(pdf) Business And Business Environment Advantages

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1 ................................................................................................................................................1
P1 Types of organization, their examples and their purposes.....................................................1
P2 Explanation of each chosen organization...............................................................................5
M1 Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation................................................8
D1 Provide a critical analysis of the complexities of different types of business structures and
the interrelationships of the different organisation......................................................................9
LO2..................................................................................................................................................9
P3 Relationship between different organisational functions.......................................................9
M2 Advantages and disadvantages of interrelationship between organisational functions .....11
LO3................................................................................................................................................12
P4 Impact of macro environment upon business operations.....................................................12
M3 Analysis of PESTLE model ...............................................................................................13
LO4................................................................................................................................................14
P6 Interrelation of strength and weakness with macro factors of environment.........................14
M4 Influence of Swot analysis on decision making..................................................................15
D2 Impact of macro and micro factors on business objective and decision making.................15
CONCLUSION..............................................................................................................................15
REFERENCES ............................................................................................................................17

INTRODUCTION
Business and business environment is the tool that identify the internal and external
environment of the business (Wheelen and et.al. 2017). The internal and external factor can
influence each other and it creates the positive and negative impact on the environment of the
business. It means external factor affect the internal environment of the firm. Business
environment contains many factors internal and external that influence the growth and success
of the business. In other words, business environments contains all the outside and inside
components of the business that influence how can firm manage their all functions and
departments such as consumers, workers, management and business regulations. For better
understanding the business environment, taken the John lewis partnership is the private sector
company in the uk. The report will describe the different types and purpose of selected
organizations, also describe the size scope and objective of selected company. Furthermore,
Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisational. Furthermore, report will
describe the advantages and disadvantages of interrelationship between organizational function.
Furthermore, this report examined PESTLE and SWOT analysis to identify macro and micro
environment factors and impact on firm and SWOT analysis helps to identify strength and
weakness of organization. furthermore, Provide a critical analysis of the complexities of
different types of business structures and the interrelationships of the different organisation.
LO1
P1 Types of organization, their examples and their purposes
Types of
Organization
Public Sector
Company
Private Sector
Company
Voluntary Sector
Company
Meaning A public sector
company is defined as
a company in which
more than 51% of
shares are owned by
the state and central
government. Further
the operations and
A Private sector firm
is defined as a
company in which
companies which is
not operated by the
government is
opposite for the public
sector company.
A Voluntary sector
company is the part
economy system. this
company provides the
help to the economy
by helping the people
in critical situation and
their main purpose to
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management of the
company handled,
control and operate by
the government. The
main purpose of
public company it is
that they only work for
their citizen of the
company and provide
best services to the
public. Further,
government provide
the funds to such
companies by the way
of budget and bank
loan so they fulfil their
requirements of funds
for run the company.
Further these
companies is
operated by the owner
of the company. They
manage their business
which means person
or group of people
control the company.
Their main intention
that they earn profits
and expand the
business of the
company is it that
they generate the high
profitability(Bah and
Fang, 2015). Private
company generally
use their own funds
and also they take
bank loans, public
find, crowdfunding to
full fill their
requirements of funds,
provide the best
services to the people.
Further, they also
work for the welfare of
the society for
improving the
economy condition of
the country. Company
fulfils their
requirements of funds
through charities and
government aids.
Chosen organization NHS England John Lewis
partnership
British Red cross
Organization's
purpose
The National Health
service (NHS) it is the
public funded
company, they provide
the variety of different
health services to the
John lewis partnership
is the uk company it is
the department stores,
Waitrose & Partners
supermarkets, also
provides the banking
British Red cross is the
uk based company
provides the first aid
and health care
services to the
customer. The main
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customer. The main
purpose of NHS
England it is that
 company
improve their
healthcare
services to
provide the
best care for
patients.
 The main
purpose it is
that they
improve in
their
technology to
provide the
best service in
all over the
world (Veit,
and et.al
2014). They
provide the
best health and
care services
in the
economy of
uk.
 The purpose
of the NHS
that they
and financial services
to the customer, and
other retail activities.
The main purpose of
John Lewis
partnership it is that
 The main
purpose of
partnership is
that they
provide the
best
environment to
their employs
give the
happiness of all
its members,
through their
different
benefits and
satisfying
employees so
they increase
the
productivity
and makes
successful
business (Helm
and Gritsch, S.
2014).
 The main
purpose of the
company it is that
 The main
purpose of the
British Red
Cross' is that to
save lives,
prevent and
reduce
suffering, and
increase
people's well-
being.
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provide the
best
information to
the customer
related to
their health
also they
improve the
environment
of the
institution
which increase
the customer
base.
 NHS increase
their
profitability
by using the
best
machinery and
also they
provide the
training to
their
employees to
enhance the
quality of
work this is
also helped to
increase the
customer
purpose of the
company it is
that they
provide the
best product to
the customer
increase the
ability to
provides the
good value in
the product. so
the main aim of
the firm it is
they provide
the security
and build the
trust among the
customer by
giving the
best quality
product and
provides the
different
choices so they
also attract
towards the
product value
and services.
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Legal structure
satisfaction.
It is non department
public body. And the
parent department is
health and social care
department (Epifanova
and et,al. 2015).
John Lewis
Partnership PLC is a
public unquoted
company that wholly
own John Lewis PLC.
It is co-operative in
nature
Incorporated by Royal
charter ,1908
P2 Explanation of each chosen organization
Basis NHS England (public
company)
John Lewis
partnership (Private
Sector Company)
British Red cross
(Voluntary Sector
Company)
Background NHS formed in 1 April
2013. there
headquarter in the
Leeds, England. Sir
David Nicholoson
who became Chief
Executive of the
company.
The John Lewis
Partnership is a UK
company it is retail
industry which prevail
John Lewis & Partners
department stores,
Waitrose & Partners
supermarkets, its
banking and financial
services, and other
retail-related activities
(Khan, and Quaddus,
2015). There
headquarter in London
united kingdom and
the number of
employees is 83,000.
British red cross is the
voluntary company
there headquarter in
london, united
kingdom and the
number of members is
32,500 volunteers and
the total staff is 3500.
Sir mike Adamson is
the chief executive of
the company.
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Products and service Provide the health and
care service to the
customer such as,
urgent and emergency
case, gps services,
dental service, mental
health services, Sexual
health services etc.
John Lewis
partnership Provide
the retail services
Clothing, watches &
jewellery, giftware,
cosmetics,
housewares, furniture,
beds & bedding,
audio-visual,
computing,
photography, food,
direct services,
financial services etc.
British Red cross
provides the First aid
and ambulance
services, Health and
social care services,
provides Fire and
emergency support,
Humanitarian
education, Refugee
support services etc.
Market size and scope Entity generates the
£162 million incomes.
company provides
their services in all
over the world (Khan,
and Quaddus, 2015).
John Lewis
partnership generate
the revenue in 1,020
corers GBP (2018).
also, they provide
their product majorly
in the UK but they
also sell their product
in all over the world.
British red cross
distribute their
services generally in
the united kingdom but
they also expand their
services in the world.
Sources of funding NHS England uses the
long term and short
term sources of
funding in their
business. Government
provides the funds to
John lewis partnership
use the different
sources of funding
they use their own
funds also they use the
bank loan, venture
British Red cross uses
the various types of
funding to fulfil their
requirements they use
the charity and
governments aids
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such companies by the
way of budget and
bank loan.
capital, crowd funding
and public offering.
(Epifanova and et,al.
2015).
vision Company vision
statement is that they
enhance their service
in all over the world
also is to connect
people and
organisations, to create
a healthy environment
that enables change
and creates innovation
in order to improve
people’s health.
Partnership is owned
in trust for its
members, they share
the responsibilities of
ownership as well as
its rewards - profit,
knowledge and power.
The mission
statemented of the
British Red Cross is
that they provide the
best services to
mobilise the power of
humanity so that
peoples and
communities happy
and they enjoy the
services.
Mission Company mission
statement is that they
Delivering the better
health care services to
the consumers, to their
communities and also
provide the best
information to
population-wide and
individually focussed
initiatives (Georgescu
and Popescul, 2015).
These aim to
maximise health care
services in all over the
The company vision
statements is that the
main aims to deal
honestly with its
customers and secure
their loyalty and trust
by providing
outstanding choice,
value and service.
Vision statements of
the company is that
they provide the best
services in the world
where everyone gets
the help they need in a
crisis.
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world It's all about
trying to keep people
well. delivering better
care through quick
access and new
technology with
modern services.
objective  To increase
the customer
base
 To enhance
the quality of
work by
using the
advanced
technology
tools and
techniques
 To increase
the customer
base by
providing
quality
product.
 To increase
the sale by
giving the
best
opportunity
to the
customer
(Helm and
Gritsch,
2014.).
 Protect life
and health of
the people.
 To decrease
the number
of deaths,
injuries and
in the crisis.
M1 Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation.
The structure size and scope of the NHS England its describe that company operates
their business in all over the world also company achieve their objectives by set the mission
and vision statements. They provide the best medical services to the customer on the minimum
price.
8

John Lewis partnership also contribute in the economy of united kingdom they serve the
financial and retail services in the UK as well as in the world they follow all rule and
regulations of the government provides the Clothing, watches & jewellery, cosmetics,
housewares, furniture, beds & bedding, audio-visual, computing etc. (Glova, Sabol and Vajda,
2014). the main aim of the company it is that they serve their services with high quality product
and achieve the trust among the customer. Furthermore, company follow their vision and mission
statement by achieve the objectives and goal of the company.
Red cross is the Voluntary Sector Company their main motive is save the people in the
critical situation. They provide the first aid and medical services to the customer also they
contribute in the economy by gives the best services they also set the target for achieving the
goal of the company.
D1 Provide a critical analysis of the complexities of different types of business structures and
the interrelationships of the different organisation
As per the view of (Belás, J and et.al. 2015) the John Lewis partnership face the different types
of problem in private sectors which is like unnecessary control and regular procedure, law ratio
of profit and lack of finance its creates the negative impact on the structure of the business
because firm cannot easily run their business and they are not generated the high profits.
Furthermore, the interrelationship between the different departments of the John Lewis
partnership face many problems related to the budget and money management because every
department wants the finance in their own departments and they fulfil their requirements. so its
increase the conflicts between the departments because they fulfil their needs first. Marketing
department need fund for promoting their products or services in market to attract its target
customers. Finance department provide funds to marketing departments to achieving the goal of
the company. So the process of exchange the funds it takes so much time and it also increases
the cost of production.
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LO2
P3 Relationship between different organisational functions
Organisational function consists of set of different activities that is being carried out in
different department of the organisation. It includes department such as marketing, human
resource, information technology, finance, etc.
Interrelationship between different organisational functions
Manufacturing and marketing department:- These two department is having close
relationship between their functions and it plays an important role in increasing the performance
of the company. Marketing department is depended on manufacturing like if the product is not
manufactured then it cannot be sold into the market. So marketing of a product is depended on its
production (Hamilton and Webster, 2018)therefore, production department is depended on sale
of product in the market and helps in increasing profit of the company. As production function
produce new products, maintain quality and then marketing function deliver it in the market for
resale and helps in satisfying the needs and wants of a customer. However, in John Lewis both
these functions play an important role as depended on each other for its operation. These
functions help in achieving organisational objectives by increasing sales and profit as well as
performance of John Lewis.
Finance and marketing department:- These functions are two pillars of the company that
helps in growth and earning profit for future. Marketing is depended on finance for the money
that is being required for investing in promotional activities of the company. If finance is not
provided to marketing then it will not be able to advertise the product into market and that will
decrease sales of the company. Without advertising sales cannot be increased and that will affect
profit of the company. Therefore, in John Lewis marketing department plays a crucial role as it is
social media networking platforms that require investment in the promotional activities. It also
helps in achieving organizational objective as without these two functions John Lewis do not
grow such as if there is shortage of sales then profit will be less that leads to less opportunity in
the company.
Operation and IT department:- Operation department is depended on IT as if the operation
department cannot provide proper equipment then IT department will not be able to do proper
arrangement that is required in the company (Prajogo, 2016). also, plays a crucial role like
without internet company's operation is not working properly. As in Facebook both these
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functions are important as it a social media platform that requires proper set up of equipment in
the company. Without these function John Lewis organizational activity cannot be interpreted. It
helps in achieving organisational objective as if John Lewis's operational and IT is working
properly then it achieves its objectives by providing better services to its customers.
Human resource and finance department:- Human resource department is responsible for
arranging all the activities such as recruitment, training and development etc. of new employees
in that finance is required for organizing training and development program so it has to ask for
finance department to make arrangements for it. For organizing activity finance department have
to depend on human resource that will help in motivate employees to do work effectively and
efficiently. This enhance organisational objective of John Lewis as if employees are motivated
then it will help in growth of a business (Hillary, 2017).
These functions also helps in achieving organisation objective of John Lewis as if they are
working in collective manner then it will be beneficial for the company. Organisational function
will have a greater impact in achieving its objective. These functions will have an increase in
operational efficiency of the company.
M2 Advantages and disadvantages of interrelationship between organisational functions
Advantage of interrelationship organisational functions are if the departments are
interconnected with each other then it will help in enhancing growth of it and bring more
opportunities in the business. Through this interrelation every department is coordinating in
achieving objective of John Lewis. In addition to it teamwork enhances opportunities for the
company. It helps in increasing efficiency and speed of doing work collectively. If the work is
being done in collective manner employee relation is also maintained and they are motivated to
do work.
Disadvantage of interrelationship organisational functions are as there are fewer chances
of conflict between the employees regarding incentives or extra benefits. It may lead to increase
in competition that will sometimes impact operations of the company (Laudon and Traver,
2016).will also affect decision making as different department is having different opinions so it
will difficult to take decision for the company that what is right and wrong. Responsibilities can
be shifted from one department to other so it will create problem in working environment of John
Lewis. As some employees are not maintaining good relation with their co-workers so it will
lead to distribution of employees in the company. These functions will have an impact upon
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organizational structure and objective. If there is conflict in the company that will affect the
working environment of John Lewis. As these organizational function are more effective
however they help in coordinating overall work of company. These functions will affect
operation as well as coordinating in every aspect of the business. They are attracting more
customers that will enhancing future growth in the company.
LO3
P4 Impact of macro environment upon business operations
PESTLE analysis refers to identifying external factors that will affect the working of the
organisation. It includes Political, Economical, Social, Technological, Legal and Environmental
factors (Hair and et. al.,2015).
Political factors
These factors include government policy, political stability, foreign trade policy, labour
law etc. Political stability of the country will affect the functioning of the John Lewis. As there is
a risk in setting up a business in outside country. Corruption will also affect functioning as well
as distribution process of it. Changes in the government policy will create problem in doing
business from one country to another. Therefore, laws are also different in different countries so
it will difficult to accepting changes according to that country. Interference in the company's
operational activity by government also lead to disruption in John Lewis.
Economic Factors
This include inflation rate, exchange rate, interest rate, unemployment rates etc. These
factors directly affect the purchasing power of the consumer in the country. Exchange rates will
affect the import and export of material from other countries. Increase in inflation rate will affect
need and wants of the consumer as they are not able to buy product and services because of price
rise(Quinlan and et.al.,2019)As if there is shortage of skilled labour due to unemployment in the
country. Interest rate will create problem in import and export from supplier to other country.
Social Factors
This factor consist of growth rate, income distribution, career attitude and lifestyle etc.
Different country is having different lifestyle so this will differ John Lewis operations.
Difference in culture will differ people such as male and female like in some countries females
are not allowed to do work. Attitude create differences in the working environment in John
Lewis that will sometime lead to conflict between the employees.
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Technological Factors
These factor include innovation, automation, research and development etc. Changes in
the technology will affect the operations of John Lewis. This will also have an impact on value
chain of the business. Adopting new technology is difficult for the company as this will increase
operating cost and also loss to the company. Through this changes will also disrupt the
technology and may lead to loss for company (Chang, 2016).
Environmental Factors
These factors include weather, climate, environmental offsets and climate change etc.
Changes in the weather will affect functioning of John Lewis. Due to changes in the climatic
condition will affect operation of the company. There are laws that prohibit use of chemicals that
will pollute the environment and health of people. There are separate laws made for air and water
pollution that have to be followed by company who expanding its market share in other country.
Legal Factors
This will include discrimination law, employment laws, consumer protection, health and
safety laws etc. There is lack of skilled labour in the country so according to employment law it
will help in enhancing education that will bring skilled workers in the company. As this will
create competitive affect among the companies in the country.
M3 Analysis of PESTLE model
This model helps in analysing the external factors that affect the functioning of John
Lewis. Through this model company can achieve its objectives by doing CSR activities in the
company. From this model it can be analysed that these factors helps in gaining competitive
advantage for John Lewis (Andersson, Forsgren and Holm, 2015) company knows about its
activities then it will be easy for maintaining employee relation in the company. Pestle model
helps in knowing about the external factors that affect within organisation. If company is already
aware about the factors then it will help in easy operation of John Lewis.
P5 External analysis of John Lewis
SWOT analysis helps in identifying company's internal factors that affect working of the
company. It includes strength, weakness, opportunities and threat of company.
Strength
John Lewis is having a strong image of brand in the market that helps in attracting more
customer towards company. Customers are the king of the market so satisfying their needs and
13

wants is necessary to take competitive advantage in the marketplace. It is also doing its business
through online marketing that facilitate them to gain goodwill in market. However, it is having
effective employee relation in the company that will lead to increase motivation thus helps in
increasing sales and profit. It provides wide range of products to customers such as clothing,
watches, cosmetics and jewellery etc.
Weakness
Its weakness is it do not have experience in doing business at international level so it will
not be able to expand its business operation in other country. It has lacking behind in using
different marketing strategy that will be helpful for it. As it deal in so many products so it will
difficult to adopt various marketing strategy that will be helpful for the company. Adopting
different marketing strategy will lead to increase operation cost of the company (Oriesek and
Schwarz, 2016)rough this John Lewis is lacking in taking competitive advantage in the
marketplace.
Opportunities
John Lewis is having an opportunity to expand its market at international level.
Expansion may lead to increase its sales in the market that will create more customer attraction
towards the company. It can sale its products by using unique selling proposition for different
range of products in the market. By entering into partnership at global level will also in
expanding its business. Development of new product is an opportunity for John Lewis that will
help in growth as well as development of product in the market.
Threats
One of the biggest threat for every company is its competitors and new entrant into
marketplace. They create more competition in market and through this customer will shift from
existing brand to new brand. Due to changes in the law of the country will also affect proper
functioning of John Lewis. Availability of proper cash flow is also big threat that will affect sales
and profit of the company(Ayios, 2018).therefore, competitors will bring stronger competitive
advantage that will become the biggest threat for company.
LO4
P6 Interrelation of strength and weakness with macro factors of environment
Swot help in identifying internal factors that affect company's operation while macro
factors i.e. Pestle helps in identifying external factors. If company's brand image is not good then
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it will not able to remain stability in the marketplace. Economic factors is having an impact on
the opportunity that is being gained by the company in the marketplace. Inflation rate will reduce
purchasing power of customers so it will be threat for the company to survive in competitive
market. Changes in the technology will lead to disruption of current technology that is being
used in John Lewis. Through this company is lacking in its business operation and may lost its
customer in market (Saleem, 2015).
M4 Influence of Swot analysis on decision making
Strength plays an important role for the company as it helps in providing advantage to
company to expand its business in the marketplace. It helps in taking decision for the company
by considering the strength as it helps in growth for future course of business. Strength of the
company helps in achieving success and growth in the future. This will be beneficial as
providing more opportunities to the company. Weakness will influence the decision making in
John Lewis as this will be difficult for taking decision for many purposes in the company.
Internal factors affect decision making in the company as if changing in the policy will lead to
affect operations in the company. This will also lead to greater opportunities for future growth.
Threat will also affect decision making in John Lewis as threat is dangerous for companies to
survive in the competitive market. There are many factors in the company that will affect its
operation that will lead to decrease profit for the company. As there are so many factors that will
lead to increase its business operation as well as also decrease its identity in the marketplace.
D2 Impact of macro and micro factors on business objective and decision making
Swot and Pestle analysis will have an impact on business objective and decision making
all they affect company's operation cost when technology is being changed this will lead to
disruption of old technology and affect objective of growing into the business. Decision making
is related to adapt in the climatic condition of the company. This will create an issue in the
company to tackle different sources in the company. Political instability will affect company's
operation and through this decision cannot be taken by John Lewis. If the brand image of the
company is not good then it will have a bad impact and its difficult to take decision and
achieving objective (PESTLE Analysis, 2016). Consumers are shifted from current market to its
competitor. This create a long term impact on decision making and objective of the company.
15

CONCLUSION
From the above study it can be concluded that there are different types of organization
that consist of legal structure, size, scope and objectives of the company. Different organization
is having different functioning strategy to attract customers towards it. There are external and
internal factors that affect working of the company's operation. This will lead to create
competition in the market. Different departments are interlinked with each other in the company
such as marketing with human resource, finance with marketing etc. Strength of the company
will help in achieving more growth and bring opportunities in the company. The company's
growth will be increase through different functions that will work for future growth in the
business.
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