Business & Business Environment : Assignment

BUSINESS & BUSINESS
ENVIRONMENT

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Different types of organization and their legal structure.............................................................1
Size and scope of various types of organization..........................................................................2
Interrelationship between organizational structure and functions...............................................3
TASK 2............................................................................................................................................5
Pestle analysis and negative and positive impacts of the macro environment............................5
Swot analysis...............................................................................................................................6
Interrelationship between external macro factors with strengths and weakness ........................7
TASK 3 - covered in PPT…………………………………………………………………………7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment means the external and internal factors that influences business
profitability and productivity. This includes the forces that impact the ability of the firm. The
project report will explain the various types of business organization along with its legal
structure such as public, private and voluntary. Assignment will outline the scope and size of
various types of organization.
Furthermore, the report will demonstrate the relationship between different
administration structure and functions. The study will identify the negative and positive impact
of the macro environment upon the operations of the business. It will conduct Swot analysis.
Lastly, it will explain the interrelationship between strengths and weakness with macro factors.
TASK 1
P1. Different types of organization and their legal structure
Private organization refers to the all the profitable enterprise that run business for their
own sake of interest. This is constituted on federal property and are self-sustaining.
Private organization – Primark
Primark is the fashion retailer company. It is established in the year 1969 on 13th of July.
It is founded by Arthur Ryan. The headquarters of the enterprise are situated in Dublin in Ireland.
The company deals in diversified product range which includes the menswear, homeware,
womenswear and accessories.
Purpose – Primark purpose is to serve their customers with better quality of products at cheaper
price.
Legal and organization structure – The company has tall organizational structure in this they
have hierarchy which comprise various departments such as finance, human resource, monetary,
production and operational departments (Cepel,Stasiukynas, Kotásková, and Dvorsky, 2018).
They have separate legal department whose work is to look all the administrative work and legal
procedures of the firm.
Public organisation are those who are operated and control by the government and they
are exist because of public welfare. They are publicly funded.
Public organization – Metropolitan Police Service
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The Metropolitan Police service looks after any law enforcement held in the Metropolitan
district. The organization is established on 29 September in the year 1829. They have control
over thirty-two cities of the London Borough. They are working to provide legal justice to all
the resident of Metropolitan district.
Purpose – The purpose of Metropolitan Police service is make Metropolitan district a safer place
to live. They took responsibility that no one do illegal actives and breaks laws.
Legal and organization structure – The organization structure of the organization consists of
the various directors which looks after all the legal documentation and administrative work. The
responsibilities are in under main four directories that reported if any legal offence take place.
The departments are overseen by assistant commissioner.
Voluntary organisation refers to the non-profitable business that works for providing
benefits to the society without any consideration of the money. There motive is not to make
profit out of business but to help the society.
Voluntary organization – Oxfam
Oxfam is the charitable organization. It is a non-profit organization. There motive is to
remove poverty from global level. The organization consists of the twenty independent
organization. It is established in the year 1942. The headquarters are situated in Nairobi in
Kenya. Its director is Winnie Byanyima.
Purpose – The purpose of the Oxfam is to relieve poverty from worldwide level and to resolve
the problems of needy people.
Legal and organization structure - The Organizational structure of Oxfam is operated by the
board of management in which Chief executive has control over various directories of the
organization. They have authority to look after the various regional offices of the organization
and its finance department.
P2. Size and scope of various types of organization
Basis Private organization
(Primark)
Public organization
(Metropolitan Police
Service)
Voluntary organization
(Oxfam)
Mission The mission statement
of the company is to
The Mission of
Metropolitan police is to
Mission of the Oxfam is
to identify the solutions
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provide better quality of
the products in
considerably less price.
provide the service with
integrity and fairnesses
and to serve justice to all
the residents of
Metropolitan district.
in order to remove the
poverty from the lives of
the people.
Vision The vision statement of
the company is to make
innovative products on
regular basis in order to
provide customer
satisfaction.
Vision of the organization
is to support the victims
and to provide justice to
them.
Vision of the Oxfam is to
treat everyone equal and
to provide the rights of
the people.
Objectives  The objectives
of the company
is to deliver the
best quality
products in
order to meet
the customers
expectations.
 To provide
goods at
reasonable price
to their
customers.
 To treat
everyone equal
whether it is
staff or
customers.
 To provide justice
to people.
 To show
professionalism
behaviour.
 To take the
responsibility of
the police service
with courage,
integrity and with
full compassion.
 To alleviate the
poverty.
 To empower
people.
 To provide
security to poor
people.
 To take decisions
in order to
prohibit the
human violence.
Stakeholders The stakeholders of the
company refers to the
directors, employees,
community,
government, creditors
and suppliers.
Metropolitan police
service stakeholders are
the government,
constable, Inspector and
Superintendent.
The stakeholders of the
Oxfam are the charities,
sponsor, unions,
workers, trustees and
communities.
Size and Scope The Primark has 368
operating stores at
global level. They have
scope to expand their
business at worldwide.
They have 70,000
employees in total.
Metropolititan police
service has 43000 number
of total number of police
in which 31075 are the
officers, 8732 are the staff
and 3658 are the
volunteers.
Oxfam has scope to
bring the change in
people live. They have
twenty alliance
organization in 90
countries.
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P3. Interrelationship between organizational structure and functions
The business functions are interrelated to one another department. Hence, this is defined
below in contented manner as-
Marketing
The Marketing department of the Primark is responsible for doing promotional activities
in order to increase the sales of the enterprise. This is interlinked with the IT department as to
conduct the marketing research they gather information from various sources of internet. For
doing advertisement they use social media platform and google ads. Through this they can easily
reach large number of peoples. Thus, they contact to It department as they are expert in web
designing (Khan and Quaddus, 2015). The marketing department is also interlinked with the
production department as it gives the data and information which they gather during marketing
research to production department. The production department manufacture the products in
accordance with the market analysis. In order to meet the current demand of the consumers it is
crucial to get updated with the current market demand. Thus, marketing department collect data
for production department.
Human Resource
The HR department of the Primark is interlinked with the marketing department. As
marketing department informed human resource department that they required marketing
experts. Thus, the human resource department conduct interview in which they select suitable
candidate for the vacant post. As marketing department requires expertise which outperform
during marketing process. Human resource is also interconnected with the production department
as there is involvement of manpower in manufacturing the products of Primark.
Finance
The Finance department is interlinked with the production department as it supply
enough funds to purchase the raw materials. Manufacturing of products is done smoothly as
there is timely availability of raw materials. It is interconnected with marketing department as it
provides funds to them for doing advertisement (Komljenovic, Loiselle and Kumral, 2017). As
advertisement generally costs high. The finance department is also interlinked with others
departments of the organization. As they are responsible for marking budget of various
departments and for giving the salaries & wages to the workers and employees of Primark.
Production
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The production department is interlinked with the Sales department. As it supply the
factory-made goods to the sales departments. It is responsibility of the production department to
manufacture products on timely basis. The sales department give orders to the production
division that they need required quantity of the goods. Thus, the manufacturing of products is
done on the basis of quantity needed.
Information Technology
The IT department of Primark is interlinked with the production department of the
company. As the production department is using various IT softwares to improve the overall
productivity of the organization. They are using various system's software's such as Apparel
magic, Yunique PLM and Openbravo commerce suite to manufacture goods even faster than
ever. IT department is also interlined with operational department as they are using PMS
software to improve the organizational efficiency.
TASK 2 – also covered in PPT
P4. PESTLE analysis and negative and positive impacts of the macro environment
It is the strategic tool that helps to analysis the external and internal factors which have
influence over company's decision-making. Thus, to identify the impact of macro environment
factors on Primark, Pestle analysis is being conducted as follows -
 Political Factors – The Primark has influenced by the Brexit as the Britain has taken
decision in the year 2016 that they will leave the EU. The Company has operations in
Europe too. Thus, it influences negatively by the Brexit as laws and regulations for the
businesses has changed from its amendment. The positive impact of Brexit is that the
firm is benefited due to pound become weaker in against to the Dollar and Euro.
 Economic Factors – The economic factors such as high interest rate and exchange rates
fluctuations are affecting the Primark negatively. The increasing unemployment rate also
reduces the consumer spending in luxurious and high fashionable goods. As the
consumers have less disposable income they cannot afford it (PESTLE Analysis, 2018).
On the other hand today's generation prefer retail clothing both in casual and formal.
Thus, this impact positively on the firm's profitability.
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 Social Factors – The Rising levels of the obesity could affect the Primark profitability in
negative terms. The small size clothes which already being manufactured can be in loss
as it is hard for the manufacture to cater the consumers of plus size (Saleem, 2015). The
enterprise can grab the opportunity by manufacturing goods for the ageing population of
the UK. This impacts in positive terms for the organization.
 Technological Factors - The Technological has positive impact on Primark. As the
enterprise is using various software system to enhance the productivity of the firm such
as Openbravo commerce suite, Apparel magic and Yunique PLM. The negative impact of
technology is that rise in ethical environment as people are become conscious, and they
are demanding organic cotton and recyclable clothing material larger in quantity. Thus,
for retail clothing company like Primark has facing problems to deal with this type of
consumers.
 Legal Factors – There is negative influence of legal factors such as tax restrictions,
inflation costs and export restriction on Primark. They are bound with the employment
rights acts as company's who are operating from foreign countries has facing problem to
maintain the workers rights. On the other hand some country's laws are flexible as they
are supporting the investments of foreign countries. Thus, the Primark can expand their
business in those countries easily. Thus, this impacts positively for the firm.
 Environmental Factors – Primark has negative impact of environmental factors. As
people are becoming health conscious. The jeans are made with chemical components
and it is soaked by the hazardous elements. For taking clothes from factory to the
warehouses they are packed in plastic bags (Georgescu and Popescul, 2015). Thus, the
firm image is influenced in negative terms. The consumers are demanding the sustainable
products. If the firm shifts in that product line they have opportunity to increase the
organization profitability. This impacts positively for the enterprise.
P5. SWOT analysis
It is the analytical technique that helps to identify the enterprise weakness, opportunities,
strengths and threats (SWOT Analysis, 2019). The Swot analysis of the Primark is conducted as
follows -
Strengths
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 The Primark has global existence, and they are operating from 368 stores.
 Then Company has high quality products in considerably less price. They offer the best
quality products to their customer's in comparatively fewer prices than other fashionable
clothing companies (Gaganis, Pasiouras and Voulgari, 2019).
 The firm is highly focused on employees rights and are taking various trading initiative in
ethical terms.
Weakness
 Despite of various initiative they are taking for trading but in the past they have loose the
image by using child labour in order to produce the goods of the company.
 The company has founded in the case of disrespecting the rights of the workers.
 The firm doesn't advertise as much. Thus, there competitors are taking lead.
Opportunities
 Primark has opportunity to expand their business in emerging countries and make
profitability out of it.
 They have opportunity to gain competitive advantage from the others companies such as
H&M and Matalan.
 Primark can increase their sales through advertising their products on social media
platforms as users are highly active on these platforms, Thus, they can easily attract large
numbers of customers (Kolk, 2016).
Threats
 There is high competition in retail and fashion industry as they have threat of the
competitors such as H&M and Matalan,
 Primark also have threat of economic and financial crises. Thus, they need to consider
macro environment factor.
P6. Interrelationship between external macro factors with strengths and weakness of the
enterprise
The Strength of the Primark is that they have global presence, and they have various
stores operating from different global location. This is interlinked with the legal factor of the
firm which is laws of some countries are flexible as they are supporting the investments of
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foreign countries (Miller and Jentz, 2017). Thus, they can easily expand their business at wider
level. The company weakness which is also interlinked with legal factor as they have founded in
the case of disrespecting the rights of the workers. Thus, this influence the brand image in
negative terms.
The technological factor is interlinked with one of the strength of Primark which is that
they are providing high quality products at considerable lower price (Eling and Schaper, 2017).
This is because the firm is using various IT software to intensify the productivity of the
enterprise such as Apparel magic, Openbravo commerce suite and Yunique PLM.
One of the weakness of the Primark is that they don't advertise too much. This is
interlinked with the economic factor that is, there is high unemployment rate which reduces the
consumer spending in luxuriant and stylish goods. Thus, the company is unable to generate more
revenue which further they can use to do advertisment of their products.
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CONCLUSION
It has been concluded from the above project report that Business environment consists
of all the external and internal forces that have potential impact to influence the enterprise
profitabilityand decision-making. It has been summarized that purpose of the Primark is to
provide cheaper goods with high quality in order retain customer satisfaction. It has been
summarized that various departments and functions of Primark are interlinked with one another.
Through conducting Pestle analysis it has been determined that there is negative and
positive influence of Macro environment factors on Primark. From the above Swot analysis it
can be stated that firm has the opportunity to expand their business through doing advertisement
on social media channels. As from that they can easily attract large number of customers towards
their products. Lastly, it is has been concluded by the study that there is Interconnectivity
between external macro factors with strengths & weakness of the organization.
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REFERENCES
Books and Journals
Cepel, M., Stasiukynas, A., Kotásková, A. and Dvorsky, J., 2018. Business environment quality
index in the SME segment. Journal of Competitiveness.10(2).p.21.
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
Operational Research.258(3).pp.1082-1094.
Gaganis, C., Pasiouras, F. and Voulgari, F., 2019. Culture, business environment and SMEs'
profitability: Evidence from European Countries. Economic Modelling, 78, pp.275-292.
Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of collaboration and
communication for business environment. Procedia Economics and Finance.20.pp.277-
282.
Khan, E.A. and Quaddus, M., 2015. Examining the influence of business environment on socio-
economic performance of informal microenterprises: content analysis and partial least
square approach. International Journal of Sociology and Social Policy.35(3/4).pp.273-
288.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business.51(1).
pp.23-34.
Komljenovic, D., Loiselle, G. and Kumral, M., 2017. Organization: A new focus on mine safety
improvement in a complex operational and business environment. International Journal
of Mining Science and Technology.27(4).pp.617-625.
Miller, R.L. and Jentz, G.A., 2017. Business law today: The essentials. Cengage learning.
Saleem, S., 2015. BUSINESS ENVIRONMENT, 3/e. Pearson Education India.
Online
PESTLE Analysis. 2018. [Online]. Available through : <https://www.toppr.com/guides/business-
management-entrepreneurship/entrepreneurship-creativity-and-innovation/pestle-
analysis/>.
SWOT Analysis. 2019. [Online]. Available through : <https://articles.bplans.com/how-to-
perform-swot-analysis/>.
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