Business and Business Environment.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Explain different types of organisation and their legal structures. .............................................1
Scope and Size of various type of organisations........................................................................3
Analyse size, structure, scope of distinct organisation and also links with different objectives
of products and services which is provided by organisation. ....................................................5
Describe relationship between functions of different organisation and also explain how they
are link with objectives and structure of business. .....................................................................6
Examine benefits and drawbacks of interrelationship between function of organisation. .........7
Critically examine complexities of business interrelationship and structure of distinct
functions of organisation. ...........................................................................................................8
Examine positive and negative impact of external environment on business organisation. ......8
Relate PESTEL analysis which helps evaluation of external environment. .............................9
Conduct external and internal analysis of organisation in identifying their weaknesses and
strengths. ..................................................................................................................................10
Describe how weaknesses and strengths are interconnected with macro factors. ...................12
Apply SWOT analysis and also justify it influence in decision making process. ....................12
Evaluate impact of macro and micro factors on business decision making and objectives. ...12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business is define as an economic activity in which individuals work together with aim of
earning profit by medium of selling and buying of goods & services (Sorreda and Philippe,
2020). Business Environment is refers to combination of all internal and external forces such as
suppliers, employees, supply & demand, government policies and so on are included which
effects functioning of organisation. These factors are studied for gaining competitive advantage
for accomplishment of goals against rivalries in competitive world (Hamilton and Webster,
2018). This leads to maximisation of profit and attained of goals in effective manner. So it is a
responsibility of managers and leaders for examining these factors on continuous basis.
In this report, Ryanair is private organisation which is considered. This is an low cost
airline which is founded in 1984. headquarter of this enterprise is in Swords, Dublin. This is
largest European budget airline which have scheduled passenger flow and also carries
international passengers than other airlines.
This report is about various types of organisation with their legal structures, scope, size
and relationship of different company with their objectives and in what manner they have link
with organisation structure. This report also covers positive and negative impact of micro &
macro environment factors of organisation. In addition, there are are identification of
opportunities with help of designing new policies which have their own drawbacks & benefits.
Moreover, this also include how organisation functions are interrelated with each other which
affects structure of company.
Explain different types of organisation and their legal structures.
Organisation is a association which is being formed for indulging into economic activity
for the purpose of generation profits out of the revenue. The major objective of these
organisations usually involves extracting profits from the revenue or sales generated by the
organisation. There are certain types of organisation which are explained as follow:
A. Public Sector Organisation
These kinds of organisation perform its functions under the influence of the Government as these
owned, controlled and managed by the Government (Čepel and et. al., 2018). As these are
funded by the Government, they are liable towards them as per the requirements. These
organisation usually perform its operations for the welfare and betterment of the society. For
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example, Rynair is a public sector organisation which is involved in providing airline services to
the people.
 Purpose
The main aim of these types of organisation is to provide services to the general public by
efficiently using the resources being allotted to the organisation. They are largely performing for
improving the services and benefits which are being to the people of a country as a main target of
the organisation. These aspects helps in enhancing the goodwill of the organisation along with
the governed by providing efficient benefits to the people (Brennan, Canning and McDowell,
2020).
 Public cooperation: This is an entity which is created by state for carry out public
services and mission. These cooperation take active participate and also offers services
which are also provided by private sector enterprises.
 Municipal enterprises: These type of business are owned by local government which
offers services and also generate revenue for local communities. These enterprises have
public facilities like parking lots, airports, ports and so on.
B. Private Sector Organisation
This sector consists of those organisation which are owned, managed and controlled by
the private individual. These organisations perform its operations for the ultimate objective of
maximization of profit. For example, Ford Plc those criminal cases that have been investigated
by the police earlier.
 Purpose – The main objective of private sector companies is to generate high profit level
and to compete in the competitive environment with efficiency.
 Legal Structure
a. Sole proprietorship – in this category person is solely responsible for providing the goods
and services to the general public (Arsić and et. al., 2018). For the purpose of functioning of the
business, sole traders has to take permission from the local authorities in their respective
businesses such as taxi, bakery etc.
b. Partnership – Partnership is a form of association between 2 or more persons. The legal
requirement of these businesses is as similar as sole trader. This association usually involves a
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agreement between the parties which bound them in the business operations to share the work
load as well as the profits.
c. Limited company – the entity has a requirement of get itself registered to be established as a
limited company. The profits which is generated from business belongs to the company only as
shareholders only gets the dividend on their investment. The company is also liable to pay the
corporation tax every financial year (Martins and Nienaber, 2018).
Tesco PLC is a limited company and is governed by company laws.
C. Voluntary Organisations
Voluntary organisation consists of a group of people who comes into a agreement willing for the
common objective of making profits. For example, Samaritans is a voluntary organisation in UK
who provides emotional support to those who are going through depression, stress etc.
 Purpose – The voluntary organisation work for the well being of the society by providing
services which improves the health of the society. It acts as a source for the improvement
of the society as a whole.
 Legal structure
a. Trust – the trust cannot function as a whole as they cannot become a association as a whole.
This enables the trustees to be on a path with personal liabilities which means they are solely
responsible for the actions taken by them (Kokodey, Gnezdova and Lomachenko, 2018).
b. Unincorporated Association – This is also not considered as a separate legal entity.
Moreover, they are not bound on the limitation of the liability as they are in contract on behalf of
charity that's why they are personally responsible for this.
Samaritans is a trust based voluntary organisation.
Scope and Size of various type of organisations.
SIZE
Ryanair It is a large scale organisation and Ryanair provides airlines services worldwide
having attraction of many customers in which almost 17500 employees are
working in this company. The revenue of this organisation is $7.151 billion by
having total assets of $12.36 billion
Ford plc It is a large organisation which have almost 190000 employees are working.
Samaritans There is almost 201 branches of Samaritans across UK by involving 20000
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volunteers.
Ryanair
Background of Ryanair:
Ryanair Holding Plc is Europe's largest group which deals in airlines services. It includes
over 16000 highly skilled employees which leads to on time performance of company. This
organisation has founded on 28 November 1984 which have subsidiaries such as Buzz, Malta Air
and so on. CEO of this company is Edward Wilson. Its range of flight are very cheap which
attracts more customers. It deals as global winner as company is punctual with lots of flights
with various destinations.
Product and services provides to their customers:
Ryanair offers no frills air and low cost travel to European destination. In this there is no
free drink or food available onboard. Company also deals with many projects such as hotels,
phone cards, Hertz car rental & bus tickets which helps for increase in revenue or profit up to
16%.
Scope: Company uses direct marketing techniques for recruiting and retaining of
customers which leads to extending services and products. Ryanair should turn their aircraft
around more quickly. The destination of their airports are terms as secondary.
Vision: Company wants to provide in next five years as air fares will be free which leads
to full in passengers of flights which leads to increase in profit and also getting in share of
shopping.
Mission: Ryanair wants to offer low fare of price which helps in generating passenger
traffic by maintaining a continuous focus on efficiency operations and cost containment.
Administration objectives: Company wants to establish itself as leading organisation in
Europe by low schedule fare to passengers by continuous improvement and expansion in
offerings of its service of low fare service. There are many strategies which have focus on core
competency which make sure as by offering exceptional value in saturated market segment of
airline.
Organisational structures: In this company there features about 11 person of board
which involves CEO, chairman, CFO, pilot and so on. Organisational structure of Ryanair as
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actions which defines standard procedure of operation and their routines & also includes working
of individual in structure as what decisions are make are carried out appropriately.
Information about stakeholders: In this organisation there are shareholders who own
shares and have right of claiming dividends and also elect board of directors which have
important rights.
Ford Plc.
Mission and Vision: The mission of this organisation is to strengthen the community
which makes live of people better. The main purpose of Ford Plc, is to drive the human progress
by freedom of movement (Nashiruddin, 2018). Vision of company is to achieve the top
performance in all industry by considering variables and competitors. These statements influence
decisions for strategic management for enhancing business performance.
Size and scope: The size of Ford Plc is revenue of this organisation is around 156
billions. This organisation mainly creates bulk of revenues by selling vehicles. In addition, scope
of organisation is it is first who announces first tangible evidence by designing all cars in unique
form.
Organisational Structure: The functional structure of this organisation as with this all
the departments as performed all of its responsibility and they are performing in right way.
Samaritans:
Mission and Vision: This organisation have mission as providing good health care by
promoting education, wellness in addition with healing by trusting relationship. Furthermore,
Vision of firm is to be regional centre by giving health care support in communities that has been
served.
Scope and Size: This organisation deals with values such as respect, dignity, excellence
which leads to promises which makes society as compassionate, high quality all over the
journey.
Organisational Structure: There is almost 201 branches of Samaritans across UK by
involving 20000 volunteers. There is almost 10-15 members which are in support of board of
trustees (Akhtar, 2018).
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Analyse size, structure, scope of distinct organisation and also links with different objectives of
products and services which is provided by organisation.
Above information tells in detail how different types of organisation performs in the
business environment in their respective fields. Some are working towards the achievement of
company objective of profit making while others are working towards the welfare of the society.
Similarly, some entities work under the head of the government and liable towards that while
some are working under a private ownership. But irrespective of everything each company
contributes towards the development of the economy of a country which ultimately helps in
raising the standard of living of people and the infrastructure of the country. This also helps the
country to collaborate with other countries by establishing their branches in other countries
which makes the businesses to go global and which makes the organisation to compete
internationally with an objective of getting a well-known brand name. Therefore, development of
the country is largely depends on the overall growth of the companies which are functioning
their activities for achieving higher success.
Describe relationship between functions of different organisation and also explain how they are
link with objectives and structure of business.
The departments of an organisation are interlinked with each other directly or indirectly.
For the purpose of increasing the efficiency and profitability of the business, it is essential for the
businesses to work upon their department for maintaining the coordination among the
departments (Hair Jr, Page and Brunsveld, 2019). Ryanair is a public limited company which
provides airlines services with an major objective of generating profits out of the operations.
This is possible only if all of the departments works with coordination. The relationship among
departments are as follow : Marketing and Human Resource Department – Marketing department is interlinked
with HR department as staff which is employed into marketing comes out of the HR
department. Marketing department is the one which performs the functions such as
marketing planning, product planning, product strategy, promotional activities etc. which
mainly involves increasing the revenue for the organisation by targeting customers. HR
department is responsible for hiring skilled people for the organisation who will put
efforts towards the sales. The coordination among these departments provides an
advantage to the Ryanair which helps the organisation to increase efficiency in
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promotional programmes which will ultimately generates higher profits (Nilsson and
Robinson, 2018). Roles and responsibilities of marketing and human resource
department in Ryanair is retain and recruit the employees which have beliefs in mission
of company. In terms of marketing department they have responsibilities or play roles by
examining the environment of organisation as what type of employees are needed in it
according to their skills & knowledge. Purchasing Department and R & D Department - for expanding the business in various
sectors it is essential for the organisation to work upon the research activities thoroughly
along with the purchase of inventory which is essential for implementing research results.
In an organisation, various raw materials have been needed for performing the tasks
involved in the process for achieving the results which is being forwarded through the
R&D department. Ryanair is heavily relied on the research team for expanding its
business to other countries. Roles and responsibilities of purchasing and R&D department
is for purchase proper inventory which are needed in organisation with help of R&D
department by which the objectives of goals are attain in successful manner.
 IT Department and Finance Department – IT department ensures that the data of the
company has been maintained properly and every department receives the right
information at the right time. Specially finance department is the major part as through IT
department it is being possible for finance managers to raise and allocate funds as per the
requirement (Poppo and Cheng, 2018). Ryanair is benefited from this as this helps the
organisation to get timely information as well as getting funds on time which increases
the revenue for the organisation. As now technology is consider as important factor so it
is a responsibility of manager to control finance department with help of advancement in
technology. This may use large amount of capital for invent new technology. So this
department play essential role for development of organisation by attracting potential
customers.
Organisation structure which is followed by Ryanair is functional or hierarchical
structure. This type of structure mainly starts from positions from highest levels of
responsibilities from top to bottom. This structure helps in focuses on roles of employees and
also helps all department to feel self determined.
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Examine benefits and drawbacks of interrelationship between function of organisation.
Interconnection between functions of business plays significant role for Ryanair because
it increase strengths of performance which have direct impact on profitability and productivity of
company. When there is proper coordination between all departments helps in attracting
customers as well attaining market shares. But sometimes, it creates grievances and conflicts
among managers & staff members of different departments leads to delay in outcomes which
leads to not performing task on time as well performance of objectives. This leads to have impact
on efficiency and profitability of organisation.
Critically examine complexities of business interrelationship and structure of distinct functions
of organisation.
As every enterprise are structured in unique manner but their legal structures are different
as in terms of Ryanair there is another structure is made for airlines. But due to poor coordination
between departments leads to situation of complexity as their nature of employees are different
which results in inflexibility in various activities and functions. As business have complex nature
this leads to having entire work structure which helps in distribution of roles and responsibilities
to all department. If there is proper coordination between all departments leads to achievement
of goals in significant manner.
Examine positive and negative impact of external environment on business organisation.
Macro environment is define as factors which affects the performance and operations of
business which are not control by organisation. With help of PESTEL analysis company can
analyse the whole condition of market and understands the situation of firm (Cherunilam, 2020).
This factor have direct impact which leads to positively and negatively situation of firm. So for
study of these factors of pestle analysis which are discussed below: Political factors: These factors involves taxation policy, government stability, trade
restrictions and so on which effects business operations. Political forces of UK and other
countries which effects Ryanair airlines. Positive impact of these factors as it reduces EU
airlines which loose unrestricted areas. As there is huge expected transport which helps in
abiding numerous travel, aviation rules and customs of each destinations. Drawback of
this factor is due to Brexit and Covid -19 company have to adopt government regulations
for health authorities. Airlines services stop this leads to low cost airlines in operations.
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 Economical factors: Main factors which are involve are wages, tax policies, interest rates
and so on. All these factors impact smooth functioning of Ryanair in directly or indirectly
manner which leads to decrease in value of investments in future. Mainly there are three
reasons of economic growth such as adoption of new technology, working hours and so
on. Positive impact of this factor is when company follow all economic factors in right
manner leads to effectiveness in business without influencing government bodies
(Paudel, 2019). In addition, objectives and goals can b e achieved in appropriate time
which leads to positivity in firm. On other hand, if these factors are not followed by
company leads to huge penalties and also market value is decreases. Social Factors: These mainly includes values, culture, beliefs, background and so on
widely. Ryanair includes their staff members for take all aspects of social factors which
leads for contributing in uplifting the society. This leads to creation of positive image
about services of airlines. Company take all initiatives which helps for making society
and availability of services at cheaper rate which leads to trustworthy and loyalty of
brand image. Drawback of this factor as due to Covid-19 and Brexit many individuals not
going anywhere and this deals to decrease in fair of flights. Technological Factors: These factors mainly includes apply new innovative technology
which helps in increase the image of airlines services. By applying new acquisitions will
help respective company to ahead their competitors. But due to covid and Brexit it leads
to increase in demand of flights. Legal Factors: This mainly includes laws such as consumer laws, copyrights laws and so
on. In terms of respective company, there are impositions of travel restrictions by
government of Irish this leads to negative impact on airlines services. But there are also
positive impact as company follow call legal rules and regulations which is helpful in
productivity.
 Environmental Factors: This factor mainly includes ecological balance, environmental
issues and so on. In terms of Ryanair, it uses greenhouse gas emissions which have
positive impact as it gives largest contribution which decrease the ecological wastages.
But due to misleading in advertising which leads claim that did not support company
(Beitelspacher and et. al., 2018).
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Relate PESTEL analysis which helps evaluation of external environment.
This method works in examine macro factors that are prevailing in market segment.
When there is deeply analyses of changing environment management of forces of business helps
in making strategies which ensures to overcome any issues which is related to future. Company
have to evaluate long term goals which helps in attainment of goals in effective manner.
Conduct external and internal analysis of organisation in identifying their weaknesses and
strengths.
Swot analysis refer to the analysis of environment of company, it analysis the plan of
action methods used for company identification for strengths, weaknesses, opportunities, threats.
SWOT analysis of Ryanair
STRENGTHS
 The biggest strength of this
organisation is as it is established in
European market which covers almost
200 destination and 1800 routes.
 Due to Ryanair's low cost this create
key competitive advantage.
 This company is consider as European's
greenest and cleanest airline.
 Company have consistent shareholders
returns and strong balance sheet which
leads to biggest strength for
organisation.
WEAKNESSES
 Due to change in employees
compensation arrangements and labour
relations which have impact on
business of Ryanair.
 As there is aggressive expansion of
fleet which results in overcapacity in
future times.
OPPORTUNITIES
 In terms of Ryanair, there is a good
opportunity as to increase ancillary
revenues by myRyanair.
 By implementing a program like
Always Getting Better which helps in
focuses on customer experience.
THREATS
 Due to Brexit, there is weaker GBP
post which put downs for pressure on
prices.
 The major threat for company is
increase in Irish Corporation Tax rates.
 There is also major impact of Covid 19
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 The main opportunity for company is
decline in charter flight segment.
on aviation of industry.
 There is also a threat for organisation
due to competition from other low cost
regional carriers.
SWOT analysis of Ford Plc.
STRENGTHS
 Ford has strong position in auto market
which have their market share in US is
about 14%.
 As company is dealing in automobiles
so it have some popular models which
involves F150 pickup truck, the Fusion
Sedan and so on.
 There is strong financial position of
company which have free cash flow of
$3.477 billion in 2015.
 The major strength of this organisation
is marketing and manufacturing of light
commercial vehicles generally vans.
WEAKNESSES
 The biggest weakness of Ford is
inability to match sales volume and
production capabilities Volkswagen,
Toyota, Hyundai, Kia and so on.
 There is a poor reputation of American
auto brands as compared to Japanese
and European competitors.
 There is a poor reputation with
investors which leads to limitations for
company for raise capital.
 Reputation of Ford is staid and
conservative brands which leads to
make market for younger consumers.
OPPORTUNITIES
 There is a opportunity for Ford Plc, as
to invent new automotive technology
like autonomous cars, self driving. This
leads to increase in demand for new
sales and models.
 There is also opportunity for company
for growing auto markets which
expands economy such as Mexico,
India and so on.
THREATS
 The major Threat for Ford Plc, due to
growing presence of Japanese and
German automakers that they are
mainly deals in auto market such as
Volkswagen and Toyota.
 Due to wide spread adoption of electric
vehicles this leads to costly upgradation
in plants and expensive changes to
dealership.
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 Due to increase in level of E commerce
this will also increase demand of light
commercial vehicles for delivery.
 Due to lower fuel prices this could
leads to decrease in demand for fuel
vehicles.
How SWOT Analysis affects the HR Manager
Ryanair private company : Swot analysis affects the manager in positive as well as negative.
They get maximum benefits in terms of increasing employment. They payroll of company is
under the hr department some employees facing an issue related to the salary so it shows a bad
image of company (Paschek, Ivascu, and Draghici, 2018).
Ford Plc.: SWOT analysis affects the HR manager in such manner which leads to positive and
negative factor for organisation. With help of this analysis there is a identification of
opportunities for business which could leads to make high profits for organisation. By
conducting this inspection it can identify the weaknesses which can be overcome by using the
strength of company (Amankwah-Amoah, Khan and Wood, 2020).
Describe how weaknesses and strengths are interconnected with macro factors. Political Factor: SWOT analysis have interconnection with external factors. Company
uses their strengths in terms of political factors which helps in raising the market share. Economical Factor: This is a element of macro environmental forces in prevailing
market segment. There is very strong relationship of SWOT analysis with macro factors.
This leads to drawbacks for company as they have to follow policies which are made to
overcome in their working environment. Social Factor: This factor of macro analysis make strong relationship with SWOT
analysis which helps in not giving any type of issue to society members. This leads to
opportunities for company in airlines services. So for this proper research is conducted
for creating competition for other rivalries (Welsh, Kaciak and Shamah, 2018).
 Technological Factor: In this term, SWOT analysis make a relation with external forces
which helps in emerging the needs and desires of customers can be fulfilled.
Apply SWOT analysis and also justify it influence in decision making process.
By SWOT analysis it helps organisation to conduct internal analysis which helps to
understand the current market trends. By critically examine the strengths and weaknesses of firm
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leads to making proper decision making process and also highlights the threats and opportunities
which leads to decrease in market capability.
Evaluate impact of macro and micro factors on business decision making and objectives.
Due to directly and indirectly impact of external and internal factors which leads to
effects the decision making process and by this objectives of organisation is not attain. If firm
not analyse the environment before entering the market this leads to decrease in success of
market shares (Amankwah-Amoah, Khan and Wood, 2020).
CONCLUSION
From above report it has been concluded business and business environment means
combination of external and internal factors like government policies, employees and so on. This
report also covers different type of organisation structure with their legal structure, scope,
mission, size and vision. It has been concluded from this report as with help of PESTEL &
SWOT analysis of organisation by which strength and weaknesses are examined. There are
various type of strategies such as interrelated of various departments with their roles and
responsibilities. Furthermore, it also been concluded as there are various size, legal structure,
vision, mission and objectives which helps in attainment of goals in efficient and effective way.
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