Habitat Retail Ltd.: Business Environment Analysis

This assignment requires a comprehensive analysis of the business environment surrounding Habitat Retail Ltd. The analysis should delve into both micro and macro environmental factors, such as economic conditions, social trends, technological advancements, and environmental concerns. Specific strengths and weaknesses within each factor category need to be identified and explained. The purpose is to understand how these various elements impact Habitat Retail Ltd.'s operations and its ability to succeed in the marketplace.

Business and the Business
Envirosnment

Table of Contents
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
P1 Different types and purposes of organisations: public, private and voluntary sectors and
legal structures........................................................................................................................3
TASK 2......................................................................................................................................7
P3 Relationship between organisation function and how to link with objectives and
structure..................................................................................................................................7
TASK 3......................................................................................................................................8
P4 Relationship between organisation function and how to link with objectives and
structure..................................................................................................................................8
TASK 4....................................................................................................................................10
P5 internal and external analysis for identifying strength and weakness.............................10
P6 How strength and weakness interrelated with external macro factors .....................12
CONCLUSION........................................................................................................................15
REFRENCES...........................................................................................................................16

INTRODUCTION
Business environment is dynamic in nature and when it change gives direct impact on
working of companies. The same is of two type’s micro (internal factors) and macro (external
factors): micro consider all such things which are going on at small level like suppliers,
customers, competitors and several others. On the other hand; macro includes wide level of
factors such as political forces, market condition and so on. This whole assignment is based
on the Habitat retail Ltd. Which is enterprise of retail sector founded in 1964 on 11th May as
well founder of this firm is Terence Conran and Philip Pollock (Lee, Olson and Trimi, 2012).
They are offering their goods and services only in United Kingdom and products serving by
them are home accessories, furniture and upholstery. Below mention assignment has sub
parts in four tasks i.e. different types, size and scope of organisation. Apart from this
interrelationship of various function in the firm and how they are linked with structure of
company. This also throws light on optimistic as well pessimistic impact of external
environment on day to day working of business. In the last part of report SWOT and PESTEL
analysis of the respective organisation is done.
TASK 1
P1 Different types and purposes of organisations: public, private and voluntary sectors and
legal structures
There are three types of organisations public, private and voluntary sector.
Description of these is given below along with this purpose also:-
Public sector: These are such companies which is controlled and managed by
government of particular nation. Public company charge minimum amount of the services
which they are providing to customer (Reeves, Love and Tillmanns, 2012). Because their
main motive is providing services not formed for profit maximisation. Best illustration of
Public sector organisation is child support agency which is introduced in 1993 on 5th April
but this agency renders their offerings by the request of children’s parents. In that situation
when they are out of the country or because of some agreement. Capital which is necessary
for running business can be generated through charity, funds and donation given by peoples
as well parents also gives money when they are giving responsibility of their child. Products
provided by them are public goods, merit and essential. Legal structure of public sector
company-

 Central government department: There are some companies which are directly
operated by the government of that particular country. It sub part in state, local and
regional sections thus, when some firms comes under these three then managed by
central government department.
 Local authorities: This is a type of public administration formed at lowest tires under
state government and in some states also have organisations which are running by
legal administration (Rossi, Vrontis and Thrassou, 2012).
Private sectors: Businesses come under private sector have their own separate legal
entity and these are mainly run by owner of the company but in some situation it business can
be started in partnership also. Private Sector companies are running with the motive of profit
maximisation because the person who are running these want standard of living for
themselves as well as for their family member also. Habitat retail Ltd. Which is a retail sector
company introduced in 1964 on 11th May and founder of the same is Terence Conran and
Philip Pollok. They are offering only in United Kingdom and goods serving by them are
home accessories, furniture and upholstery. Respective enterprise is working for earning
money for their welfare. Legal structure of the Private sector company is explained below:- Sole traders- They are individual person who run business and don’t have their
individual identity from their company (Pham, Segers and Gijselaers, 2013). He/she
whoever is running business is liable for all the losses and debt along with this they
are the owner of all the profits earning by them.
 Partnership- when there is no single owner of firm it is known as Partnership
Company as well they can be two or twenty. The entire partners are liable for
everything in same enterprise according to the ration of their invested by them. This is
the most common and easiest way of raising capital and fund which needed for doing
day to day operations of business.
Voluntary Sector: these are also non profit organisation running for social welfare and
society. Apart from this it is distinct from public and private sector companies Wellcome
Trust is the voluntary organisation of United Kingdom introduced in 1936 by Sir Henry
Wellcome they mainly focus on Biomedical Research there are 2,057. This is the largest firm
which provide services for research and the same is one of the largest in the entire world.
Legal structure of this voluntary sector company is given below:-

 Trust- there is some trustees who provide fund for operation of overall company. As
well these types of organisations don’t have any members or owner but only have
trustees (Gharajedaghi, 2011). For all of them written deed is prepared which shows
appointment and retirement of each and every person. Unincorporated association- these are management committees of enterprise or they
also name as council with them a constitution as well don’t have any disconnect
identify from trustees.
 Others- Royal charter bodies, community Interest Company, co-operative society,
community benefit and several other organisation (Van Vuuren, Roberts-Lombard
and Van Tonder, 2012).
Above discussion talk about various types of organisations and there legal structure.
Which help in simple understanding such firms consider in sector public, private and
voluntary.
P2 size, scope and range of organisation
Public Sector Company and its overview- Child Support Agency is private sector
Company which is formed with the motive to provide support to the Act which is established
in 1991 for care and safety of children. They work for both kids who have parents or don’t
have when some persons are not living in same nation with their son or daughter then give
authority to Child Support Agency to take care of their babies for this service the payment is
done by them guardian or parents of children (Crane and Matten, 2016). On the other hand if
someone doesn’t have their family then government give funds for them to support and
taking care of these children. Mission, vision and value of child support agency is given
below: Mission- employs most excellent people and resources through which support to
government is simple and brings new idea, cost effective. Thus, there will be
appropriate outcomes and provide healthier services to children and families to which
they are joined. Vision- when families are spends money of Child Safety Agency for their children
then they have to do fair practices with their clients and customers as well direct also
if they need. Apart from this it aids father, mother and family member in
accomplishing success.

 Values- customer focused, loyal, ethical, accountable, reliable and many more.
Child Safety Agency is executive agency of department for work and pensions and in this
parents pay amount for services they are grabbing (Welter and Smallbone, 2011). This is
given in the circumstances when parents have divorce, marital separation and annulment or
can me various more reasons (Elliot, 2011).
Private sector company- Habitat is a limited firm which comes under private sector
introduced in 1964 on 11th May. Respective business parent organisation is Sainsburys
Argos and website is www.habitat.co.uk ‘they are providing several of daily consumable
goods like home accessories, furniture and upholstery. Retail industry is having huge
competition and main reason of this is numerous new firms are entering in this sector as well
now a day’s many small stores are opening in colonies which give wide impact on business
of others same sector organisation. The respective enterprise has its online site also which
serving in United Kingdom, Germany and Republic of Ireland it was launched in 2009.
Mission- To grant superior quality of goods and services at worldwide level. Products must
be satisfy the person they are offering in effectual manner main is grabbing entire customers
of retail sector and switch them into loyal (Cotter and Fritzsche, 2014). .
 Vision- Severs best quality of goods at least amount then others so it will be easy to
create distinction in their products with others enterprise. Because satisfaction of
customers is necessary.
Voluntary sector- This include organisation which is working for social and
society welfare with no motive of profit maximisation because they are non profit
companies. Welcome Trust is doing biomedical research in United Kingdom just
about there are 2,057 employees working. The same trust is described by financial
times which provide non- governmental funding for scientific research and largest in
the world. Principles of Wellcome trust is to improve health of their ever client for
whom they are working. Uses there resources, talent and energy in best manner so
they can accomplish mission and vision of organisation. Vision- Wellcome Trust vision is to accomplish extra development in health of human
beings and animal for whom they are doing research.
 Mission- To do work in such a way that no other is doing and bring sharp mind
person or innovative in the area of biomedical research and medical humanities.

TASK 2
P3 Relationship between organisation function and how to link with objectives and structure
Retail sector is broad and main part of business environment because it fulfils day to
day needs of individual and the same industry has large number of companies some of them
are ASDA, TESCO, ALDI and several more. They are providing their goods and services in
different countries as well there are mainly three types of firms public, private and voluntary.
Each and every company is different from each other in nature, objectives, working and for
several other reasons also Zott, Amit and Massa, 2011). For example public enterprises
charge least amount for the services they are giving and private organisations charge amount
with the motive of profit maximisation because they are working for earning profit. So they
can give better life to their family members. Whereas, this one is last who is named as
voluntary company which work for social welfare or non profit firm. Habitat Retail Ltd. Is
the private enterprise and their foremost objective is to be converted into world largest and
most popular. Products and services offering by customers by the same organisation in good
in quality and affordable by everyone this is the main reason because of that customer are
satisfied.
Function of such companies is completely connected with their objective, structure
and entirely depends upon the several departments and the person who are doing work. In
association also there are various departments like finance and accounting which maintain
records of overall funds available and invested in day to day activities or for production
purpose. As well these are important for overall working of business. Marketing department
is that who do advertisement and promotional actions for the fresh goods and services which
is launched by same firm in market this whole procedure provides information about the
products to their target customers. This aids in generating more and more income which is
essential for continued existence in cut-throat competitive business environment. There is
manufacturing section also in which goods are manufactured which need analysing demand
and wants of customers then after that procedure of production must be started. Instead of this
for this there are leader and manger in the company who manage working as well employees
also.
Every enterprise have their stakeholders they can be from inside the company
(owners, workers and management) or outside also (suppliers, community etc.) and are of
two types mainly these are internal who is openly concerned in the activities of company and

Play crucial role in the achievement of business. On the other hand, secondary is not that
much main for companies and don’t gives direct impact. each type of holder have dissimilar
motives like profit, growth, salary, quality of goods rendering by enterprise, fair and long
term contract, interest, deposit, tax, donation, fair trade and many more (Hair, 2015).
Habitat retailer initially has to fulfil primary objectives because these are more
important and essential for growth and development of business. After that then they have to
focus towards the secondary stakeholders. Although, they have there own several theories i.e.
normative theory, descriptive and instrumental. So organisation has to take care of their
stakeholders because they give huge amount for development and growth of business.
Therefore carrying out activities of company gives impact on their structure and
culture because if nonstop going process is not done in proper manner then ambience of
company will effect and because of that personnel’s working can change their behaviours and
manner of doing work automatically.
Every functional department are having major connection between each other because
all the elements are interlinked with each other as well as interdependent upon each other. For
example; funds is highly indispensable for accomplishing various other business activities
such as; marketing is only possible if there is a presence of sufficient funds. It means sales
department and finance have a major connection. Another example is about marketing and
production like if sales section is failed in understanding the need or choice of consumer then
manufacturing department can't able to design suitable product. Hence, it has been
understood that every department are directly or indirectly linked with each other in various
manner.
TASK 3
P4 Relationship between organisation function and how to link with objectives and structure
A macro environment is the exploit that refers to the economy as a entire, a small piece of
in an suitable part or field. In mostly, the worldwide environment includes propensity in gross
domestic product (GDP), expansion, employ, and spending, monetary and fiscal policy as
well several other. Macro environment is broad in nature and when it modifies then gives
wide impact on operations of business and need day to day activities to be analysed (Low,
Chen and Wu, 2011). The macro environment is brusquely associated to the ordinary work as

quarrel to the performance of a particular business sector. Below the mention PESTL effect
in habitat retailer ltd. Description of this is given below:-
 Political effect -The political environment can gives their wide and direct impact on
Business Company in several many ways. It includes all the risk taking factors mainly
by the government. You should observe so that the economical aspects have the skills
to change the outcome. It can also modify political approaches at district to combined
level. Communities should be healthy to bond with the local and global event of
official. Variety in the ministry practice combines the legitimate factors. The
alteration can be prudent, legal or social. It could also be a mixture of these elements.
The political environment stuffs various things including economic atmosphere of a
state and international inventory group of trade. Raise or reduce in tax could be an
instance of a political factors. It needs changes in present process and policy of
organisation.
 Economic effects- There are varied monitory aspects that must be agreement as the
undulating power production. The final apparently it may be capitalisation as this
was identify in an article of shareholder as “the big difficult” to declining strength
and that it is the essential to any ultimate development. In form of understand the
real amount of co-worker with progress tidal strength of proof published. It was
establish that ordinary value at a mean property were expenditure in million in
capital expense per megawatt and million per megawatt per year in running
consumption over the business expected utility entity. These can be linked to in and
out of new enterprise which gives major impact on working of existing business.
 Social effects- Social aspects in the chosen organisation of overpass by planner at
fresh lap, probably real cost of fault for tidal planner as the club of shareholder in
certain cases differed and alike cancel the projects finally. The public query was
toted out after thousands of mark was collected research and evaluation as they
would suffer from necessary attraction of the surrounded area. This feature the idea
that major of civil allow renovate the energy, but with opposition to particular
projects on a more local level remaining frequent officially with regards to not in
my back yard syndrome.
 Technology- The strength to undertake some of the world’s mainly overflows of
full of intensity immediate in United Kingdom with a piece of technology that

could have to understanding impact on the country worldwide energy bearing. The
developer with the most gain power and abundance level may be seen as the most
appealing to potential investors, but with the technology after tidal energy still in
its early stages there is still big danger in the advance moment, with this real one of
the major reasons why banks have not yet spend in the technology. Habitat
Retailers also have to utilise new or updated technologies which attract more and
more customers for them but for it there will be necessity of lost of funds because it
is a costly process.
 Legal- At present constitution and management guide costal and cursive
application devices are very problematic, with the office culture, Food and Rustic
employees. Classified the need to shorten them in order to reduce legislative risk
for developers. Even if this simplification goes through there are still a number of
senatorial rules which apply to tidal energy agent within. At world level there is the
United Nations Convention on Law of the Sea which “lays down a comprehensive
regime of charge and plan which are relevant to all oceans and seas to authorised
rules to conduct their uses. This gives the absolute state the force over water within
200 nautical miles of its coast amongst other rights. They may be change because
of changes in government and according to then companies also have to modify
their existing policies and laws on which they are working.
Above mention information assist business for improvement in many ways which is
necessary and require analysis on time to time basis. When alteration made in all these it
gives both impact positive or negative. So these must be examining in proper ways.
TASK 4
P5 internal and external analysis for identifying strength and weakness
Business environment is divided into two parts internal and external. As, extrinsic
atmosphere consist PESTEL analysis then intrinsic study acquires SWOT matrix in order to
find out strengths and weaknesses of corporation along with grabbing all opportunities and
eliminating all possible threats. To analyse all aspects in most efficient manner then TOWS
matrix should be install in working pattern of venture. Internal environmental includes
employees, employers, mission, vision, management and many more. On the other hand,
external involves stakeholders, shareholders, suppliers, customers, competitors, government

etc. In addition to this, Habitat Retail Ltd. is a venture of which is one out of all largest
prominent in United Kingdom.
SWOT ANALYSIS METRIX
Strengths
 In present time, retail store owns wide range of associations and franchises, whit help
of these sub-ventures retail store become leading financial organisation in UK.
 Reason behind success of retail store group is prominent channel of distribution of
services and by taking aid of this element, company serves their clients very
efficiently.
 Venture is having successful track record of evolving new and improved services.
 Regarding to brand portfolio, over the years this association has put their fund in
developing strong brand portfolio.
 Habitat Retail Ltd. is a successful business venture which is good in implementation
of ventureing services for clients. This action is good in generating results and
revenues streams in their business operations (Crane and Matten, 2016). This venture is having talented labour because Habitat Retail Ltd. invests its funds in
training and development program of employees. This program helps employees in
enhancing their skill and specialisations.
Weaknesses
 This venture is not able in facing challenges that are present in marketplace by new
entrants in the same segment and along with this venture also lost their small market
share.
 venture has necessities of putting fund in implementing innovative techniques in their
business operations so that all work could get completed with maximum efficiency
and customer should get high quality services.
 Employees financial planning should be done in effective manner by considering all
asset and liquidity ratio (Chesbrough, Vanhaverbeke and West, 2014). Controversies that are related with internal audits of retail store is a major weakness
that sabotage image of corporation among customers.

Opportunities
 According to need of clients company can launch novel services which should
provide additional benefits and this action is able in developing business expansion
opportunities for firm.
 Lower inflation rate will make lesser interest rates and more people would be able in
buying loans. Novel innovations in technologies helps in working operations and are bale in
providing better services to clients. This action helps in gaining consumer loyalty and
trust towards company. This action then further develop stronger customer base by
providing higher quality services.
Threats
 Competitors are more eligible in accepting and inventing new technologies and their
this kind of behaviour is reducing overall market share of association in industry.
 There are some law issues that decrements trustworthy situation of organisation in
front of clients.
In retailing industry, business rivals are increasing very rapidly and association is not quite
eligible in competing with them.
P6 How strength and weakness interrelated with external macro factors
Business environment has capability to affect arranging operations of a business
venture in positive and negative manner. It entails two aspects, i.e. internal and external
environment which is briefly defined as under: -
Political and legislative factors – In accordance with political conditions of a nation,
working activities of a business organisation get high affects. Although, political condition of
UK is not so much stable especially after economic recession. Here government has regulated
higher taxation policies and VAT rates which must follow by all business organisations. On
the other hand, British government also regulated strict import and export laws. Therefore it
can be said that political environment of UK is not in favour with corporate associations. Strength:- Political bodies are always engaged in designing various types of norms
for corporate companies which is sometime highly beneficial for overall association

and act as potentiality. For example; corrective norms are giving potentiality to staff
members to fight for its rights and duties. Thus they can fight for their rights and
authorities so that they can easily accomplish business activities in proper manner.
Along with this, organizational policies are mainly depend upon political rules and
regulations in order to minimize probabilities of mistakes. Weakness:- Sometime norms and rules are act as obstacle for company because it
may control companies while expanding their business across the various borders. In
fact, enforce to follow necessary terms and conditions which maximize the workload
of managers.
Economic factors – After financial crises in 2008, UK economy went down but as per
the time passes and Brexit economic condition of the nation is booming up. Basically,
economic factors involves those aspects which internally affect a firm allot, such as- interest
rates, bank rates, unemployment, disposable income of people, poverty etc. All these
components incorporates with pricing of funds, monetary enrichment, expansion of market
share and so on.
 Strength:- Economical rates or development is automatically beneficial for corporate
companies because it helps in providing employment opportunities to unemployed
people. Thus, company is focussing in understanding each or every aspects that are
changing at marketplace for acting as per requirement.
 weakness:- Sometime inflation or deflation rate is influencing organization in various
manner such as; affecting consumers choice, changes in market trends and so on.
Social factors - In this modern era, needs and desires of customers are rapidly
changing and it is essential for Habitat retail Ltd. To deliver satisfaction level to target
audiences of the company. As the firm spend one third of its profits into research and
development activities, it is one of the main strength of the company. It supports retailing
organisation to recognise needs and wants of customers.
 Strength :- It helps an organization while manufacturing company products as
consumer are liable for final consumption. Thus, it helps in controlling the extra cost
as well as aids in making positive relations with various clients.
 weakness:- According to this element, cost of manufacturing get increased due to
which workload of an association is also maximized.

Technological factors - Habitat retail Ltd. is using new and innovative techniques of
production so as to improve production level and efficiency. It is also helpful in attaining
high competitive advantage and expand market share of the company. Adoption of digital
tools and techniques supports to raise innovation and generate attractive products for
customers.
Environmental factors – In present scenario, everyone is concern towards
environment. Several manufacturing companies are not aware about environment which put
negative impact on customers' mind. Ignorance of fulfilling social responsibilities also
influence sales and profitability of companies.

CONCLUSION
As per the above discussion it has been concluded that business environment is
dynamic and it modify because of several things. Along with this it gives wide impact on
policies and procedure of association as well this also needs alteration in their present
working for present and future growth or development. Business environment is of two type’s
micro and macro both of these gives their direct impact on working of business. Companies
comes in these is divided in three sectors public, private and voluntary. Although, for
analysing all these elements market research is conducted by owner of company which
includes SWOT and PESTL. For growth and development this is necessary or important
work which must be done by enterprise.

REFRENCES
Book and online