Analyzing Business Environments

This assignment delves into the analysis of different business environments. It utilizes the PESTLE framework to examine external factors influencing a business, the SWOT analysis to identify internal strengths, weaknesses, opportunities, and threats, and explores the process of departmentalization within an organization. The document provides a comprehensive understanding of these analytical tools and their application in evaluating business situations.

Business and The Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purpose of organisation..........................................................................1
P2 Size and scope of different types of organisation..................................................................3
TASK 2............................................................................................................................................3
P3 Relationship of different organisation functions....................................................................3
TASK 3............................................................................................................................................6
P4 Macro environment positive and negative impact on business operations............................6
TASK 4............................................................................................................................................8
P5 Internal and external analysis of Apple Inc. for identify strength and weakness..................8
P6 Interrelationship of strength and weakness with external macro factors.............................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business Environment refers to a aggregation of all respective individual, institutions and
other elements that may have impact on the enterprise. It can directly affect firm performance,
production, profitability and growth. These types of factors influence all business activities and
functions. Every organisation exchange their goods on the basis of financial and non financial
concepts. In the business firm, there are some factors such as external and internal that involves
customers, employees, supply, demand and many other existing elements which directly or
indirectly affects on company's production and profitability (Armstrong and Taylor, 2014). This
report is based on Apple Inc. which is a multinational organisation. Its headquarter is located in
Cupertino, California. The company design, creates, sale consumer electronics and also provide
online services. They provide products that includes iPhone, tablet and smartphone, iPod media
player to their buyers. It deals with various kind of products or services in market and attracts
large number of customers. The aim of this report is to determine the interrelationship of various
functions or activities of firm in different situational environment. Also evaluate its impacts on
external and internal study of environment.
TASK 1
P1 Different types and purpose of organisation
The organisation profit is based on various business environmental factors which
includes many element that provide high productivity and profitability. There are different types
of firm structures that includes public, private or voluntary sector which are essential for the
society. The major functions of these sectors are discussed as under:
Private sector- It is that enterprise which are run by individual person and group of some
people. They are offers their shares in the market, by this any one can easily purchase the shares
of the company. Those person who buy these share, they get some benefits or rights of particular
firm. These types of organisation play a primary role for development of country by given an
important role in exchange of capital. Private sector may be large or small in size on the basis of
finance and resource amount (Billis, 2010). The most effectual example of this administration
may be sole traders, partnership firm and franchise. They have directly impact their share of
market and increase sale of products or services by using effective marketing strategies.
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This enterprise arrange sponsors who invest funds and assist in providing bank loans,
savings of partners and grants of government. Apple Inc. was founded by Steve Jobs, Steve
Wozniak and Ronald Wayne in April 1976. They sell personal computers and create new
innovative technologies. The main motive of this company is to earn trust of customers by
developing valuable brands for them. They creates new strategies or plans for achieving desired
goals and objectives.
Public sector- It is a firm that must be run or operates by government and other agencies.
These enterprises assist in developing their nation infrastructure and provides good opportunities
to the people. Public company's main aim is to serve products immediately and help in
increasing standard of living of an individual (Bouckaert, Peters and Verhoest, 2016). The main
source of income for such organisation is the taxation amount which are given by common
public. The major sum of revenue that is processed by this sector is in form of taxes which
authorities used for provide essential supports to local people. It is an important organisation
structure in each country.
For example, Nestle is a public company which supply food and drinking items. Their
products includes baby food item, breakfast cereals, coffee and tea. About 29 different brands are
sale in all over the countries. This is large organisation which assist in taking decision for the
business operations. The founder of Nestle is Henri Nestle who establish company in 1866. They
have provide frozen food which gives instant meal facility to people.
Voluntary sector- It is an organisation which doing working for the welfare of common
public. The firm are established and operated by individuals, committees and some group of
people. They fixed their budgets price for the exercise for achieving definite task for controlling
their expenditure. The employee who perform for achieving target are voluntary not much
paying by company. The volunteer people assist in serving society or take steps for the welfare
of community and also make better place. It is too difficult for this sector for survive between in
tough competitors (Brinkerhoff and Brinkerhoff, 2011). The firm spend their most of time in
examining situation, develop effective strategies and generate new ideas which help in
accomplishing goals and objectives.
Major purpose of this sector is to eliminate biases and discrimination from whole world
on the basis of religion, cast, culture and gender. Oxfam is a voluntary firm which is based on
UK and they focused on reducing poverty or raise standard of living of people.
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P2 Size and scope of different types of organisation
Public firm- Nestle have several joint enterprises, business houses and many other firms
that includes General Mills, Beverage Partners Worldwide with Coca-Cola and Nestle Palmolive
with Colgate-Palmolive. Such company have acquired diary industries of organisation enhanced
to 250000 in Oregon. Then firm has expand their business in large scale and its expenditure is
increased to 250000. After that they manufactured baby food and its revenue is approx. more
than $5.6 billion (Bullmore and Sporns, 2012). Currently, Nestle have decided to trade their
shares to Novartis from Alcon.
Private firm- Apple Inc. has decides to expand its authority in more than 65 million
areas. The company have face loss but they still capable to maintain its image as biggest retail
firm. Organisation has more than 3300 stores in UK and employees are around 5,00,000. They
have more than 15 million of club member and mostly from Scotland.
Voluntary firm- Every non profit organisation needs funds and few investors are
enhance their business condition. There are more than 51 stores which provides products or
services to several society. For Oxfam firm, government are distribute approx. 4.2 dollars
amount. Company is expanding their business operations and private sectors or other firms are
supply money or develop performance of this sector.
M1 Analyse the structure, size and scope of different organisation
In private sector, Apple Inc. is the multinational company which provide various products
such as smartphones, iPods, iPhones, tablets etc. It has approx. 5,00,000 employees who work in
the firm. Organisation has more than 3000 stores which are situated in UK and they have more
than approx. 15 million club members who have their membership. In public sector, Nestle is the
multinational company of UK and its annual turnover is approx. 5.6 billion. Recently nestle
provide their share in open market. And in the voluntary sector, Oxfam is the largest non profit
organisation which help in reducing poverty in the country. Government contribute approx. 4.2
dollars amount to this sector.
D1 Critically analyse the complexities of business
According to the Taylor, The business structure are almost similar in measuring by
different tools and techniques. All the functions and activities of these three sectors are
interrelated with each other. There are many things which are same in these sectors. They all are
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control and manage their functions by the help of managers. They can also expand their business
operation and activities which attracts large number of customers.
TASK 2
P3 Relationship of different organisation functions
Apple Inc. is multinational technology company which provides smartphones, I-pod, I-
phones and tablets. The main focus of organisation is to offers quality services or products which
attracts large number of customers (Cantwell, Dunning and Lundan, 2010). Company aim is to
satisfy buyers and increase product quality which develop growth as well as enhance
profitability.
Finance- It is an important factor of every organisation. This assist in performing all
functions or activities which is necessary for the firm. Finance planning of cited enterprise is
must be develop by managers who control budgets or focus on investment activities. Accountant
records each data of whole finance which are related to Apple Inc. They also plan various
campaign or other activities of promotions. Finance department manage operation of business in
efficient way. The function assist in collecting funds and plan for distribution of money and it
requires for getting better result for the outcome of profit. They can maximise amount of funds
which need to increase their efficiency and help in making more profitability for company. It
also assist firm for achieving goals and objectives and expand business.
The main objective of organisation is to manage their budgets system which assist in
promoting products or services in large market area. Finance is main object which is necessary
for the business performance and it is essential for increasing profitability and productivity
(Iskanius, Page and Anbuudayasankar, 2010). There are some activities which must be
performed by firm for reducing errors and mistakes and eliminate threats that arises in preparing
budgets.
Administration- It is the department which managed or control work that includes gather
information or data, management of documents and resolve conflicts of particular task of
organisation. This help in maintenance, administer and secure data of firm which is necessary for
the cited company (The process of departmentalization. 2015.). It also assist in decoding solution
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of issue or problems which creates misunderstanding between firm and customers. Apple Inc.
perform this function and it help in increasing sale of products for achieving goals of enterprise.
This is the department in which all functions and activities are performed in effective
manner. It assist in managing various kinds of work by using approaches and facilitate different
type of task to employees. The main motive of cited company is to fulfil customers demand and
wants which needs to satisfy by firm. Managers provides correct direction to workers for
reaching goals and targets that help in enhancing growth or production of various goods.
Marketing and Sales- It is that function which is directly linked with sale of products
and promote services among potential customers (Klapper, Lewin and Delgado, 2011). The main
role of marketing is to develop effective strategy of marketing which promote products or
services in market. It is a tool which assist in accomplishing target objectives of the firm.
Company need to follow whole process of marketing planning for achieving desired result. This
function help Apple enterprise for enhancing their sale of goods and services. The organisation
use various promotions programmes and advertisements to build good image of products in
market which attracts buyers towards them. It also help to influence customers for purchasing
their commodity.
Human resource- It is an important function of every organisation that includes many
individuals such as directors, mangers and recruitment team. This department help firm for
recruit right person at right job on right position. They hire those employees who have skill,
knowledge and ability which assist in dealing business operations. The managers duty is to
develop plans and strategies which need to provides correct direction to their workers. The aim
of company is to get gaols and objectives within given time period. Recruitment and selection
process is effective for hiring talented employee who are best suitable for the firm and handle all
task with proper manner (Munteann and et. al., 2010). They help in gaining productivity and
profitability which enhanced growth and development of an organisation.
Customer service- It is that department which directly link with customers. The role of
this is to solve issues or queries which are related to company products or services. They
provides necessary information to their customers about their goods that includes suggestion,
advising, resolve queries and listen their problem properly. All the function are managed and
controlled by top management who are high level authority of Apple Inc. The board of directors
and chairperson take decision which is required for company growth. It is important that
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management and design of customer service department is effective which provides solutions to
customers for their issues.
Production and Operation- It is that department which control or manage all process of
production which directly supply to retailer. Then they sale potential customers and analyse
products or services which are demanded by buyers. Company should function the business
operations and operate activities of producing goods in effective manner. They also attracts large
number of customers by using various types of methods and techniques in production operation.
Operation of functioning is essential part of every organisation which provide effective growth
and develop all latest equipments (Salamon, 2010). It is the procedure that supply innovative
products or services to their desired buyers and consumers in the market.
Conclusion- The role of these functions is to assist in achieving set gaols and objectives
of organisation. All the departments help in satisfying customers demand and wants and also
creates new potential buyers. This aid firm for improve image of their product or services
towards other customers. It also help in increasing funds and income.
M2 Advantage and disadvantages of interrelationship of organisation
There are many functions of organisation which are organised and controlled by different
department. Some advantages and disadvantages of organisation functions are as follows:
Advantages
 The staff members will be managed by those person who have experience and
knowledge to deal with different type of individual.
 They need to coordinate their workers towards specific task or work in effective manner.
Disadvantages
 If company will grow larger then it is difficult to manage all functional areas and
structure of organisation.
 These areas were distracted with their main goals and objectives.
TASK 3
P4 Macro environment positive and negative impact on business operations
There are some major factor which already exist in environment and it is internal element
of business that is known as macro environment. It includes political, economical, social,
technological, legal and environmental factors which directly or indirectly affects the growth of
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company. It can be strength for competitors and also create threats and weakness for Apple Inc.
This help in developing business operations in the market area. There are some macro factors of
Apple Inc. which are discussed as under:
Economical factor- There are many countries which was facing economical issues or
problems. UK also deal with such type of factor which directly affects development and growth
of company. The major impact of this element is reducing purchasing power of customers and
face unemployment problems (Schroeder, Minocha and Schneider, 2010). The sale of products
are also decreased and spread negative affect on overall income of firm. The positive impact of
economical factor is to stable the situation of business and negative impact is affects business
operations.
Political factor- It is internal environmental factors which majorly affects by changing
government rules and regulations. The political factor may diverse the business functions or
activities by affecting rules of authorities. Government introduce taxation term of country for
earning more income from local public which impact negatively on company growth. Apple Inc.
maintain better connection with political parties and also competitors groups which assist in
reducing affects of changing approach. Currently UK financial situation are impacted business
sales and growth which lower sale of products or services to their customers. It also decreased
purchasing power of buyers that reduces productivity and profitability of organisation.
Later the crises of economic in UK, the increase in taxation policies and plans which can
decrease purchasing power of their customers. This also creates weakness and threats of cited
company which highlight major loss which arise in upcoming period of time. Apple Inc. has to
create new strategies for overcoming this situation and also maintain business growth or
development.
Technological factor- It is very essential factor which provides development and growth
of firm. Company need to adopt new technologies and methods which increase productivity of
the employees. Apple Inc. adopt new techniques and tools which assist in enhancing growth and
development of firm. Organisation provides modern equipments which includes smartphones,
iPod, iPhone and personal computer to their customers. They need to give training to employees
for understanding function of new technologies. The competitors of cited company are provide
substitute products or services to consumers in better quality and price. So firm need to introduce
new ideas or thought which are related to goods for continuing business among rivals.
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Apple Inc. take usage of progressed application that includes laptops, I- phones, smart
phones, personal computer that create more convenience and easiness in work of cited
organisation and render that satisfaction with company offers (Scott and Davis, 2015). It assist in
gaining more expected purchaser through aids consumers in performing quick services which
help in achieving firm mission or objectives.
Social factor- It is the factor which are related to society development and provide high
growth to enterprise. UK people have high standard of living which help in identifying choice
and preferences of their public. The organisation has t know the target and also develop effective
strategies which increased sale of products. The demographic and geographic factors are affects
customers choice and preferences that required for identification of developing of latest trends.
This type of elements directly impact on customers taste and choice and develop products or
services according to buyers choice.
This determine the acquiring sum and sales quantity of organisation. In order to have
more superior citizens in country, the preferences of work would be favoured in more
conventional styles. This will make the weakness for cited organization as the company develop
more progressed technologies or services (Sørensen, 2012). According to the survey of under 18
people, they are also great in measuring which is helpful because new generation people like
more imaginative and digitized goods.
Legal factor- Apple Inc. is impacted by legislation and laws of United Kingdom. It is
important for every organisation is to follow all rules and regulation which are made by
government. The legal factor directly affects cited company business functions and operations
and also impact growth of their employees. This factor of external environment should be
analysed by changing some internal rules or norms of organisation. It directly affects whole
process of management and influence business operations.
Environmental factor- This factor is related to environment benefit which includes
reduce wastage, pollution and recycle all material which are not useful for the production
process. Company should adopt new technologies that assist in controlling process of production
in effective manner. To eliminate this issue, firm need to use some adaptable techniques which
help in reducing wastage of commodities and smooth running of operations. Firm use some
transportation facilities and coordinating several CSR activities in community for reducing
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environment impurities. They also used effective packaging bags which easily done the process
of packaging goods.
They need to control the Green House Gas emission of society, the UK environment
should follow new legislation and laws which protect the nature. Company also maintain sound
atmosphere in society which directly affects on business performance (Teece, 2010). The main
influence of this factor will facilitate growth and develop plans or policies of firm.
M3 Apply PESTLE model for analysis of macro environment
It is the external factor which directly or indirectly effects business operations and its
functions. The PESTLE will analyse macro environment factor for understanding external
impacts of business enterprise. This help in knowing changes in rules and regulations which
necessary to modify by company also. It also understand existing factors within an organisation
which directly affects on firm profit and productivity.
D2 Critically evaluate the both macro and micro factors
As stated by Mark Franklin, The macro and micro environment factors directly affects
external environment of business in efficient manner. It also impact on marketing campaign and
other functions of promoting products and services in the market. This will assist in making
decision for strategic marketing. The objective of organisation will implemented on marketing
strategies and it clearly assumes the factors of both macro and micro. They will also aid in
achieving target and goals in effective manner.
TASK 4
P5 Internal and external analysis of Apple Inc. for identify strength and weakness
There are some external factors which affects internal strengths and weakness of
company. The positive impact is assist in developing and expanding business functions and on
the other side negative effect will control growth of organisation as well as employees. It is
important for firm to analyse external factors and examine threats and opportunities. Also
eliminate weakness which occurs in business operations. The SWOT analysis which influenced
PEST factors are discussed as under:
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(Source: SWOT analysis, 2017)
Strength- It is very large brand which cover whole market of United Kingdom. It is one
of famous multinational technological company that provides smartphones, iPod, iPhone and
tablets to the potential customers. An organisation provide best quality products or services that
highly attracts buyers towards them. They face many competitors and maintain their customers.
They has adopt latest technologies which provides growth and development in efficient way.
Company hold strong position in the market and it provides high profit ratio to them. It has solid
infrastructure chain of supply which help in providing effective goods or services to potential
customers (Tiwana and Konsynski, 2010). The firm distribute their products in all target market
and potential customers. This company focus on customers demand and wants which attracts
existing or new buyers towards them.
Weakness- Apple Inc. provides wide variety of equipments to their customers involved
smartphones, iPod, personal computer, tablets and many other. It increases responsibility and
burden of administration of all field that make work more difficult. Apple some other services in
which they provide borrowing and insurance facilities to their customers and build high debts of
account that leads to more loss than profits. The new taxation policies have been executed by
government of UK is directly affects their sale of heavy quantity products and latest technologies
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Illustration 1: SWOT analysis, 2017

but it is not updated for the buyers. Its main weakness is to their price are higher than
competitors which reduce buyers percentage. Company are not improve their products and does
not adopt latest technology. The sale of products such as iPod, iPhone and other which reduces
their profitability (SWOT Analysis. 2017.). Apple has various types of products which similar
from other companies. There are few goods which totally same with other products
Opportunities- There are several opportunities for the company. They can expand their
business operations and spread products information among potential customers. Open market
plan help in developing and increase growth of company by using different approaches. Firm
need to adopt new techniques that attracts large number of customers. It is essential that
organisation can crates new buyers and develop strategies of promotions for products marketing
in various country (Wild, Wild and Han, 2014). They should modify their products or services
and it increase profitability. Organisation can invest money in research and development process
which assist in analysing situation of current market. They also form strategic partnership by
earning high income for using this approach in business operations. They can adopt latest
technologies which attracts new customers towards their products or services.
Threats- The market of UK is full of huge or powerful competitors. Company face
various competitions in the market. The other rivals have strong positioning of products among
customers and their resources affects sales of Apple Inc. growth which can arise barrier in
expansion or development of it. The major factor are occurs outside the environment and it
always impact growth or development of firm. Company face loss of innovation which decrease
product quality and quantity for sometime. Some other types of threats such as damage goodwill
due to tax scandal. At the time of production, firm will increase cost of manufacture of products
or services. Sometime they affects rights of property which will enhance growth and
development. Thee are many companies who make laptops, iPods and iPhones and they are
create competitors to apple Inc.
M4 SWOT analysis to justify influence of decision making
It is the internal factor of an organisation which directly effects on business functions and
their activities. It help in identifying the Apple company strength, weakness, opportunities and
threats in proper manner. These factors are influenced on firms decision making process which
help analysing and adopt best techniques and methods which increase their profitability and
productivity. It will assist in taking correct decision which directly affects business operations.
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This help in providing higher growth and success by taking accurate decision and develop long
term planning approach.
P6 Interrelationship of strength and weakness with external macro factors
There are two factors of environment that includes external and internal which directly
influence the growth and development of sale of products or services in large market area. It help
in identifying strength and weakness of cited company in market. Macro environment factors
include political, economical, social, legal, technological and environmental which affects
business operations and functions (Billis, 2010). These elements are also effects on organisation
functions and activities which provides high development and eliminate limitations. They create
position of firm and build image of respective goods or services in the market. There are some
external factors of firm that shapes strength and weakness:
(Source: PESTLE Analysis, 2017)
Political Factors- The policies of tax make weakness through reducing the sales of
organisation goods and services. In case of different conditions taxation plan, possibility for
improvement will build in context of cited organization.
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Illustration 2: PESTLE Analysis, 2017

Environmental factors- Apple Inc. have creates great occurrence in industry of UK that
distinguish company from its rivals and adds more capability in favour of cited firm. The
increasing in debts will arise threat and weakness.
Social Factors- Apple Inc. main motive is to grow their enterprise in other society of
regions in various countries (PESTLE Analysis. 2017.). The market is sustain and it is require to
examine their taste, preferences, choice, demand, taste, interests of their common public. In the
process of manufacture of quality products it will track to doom whereas producer of services
according their expectation will enhance their strengthens as well as preservations.
Technological Factors- Techniques in respect of manufacture of commodity or services
and serve to consumers the facilities determines the strengths and weakness. The lack of
progression, buyers will change their brand name to another enterprise. Also comprise more
changes or digitalised technologies can increase the actual customers of cited enterprise.
Legal Factor- This is that factor which is revised by the government of United Kingdom
that can change the development of company in different manner (Armstrong and Taylor, 2014).
The approving policies can increase the capability of organisation as well as non-approving will
decrease the chances of growth by increasing regulation act of firm.
Environmental Factor- These type of factors are related to nations' environmental
situations are directly linked with elaboration or growth of cited organization which can affect
the elements and administration of company in more positively as well as negatively. For
forthcoming fear, the enterprise needs to change their productions process in more effective
manner.
CONCLUSION
As per above report it can be conclude that business environment has two factors such as
internal or external which directly affects on business operations. These types of factors
influence all business activities or functions. It deals with various kind of products or services in
market and attracts large number of customers. There are some organisation who exchange their
goods on the basis of financial and non financial concepts. There are different types of firm
structures of market that includes public, private or voluntary sector which are essential for the
company. Apple Inc. is multinational technology company which provides smartphones, I-pod,
I-phones and tablets. The main focus of organisation is to offers quality services or products
which attracts large number of customers. The department which maintain relationship with
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company objectives such as administration, marketing and sales, finance, human resources and
production & operations. There are some macro factors which influence economy that includes
political, economical, legal. Social, environmental and technological. It is important for firm to
analyse external factors and examine threats and opportunities which assist in evaluating current
position of company.
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