Business and the Business Environment

BUSINESS AND THE
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION.......................................................................................................................3
Activity 1 ....................................................................................................................................3
A) Different type and purpose of organization...................................................................3
B) Size and scope of range of different type of organization.............................................4
2) Relationship between different organizational functions and how they link to
organizational objectives....................................................................................................7
Activity 2 ....................................................................................................................................8
1) PESTLE Analysis...........................................................................................................8
2) Porter's Five Force Analysis........................................................................................10
4) Internal and external analysis ......................................................................................11
5) Interrelation of strength and weakness with macro factors..........................................13
CONCLUSION..........................................................................................................................14
REFERENCES..........................................................................................................................14

INTRODUCTION
Business Environment is sum or collection of all internal and external factors such as
employees, customers’ needs and expectations, supply and demand, management, clients,
suppliers, owners, activities by government, innovation in technology, social trends, market
trends, economic changes, etc. Burberry Group is a British luxury fashion house
headquartered in London, England. Its main fashion house focuses on and distributes trench
coats, ready-to-wear outerwear, fashion accessories, fragrances, sunglasses, and cosmetics.
This report covers issues such as type and purpose of different type of organization, size and
scope of different companies, functions of different departments of companies, positive and
negative impact of external environment, internal and external analysis of the environment and
interrelationship of strength and weakness of the company with the external environment.
Activity 1
A) Different type and purpose of organization
Public Limited Company-
In order to serve as a public limited company in the market at least 7 members are
required with a legal motive which is known as public company (DeConinck, Moss and
Deconinck, 2018). These type of companies are allowed to list and trade under stock
exchange. People who hold the shares of these type of companies can easily transfer their
shares to anyone. These type of companies can take as many members they want as there is no
limit. Apart from these type of companies has many type of subsidiaries which is also listed as
a public limited company. Company raises money by selling a part of their capital to many
people who are known as shareholders of the company. Major decisions for the company can
only be taken by the people who are in the list of board members and other shareholders do
not have the right to sit at the table for general meetings. They will just have the details and
knowledge about the decisions taken by the company
Purpose-
NHS is a public limited company which serves in the sector of healthcare and is
publicly funded. The company is situated in England. Purpose of NHS is to provide healthcare
services at no cost for the people who cannot afford medical services and need emergency
treatment. Their motive is to keep the health of people better. They want to extend their

services to general public. Apart from this they are also looking to expand their operations in
different areas of the country.
Private limited company-
In order to make a company private 2 members are required so that the company can
be registered under the companies act. Not every private company lists their company under
the FTSE or stock exchange. Private companies do not have the power to raise money through
shares and debentures. Only the members of the company which are listed as owners can buy
it. Apart from this they also do not have the power to transfer their shares to other people.
Companies operating as private sector can not list more than 200 members. After receiving the
certificate of incorporation private companies can begin their operations. In comparison with
public limited companies there are less restrictions and rules on private companies.
Purpose-
Burberry wants to be the sole provider for their customers. The company is focusing
on improving their experience for their consumers by analyzing the needs and preferences and
make changes in their structure according to the current trends in the market (Veselovsky and
et.al., 2017).
Voluntary Company-
Companies whose motive is to serve for the welfare, benefit of public and not
considering motive of earning profit. They provide help to people who are underprivileged and
does not have enough resources to fulfil basic needs. These type of companies have different
pattern of working as they raise their capital by inviting those people who are ready to donate
a part of their income for the well being of others. Oxfam is one of the most famous and
popular company who is dealing in this sector. They commenced their operations in 1942 and
they have divided themselves into 20 companies according to particular section and hire the
team who were interested to serve in that particular area (Akhmetshin and et.al., 2017).
Purpose-
Purpose of the company is that they want to help those people who are suffering from
poverty and injustice. Aim of the company is to not earn profits and focus on the betterment of
society. Oxfam wants to bring peace in the environment.
B) Size and scope of range of different type of organization
Basis NHS Burberry Oxfam

Size NHS employs around
1,50,000 doctors in
the hospital with more
than 3 lac nurses.
Even after this the
company has more
space for employing
people and they have
made announcements
through
advertisements as
they require 40,000
more nurses and
20,000 clerks. In
order to expand their
operations company
also need to increase
ambulances and more
drivers to cope up
with the level of
expansion. This
makes NHS one of
the biggest
organizations dealing
in the sector of
healthcare.
Burberry serves in
498 locations.
Company has more
than 9,000 employees.
They have stores in
51 countries.
Company deals in
accessories, clothing,
cosmetics and
perfumes basically
they deal in fashion
industry (Tian,
Sigamani and
Malhotra, 2018).
Oxfam has
consolidated with 20
different companies.
They are working
together and serving
in 94 countries in
order to solve the
issue of poverty for
more people.
Scope NHS has the scope of
improvement and
make changes in their
structure so that they
can deliver their
Company has the
scope to reduce the
amount of emission
which is why they
have announced that
Oxfam has the scope
to use more
innovative and
effective methods and
ask or invite people