Internal and External Analysis of Business Environment

The provided assignment is about conducting an internal and external analysis of a business environment. This involves identifying several factors that affect operational activities, including macro factors such as legal and regulatory environments, corporate social responsibility, and environmental considerations. The document references various books, journals, and online resources to support its findings. It also provides a summary of the key points in paragraph form.

BUSINESS & BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Different types and purpose of organisations with legal structure....................................1
P2 Size and scope of different types of organisation.............................................................3
TASK 2............................................................................................................................................5
P3 Relationship between different organisational functions that link with objectives..........5
TASK 3............................................................................................................................................6
P4 Positive and negative impacts of macro factors on business operations...........................6
TASK 4............................................................................................................................................7
P5 Internal and External Analysis..........................................................................................7
P6 Interrelation of strengths and weaknesses with external macro factors............................9
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
The term business environment can be described as various internal and external factors
that impacts on different functional units of an organisation. It is necessary to thoroughly
observe, analyse and evaluate both positive and negative impacts of these components. It will
provide support to carrying out various types of activities or procedures in an appropriate manner
to generate required outcomes (Reed and et. al., 2013). This report is based on Cadbury which is
known as British multinational confectionery company wholly owned by Mondelez
international. It was founded by John Cadbury in the year of 1824, almost 194 years ago. It has
several famous products such as dairy milk chocolate, the crème egg and rose selection box. This
assignment will discuss about various kinds of organisations running in present scenario of
market like private, public and voluntary along with legal structure ofsame. It also includes
explanation of macro factors with their positive as well as negative impacts.
TASK 1
P1 Different types and purpose of organisations with legal structure
There are various types of organisation that are running in present rend of market along
with their accurate strategies to conduct business properly. Different companies have their own
structure and purpose of carrying out particular firm having their own beneficial idea or concept
to earn desired outcomes.
Private Company
The private organisations are usually owned by a person who has all rights to take
decisions regarding business and has ownership as well (Reinhardt and Stavins, 2010). They are
private individuals who has an idea or concept to conduct an organisation and provide goods to
customers for earning better profits. For example, Cadbury is considered as private company
which deals in confectionery industry and render several required products to people to fulfil
their requirements.
Purpose of Cadbury
 To provide better quality of products as per taste or preferences of customers to achieve
satisfaction of them.
 To maintain strong position in market competition through implementing creative
techniques to gain better profits.
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Legal structure of private company
Partnership: - This can be described as to conduct business with two or more partners in
which they all have similar rights of authority and profits share in company. They invest capital
according to their shareholding capacity in company.
Sole Proprietorship: - The sole proprietorship refers to business which is carried out by
person having certain amount of resources and funds along with authority. They have role for
planning, organising, directing and controlling to earn required profits (Shigang, 2010). Owners
have several separated legal policies in this types of firms.
Public organisation
The public organisations can be described as those firms which are usually run by
government authorities for welfare of citizens. They conduct business to render required goods
or services for people at reasonable rates. It will help to earn certain profits which support to
contribute precious amount of money to annual income of country which supports to organise
developmental activities properly. For example, NICE which is health care organisation and
utilise several effective as well as efficient technologies to provide an appropriate services to
desired people.
Purpose of NICE
 To provide an accurate treatment or diagnosis to people at cheap costs and make nation
healthy.
 To render an appropriate medical services to people as per their needs.
 To become best health care organisation at global level and attain required aims or
objectives properly (Karagiorgos, Drogalas and Giovanis, 2011).
Legal structures of public company
Central government: - Decision making for operational procedures are usually regulate
by central government and make policies to be followed by Nice compulsorily.
State government: - The branch of public companies established in particular state have
to follow certain regulations of state government to run business properly.
Local government: - Public firms have to carrying out limited and an accurate activities
to functions which are regulated by local government.
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Voluntary organisation
This kind of companies are not bounded ion specific regulations because they care
carrying out various charity functions to provide facilities to poor people. They have several
volunteers who conduct an effective as well efficient campaigns to collect funds from citizens
and them provide required services to those individuals who are not able to fulfil their needs.
Purpose of Welcome Trust
 To give better facilities to society for completing their basic requirements.
 They have task to conduct biomedical research to provide more beneficial facilities to
people (Kolk, 2016).
 They put efforts to improve procedures of treatment to boost health of human beings and
animals.
P2 Size and scope of different types of organisation
There are various types of companies having their different size and scope. Each and
every firm have their visions and missions according scope of their business. Size of organisation
is differ according their amount of capital invested, number of employees earned profits etc.
these enterprises have size of micro, small, medium and large companies in private, public &
voluntary sector of business industry. All sectors in along with their size and scope are given
below:
Cadbury
Size: - The Cadbury is a kind of British confectionery firm that provides several products
such as dairy Milk, chocolate, creme egg, roses selection box and many other confectionery
goods. They carrying out an effective business of certain required products and render them to
customers for completing their needs, wants and demands in correct way (Nishitani and et. al.,
2012). It was founded by John Cadbury in the year of 1824. it was established in Birmingham,
England to provide tea, coffee and drinking chocolate for people. The size of the respective
company help them in developing or manufacturing proper ratio of products according to
customers demand.
Scope: - There is a wide scope for Cadbruy as it provides varieties of customers to fulfil
different taste of various kinds of customers. They have around 71657 staff members working on
regular basis in this organisation in several branches which are situated at global level. The scope
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of respective company also help them in attaining objective such as through it will help them in
developing strategies that leads to enhance in business.
Vision: - The vision statement of Cadbury is to work together and create those products
or brand that are involved by people. This company put efforts to make to an appropriate goods
and provide better quality to build reputation and fulfil promise of commitment to people in
proper manner. They want to render tempting and exquisite taste to customers through their
products.
Mission: - The mission of Cadbury is to focus on target customers, market challenges and
requirements by providing excellent products to people. It will facilitate to create maximum
value for regular clients of company.
NICE
Size: - The NICE is an abbreviated form of National Institute for Health and Care
Excellence which is a kind of health care organisation which helps to make people healthy
(Osterwalder and Pigneur, 2010). It carrying out research on biomedical topics to find out better
treatment for various health problems to sort out them properly. It was founded in the year of
1999 to put efforts for improving health care standards of citizens living in country. Size of
respective company is huge which help them in attaining their objective by conducting whole
operations and functions in effective manner with proper numbers of employees.
Scope: - The NICE has target to conduct more effective as well as efficient researches on
several biomedical topics to determine an accurate treatment procedure to boost up health of
society. They have an appropriate objective which facilitate them to linked up with several large
health organisations to boost up image of company and facilitate to expand business at wider
level in future. The scope of respective company is to expand develop quality products and their
objective is to expand business. So their quality products development scope will help them in
attaining objective in effective manner.
Vision: - They have main purspose to conduct researches properly to gain information
about more effective treatments or medicines which are helpful to people for staying healthy. It
also includes criteria of providing better health services to improve health of animals or human
beings.
Mission: - The mission statement of NICE is to conduct an accurate research processes to
improve effectiveness of diagnosis or medicines provide to desired people.
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Welcome Trust
Size: - The Welcome Trust is a kind of voluntary company which provides support to
poor people by rendering required goods or services to them for fulfilling their basic needs
properly. They provide health care services to people so that their problems can be sort out in
correct way to make society healthy (Pikka, Iskanius and Page, 2011). The size of respective
company will help them in conducting their work in effective manner that will leads to
attainment of objective effectively.
Scope: - This company is charitable firm that requires funds to provide an appropriate
service to people for free of cost. It can be considered as global charitable organisation that
improves health of people living across the world. The scope of company will help them in
conducting work effective which leads to attainment of goal and objective in proper manner by
offering quality products and services.
Vision: - They main vision statement of Welcome trust is to carry out an accurate
activities or procedures in more effective way to attain extraordinary improvements in human
and animal health.
Mission: - The mission statement of Welcome trust is to provide support for brightest
minds in biomedical research and medical humanities.
TASK 2
P3 Relationship between different organisational functions that link with objectives
Cadbury has a great brand image in different markets across the world. They have
formulated their mission and vision statements which they will achieve in future. These
statements represent the image of company in the market. As every organisation have different
departments operating together in order to achieve desired success, Cadbury also involves these
departments. They all work together so that they can perform activities and business operations
in order to complete all set targets for organisation (Pulver, 2012). There is strong
communication and coordination between these departments, due to this, they are one of the
successful business venture. Following are some departments and how they work to achieve
company's objectives and goals:
Human Resource Department: This department plays several crucial roles and
functions. Their main function is top recruit and hire talented people for company which have
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high qualities and capabilities and can maximise productivity and revenue for company. With
qualified staff, Cadbury can achieve its objectives and vision in effective manner. Another
function performed by HR department is that, they provide necessary resources and raw
materials to different department so that they can easily carry out their activities. They also
provide necessary information about external factors to associated department, this facilitate
managers to develop better and effective strategies for company (Avramenko, 2012).
Production and operation department: This department is one of the most important
department for Cadbury company which manufacture different products such as chocolates,
serum, bars, spreads and so on. Managers of production department ensures that, every step
performed by employees attain all quality standards and nobody is compromising with it. With
better quality, company can win the trust of people and they will prefer their products over other
company. Providing quality products is the major aim or vision of Cadbury Company.
Finance department: This department provide necessary financial assistance to different
departments of company in order to implement various activities. As Cadbury is a very huge
company and is expanded in many countries, it requires huge amount of funds for carrying out
business activities. Company earn money by selling their products into markets, with that they
provide necessary financial help to departments which are in need of it. If they lack funds, they
can even take assistance from different investors and financial institutions (Bovee, Thill and
Raina, 2016). Funds are really important for company to execute their imaginations and
innovation into practical.
Marketing department: These department are responsible for marketing company's
products into different and new markets. Marketers develop appropriate market plan after proper
research done by research department. With this investigation, they come to know about market
competitions pricing strategy of other and accordingly develop their marketing stratgeis.
Cadbury have strong marketing plans and is able to attract large number of customers towards
their product.
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Source: Organisational structure, 2016.
Interrelation among different organisational department help a company in conducting
their business in effective and proper manner. In context of Cadbury, they face several advantage
and disadvantage of interrelation among departments. For example advantage of interrelation is
that all department able to conduct business operations and function in effective manner by
supporting each others effectively. On the other hand, it also have disadvantage like it there are
some situation occur in which interrelation because major issues of conflict. This is so because it
all departments have different method of attaining goal and no one want to change themselves,
due to this there is also reduction in productivity ratio. But at the end, interrelation among the
different department is essential for respective company because through it they able to produce
or offer variety of products to their potential customers. This will also help them in conduct
proper marketing and enhancing profitability ratio.
TASK 3
P4 Positive and negative impacts of macro factors on business operations
There are various kinds of macro factors that impacts on operational activities of an
organisation. It is necessary to observe, analyse and evaluate these elements along with their
positive and negative impacts on Cadbury which is given below:
Political factor: - This refers to regulations of political parties and stability of particular
nations in order to conduct business properly to complete required aims properly. It includes
condition of Brexit which means exit of Britain from European Union. It is necessary for
respective company to consider this factor while conducting its operations and functions at this
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Illustration 1: Organisational structure.

nation because through it they able to conduct business in legal manner. This will also help
management in develop proper decision according to political condition of country. Positive: - Suitable political regulations helps to carrying out various functions in
company properly which facilitate to fulfil desired goals or objectives (Hair, 2015).
 Negative: - Unstable political situation impacts negatively and create barrier in expanding
business to attain desired outcomes.
Economical factor: - It includes several factors like high taxation, inflation, currency,
growth and so on which impacts on profitability of Cadbury. It is essential for respective
company management to consider this factors because through it they able to develop products
according to economic condition of country and company. If they not follow it, then there will be
chance that Cadbury may develop high price products for low economy country which leads to
loss situation. Positive: - They provide necessary information about changes in economic conditions
which render certain opportunities which helps gain better profits.
 Negative: - Fluctuations in economic condition impacts on operational activities of
company and reduce profitability of an organisation.
Social factor: - This can be described as several cultures, religions and rituals which are
followed by people living at particular place. In respect of respective company it is necessary for
them to consider social factor because through it they able to develop proper products according
to demand and requirement of potential customers. Positive: - Due to having different types of cultural beliefs that helps to attract more
number of customers.
 Negative: - Lack of knowledge and values of people which they adopts from their
cultures facilitate to avoid product to purchase.
Technological factor: - This refers to technological equipments which provide support to
improve organisational efficiency to complete required targets on time. In context of Cadbury it
is essential for them to adopt new and advance technology because through it they able to
conduct their work more effectively and with high quality. This will also help them in reducing
wastage while production. Positive: - Advanced technology helps to boost up employee knowledge as well as
productivity of Cadbury in an accurate manner.
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 Negative: - Single or minor mistake can corrupt the whole data and damage overall
efforts of employees at one stroke.
Legal factor: - This can be described as several legal rules or norms which are necessary
to be followed by very company. In context of Cadbury it is necessary for them to conduct their
work according to legal factor of a company because it will help them in conducting work in
legal manner. Along with this respective company produce eatable items and it is necessary for
them to consider all legislation while conducting business operations so that they can avoid any
legal issues. Positive: - Legal regulations helps to avoid wrong pathways top run business for gaining
better outcomes.
 Negative: - Sometimes, legislation become barriers to improve growth of business and
grab certain chances to boost up benefits for Cadbury.
Environmental factor: - It includes to conduct business through taking care of natural
environment and put efforts to reduce environmental issues (Hamilton and Webster, 2015). In
respect of respective company it is essential for them to consider respective factor because
through it they able to develop products which are eco friendly. This will also help in enhancing
goodwill as well as customers base of the firm effectually. Positive: - It helps to fulfil corporate social responsibility and improve image of Cadbury
in front of customers as well as government authorities.
 Negative: - Taking steps to save natural environment consumes more cost and time.
TASK 4
P5 Internal and External Analysis
Internal and external analysis of company are necessary to carry out in order to identify
several factors. Internal aspects of company includes strength and weakness whereas external
aspects includes threats and opportunities. Analysis helps in knowing about above mentioned
factors and these help marketers and other departments to formulate strategies. As Cadbury
company is world's finest confectionery company and have strong brand image in global market,
in order to maintain it company should be well aware about the threats which can be posed by
other companies and other different factor. Cadbury is a company which have lots of strengths
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and have few weaknesses. This makes them more strong as compared to other rival teams
operating in same line.
As Cadbury have low presence or is lacking behind to make presence in rural markets
like, India. This can impact company's revenue as it is a weakness and Cadbury can turn this
weakness into an opportunity by penetrating in those markets. They can build their brand image
in those markets as they have growing economies and will be beneficial for company. The main
aim of company is to ensure that people love their brand and provide highest quality to them.
They believes in continuous improvement and keeps on experimenting with their products.
Managers and other superiors can run suitable research to find out factors that can impact their
business and for that they can use SWOT Analysis which is mentioned below:
STRENGTH WEAKNESSES
 Cadbury is blessed with different
brands in product portfolio such as
dairy milk, Bournvita, Oreo, five stars,
etc.
 Have employee strength of more than
65,000.
 strong Research and Development.
 Provide high quality products.
 Strong distribution system and supply
chain management.
 Associated with more than 30,000
suppliers.
 Strong positioning of products.
 Strong manufacturing process.
 Cadbury Dairy Milk is one of the
famous chocolate across the world.
 Has build up strong reputation in global
market.
 Several controversies related to quality
has affected the brand image.
 Lack of penetration in rural markets.
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OPPORTUNITIES THREAT
 Acquiring competition can boost the
market share of Cadbury.
 Diversification in product ranges.
 Can expand their business in growing
economies.
 Company can penetrate in rural
markets.
 Company can try new tastes and
flavours.
 International and local competition can
affect the market share of company.
 Health conscious people can reduce the
intake of chocolates and other sugary
products.
 Increase in rate of raw material.
 Inflation can cause reduction in sales.
 Customers can prefer other sweets and
deserts over Cadbury as switching cost
is low.
 Threat from existing company as they
are providing different and new
variants.
Factors of SWOT analysis will impact on decision making of Cadbury's manager because
through strength they they able to develop plan of action which help them in grabbing
opportunities and overcoming threats in effective manner. Along with this it will also help them
in develop strategies in order to overcome weakness so that they can attain their goal as well as
target impressively. Along with this SWOT analysis also help manager in developing proper
decision through which they can use their strength in effective and successful way.
P6 Interrelation of strengths and weaknesses with external macro factors
Managers have to identify the influence posed by external factors so as to prepare
themselves from possible threats. Every factor have their strength and weakness and is
mentioned below:
Political: This factor involves various political rules and regulations which should be
implemented by company in order to avoid any political threat to company. Strength: In order to have a successful venture in future, it is necessary to maintain
political stability. With this, they can maintain their strong position in the market.
 Weakness: If political regulations are not implemented properly within enterprise, then
company might face problems and any legal action can be take against the company. If
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company does not implement employment laws then company will not be able to satisfy
their customers. Strength of workforce of company will lead to their weakness.
Economic: It includes several economic factors like inflation, exchange rate, tax policies
of particular nation. It is beneficial for company to expand business in growing economies as
there are more chances for profits. Strength: Cadbury run its prior research on economical factors of different country in
order to know about them. It is crucial for them to analyse these elements in order to run
successful venture. As they have chances to penetrate in rural market, then by knowing
about the economic situation, they can easily establish a good business.
 Weakness: Fluctuations in different economic factors can influence company's
profitability and growth. Due to inflation rate, sales of the company can be reduced.
CONCLUSION
The above report had concluded that business environment can be described about
various internal and external factors that impacts on different functional units of an organisation.
Size of organisation is differs according their amount of capital invested, number of employees
earned profits etc. Different companies have their own structure and purpose of carrying out
particular firm having their own beneficial idea or concept to earn desired outcomes. Internal
and external analysis of company are necessary to carry out in order to identify
several factors. There are various kinds of macro factors that impacts on operational activities
of an organisation.
REFRENCES
Books and Journals
Reed, O. L. and et. al., 2013. The legal and regulatory environment of business (p. 328).
McGraw-Hill/Irwin.
Reinhardt, F. L. and Stavins, R. N., 2010. Corporate social responsibility, business strategy, and
the environment. Oxford Review of Economic Policy. 26(2). pp.164-181.
Shigang, Y., 2010. Competitive strategy and business environment: The case of small enterprises
in China. Asian Social Science. 6(11). p.64.
Karagiorgos, T., Drogalas, G. and Giovanis, N., 2011. Evaluation of the effectiveness of internal
audit in Greek Hotel Business.
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.
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Nishitani, K. and et. al., 2012. Are firms' voluntary environmental management activities
beneficial for the environment and business? An empirical study focusing on Japanese
manufacturing firms. Journal of environmental management. 105. pp.121-130.
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Pikka, V., Iskanius, P. and Page, T., 2011. The business enabling network–a tool for regional
development.International Journal of Innovation and Regional Development. 3(3-4).
pp.324-344.
Pulver, S., 2012. Business and the Environment.
Avramenko, A., 2012. Enhancing students' employability through business simulation.
Education+ Training. 54(5). pp.355-367.
Bovee, C. L., Thill, J. V. and Raina, R. L., 2016. Business communication today. Pearson
Education India.
Hair, J. F., 2015. Essentials of business research methods. ME Sharpe.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Online:
Business Environment. 2018. [Online]. Available
through:<https://www.slideshare.net/NikhilSoares/business-environment-
featuresmeaningimportanceobjectives-porters-model>
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