Table of Contents INTRODUCTION...............................................................................................1 PART-1.............................................................................................................1 P1 Comparison between different types of organisation.............................1 P2 Size and scope of organisation...............................................................3 TASK 2.............................................................................................................4 P3 Organisational structure and function....................................................4 PART-2.............................................................................................................5 TASK 3.............................................................................................................5 P4 Positive and Negative impact of macro environment has on business operation.....................................................................................................5 TASK 4.............................................................................................................7 P5 Conduct internal and external analysis on UK Supermarket...................7 P6 State how strength and weakness is interrelated with external macro factors..........................................................................................................9 CONCLUSION.................................................................................................10
INTRODUCTION Business environment can be defined as sum total of all internal and externalfactorsthataffecthowthecompanyoperatesandfunctions includingmanagement,employees,customers,supplyanddemandand business regulation (Business environment,2018). In order words, it is a collection of all entities, individuals ad other factors which may or may not beunderthecontrolofcompanybutcaninfluenceitsprofitability, performance, growth and survival either in direct or indirect manner(Cassell and Blake, 2012). According to Wheeler, “it is the sum total of all things that are external to industries and firms that impact organisational function”. This reportdeterminestheinfluenceofmacro-environmentalfactorsonUK supermarketsector.Inadditiontothat,italsotalksaboutscopeand structureofdifferenttypesoforganisation,differencebetweensmall, medium and large enterprises and how strength and weakness is linked with external factors. PART-1 TASK 1 P1 Comparison between different types of organisation A business can run in several ways and the form chosen by business owner will affect legal liability of both company and owner. The goals and objective of each form is vary from one another. For instance: Objective of Non-Profit organisation is to improve the condition of society whereas goal of profit organisation is make maximum profits or revenues. Businesses are mainly categorise into three types: ProfitOrganisation:It includes company's whose primary mission is to generate immense profit and create effective product and services that are valuable to buyers. Such types of organisation are profit-oriented. Private owners arrange their funding through bank loans, revenue generated from sales, local investors. The contribution of profit sector towards UK's economy is quite high as compared to non-profit and non-governmental. The more they earn, more they contribute toward the society in terms of taxes and this 1
taxisultimatelyusedforthebettermentandwelfareofpublicorlocal residents(Cavalcante and et. al., 2011).For example: From past 75 years, IKEA runs with an aim of generating more and more profits. Non-Profit Organisation:These are also known as non-business entity. It includeallsuchbusinessentitieswhousesitssurplustoaccomplishits ultimateobjectiveinsteadofdistributingitsincomeamongcompany's members,leadersorshareholders.Non-profitentitiesaretaxexempted which means they do not need to pay income tax on the money they receive fortheir company. They generally arrange their funding through private donations, government grants, corporate sponsorship, crowdfunding etc. In UK, Internal Revenue Service (IRS) identifies the tax status and validity of non-profit entities. NPO's often depend upon the dedication of employees otherwise it become difficult for them to cope up with private sector. They are approaching their audience with a message about concerned product, services or actions. In addition to that, NPO's promote community-oriented culture as workers are asked to solve and address issues that have less financialincentive.Forexample:FairWaysdeliversmassiveservicesto young children and people including education services, training and social care. Non-GovernmentalOrganisation:Non-GovernmentalOrganisationare commonly referred as NGO's, independent of government and international governmentorganisationthatareactiveineducational,healthcare, environmental, human rights and other areas to effect changes as per their objectives(Cronan and et. al., 2011). These are sometimes known as civil societiesthatrunwithanaimofimprovingeconomicconditionofthe countryandmakesthembetterplacetolive.Theyalsolaidstresson increasing the welfare of poor people in poor countries. NGO's are generally funded by private donation, sales of goods and services, membership sues and grants. Despite to the fact that there is no interference of Government in NGO's but there are certain NGO's who rely significantly on government funding. This is mainly because they require funding in billions and millions 2
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
of dollars. For instance:4theCHILDRENis a UK based NGO that mainly deals with human rights and safety of children. The company was created in April, 2016.It is generally made up of small team of students or mothers. Withthe passageof time andexpansion in theirwork,largenumberof volunteers works from the local community has associated with them. Basisof Comparison NGONPOProfit Organisation MeaningAn NGO refers to anon- governmental organisation formedby independent citizensthat operates independentof government. Suchtypeof organisation often set up to provide goodsand services to people andoperateson theprinciplethat profitorlosses willnotbeshare by its members. Profit organisations runs withanaimof makinghigher profits. Areaof Operations LargeLimitedCanbelargeor limited Purposeand Objectives Mainobjectiveof NGO is to work for the betterment of countryandits members.Italso dealsinbringing awareness regardingwomen empowerment, human rights etc. Theirmain objectiveisto promoteart, science, commerce or any otheruseful purpose. Theirmain objectiveisto maximisetheir profit by satisfying customerneeds andwantsinan effective manner. 3
Examples:Bycollaborating with local schools andcommunities 4theChildrenare focusingon improvingtheir knowledgeand alsoconduct various development programmesfor them as well. Fair Way deals in providing extensive services to young children and other peopleby providing education, arranging training program for them etc. IKEAisaDutch based multinational groupthatsells anddesignready toassemble furniture,home accessoriesand kitchen appliances.The mainpurposeof the company is to gainhigh competitive advantagein overseasmarket andtomaximize overallrevenues or profits. P2 Size and scope of organisation MicroSmallMediumLarge DefinitionSuch types of businesses runsand controlledby its owner. Small- businessare normally ownedby sole- proprietorship or Theyare referredas employment creatorof particular country. Large enterprises arenormally run,managed and controlled byits membersor 4
partnership.partners. PurposeThemain purposeof suchfirmsis to earn money sothatthey can effectively fulfilthe needsand desire of their family members. They run with apurposeof earning decentprofit sothatthey cansmoothly manageand performtheir daytoday functioning. Medium enterprises runswithan aim of gaining high competitive edgeinthe market place. Theirmain purposeisto generate maximum revenuesand gainhigh competitive edgein overseas market. Numberof employees Limited numberof employees workswith micro- enterprises.It requiresvery less capital to startmicro level business.It canbestart by one or two personand veryfew employees hardly1or2 workunder Thenumber ofworkers workswith small- businessvary fromone countryto another. Small firms generally employees only50 workersor lesserthan that. Theyprovide employment opportunities to near about 200-500 people. Mediumfirms dohavetheir branchin othercountry aswell. Turnoverof medium enterprisesis highas compared smalland micro Theyprovide vast employment opportunities tonumberof people.More than5000 employees workswith large enterprises. 5
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
them.enterprises. SizeThesizeof micro enterprisesis verysmall as itismainly runby2-3 employees. Sizeofsmall scaleis relatively largeas comparedto micro but less ascompared to medium. Sizeof medium enterpriseis wideas comparedto microand small.They give employment to near about 200-500 peoplewith anannual turnoverof €50 million or balancesheet below€43 million. Sizeoflarge firmsisvery extensivein termsof employees, revenues, growth etc. ScopeThescopeof micro enterpriseis quitevast coveringwide rangeof activities thatrequires lessuseof technology. Likemicro, thescopeof smallscale sector is wide astheycan easilychange oraltertheir productas per the needs anddemands oftarget Scopeof mediumsize enterpriseis vastastheir futuregoalis toexpandits market. Itsannual turnover greaterthan 1.5billion eurosanda balancesheet totalofmore than2billion euros. 6
consumer. ExampleCarpenters, plumbers, street vendors aresomeof its example. Showroom.Unicorn Grocery IKEA Market Share:It described the total sales earned by particular company in the marketplace over a specified period of time. Basically it is the portion of industry's total share in relation to the market in which they operates. It varies from company to company depending upon their ability to satisfies customer needs and wants. For example: IKEA'S market share in UK market is near about 8.2%. Profit Share:It refers to various incentives plan introduced by company that provide indirect or direct payments to workers depending upon their profitability in addition to their regular salary and bonuses. Like market share it also vary from industry to industry depending upon their capabilities to work effectively and efficiently towards achieving business objectives and goals. For example: Presently, ALDI profit share in UK in 15.2%. GrowthandSustainability:Itdefinestherateofgrowththatcanbe maintained without creating other significant economic problem specially for future generation. It is a kind of trade-off that lies between current economic growth and future economic growth. For example: M&S have launched their PLAN A so as to build a sustainable futureby being a business that enables our customers to have a positive impact on well-being, communities and the planet through all that we do. 7
TASK 2 P3 Organisational structure and function Micro:Microenterprisesaresmallbusinessemployingfewerpeopleand having a turnover of less than 2 million. Such of entities run only to feed theirfamilies.Theirscopeislessascomparedtosmallorlargefirms. Moreover they don't have any particular organisational structure as it solely run and controlled by its owner. Small:Small scale business employs a small number of worker and does not havehighsalesvolume.Suchtypesofbusinessesaremainlyprivately owned and operated corporations, partnerships or sole proprietorships(Elliot, 2011).The size of small scale industry is larger than micro enterprises but smaller than medium & large firms. In UK, small businesses are having fewer than25employees.It'ssizevariesfromonecountrytoanother.Their organisational structure is flat because of less involvement of employees and management. Medium:The scope of medium enterprises are vast as they have greater opportunitiestoexpandordiversifyitsbusinessthroughjointventure, franchiseeetc.Mediumenterprisesarehavingfunctionalorganisational structure in which they divide the organisation into smaller groups on the basis of functional area such as marketing, finance and IT. Large:Scope of large organisations are very wide as compared to others. Moreover large firms have their branch in other country(Hall, 2011). Their mainpurposeistomaximisetheirprofitbyfulfillingtherequirementof consumer'sneedsandwants.Talkingaboutitsorganisationalstructure, large firms are having mixtures of matrix, divisional and functional structure. Different types of organizational structure 8
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Divisional:Under this type of structure, organizational function are mainly classified or divided into a division. These division can correspond to either geographies or products. Each division identifies the manner in which the company operates and performs and also contain all the essential resources and functions that supports particular product line or geography. Flat and Tall:In Flat organisation, there is just one top manager who is mainlytheownerofthecompanyortheCEO.Ontheotherhand,tall includesmultiplelayersofauthoritybetweenCEOandlower-level management.TallerorganisationarelittlecomplexascomparedtoFlat ones. FunctionalStructure:Itisthemostcommontypeoforganisational structurethatdividesthewholecompanyintosmallergroupsbasedon specialized functions such as IT, Financing, Human Resource, Marketing etc. This structure allow greater operational efficiency because their workers with share knowledge and skills are grouped together under this function. Matrix structure:Under this organisational structure, company achieve the ultimate goal within the stipulated time frame . This type of structure is suitable for such company's that mainly deal in diverse product lines and services. ProductBasedOrganisationStructure:Thisstructureseparatesthe organisation by its products, activities, geography or projects. This structure allow such firms to have a particular focus on particular items related with its businessoperation.Withthiskindoforganizationalstructure,companies remain flexible in the business environment. 9
(Source: Matrix Structure, 2017) TransnationalInternationalGlobal organisation structure DefinitionSuchtypesof companiesare doingbusinessin morethanin morethanone country and does notconsiderany particularcountry International companiesare exportersand importersasthy do not investment outsidetheir home country. Suchtypeof companiesare practisingtheir business operation in more thanone countries. 10 Illustration1: Matrix Structure
astheirnational home. ComplexitiesMainissuethat transnational company is facing islackof resourcesand shortageof adequate funds. Theyarenot gaininghigh competitiveedge inoverseas market. Theyarefacing problem concernedwith poor co-ordination amongtheir different branches. Vision:We want to make sure that IKEA is accessible, so that more people can create a better everyday life at home. We re-invest a majority of our profits in existing and new IKEA stores, as well as in product development, sustainable solutions and by continuously lowering prices to our customers.” Mission:IKEA’smissionemphasizeonsustainablelongtermgrowthby investinginthefuturewhichbenefitsitscustomers,employeesand suppliers. Objectives: Establish strong customer and market base Increase traffic in store Gain high competitive advantage in overseas market Encourage repeat purchase Promote high productivity and profitability Higher sales generation IKEA has different functions such as marketing, human resource, sales and IT. All these functions needs to managed in an appropriate manner so as to attain maximum results &benefits. Human Resource Development:The main role of HR Department is to hire most talented and skilled employee who with their knowledge and ability achieve organisational objectives in an effective manner. The vision of IKEA 11
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
is build strong market share and this can only be possible if the company is having potential employees who willing to work hard. Marketing Department:The man function of marketing department is to aware customer about IKEA's product and aware company about diverse needsandwantsoftargetcustomer.ThemissionofIKEAistoattain sustainable long term growth in the market and this can only be possible if they become able to meet customer requirement in a systematic manner. PART-2 TASK 3 P4PositiveandNegativeimpactofmacroenvironmenthasonbusiness operation PESTLEAnalysisisamarketingtooloftenusedbymarketersto evaluate and monitor macro environmental factor that have an impact on the functioning of an organisation. Business owners used this concept to track the environment in which they are operating or planning to launch new product/services/project etc. PESTLE stands for political, economical, socio- cultural, technological, legal and environmental factors. The UK Supermarket sector remains one of the most important parts of the economy. The sector is contributing near about 20% to country's GDP. Supermarket sector of UK is a major private employer providing employment opportunities to approx. 6.2 million people in UK.There are about 628,000 business units operating in the supermarket sector(Kaufmann and et. al., 2011). There are various external factors that directly or indirectly affect overallorganisationfunctioningandperformance.Discussedbeloware implication of macro-environmental factors and its impact: Political:Political factors identifies the extent to which a government may influence the economy. For example: Government may impose new duty or dutyduetowhichcompany'srevenuegeneratingstructuremightget affected.Oneofthedirecteffectthatpoliticalenvironmenthason supermarket industry is through the exercise of power over sites through the 12
land-useplanningsystem.Thislegislationpossesdirectimpactonstore location.OtherissuelikeVATrate,businessratealsoinfluencetheUK supermarket sector. Positiveimpact:-GovernmentinordertoenhancethegrowthofUK economy will provide financial assistance to all the large sized company who earn huge profits. For example Sainsbury's largest supermarket get support intheformproperinfrastructureandfinancialsupportatthetime implementing upcoming projects. Negativeimpact:-Multinationalcompanyinordertoestablishtheir businessinUKindustryhastocompilewithdifferentlegalformalities enforced by UK government. Economical:TheeconomicfactorsofUKhasadirectimpactonthe Supermarketlandscape.TheSupermarketsectoriscontrolledbylarge multinationalstoresandmajorityofwhicharelocatedorheadquartered outside the country(Lee and et. al., 2012). There is an increased need to encourage foreign based stores and local investors to dominate the market. The level of employment and UK's disposable income continue to be a main concern of Supermarket sector. Positive impact:-In UK supermarket like TESCO and Sainsbury's largest multinational supermarket that provide various employment opportunities to UK economy which help in uplift the living standard of people. Negative impact:- Due to fluctuation in different factor of economy like inflation, deflation and change in foreign exchange rate will lead negative impact on the growth and profitability ofbusiness sector especially retail market. Socio-cultural:PopulationofUKiscontinuouslywitnessingnumerous lifestyle and social changes which have considerable influence on retailing andshopping.Wants,needs,attitudeandbeliefsofcitizenshavebeen tremendouslytransformed.Consumersexpectationincreasesduetothe exposure to foreign or international markets. 13
Positiveimpact:-Duetodigitalisationandinnovativegrowthinthe products and services given by different supermarket like TESCO and M&S helps in satisfying the current needs and demand of particular society where company established. Negative impact:- The biggest disadvantage of such factors is that they keeponchangingrapidly.Forexample:Consumertasteschangesvery frequently, though cloud computing technique is available with companies but still it become difficult for them to often change or modify their product or services. Technological:The UK supermarket sector has been transformed by recent technologicaldevelopments.Eachstorecontinuestofocusonimproving theirproductivityandincreasingefficiency.Forthistheyneedtospend massiveamountondoingmarketresearch.Withtheavailabilitycloud computing, supermarket stores can easily identify consumer needs or wants. Another huge shift that supermarket faces is online shopping trend. All the major stores have launched its online application(López-Gamero and et. al., 2011).Moreovertheyarealsousingsocialmediaplatformssuchas facebook, instagram, twitter to promote their product. Positive impact:-Company like Sainsbury's and TESCO in order to create awareness among customers adopt different innovative marketing strategies through which they avail their good and service through online sites. Negative impact:- Another main advantage of PESTLE analysis is that it assistcompany'sinpreparingthemforfuturecontingenciesorpossible threat.Forexample:Advancetechnologyflourishesthetrendofonline shoppingwhichenablesretailstorestolaunchitsonlinewebsite.Rapid change in consumer taste and preference can be identified through cloud computing. Legal:The supermarket sector of UK is under European Union laws which requires all stores to adapt regulation and standard defined by them. For example: Legislation such as minimum wages, equal opportunity must be followed by each store. 14
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Positive impact:-All the supermarket industries require to adhere with the laws regulation enforced by UK government in order to protect the interest of employees and maintain the decorum of business. Negative impact:-Non compliances of strict laws applied at global level leads to heavy penalty and dilute the image of big companies. Environmental:Environmentalfactorsdeterminedbythesurrounding environment. For example: Demand for wearing leathers clothes made up of animal skin has reduced. Positiveimpact:-TESCOlargestsupermarketusedthosetoolsand techniques at the time of producing goods and services which produce less carbon footprints and less polluted to environment. Negativeimpact:-Becauseofprofitmotiveorganisationusessuch measures which are harmful and injurious for the health of society. Positive Impact of Macro-environmental Factors: Easy to understand:One of the main advantage of external factors is that they are easy to understand and things that are easy are likely tobeimplementedinaneffectivemanner.Forexample:Policies regarding change in VAT prices must be conform by each store. This maintain harmony and political stability in the country. Make use of opportunities:Such factors helps the organisation in making use of profitable opportunities which originate times to time due to any shift or change in external factors(Onetti and et. al., 2012) For example: For Supermarket sector, lower VAT rate comes out as an opportunity for this sector as it lead to increase the purchasing power of consumer. Negative Impact of Macro-environmental Factors: ValuableResourceofCompany:Anothernegativeimpactispestle analysis tool include massive time, manpower and money for conducting this (Owusuand and Habiyakare, 2011). This can only be possible if company have available resources. 15
TASK 4 P5 Conduct internal and external analysis on UK Supermarket Internal analysis can be figured out through SWOT Analysis: SWOT ANALYSIS OF ALDI Strength ThecorestrengthofALDIis that they are having plenty of capitalandaccesstobank loans. For running any business effectively,itisimportantto have adequacy of availability of funds. They claims to offer products at discounted or lower rate. Thecompanyisgaininghigh competitiveadvantage becauseofitsstorelayout, standardizationandglobal pricing Another major strength may be retailer'scheapwholesale prices. This enable them to buy goods in bulk quantity and they store goods for future demand. ALDI can easily determine likes anddislikeofcustomerwith thehelpofcloudcomputing. This makeseasier fir them to change or alter their product as percustomerdemand(Palo Weakness ALDIlacksadefinedplacein themindofcustomer.This meantheyaresellingboth cheapandexpensiveproduct which may create confusion in the minds of consumer. This is not for company's brand image. Lessconversionisanother major weakness of ALDI.It has been figured out that the actual conversion of footfall within the salesformalloutletisnear about20-25%.Buttheyare getting only 6-10%. Anothermajordisadvantage canbeintheformofrapid change in taxation policies and systems. 16
and TähtinenSaleem, 2017). Opportunities Oneofthemajoropportunity thatALDIissnatchingis effectivelymeetingunfilled consumerneeds.Theycan easilyfigureoutconsumer preferencethroughcloud computing which proves out as a major advantage for them. Customer centric approach Anotheropportunityis identifying needs and wants of customerthroughtakingthe help of advance technology like cloud computing. Threats Decrease in consumer demand mayaffecttheprofitabilityof ALDI Strong competition exist in UK such as TESCO, Saisnbury Pricewarexistamongkey competitors. Changeintaste,preference, shoppingculturedirectly influencegrowthand profitability of ALDI External analysis can be done through Porter's Five Forces Model: Application of Porter's Five Force Model on ALDI BargainingPowerofBuyers:InSupermarketsector,potentialbuyers have high power that directly affect company's performance and functioning (Teece.,2012).Duringthefinancialcrisis,customersbecomesensitive towards paying higher money for clothes. Instead of purchasing high priced product, they started spending their money on buying low priced product that satisfies their need in an effective manner and that too at low price. Bargainingpowerofsupplier:SuppliersofSupermarketSectorsown enough power to regulate and control entire sector. They are often referred as an important player of the industry. If retailers does not offer best or 17
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
suitable price to supplier, then will not the products to sell. Therefore it is very essential for them to satisfy their suppliers as well. Threat of rivalry:High Intensity of competition exist in Supermarket sector which enables buyers to try the products and services of other rivalry firm as well. In order to gain high competitive advantage over rivals, company's are using its own unique strategies. Threat ofnew entrants:UK Supermarket sector has always been found in the middle of global rivalry, price wars and other alteration situation that signifies country is facing extensive competition in retail sector. Threat of substitute:Supermarket Sector offers large variety of goods and services to its target audience. With this much diversity, one cannot stop customer to not to shift any other brand. In-fact now they have started consumingmoretimeonfindingoutwhichparticularretailoutletis satisfying their needs in an effective manner(Welter and Smallbone, 2011). P6 State how strength and weakness is interrelated with external macro factors PESTLE ANALYSISDESCRIPTIONSTRENGTHSWEAKNESSES PoliticalTheoverall functioningand performance of an organisationis affectedbyboth internaland externalfactors (Casselland Blake,2012). Therefore,itis importantforan organisationto Thereisapoor infrastructure along with supply chain management that multipliedthe valueoftax regardingfuel, logisticsand many more. Anyincreaseor decreaseinthe VATofany particularcountry directlyimpact thepurchasing powerof customer.Asa result,consumer stopbuying expensive products. 18
criticallyevaluate these factors. EconomicUKSupermarket sectorisoneof the most growing sectorthat contributes immensely towardscountry's GDP. Thisfactors essentialforthe tomaintaintheir goodwilland reputationin economic level. Thisfactorhighly effectson business performanceand profitabilityration inanegative manner. SocialForexample:In today's era needs andwantsof consumerare changing continuously whichenables companiesto determinetheir current liking and preference. Supermarket sector are mainly doingthiswith the helpofcloud computing technique. Thereasonis simplebecause theywantedto make its business processsimple which means they haveremove greatratioof employeesfrom thecompany (Cavalcanteand et. al., 2011). Forexample: Companieslike IKEA,Sainsbury's, M&S have decided tocloseup-to14 shops and putting around5000 employees jobs at riskwhichmeans UK people have to undergomajor changewhich directlyimpact thegrowthand developmentof this sector. EnvironmentIn-factwiththe latesttechnology, companiescan Nowadays companiesare adoptingnumber On the other hand therearecertain weaknessofUK 19
remainintouch withitstarget audience. ofstrategies concerningwith protecting environmentand societyinwhich theyare operating. Diminishtheuse consumptionof energyand utilisationof green house gas. Supermarket Sector as well that directlyor indirectly affecting company's functioning. LegalAlso government is also supporting Supermarket Sectorby providing adequatefunding to them.One of themain weaknessthat hasbeen observedin Supermarket sectorislackof identification withinthe marketplace. Another example canbefrequent change in policies relatedwithVAT that directly affect theconsumer's purchasing power. Incaseof agricultural product,UK Governmentis reforminglaws and policy related withagricultural sector.Theyare revisingtheway inwhichdirect subsidiesare allocatedto farmers. They are makingmore complex.Asa result,farmers suffers. TechnologicalThemajorCompanyneedsInthe 20
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
strengthof Supermarket sector is that they areeffectively usingadvance andinnovative technology. tobeattentive towardshighend technologiesthat assistthemin gaininghigh competitive advantageover rivals.Withthe helpofcloud computing,it become easier for firmsto determinethe likesanddislikes oftarget customer. organisation, someemployees nothave knowledgeabout technologywhich effectson companyandits productivity ratio. CONCLUSION According to the above mentioned report, it can be concluded that organisationalfunctioningandperformanceisdirectlyaffectedbyboth externalandinternalfactors.Internalfactorshelpindeterminingthe strength and weakness of company and external factors helps in measuring how political, terotechnological, social, economical factors influence business operation. Organisation can be classified on the basis of small, medium, large and its size and scope vary on the basis of its nature and structure. In additiontothatinter-relationofcompany'sstrengthandweaknesswith external factors has also been analysed effectively. Various tool suchas PESTLE,SWOTandPorter'sFiveForceshasalsobeendiscussedinthis report. 21
REFERENCES Books and Journal Cassell, M. A. and Blake, R. J., 2012. Analysis of Hofstede's 5-D model: the implicationsofconductingbusinessinSaudiArabia.International Journal of Management & Information Systems (Online).16(2). p.151. Cavalcante, S., Kesting, P. and Ulhøi, J., 2011. Business model dynamics and innovation:(re)establishingthemissinglinkages.Management Decision.49(8). pp.1327-1342. Cronan, T. P., and et. al., 2011. Decision making in an integrated business process context: Learning using an ERP simulation game.Decision Sciences Journal of Innovative Education.9(2). pp.227-234. Elliot,S.,2011.Transdisciplinaryperspectivesonenvironmental sustainability: a resource base and framework for IT-enabled business transformation.Mis quarterly.35(1). pp.197-236. Hall, T. J., 2011. The triple bottom line: what is it and how does it work?. Indiana business review.86(1). p.4. Kaufmann, D., Kraay, A. and Mastruzzi, M., 2011. The worldwide governance indicators: methodology and analytical issues.Hague Journal on the Rule of Law.3(2). pp.220-246. Lee, S. M., Olson, D. L. and Trimi, S., 2012. Co-innovation: convergenomics, collaboration, and co-creation for organizational values.Management Decision.50(5). pp.817-831. López-Gamero,M.D.,Molina-Azorín,J.F.andClaver-Cortés,E.,2011. Environmentaluncertaintyandenvironmentalmanagement perception:Amultiplecasestudy.JournalofBusinessResearch, 64(4), pp.427-435. Onetti,A.,andet.al.,2012.Internationalization,innovationand entrepreneurship: business models for new technology-based firms. Journal of Management & Governance.16(3). pp.337-368. Owusu, R. A. and Habiyakare, E., 2011. Managing risk and turbulence in internationalizationofforeigncompaniestoSouthAfrica:Lessons
Palo, T. and Tähtinen, J., 2011. A network perspective on business models for emerging technology-based services.Journal of Business & Industrial Marketing.26(5). pp.377-388. Saleem, M. A., 2017. The impact of socio-economic factors on small business success.Geografia-Malaysian Journal of Society and Space.8(1). Teece,D.J.,2012.Dynamiccapabilities:Routinesversusentrepreneurial action.Journal of Management Studies.49(8). pp.1395-1401. Welter,F.andSmallbone,D.,2011.Institutionalperspectiveson entrepreneurialbehaviorinchallengingenvironments.Journalof Small Business Management.49(1). pp.107-125. Online Businessenvironment.2018.[Online].Availablethrough: <http://www.investorwords.com/19252/business_environment.html>. 24