Business Environment Analysis

This assignment focuses on analyzing the business environment in the Nigerian food and beverage industry. It requires students to examine various internal and external factors impacting organizational performance, including Hofstede's cultural dimensions, Porter's Five Forces, and the influence of social media and technology. Students are expected to research relevant literature, apply theoretical frameworks, and present their findings in a comprehensive report.

Business and the
Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
Covered In PPT .....................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between different organisational functions and their link to organisational
objectives and structures ........................................................................................................1
TASK 3............................................................................................................................................3
P4 Positive and negative impact of macro environment on business operations of ASDA...3
P5 Internal and external Analysis of ASDA company with other similar organisation.........5
TASK4.............................................................................................................................................6
P6 Evaluate how strengths and weakness interrelate with the external macro factors..........6
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................1
.........................................................................................................................................................3

INTRODUCTION
Business environment has different factors which impacts the activities and functions of
company. These is divided into two parts such as internal and external that highly effects on
organisational performance and effectiveness (Business Environment, 2018). Both business and
environment are has different elements in this business meaning is human activities which
includes purchase, production, sales or extraction of services and products. Meanwhile
environment means the components of surroundings (Adeoye and Elegunde, 2012). Therefore
basic meaning of the business environment is the set of political, social, institutional, legal and
economic conditions. All these are uncontrollable for the company and highly impacts the
functions and operations on enterprises. In this assignment, three types of business are considers
such as private, public and voluntary. Best example of these organisation is ASDA , NHS and
Oxfam. All these organisations are play essential role in the development and growth of
economy. In the present study, different purpose and types of enterprises as well as their scope
and size with its legal structure will be determined. Relationship between business functions in
accomplishment of long term objectives of company will be explained as well. PESTLE
Analysis and its interrelation with enterprises strengths and weakness also shown in this project.
TASK 1
Covered In PPT
TASK 2
P3 Relationship between different organisational functions and their link to organisational
objectives and structures
Behind the development and growth of all business there is foremost role and
responsibility of their various departments (Al-Debei and Avison, 2010). In this entire functions
and activities of organisation are highly depends on their working and functioning for
accomplishment of common objectives. In the ASDA, there are different departments are work
which are explained as below:
Human resource department: In the ASDA, HR manager play vital role in hiring and
selecting knowledgeable people who can easily accomplish business goals and objectives in
limited time period. There are different functions which are play by the HR such as performance
1

appraisal, identification of remunerations, employees management, training and development
and so on.
Research and development department: Main role and duty of these department is to
organise effective research program which help manager to identify basic needs and wants of the
audience about retail and grocery products. Thus, it benefited for the ASDA to maximise their
sales as well as attain long term targets and objectives easily.
Finance department: It is another department in the enterprise which has different roles
and responsibility to arrange proper amount of capital or fund. They also help in the achievement
of predetermined and set objectives (Aula, 2010). Thus, in the business they take an effective
decision for the growth and success of company.
Marketing department: Marketing manager of the ASDA has various roles in providing
their goods and services to the end user. In this company follow different kind of promotional
mix including advertisement, public relation, publicity, sales promotions and many other. All
these are highly beneficial for the enterprise to easily attract large number customers as well as
gain competitive advantages within an organisation.
Organisational structure: In the company there are mainly four type of structure which are used
by the ASDA are determined as below:
Functional based: In this structure of the enterprise is divided as per the business
functions and activities. In this various departments whose are performed in the firm such as
marketing, finance, operating, human resource, research and development.
Geography based: In this all activities and functions of the business are divided as per its
area. It assist in determination of customers taste, preferences and needs (Bill Pasmore PhD and
CMC, 2010). It is useful and valuable for the ASDA to operates their activities at different level.
Product based: Under this entire structure of the company is based on products and
services which are given by the company. For example: enterprise render financial service,
general and grocery merchandise to the customers.
Consumer based: It is another structure which is mainly relay on customer satisfaction
about the business products and services.
2

TASK 3
P4 Positive and negative impact of macro environment on business operations of ASDA
Macro environment is highly effects on the ASDA operations and activities in direct way.
One of the main and foremost part of macro environment such as PESTLE Analysis which has
favourable and unfavourable impacts (Brannon, 2010). These are determined as below:
PESTLE Analysis Description Favourable impacts Unfavourable effects
Political This factors mainly
related to the legal
authority of nations
and the rules and
legislation made by
government in link to
business activities and
operations. In this
different factors are
includes such as
international laws,
legislation,
government stability
etc.
ASDA is a grocery
and multinational
business that conduct
their activities in
different nations.
Positive laws of the
country support them
to easily perform all
activities and functions
in various nations
(Cantwell, Dunning
and Lundan, 2010).
Rules and regulations
of the country is
highly effects on
business performance.
In this unstable
government of the
country adversely
impacts on ASDA and
its profitability.
Economic This is another factor
that includes different
factors such as
economic condition,
cost of credit, labour
demand and supply,
pay level, competitive
pressure etc. These are
identify as a country
economy.
If the countries
economic condition is
better and having
effective policies
about inflation and
credit rate in
marketplace then it is
facilitated ASDA to
run their operations at
global level.
If there is deflation
situation and the
income level of
persons is not high
then it impacts there
capability of demand
to various products.
3

Social In this different factors
are consider which are
the part of society. In
this person age,
education level,
occupation and
behaviour of
customers are positive
effect on business
operations.
If the individual
education level is
higher and they are
capable to apply
online technology
assist the ASDA to
maximise their sales
and revenues by
launching their
operations online.
Poor education level is
negatively impacts on
business performance
and profitability.
Technological It is another important
factor which includes
new methods,
technologies that
highly effects on the
ASDA performance
and effectiveness
(Cassell, and Blake,
2012).
Positive effects of the
technological factor in
the organisation is
increase growth and
success of the
enterprise in an
effective and
systematic manner.
In the organisation
some employees are
less educated that
highly impacts on its
productivity and
performance in
adverse and negative
manner.
Legal This factor includes
different forces such
as copyrights,
employment
legislation, patent and
many other. These are
needed to apply by
administration of
ASDA to decrease the
negative impacts in the
organisation.
If entire rules and
legislation are applied
by company then it
supports the
administration of
ASDA to make strong
image in the
marketplace (CGA,
2010).
All rules and
regulations are not
applied in proper
manner that it effects
adversely on business
functions and
operations.
4

Environmental It is another important
part of the PESTLE
Analysis which cover
various aspects such as
hazardous waste, large
number po
population , pollutions
and many other.
If rules and regulation
regarding environment
are applied by
company in proper
manner that help
business to make
strong and better
position in
marketplace.
If the ASDA is not
aware regarding
environment and
maximise pollution
then they largely have
to face unfavourable
judgement of society.
P5 Internal and external Analysis of ASDA company with other similar organisation
Internal and external analysis is identify as a SWOT analysis which is important for the
organisation to recognise their strengths, weaknesses, threats and opportunities (Charter, 2017).
All these are beneficial for the entity to expand their business operations and functions at global
level. Therefore SWOT Analysis of the ASDA is shown as below:
STRENGTHS WEAKNESSES
Business offers different kind of services and
products considering financial services.
Company has appropriately 140,000 workers
engaged in across 500 stores.
ASDA is a world famous and well established
superior technology and economies of scale.
They mainly emphasis on organising
marketing campaigns in order to target large
number of customers towards grocery products
and services (Chavis, Klapper and Love,
2011).
Socially responsible and liable considering
Corporate social responsibility (CSR)
initiatives.
In constant and better touch with its clients
Global presence of the company is limited as
compared to other challengers.
Their ability and capability in order to sell
prices of the products that have restricted their
coming is few nations as the state fear a rivalry
with local merchants.
They serve their services and products in
limited states through maximum threat of local
marketer.
As an enterprise is famous with its quality
products and services.
Lack of promotional techniques which highly
effects on business performance and
profitability in negative and unfavourable
manner (Craig and Campbell, 2012).
5

through social networking -conduct
competitions, asks feedbacks and many other.
It is well known and famous enterprise with its
amazing marketing campaigns.
OPPORTUNITIES THREATS
The business can also classify their services
and products into many other industry such as
insurance, broadband and travel services.
ASDA should emphasis on different
developing nations such as China, India and
many other in which they sell out their grocery
products and services at different level and to
the customers (Ebert and et. al., 2014).
They faces a difficult competitions or content
from their challengers such as Tesco, Walmart
and many other.
Variation in the strategy of government about
taxations also get threat for ASDA.
Changing policies and strategies of different
central government, it is also identify as a main
threat for the company.
TASK4
P6 Evaluate how strengths and weakness interrelate with the external macro factors
Weakness and Strengths of the company is highly connected with external factor of
macro-environment. These will support the organisation in analysing best chances from market
as well as exploiting them in order to achieve competitive edge in marketplace (Griffin and
Pustay, 2012).
PEST Analysis Strengths Weaknesses
Political factor is mainly
related with the regulations
and legislation which is
required by the company in
order expand their business
operations and activities at
different level.
Complying with entire
legislation and rules of legal
authority support the company
in running their business
operations and functions
smoothly and successfully.
As company launch in
different nations, it is difficult
for the company in order to
formulate as well as know
entire regulations. Thus, it may
impacts on business activities
and performance.
Economic factors includes Effective and better economic Purchasing power of the
6

some aspects such as GDP,
interest rate and so on. These
are highly effects on business
functions and operations.
situation of the nations assist
in development and success of
the enterprise. It support in
rendering maximum profits
and capturing maximum share.
clients and inflation rate highly
influenced the demands and
supply of the ASDA products
in marketplace.
Social factor is another part of
the PEST Analysis which
effects on the business
performance and activities. In
order to enhance living
standard and welfare of
society, ASDA requires to
satisfy basic needs and wants
of the customers in an
effective manner.
In this different involvement
are completed by enterprise in
social activities and welfare
which develop favourable
image and goodwill of the
company in the mind of
customer's (Halbert and
Ingulli, 2011).
Low quality products
manufacturing may reduce the
sales of organisation and
deciles its profit as well. If
business entity not provide
products and services as per
the needs and wants of
customer thus they can fall in
the marketplace.
Technological factor is more
important and beneficial
elements for the success and
development of company. It
support the business entity to
maximise their sales and
revenues in limited time
period.
It is important and essential
factor which assist the
business entity in order to
maximise their revenues and
sales in limited time duration.
It is also support to the
enterprise to gain competitive
advantages and edge in limited
time period (Harrison, 2011).
Technology is also effects on
the business performance and
productivity in the
organisation. In the ASDA
there are different employees,
in this some worker has lack of
knowledge and skills that
highly effects on its
performance and effectiveness
in a negative or unfavourable
manner.
CONCLUSION
From the above mentioned report, it can be concluded that, business environment is
consider two factors such as internal and external that influence on company and its profitability
7

ratio. Thus, it highly effects on profitability and goodwill of the company. There are different
factors such as PESTLE, SWOT and many internal and external that impacted on the company
and its profitability ratio either negative and positive. In this business has different size and scope
that identify its position at marketplace. In this different department of the company are
interrelated with the motive to achieve long term growth and success in limited time period.
REFERENCES
Books and Journals
Adeoye, A. O. and Elegunde, A. F., 2012. Impacts of external business environment on
organisational performance in the food and beverage industry in Nigeria. British
Journal of Arts and Social Sciences. 6(2). pp.56-65.
Al-Debei, M. M. and Avison, D., 2010. Developing a unified framework of the business model
concept. European Journal of Information Systems. 19(3). pp.359-376.
Aula, P., 2010. Social media, reputation risk and ambient publicity management. Strategy &
Leadership. 38(6). pp.43-49.
Bill Pasmore PhD, S. V. P. and CMC, T. O. S., 2010. Leadership agility: A business imperative
for a VUCA world. People and Strategy. 33(4). p.32.
Brannon, N., 2010. Business intelligence and e-discovery. Intellectual Property & Technology
Law Journal. 22(7). p.1.
Cantwell, J., Dunning, J. H. and Lundan, S. M., 2010. An evolutionary approach to
understanding international business activity: The co-evolution of MNEs and the
institutional environment. Journal of International Business Studies. 41(4). pp.567-586.
Cassell, M. A. and Blake, R. J., 2012. Analysis of Hofstede's 5-D model: the implications of
conducting business in Saudi Arabia. International Journal of Management &
Information Systems (Online). 16(2). p.151.
CGA, H. C. B., 2010. External environmental analysis for small and medium enterprises (SMEs).
Journal of Business & Economics Research. 8(10). p.19.
Charter, M. ed., 2017. Greener marketing: A responsible approach to business. Routledge.
Chavis, L. W., Klapper, L. F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp.486-507.
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
Ebert, R. J. and et. al., 2014. Business essentials. Pearson Education Canada.
8

Griffin, R. W. and Pustay, M. W., 2012. International business. Pearson Higher Ed.
Halbert, T. and Ingulli, E., 2011. Law and ethics in the business environment. Cengage Learning.
9