for all department and also help to make availability of the best resources for
their employees. So that employees of TJ group can work effectively in order to achieve it s
target. Apart from this, finance department can also focus on the organization and its operation to
fulfil their financial demand. This help the selling department as well to build its strategies for
their next selling and purchasing operation in the market.
Types of organizational structure
Tall — In this Hierarchical structure is considered, which follow the top down management
style in the company having clear goals and job responsibilities.
Flat — This is horizontal type structure, in which organization is operated by middle
management. Small companies follow this structure.

Matrix — This is the type of structure where employees with similar skills are grouped and form
a team to fulfil specific project, task or assignment.
TJ morris follow the flat organisational structure. In which all the decisions are made by
their employees and middle management.
Line and horizontal structure:
In line structure, decision is being made by the top management, whereas in horizontal
structure decision is being made by the collaboration of all the department. In line structure,
collaboration is difficult, this only form on the time of meetings, in horizontal structure,
employees have the rights and power to take decision during daily operation in company.
LO 3
P 4 Positive and negative influence of macro environment
Macro environmental factors are those which affect the TJ morris organization and its
business strategies as whole. This include the economical condition of the country, its political
region an customers behaviour, inflation and many more. These macro or external factors are
uncontrollable by the company and influence the performance and strategies of TJ morris group.
To identify the influence of the macro factors on the business operation and decision
strategies of TJ, managers use PESTLE analysis. This includes the six factors that affect the
business strategies of TJ group. These factors are:
Political
Political instability affect the business of the TJ Morris group as whole. According to the
changing political condition all the inflation, tax, interest and property rate will be change. Then
the TJ group has to be change its strategies and can reduce the sell of its products and property y
in the market (Tomaš and Radović-Marković, 2018). For example if new political party increase
the import and export rate, this affect the TJ morris business, as they have to pay large amount to
import or ex[port to any products and can not expand business.
Whereas, political condition can help the TJ group by preparing the interest rates, tax
rates which give the benefits to the TJ group by decreasing tax rates and property rates, son that
can sell more property and other house bargain goods and services to customers. Whereas if
decrease the import export rate, then Tj morris can import and ex[ort their products at large
quantity to satisfied customers need.

Economical
Bad and poor economical condition of the country give the negative prospect to the TJ as
they do not get the best and effective resources from the country to operate its business. If TJ
group want to expand its business then low economic growth can become the hurdles in a way of
TJ group. For example, if country has low economic value then the currency value will be very
low all the things are expensive, this affect the business as customers can not buy expensive
products.
Apart from this, good economical condition include the low interest rate, tax, and
exchange rate. This will help the TJ group to give hike to its business. As they can expand its
business to fulfil the need of customers (Pan, Chen and Zhan, 2018). Whereas if country has
good economic value the currency value will be high, then all the things and resources are
available at nominal rates. This helps the company to its smooth operation.
Social
Social factor include the customers, culture of the country, age, gender education and
other factor that affect the business of the TJ group. Culture of the customers can negatively
affect the business, like, if people believe in buying flats rather the land it will affect the profit
share of TJ group.
Whereas, education level of the people help the company t get more skilled employees
and this will also affect the business of the TJ group as they work effectively to provide the bet
services and products to customers. If company provide the products as according to the needs of
customers, it will be profitable for the company.
Technological
New and updated technology affect the business of the TJ group. Bring new technology
in the company can be expensive for the company. To make their employees technology
friendly, also become costly as they have to provide training. If company brings QR machine,
computers and other equipments, this will expensive and also have to spend a lot money to
trained their existing employee or have to hire new skilled employee.
Whereas bring new technology in the TJ group help their employees to produce quality
good and services to their customers. This helps to increase its profits by satisfying the need of
the customers. This give the profitability of the company. Technology like, using Qr machines to

read bar code of products and computer to maintain records and other manufacturing machine
helps the company to manage products inventory and provide quality products to customers.
Legal
Legal factors like health and safety, consumer rights, product quality also refer as the
legal factors, if TJ group do not take care of the quality of the goods and property which they
sale. Also if company do not take care of consumer rights then it will affect the image and
productivity of the company as customers will not believe on the company and its products.
If TJ group, take care of their employees and its health and safety this will increase the
employee loyalty toward the company. They will contribute more in increasing profitability of
TJ group (Phillips and Moutinho, 2018). Employees of company will work with full potential
when they get benefits and believes that company will take care of their rights.
Environment
Environmental factors like, weather condition, its CSR policy affect the company. As TJ
group deal in property, then heavy rain and heat can affect the condition of the land. Then buyer
will not purchase their property. Also the heavy rain can spoil all its products and import export
service.
Good environmental condition help the company to sell better quality property to their
customers. And also the quality product of home biased. Also help the company to import and
export of their products easily and good environmental concision help to grow fresh and quality
food products.
LO 4
P 5 Internal and external analysis of organization.
To identify the internal strength of the TJ group, managers of the company use the
SWOT analysis tool. This tool helps the company find out its key strength, weakness and
opportunities in the market, where they can operate in future in direction to increase its profit
share in the market.
SWOT analysis is the analysis tool that help the company to identify its strengths,
opportunities and threats in the market. These helps the company to make its strategies in order
to expand its business and increase profit in market. This includes the four elements. Such as:
TJ Morris National health service

Strengths  One of the main
strength of TJ morris
group is that, it
operated in number of
areas. Like home
bargains, property
ownership and many
more. This help to
provide variety of
services to customers.
 Number of employees
in the TJ group is also
its main strength that
help to operate number
of different functions,
and contribute a lot to
increase its profitability
in market by working
effectively (Alava and
Mu, 2018).
 It has improved and
health care services for
their patients.
 Another strength is to
enhance the paperless
environment.
 Skilled staff of the
company is its one of
the main strength.
Weaknesses  It has number of
weakness that create
the problem in
expanding its business
like availability to
reach large number of
customers.
 Its another weakness is
low promotional
activity that create
 This company has lack
of effective system
integration.
 This also has weakness
is it, lack of reward and
motivation criteria.
 Significant errors to
record any health care
data.

barriers to increase its
brand image in the
market and among the
customers.
Opportunities  There are various
opportunities in the
market for the TJ
group. As they can
expand its business in
new country, which
have goods economical
region and
environment as respect
the property
(Phadermrod, Crowder
and Wills, 2019).
 Another opportunities
for the TJ group is that
company can start its
online business.
Through which TJ
group can fulfil the
needs and demand of
their customers and can
provide products at
their door directly.
 Company can make
improve effective and
efficiency of recourse
utilisation.
 This can also create
public awareness and
community support
program.
 Can improve the
quality of health care
services.
Threats  Market competition of
the retail industry is the
biggest major thereat
for the TJ group.
 High employee
turnover can be threat
for the national health
service because of the

Strategies of the
competitors in the retail
marketing affect the
business of the TJ
group.
 New updated
techniques in the
market is the major
treats for the TJ group.
As new technological
change in the company
can be expensive for
the TJ group.
political interventions.
 Rapid changing
technologies and IT
system can be threat for
this company.
P 6 Interrelation of internal strength and weakness to the macro factors.
Internal strength and weakness of the TJ group are interlinked with the macro
environmental factor of the company. That affect the decision-making and strategies of the TJ
group.
As the key main strength of the TJ group is that, have large number of store more than
400. This interlinked with the social external environmental factors. As the large number of the
stores help the company to satisfy the large number of the customers need according to their
culture and social needs. This also help the company to increase its profit and productivity in the
different region (Abdel-Basset, Mohamed and Smarandache, 2018). This also affect the decision-
making of TJ morris as they have to make strategies to satisfy all customers as well as for the
employees of company.
Another strength of the company is that, it operated in number of areas, which is
connected to the political environmental factor of the TJ Morris group. Different political
policies can not impact on the whole operation so that company can gain profit from one of it
operation. This help the company to increase its [profit share in specific area by the help of the
political environmental factor of the country. This affect the decision-making of company as they

have to make their rules, regulations and set wages criteria as according to that country's political
region.
Weakness of the company is to low promotional activity by company, this is connected
with the technological macro factor. As for the promotion, company have to apply different
techniques like can use social media and many more Lack of technology affect the promotional
marketing activity. This affect he decision-making of company as they have to bring
technological change to increase promotions.

CONCLUSION
From the above study it has been concluded that, all the organization have different
purpose to operate their business in the market. Like private organisation operate to gain more
profit whereas public sector organization works to provide the services to the conman public.
This also been concluded that, different organizational functions like marketing, HRM etc. are
interconnected with each other. It has been summarized from the analysis with the help of
PESTLE, external market environment affect the TJ morris organization and its business
operation. From the help of SWOT analysis, it has been concluded that strength and weakness of
TJ morris help it to make strong strategies to gain more and more profit in the market.

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