Business and the Business Environment

This document provides an overview of the business environment, including the purposes and types of different organizations, the scope and size of organizations, and the relationship between various organizational functions. It also discusses the positive and negative impacts of the macro environment on businesses.

Business and the
business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Various purposes and types of different organizations.....................................................3
P2 Explain the scope and size of organisation.......................................................................5
TASK 2............................................................................................................................................7
P3 Relationship between various organizational functions....................................................7
TASK 3............................................................................................................................................8
P4 Positive and negative impacts of the macro environment.................................................8
TASK 4..........................................................................................................................................10
P5 Internal and external analysis of organization.................................................................10
P6 Interrelation of strength & weakness with external factors.............................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business environment is a combination that consist of internal and external elements such
as suppliers, customers, owners etc. there are certain activities that have to be implemented a
performed by government that are also impacting functioning of a organization. Business
environment is very important function that is helping in analysis of resources, identification of
business opportunities and further enhancement of business growth in order to achieve effective
performance of a business organization (Harrison, 2013). In present scenario, there is a
hospitality industry that is Four season hotel which belongs to private organizations and was
founded in the year 1960. It is having presence in many countries across world. Oxfam is a
voluntary organization that is working towards aim to reduce poverty and provide social benefits
to people. This report further includes scope and size of business organizations and them inter
relationship with other functional units of a organization. Lastly, there is a discussion on positive
and negative impact of factors prevailing in the macro environment of a business organization.
TASK 1
P1 Various purposes and types of different organizations
Public Organization: It is the organization that is controlled by the government of a
country. It is helping in providing best services to their customers for enhancement of their brand
image. In present scenario, NHS has been established in the year 1948, to provide various
services to their customers.
 Purpose: National Health Services, is basically a public sector organization that is
having its aim to provide service free of cost to individuals living in a country. They are
willing to offer best services to the citizens living in a country (Hamilton, and Webster, ,
2018).
 Legal structure: In case of public organisational decision have to be taken by
government of the country. All major decision are to be taken by top authorities and
officials that are part of government and its functioning.
 Stakeholders: In public organisations, stakeholder are playing a very necessary part as
they help in providing the finance that is required for the purpose of performing all their

functions in the given course of time. Some other stakeholders include patiemst, trustees,
local authorities etc.
Private organisations: These are the organisation that include individuals, agencies partners that
are not public but are operating and functioning for attainment of profits. In present report Four
season has been considered as a private organisation that is part of hospitality industry. For this
they are managing their functions to provide best services to their customers.
 Purpose: Main purpose is to provide best quality services to their customers. Mission of
this organisation is to provide exceptional quality services to their customers. They also
have a vision that they have to get recognition of finest hotels, clubs and resorts in the
hotel industry to which they are catering towards.
 Stakeholders: there are various stakeholder hat are associated with this brand and it
includes all the hotel management staff, receptionist, customers, employees, government,
loan providers who are helping in smooth functioning of this hotel are part of its
stakeholder group (Hillary, ., 2017).
 Legal structure: In case of private organization such as four season hotel is basically a
functional structure. That consist of rooms, marketing department, laundry department,
housekeeping departments. It consists of higher department where all the policies and
functioning to be implemented at various departments are prepared, finally these are
communicated by managers and then finally there are employees who are actually
responsible for performing all the functions assigned to working staff in different units
with specific responsibility and job roles
Voluntary organisations: This is the organisation that is performing various functions and
activities that have to be managed, controlled and directed by government of the country. All the
members who are part of this organisation are choosing to be its part on their choice that is on
voluntarily basis. Such organisation are willing to bring some changes to society and that is why
they are working for this purpose. Oxfam is established in the year 1942 and has 20 charitable
trusts. Major aim is to remove poverty across different parts of the world (IşıK, Jones, and
Sidorova, 2013).
Purpose: The main purpose is making society free of poverty. Vision of this organisation
is to increase the living standards of people living in the society. Oxfam is a organisation that is

accomplishing their overall mission by focussing on equity aspect of the society that all
individuals are equal and they must live life with equal privileges and benefits.
Legal structure: The overall legal structure of a voluntary organisation is depended on
their top officials and authorities. In Oxfam, all the major decision are made by the organisation
and their trustees. Decision are based on development of individuals and society as a whole.
Stakeholders: These are all the person who are related to the organisation directly or
indirectly and posses impact on overall functioning of the organisation. This includes staff
members, founders, volunteers, fund providers etc. all these person are helping in smooth
functioning of the business and achievement of their vision (Hair and , 2015). Other stakeholder
includes project members, customers etc.
P2 Explain the scope and size of organisation
Organisation is a place where all the business activities have to be performed. Theer are
different types of organisations such as public, private and voluntary. Size & scope of such
organisation is discussed below:
Private Organisation: Four season Hotel
Four season is a luxury hospitality company that is having presence in different parts of
the world such as Canada, Toronto etc. they are operating more than 100 hotels across world.
Products and services: There are various products and services such as in room dining,
bedding facilities, lap pools, fitness centres, valet parking, etc. for their customers.
Size and scope: The overall size of this hotel is very lager as there are 47 countries
where they are having presence and apart from this approximately 45 thousand employees are
working in this hotel across globe.
vision and mission: mission of four season is to specialise in their services and vision is
to provide a completely different experience to their customers.
Public organisation: In this research NHS is taken as a public organisation that is
providing health services it was established in the year 1948 at the time of world war in England
in 1948. They are providing various treatments such as dental treatment, optical treatment to
people in the organisation (Groşanu and et. al., 2015). There is scope and size of this company
that is explained below:
Product & services: NHS is providing various types of health service such as providing
free services to citizens of their county. They are also dealing in providing emergency services to

people at times of need. Medical help is given to people in case of various emergency situation
taking place in a country.
Size and Scope: The present working staff of this organisation is around 17,197 that is
according to the year 2019. in case of political referendum such as NREXIT where employees
are leaving the country or not having safe feeling. NHS has approximately 11% physicians that
are working in this company and contributing in its effective functioning. There is very huge
scope as company is planning to increase their training planing for their employees by the year
2030. they have a present working staff of approximate 1.5 million who are offering services
across whole country of UK.
Vision and Mission: The overall vision statement of this company si to make lives of
people better and healthier in this all possible effort are put by this brand (Grigore and Drăgan, ,
2015).
Mission statement of NHS is facilitating their customers for providing outstanding
services to individuals and their families. The company is willing to serve people with high
quality of treatment with full dedication level. They also posses objective of treating their
employees with respect so that they can provide best treatment to their customers. They have a
objective of understanding the problem of their customers and then further providing them with
the required solutions.
Voluntary organisation: Oxfam
Oxfam was formed in the year 1995 and it is willing to work together for impacting the
society to remove the instances of injustice and poverty. Motive is to work together for removal
of poverty. This brand is offering services such as raising livings standards of people living in
society in a best positive manner.
Product and services: This organisation is working towards providing volunteering
services, that is helping them in fighting with the issues such as poverty. Main objective is to be
a part of change that has to be done globally to encourage people that their future in secure
hands.
Size and scope: scope of this organisation is very wide as they can contribute in coming
time period in making strategies for removal of the most basic issue that si faced by all people
living in the society (Erasmus, B., Strydom, and Rudansky-Kloppers, eds., 2016).

Vision and mission: Vision of Oxfam is to make world free of poverty. Company is
willing to provide equal treatment to all people in the society irrespective of their caste, creed,
colour etc. company has a mission to remove the injustice nature of poverty taking place with
people in the society.
Size and scope: The scope is very wide as it is reaching to different corners of the
world . They are contributing towards making strategies to fight all these issues and incoming
future such issues have to be compulsorily solved for smooth functioning o f countries.
TASK 2
P3 Relationship between various organizational functions
Companies have different types of functions and units with it in order to carry forward its
functions in predetermined manner. For this, it is depends on the individuals as it is their
responsibilities to carry forward various tasks and maintain coordination and cooperation among
themselves. For this, its main functions and units include marketing, HR, customer service and
so on. In relation with Four Season, it is considered as the investment and valuable for company
as it provide prominent services and various dealings (Erasmus, Strydom,and Rudansky-
Kloppers, 2016). They also have various set of relationship with each other and maintain their
scrutiny to work in an effective manner to achieve goals. For this, various types of department
are as follows:
Sales and Marketing department: Here, sales department is useful in order to increase
the number of profitability and revenues and for this, sales person need to deal with potential
customers. Meanwhile, marketing department is useful in promoting and advertising products
which tends to increase sales. As both of the departments are useful and helps in developing
attractive marketing strategies which leads to increase productivity and performance of company.
In relation with Four Season, their both of the departments must have proper coordination and
cooperation among them which is useful in enhancing and improving their reputation and image
in industry.
Human resource and IT Department: Every organisation needs the effective resources
as to accomplish desire aims and objectives effectively in the well define manner. Such kind of
department have responsibility to maintain and provide effective services to customer. In the

context of Four season hotel HR head have to communicate constantly with IT department as the
have responsibility to manage and control all the activities which are related to computers
(Charter, , 2017Cai,and Yang, 2014). The IT manage all the cameras and security setup within
the hotel to safeguard the guest. HR department mainly have direct relationship with IT
department as they provide them skilled and talented workforce. Apart from HR have all the
crucial data of employees and guest so the IT department have to focus on secure that to avoid
any kind of risk and uncertainty.
Market department and Finance Department: Finance department is consider as one
the most vital department for the company as this provide and manage all the resources
effectively. Marketing team provide the insight of future goals and define whether the business
will successful or going to be fail in future (Breckova, 2016.). As for the organisation like Four
season hotel the marketing department have different roles to promote the hotel which require
lots of funds. In this case the finance department have the authority to provide the money to carry
forward the promotion activities. So the marketing department head have prime duty to have
proper communication for the smooth functioning of the company.
From the above analysis, it has been concluded that interrelationship among organisation
is important in order to smoothly carry out business activities as well as functions. Along with
this, it assist companies to raise sales as well as profitability in a positive manner.
TASK 3
P4 Positive and negative impacts of the macro environment
PESTEL analysis is a tool which is used by marketers to examine the market situation
and analyse the external factors which are affecting the business functions as well as activities.
Business and organisation are broader concept which requires a deep research, times and cost to
achieve goals as well as objectives. Market is changing by blink of an eye and rise of
competition has disrupts the situation of market. So, there are factors affects the business
activities and act as block-chain between firm growth and development. These factors are crucial
to be considered by marketed because they affect entities at broad and deep level. In context
Four Season London, they use PESTEL to determine and examine the external factors which
affect their business. So, PESTEL has been mentioned below-

 Political factor- Political factors are those in which government involvement is present.
These type of factors includes trade policy, tariff and non-tariff, tax rate etc. Such types
of factors are uncontrollable by firm (Boons. and Lüdeke-Freund, 2013). Impact of these
are affect business in negative way for example – imposing high tax rate by government
may affect the organisational overall structure. In relation with Four Season London, they
are able to tackle these factors because of awareness about trends and changing situation
in market and worldwide.
 Economical factor - Another external factor is economical factor which affect business
functions as well operations. These factors comprise of inflation and deflation rate,
foreign exchange rate etc. such types of factors are maintained and managed by
government. In relation with Four Season London, they always maintain a positive
relation with clients and government so it became easy for them to handle such types of
factors due to broad network and connection in market (Bocken, and et.al., 2013).
 Social Factor- These type of factors includes cost of living, religion, culture etc. such
social factors affect business because business expansion and growth depends upon
goods and services. Every individual has different perception, behaviour which reflect
their attitude towards firm and business. Four Season London has able to analyse these
factors and provides their products and services at affordable prices.
 Technological factor - Further comes the technological factors which includes use of AI,
adopting advanced technology. In today’s world, everyone has been addicted to
technology because it simplifies the human work and saves time. Due to access use of
technology situation of scarcity of resources is rising at rapid level. Technology has both
benefits and some limitations too. In context to Four Season London they are using
technology to manage time and provide customers with easy and fast service. For
example- Reservations can be done online and also feedback and preferences can be
taken on their websites which makes it easier for firm and customers both maintain a
positive relation with each other.
 Environmental Factors- These are those factors which includes climate, weather, etc.
Such type of factors is also essential to be considered because these factors affects the
productivity of business (Belás and et.al., 2014). In relation with Four Season London,

they before targeting to customers they track down these factors which help them to
determine outcomes.
 Legal Factors- Legal factors are those which includes antitrust law, labour law etc. such
type of factors affects business decision making and management policies as well as
procedure. Four Season London, has been able to maintain these legal factors due to its
goodwill and positive relations in the market and within in the organisation.
TASK 4
P5 Internal and external analysis of organization
Four Seasons London is one of the biggest industry perform their functions in hospitality
sector. It is basically a Canadian international luxury hotel, headquarter located in Toronto,
Canada. Four Seasons hotel is operating across the world where they have around 100 hotels. By
doing an effective SWOT analysis, managers of the organisation can easily examine their
strength as well as weakness so they can develop strategies to attain goals and objectives in an
effective manner (Bah,. and Fang, 2015). Furthermore, threats & opportunities will be examined
so policies can develop in order to reduce their negative impact. SWOT analysis for Four
Seasons London are going to be discussed as follows:
Strength Weakness
 Main strength of Four season London is
that they have strong as well as positive
reputation at the marketplace which
assist them in increasing their
profitability at the competitive
marketplace.
 Also, Four Season London is having
one of the best management team
which assist them in conducting their
business operations in an effective
manner and attract large number of
 Major weakness of Four Season
London is that the company faces
regular downfall in their credit rating
which influences their goodwill and
brand image in a negative manner.
 Also, communication system of the
company is quite ineffective as their
staff members are not well trained.
 In addition to this, it has also been said
that company do not provide sufficient
services to their customers which

customers towards their hotel.
 In addition to this, company introduce
new and unique services at the
marketplace on a regular basis which
increase customer base at the
competitive marketplace.
 Apart from this, strength of the
company is that they provide high
quality services to customers and
provide them modifications as per their
need and requirements which increases
their customer satisfaction level.
reduces their whole image of the
organisation in a negative manner
(Apăvăloaie, 2014).
 Along with this, it is said that the hotel
does not implement all the feedbacks
given by customers which might affect
their brand image in negative way at the
competitive marketplace.
Opportunity Threat
 By doing product and service
expansion, managers of Four Season
London can easily grab opportunities
available at the marketplace which
increases their overall profit margin in
a positive manner (Andersson,
Forsgren. and Holm, 2015).
 Along with this, another opportunity
present for Four Season London is that
they can create a partnership with
international airways which increases
their market share as well as sales in a
positive manner.
 Another opportunity for the hotel
management team is that they can
adopt their operations at new
 Biggest threat present for Four Season
London is that there are large number
of competitors available at the
marketplace which minimise their
customer base as well as reduce whole
profit margin in a negative way.
 Along with the technologies adopted by
Four Season London is quite cheaper
which reduces the quality of services.
This as a result reduces customer
satisfaction level and minimise sales of
the company.
 Another threat is that the needs and
wants of customers are dynamic which
need to be fulfil by them. Rival
companies provide services to the
customers before Four Season London

marketplace so they can attract large
number of customers towards them and
retain them by satisfying their needs
and wants.
which is one of the main threat for them
(Al-Saleh and Mahroum, 2015).
P6 Interrelation of strength & weakness with external factors.
Basis Political Social Economical
Strength Four Season London is
a hotel mainly adopt
each and every legal
policy formulated by
the government or
legal authorities in
order to perform their
functions in an
effective manner. this
will assist them in
attaining beneficial
results at the
competitive
marketplace (Ketata,
Sofka and Grimpe,
2015).
Along with this, Four
Season London also
emphasis on the needs
and wants of
individuals so they can
satisfy all their
requirements in an
effective manner.
In context of
economical factor,
Four Season London
provide sufficient
salary and wages to
their staff members
with the help of which
they can effectively
conduct their day to
day operations.
Weakness Regular modification
in the legal policies
affect working pattern
and environment of
the company in a
negative way.
In today’s world
customers are the king
and it is essential to
fulfil their dynamic
need to maintain their
sustainability which
There are some phases
when managers of the
company do not
provide assistance to
the economic system
(Kljucnikov,and et. al.,

affect the business
functionality in a
negative manner.
2016).
Basis Technological Environmental Legal
Strength With the assistance of
highly advanced
technology, Four
Season London can
provide high quality as
well as innovative
services to their
customer’s.
Four Season London
adopt all the
technologies which are
environment friendly
and reduce harmful
impact on the
individual and
environment.
Four Season London
implement all the legal
policy in such a
manner that it will
create positive impact
on the brand image and
reputation of the
company at the
competitive
marketplace.
Weakness Changes in technology
on a continuous basis
influence the whole
profit margin of Four
Season London in a
negative manner as
they need to adopt all
the advanced
technology for
providing innovative
services to their
customers (Kolk,
2016).
Managers of Four
Season London are
bound to implement
all the environmental
policies which is quite
difficult for the
managers as not every
guideline will be
fulfilled by them.
Four Season London
are required to adopt
all the legal and
governmental policies
which negatively affect
their business
functions.
CONCLUSION
With the help of above analysis report, it has been concluded that business environment
effects on the performance, functions and operations of an organization in positive & negative

manner. In this analysis of report, it has been recognized that which includes public, private and
volunteer organization. Further, every organizations could perform their personal functions so
that they grasp their position within the marketplace. In assistance to this, it has been identified
that each and every form of organization has its their own size, scope and functions which is
quite varies from another business enterprise. In the current report, SWOT analysis is indicated
that helps to recognize internally strength and weaknesses as well as with external possibilities
and threats. This analysis would aid in making strategies and procedures that grasp all the
opportunities and decreases the weakness of an organization. In relation to this, the report
involves description of the interconnections among several departments. Along with this, it is
examined that every business organization requires some department who can assist them in
accomplishing their goals in an effective way.

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