Business and business environment impact on operational activities

“PUBLIC AND BUSINESS ENVIRONMENT” EXECUTIVE SUMMARY1 INTRODUCTION 1 TASK 11 P1 Different Purposes and types of businesses1 TASK 22 P2 size, scope and range of different types of businesses 2 P3 Business functionsmanaged by objectives and structure 5 TASK 37 P4 The impact of macro environment on business operational activities in terms of positive and negative 7 TASK 49 P5 Internal analysis of GSK 9 P6 Interrelation of strength and weakness with external micro factors

“BUSINESS AND BUSINESS
ENVIRONMENT”

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different Purposes and types of businesses...........................................................................1
TASK 2............................................................................................................................................2
P2 size, scope and range of different types of businesses...........................................................2
P3 Business functions relation to objectives and structure.........................................................5
TASK 3............................................................................................................................................7
P4 The impact of macro environment on business operational activities in terms of positive
and negative................................................................................................................................7
TASK 4............................................................................................................................................9
P5 Internal analysis of GSK........................................................................................................9
P6 Interrelation of strength and weakness with external micro factors discussed above...........9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

EXECUTIVE SUMMARY
GlaxoSmithKline Pharmaceuticals Ltd is an Indian subsidiary of GlaxoSmithKline plc,
one of the world's leading research based pharmaceutical and healthcare businesses. It is one of
the oldest pharmaceuticals business in India. The firm provides health care services to customers
in India as well as at global level.
INTRODUCTION
Business environment analysis as well as evaluation is necessary for every firm in order
to manage and control different operations that helps to improve and develop profitability and
production. The report will cover different types and purposes of businesses along with their
size, scope and range of different types of businesses. In addition to this, business functions
relation to objectives and structure and impact of macro environment on business operational
activities in terms of positive and negative will be discussed in this report. Finally, the report will
demonstrate internal analysis of GSK and interrelation of strength and weakness with external
micro factors effectively.
TASK 1
P1 Different Purposes and types of businesses
It can be said that there are different types and purpose of business with various sectors,
size, scope and structure effectively. Different types such as partnership, sole trader, public,
private and voluntary businesses. Organisations can be described as a group of people which
helps to achieve desired goals and objectives. In respect to this, private sector works for earning
profitability and to expand their business activities. Public sector is managed and controlled by
government. Voluntary businesses are known as non-profit firms which is managed and
controlled by both local authorities and government.
Sole trader: Sole trader refers to the business which is managed and controlled by one person
individually. He or she is responsible for managing all the operational activities of firm in order
to earn profits. Such traders usually earn less profit that the size and scope of business is small.
The resources are managed by funding from savings, bank loans and overdraft plus profit.
Partnership: A business which is run by two or more than two people with common objective
and goals is known as partnership firm. People are able to share their views, knowledge and
skills. The profits and losses are divided equally or according to the investment ratio made by
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partners. They also try to expand business activities that the scope and size of such businesses
are less than private sector businesses effectively.
Private sector: Private businesses are managed and controlled by persons in order to provide
goods and services to customers in the market. These businesses work for earning profitability in
order to expand operational activities. Private businesses can be small or large in nature, scope as
well as in size. Such firms works under the rules and regulations formulated by government in
order to manage and control activities. Strategies and plans are managed by management in order
to earn profits and productivity that helps to achieve desired goals and objectives.
Public sector: These are the main part of economic concerns which provides various products
and services to those who are not able to purchase them effectively. These are the non-profit
organisations which provides goods to the welfare of societies. There are different types of
services provided by these firms such as education facilities, health and safety care, water and
electricity supply and telecommunication services efficiently. Public sector businesses are
managed and controlled by both government and local people in order to provide services with
low costs that helps to improve and develop societies. These are also organised at three levels
which is federal, regional and national.
Voluntary sector: Different types of businesses are included in voluntary sectors such as
communities, charity and voluntary business. These are also non-profit organisation in which
there is no role of government body. Such enterprises are dedicated to provide goods and
services which they are not able to catch them effectively. These can be incorporated or
unincorporated and defined as third sector which helps to improve and develop economy of
particular nation. This will also help to increase employment opportunities. Voluntary sector
examples such as social business, general charities, community interest, public art business, faith
groups, housing association and societies.
TASK 2
P2 size, scope and range of different types of businesses
BASIS SOLE TRADER PARTNERSHIP PRIVATE
SECTOR
PUBLIC OR
VOLUNTARY
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MEANING An enterprise is
controlled and
managed by a
single person
effectively.
Businesses are
managed by two
or more than two
persons.
A group of people
manage business
activities.
Public or
voluntary sectors
are usually
managed by
government body.
GOVERNMEN
T ROLE
Not much
involvement of
government
legislation and
rule.
UK partnership
act, 1980 is
applied.
Rules, laws and
legislations of
government body
is involved.
No particular
statutes as it is
under the
government body.
OWNER Single person
known is the
owner as well as
sole proprietor of
business.
The real owners
of business are
partners
Business head is
known as Owner
Owned by
government
department.
MEMBERS One member Two or more than
two people are
involved in
business
There are a
number of
members
involved in
activities.
Sufficient
members to
manage
operations
effectively.
LIABILITY Borne by the
traders only.
Shared between
partners involved
in firm.
Liability owned
by organisation
or departmental
head
Government
duties and
liabilities.
DECISION
MAKING
Too quick Depend on
discussion made
by partners.
According to the
situation but
delayed
sometime.
Always standard
decision making
in order to take
actions.
PROFIT AND Owner is Profitability and Managed and Government take
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LOSS responsible for
profit and loss.
losses are shared
in agreed ratio
distributed by
business heads.
actions for losses.
SIZE Small business Small or medium Large business
and operational
activities as well.
Large voluntary
sector
SCOPE Limited scope is
evaluated or it
can be depend on
market condition
effectively.
Partners
durability and
working time
defines the scope
Large nature and
scope toward
market.
Sufficient
government
scope.
LEGAL
STRUCTURE
No specific rule
and regulation.
Partnership act
1980 and
legalisations are
involved.
Companies act
2006 is involved
with different rule
and legislations.
UK government
manages all the
rules.
OBJECTIVE To earn
profitability for
daily activities.
Earning
profitability and
productivity.
Profit and
production is the
main motive
effectively.
Provides product
and service to
society for well
being purpose.
SOLE PROPRIETORSHIP
Advantage: There are some advantages of sole proprietorship that owner has effective control on
business operations and decision making as well. No corporate tax payments are made.
Minimum cost is required to establish business.
Disadvantage: Apart from advantages, there are some disadvantages also involved in such
businesses such as the person is liable for debts and obligations. Responsibilities and other
decision making fall on one shoulder. It is hard to find investments for expansion.
PARTNERSHIP
Advantage: There are more than two or two partners are involved in business. Investments are
easily available. Business transactions and affairs between partners are private.
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Disadvantage: There is a risk of disagreement and also conflicts chances. The partners liabilities
towards debts is unlimited in business. Each partner is responsible for all the operational
activities.
PRIVATE SECTOR
Advantage: In private business the owner is able to increase capital by selling shares. The
liabilities are also limited for members. Nobody is able to sell shares without an approval from
director.
Disadvantage: Professional advice is required for managing operational activities. The annual
accounts and audits are easily available for customers in the market for investment purpose and
inspection. The ownership is separate that decision making is no longer for owners effectively.
PUBLIC SECTOR
Advantage: There is involvement of benefits as well as decisions can be made with full of cost.
Public sector business also help to increase employment and economy growth. The ownership of
government will help to manage operations successfully with coordination.
Disadvantage: The business structure is too large that it is difficult sometimes to manage and
control effectively. High prices and low quality products and services. Tax revenues are some
extra expenses which is a benefit for public sector.
VOLUNTARY SECTOR
Advantage: Labour charge is not applicable and also services are free of cost for customers as
well as society members. Local people help to increase business criteria. A major role is played
by voluntary sector in order to develop and improve economy level.
Disadvantage: Lack of education and training that they work accordingly. Funding issues
sometimes prevent extra opportunities. Lack of counselling as well as accountability which
reduce effectiveness.
P3 Business functions relation to objectives and structure
FUNCTIONS OF GlaxoSmithKline plc (GSK)
Human resource management: Human resource department is one of the crucial function of
GlaxoSmithKline plc (GSK) that it helps to develop and improve human performance as well as
effectiveness. It will also help to improve performance of employees at workplace in order to
achieve desired goals and objectives. There are some roles and responsibilities of HRD such as
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assessing requirement of resources, recruitment and selection, analysing performance, loan and
mortgage and finally management of financial activities.
Production functions: Production department or function plays a major role in business in order
to deliver quality products and services to customers in the market in order to increase
profitability. Quality and quantity is managed by production department. Production manager is
responsible for ensuring resources availability and requirement of workers at workplace in order
to increase effectiveness.
Marketing functions: Marketing function is a place where the customers meets their demands
and requirements according to their satisfaction effectively. It can be described as a process that
helps to make an effective relationship with customers and GSK. There are some elements
involved in marketing functions of business such as promotion, distribution, branding and
publicity.
Finance functions: Financial department is responsible for all the financial activities in GSK in
terms of capital, budget management, investments and other financial activities. One of the
important aspect of financial department is to set budget for work in order to reserve capital.
There are some services provided by GSK It is one of the oldest pharmaceuticals companies in
India. Pharmaceuticals, Vaccines and Consumer Healthcare, these are some services provided by
GSK. The main motive of business is to make effective relationship with Indian customers in
order to increase sales and production.
Innovation and research: Innovation and research is also a important aspect of business that it
helps to improve and develop business functions such as marketing procedures, operational
practices, external relationship etc. Research and innovation is crucial that it helps to compete in
this modern and competitive world. This will also help to increase competitive advantage for
business. It is also simulated with consumers and managers with creative ideas that helps to
improve position of GSK in the market.
Information functions: Information functions helps business by providing correct and important
information and data which helps to improve and develop operational activities and other
functional activities. Collecting relevant information will also help to compete in this modern
world. This will provide significant benefits to customers as well as business in terms of
interaction and other marketing activities.
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Illustration 1: Organisation charts
(Source: Organisation charts, 2017)
TASK 3
P4 The impact of macro environment on business operational activities in terms of positive and
negative
PESTLE ANALYSIS OF GSK
Political: It can be said that political factors affect business operations and activities in different
terms such as there are so many changes managed and controlled by politicians such as changes
in tax and new duties or changes in price and services. These changes also affect business
profitability and production that it has a great negative impact on strategies and plans managed
by GSK. In order to comply with this, the management should make pre-plans for the changes
may be done by political unions which will help to manage risks association with them.
Economical: It can be said that growth and development of any particular country is depended
on various economic factors such as demand and supply, economic concerns, interest rates,
foreign exchange and inflation rates changes affect business production, strategies and
profitability. Policies and plans should be managed by firm according to the economic condition
of nation in order to manage such risks that helps to improve and develop business activities.
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Thus, the GSK should manage policies and plans and contribute towards economic development
and growth which is important for both businesses and country effectively.
Social: Social factors also has a great impact on business operational activities that social market
environment, cultural trends, taste and preferences, population analysis and demographics has a
impact on business operations. It can be said that there is a high demand in holiday session that
societies and other local public also visit places which helps to improve and develop various
business factors effectively. Social changes are managed and controlled by population increment
as well as there is a role of country in order to establish a social culture effectively.
Technological: It can be said that technological factors are one of the most important thing for
business in order to drive performance and activities of employees, operations as well as
business other function effectively. Technological changes such as latest and updates technology,
innovation, research and development, new techniques and tools as well as equipments will help
business to drive business performance which helps to achieve production as well as desired
goals and objectives. Employees are also able to increase their skills and knowledge by making
effective use of technologies.
Legal: Legal factors can be described as government body in which some certain rules and
regulations are formulated and applied by local government in order to manage and control
various business activities. It can be said that GSK have many branches in and across the country
that several rules and legislations should be managed by firm in order to run business smoothly
and effectively. This will also help to manage policies and plans accordingly.
Environmental: Environmental issues such as surrounding environment of business, tourism,
farming, agriculture, culture and trends affect business operational activities. The firm should
analyse all the issues and factors related to environment analysis which will help to make an
effective environment in business. Different factors include analysis of global changes, climate
and weather, geographical location of business and population analysis.
Macro environment: These are the major external factors which can easily influence the
business activities and decision making process in GSK effectively. This will also affect
strategies and plans which has a significant impact on performance managed by employees at
workplace in order to increase production and profitability. These are the factors such as
political, economical, legal, social, technological and environmental.
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TASK 4
P5 Internal analysis of GSK
SWOT analysis will help to identify and determine strengths, weaknesses, opportunities
and threats in order to assess business position in the market that helps to make strategies and
plans accordingly and effectively.
Strengths: The main strengths of GSK business is that there is a strong sales and distribution
network in India as well as globally. The global presence is also very strong that there are 100
countries where the products and services are delivered by firm. This will also help to reduce risk
of over-dependence. Novartis announced a joint venture a consumer healthcare and vaccines in
2015 which will help to enhance penetration as well as to introduce new products and services.
Weaknesses: There are some weaknesses as well that the healthcare frauds allegations affect the
brand image that in some countries pricing, promotion and safe data got failed. In addition to
this, the blockbuster products and services offered by GSK also exposed to generic competition
and also reaching maturity effectively.
Opportunities: It can be said that there are a lot of opportunities available for business in order to
expand business operational activities and profitability. Strategic expansion is possible through
acquisition and collaboration activities. In addition to this, new product development is also a
core opportunity for business in order to increase demand and awareness towards quality and
effective healthcare.
Threats: There are some threats also exists in business such as drug pricing control which is
managed by many countries differently and effectively. For instance in India, new pricing
control policy is proposed to the price of drug which may be decrease effectively. Competition is
also very effective in the market along with generic competition.
Thus, it can be said that SWOT analysis will help business to determine and evaluate core
strength, weaknesses, opportunities and threats which helps to determine market position in order
to make necessary changes in strategies and plans effectively.
P6 Interrelation of strength and weakness with external micro factors discussed above
Economic factors: Economic factors such as interest rates, rising prices rates and abroad rates
affect the concern determination making process managed by pull off. These component affect
the business commercial activity and public presentation in long time period. It affects the
employment and commodity offered by bank. These social science component will not affect the
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price, argumentation and property of the business concern if it is able to hold its financial
position strong. This will bring down the chances of poignant economical ingredient and
business can make its position property and towards growth.
Political and judicial factors: Policy-making and legal factors can be ascertained if the UK
government modification its tax and responsibility. This will impact the whole business
organisation human action and trading operations within bank managed by the bring off. The
business concern can take its failing of governmental and legal cause happening if it tries to keep
the laws and argumentation reported to the UK authorities or any other administrative district
where the subdivision of Barclays is constituted. The firm can make modification to its
argumentation, plan of action and plans reported to the authorities' alteration which will assist it
to come through the policies and trading operations at work place efficaciously and
expeditiously.
Social and appreciation factors: Social and cultural constituent includes appreciation trend,
state of affairs of social markets, sociology and analysis of people. These component affect the
business concern in both sentient and antagonistic way that it count on the steady to use these
constituent as their capableness or imperfectness. The contemporaries are ever-changing and
their economical procedure are also dynamical with that, business organisation can grow its area
through negotiate these component proposition. Thus, Barclays has galore arm crossways the
body army unit as well as someone that it should come done with the antithetical culture,
inclination and state of personal business of state which will aid it to assortment effective finding
according to the commercialized enterprise locate ineffectively and with efficiency.
Technology factors: New and advanced techniques and engineering can also affect the business
organisation in both affirmative or counter terms. The business concern should espouse the latest
method for its commercial enterprise trading operations which will assistance it to manage its
lucrativeness and human activity effectively. Enterprise can meliorate its military strength
through new introduce and engineering science which assistance to make impressive decision
devising for the firm and social control efficaciously and with efficiency. This will also human
activity worker to work effortless with the latest techniques and will increase the manufacture
level which leads interest towards achieving its accusative and goals effectively content
Environmental factors: Environmental component such as agribusiness, farming, tourism and
surrounding environment can affect business in both favourable and unfavourable way. It
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depends on the business organisation that how it adopts the biological science changes for rising
its strengths. Contrasting countries has various situation factors and business enterprise should
try to manage the surrounding environments effectively and efficiently. This will help business
to make efficacious determination making in situation studies. This will consider the climate,
geographic placement, weather and global modification which can bear upon the business. The
Barclays bank can better its property with up these factors within the business concern situation
efficaciously and expeditiously.
CONCLUSION
It can be concluded from the above report that there are different types such as
partnership, sole trader, public, private and voluntary businesses managed and controlled by
government and group of people. Business functions deliver quality products and services to
customers in the market in order to increase profitability. Major external factors can easily
influence the business activities and decision making process in GSK effectively. In addition to
this, SWOT analysis will help business to determine and evaluate core strength, weaknesses,
opportunities and threats which helps to determine market position in order to make necessary
changes in strategies and plans effectively. It is analysed that there is an interrelation of strength
and weakness with external micro factors which should be managed and controlled by business.
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REFERENCES
Books and Journals
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