Business Environment Analysis and Impact

This assignment requires students to critically analyze the complex interplay between different aspects of the business environment and their influence on organizational success. Topics covered include ethical leadership, the role of e-commerce in a globalizing market, sustainable business practices, and the challenges of managing risks within SMEs. Students are expected to draw upon relevant academic literature and real-world examples to demonstrate their understanding of these concepts.

Business environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
Different types of organisations, their scope and size............................................................1
Task 2...............................................................................................................................................6
Volkswagen organisational structure.....................................................................................6
Mark and Spencer's organisational structure..........................................................................6
Relationship between organisational function and department..............................................7
Help to achieve organisational objectives..............................................................................7
Task 3...............................................................................................................................................8
With Pestle analysis, Positive and negative impacts on Volkswagen....................................8
Task 4.............................................................................................................................................13
Swot analysis of Volkswagen...............................................................................................13
Impacts macro and micro factor on business strength and weakness..................................14
Conclusion.....................................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business environment is the sum total of all internal and external factors which influence
the development, performance, and outcome of a business. In this organisation lot of employees
working and lot of work allot to them, and their way to work, management and entire task can
include in the business environment. The present report is based on Barclays company which
was registered in 1690 and It has 120000 employees. This report is based on business
environment of Barclays's and different type of organisations, scope, size, interrelationship of the
various function within organisation and their structure.
Task 1
Different types of organisations, their scope and size
According to market, there are different types of business and companies, but they all
have different scope and size. There are five types of business, sol trader, partnership, private,
public and voluntary .
1. Sole trader
A sole trader business is based on single person or an individual, who legally responsible
for entire aspect of the business. When company can not be able to earn profit, then any debts
and losses can not be shared with others . It is the angila tax help organisation which operate in
sole trader organisations. This is the simplest and inexpensive business structure that anyone can
choose when starting a business in the area you want to start (Shehu and Mahmood, 2014). It has
some advantage and disadvantage which is mentioned below :
Advantage -
It is simple to start and operate. In this business, a person can easily take the decisions and
control the entire business and assets (Menychtas and Varvarigou, 2014). Easy to change
business structure when business grows or if wish to wind things up. Fewer reporting
requirement.

Disadvantage -
When business in the losses, then it can not be shared with other. Entire assets are at risk if
things go wrong (Belás and Novák, 2014). Unlimited liability.
2. Partnership
A partnership business is a legal structure which start by agreement between two or more
person to carry on a business as co owners (Dragoi and Draghici, 2013). This is the Campbell
company who operate in partnership firm. It is a business multiple owners who invested in the
business particularly.
Advantage -
Two person are better than one. Its a opportunity to earn more profit compare than solo trade
business. Business can start easily and it can start with low cost. In the partnership business,
borrowing capacity is greater than individual business. If circumstances change in the business
then structure can be change easily according to need (Ceptureanu E. G., 2015). It can run by
each partner and their time will be precious for the partnership business. Partner's business
affairs are private and there is limited external regulation.
Disadvantage -
Each partner is liable for losses and debts. Miscommunication can destroy the partnership
business. One person can not take the decision (Kim and Kocabasoglu-Hillmer, 2013).
Management can not be handle easily. There is a risk of management, agreements and cost.
Each partner is liable for their share of the partnership debts as well as being liable for all the
debts and they is liable for actions by other partners.
3. Private
Business firm in the non public sector of an economy, controlled and operated by private
individual and it is not operate by any government employees or civil servants (Cavusgil, and
Rose, E. L., 2014). It is based on Volkswagen which is private sector organisation.
Advantage -
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One of the best advantage of private company is that all employees or member are know to one
another, even their control is in the hands or capital's owner. Management of organisation and
their affairs and conduct of business is very high flexibility (Meiners and Edwards, 2014). In
the company at least two director is working. One of the best advantage of private organisation
is that it has limited liability, because their employees enjoy the facility. When private company
get the certificate of incorporation, then they can start their business immediately.
Disadvantage -
In stock changes shares can not be quoted. One of the big disadvantage of private limited
company is that they can not issue prospectus to general public and its a very tough thing to
transferability of shares by its articles (Crane and Matten, 2016). The number of members in
any case can not exceed 50 in the private limited organisation.
Volkswagen size, scope, legal structure and objectives -
Volkswagen maintained the biggest market share in Europe for over two decades. Its
headquarters is in Wolfs-burg and Germany. It is worldwide organisation in the auto mobile
sector. Its products are Auto mobiles, commercial vehicles, engines, motorcycles, and turbo
machinery (Othman, and Rahman, 2014). It production output of 2016 is 10.41 million. In the
services area it is scope giving Banking, financing, fleet management, insurance and leasing
services. Volkswagen has 626715 employees are working till 2016. Total assets of Volkswagen
is 409.702 billion in 2016. Main objectives of this company are profitability, very best
employers, role of the environment, safety and integrity, excited customers. It is the parent
company of the Volkswagen group. In the list of shareholding in accordance with section 285
and 313 of the Handelsgesetzbuch, which can be accessed at www.volkswagenag.com and is
part of the annual financial statements (Jennings, 2014). Volkswagen provides the information
services presented here on the basis of these as Notice in accordance eith directive 1999/94/EC
regarding fuel consumption and CO2 emissions and delivery of information services and related
guarantees.
4. Public limited company
A public company is a company that has issued securities through an initial public
offering and is traded on at least one stock exchange or the over the counter market (Amit, and
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Zott, 2014). A public company is corporation whose ownership is among the entire public in lot
of shares which are freely traded on a stock exchange.
Advantage -
One of the main advantage of public limited company is that better access to capital and vales of
shares. Through public limited company it is to give a company a more honoured profile
(Zsambok, 2014). It has more opportunities in the public sector and easily make acquisitions.
Disadvantage -
One of the biggest disadvantage of public limited organisation is that more regulatory
requirements. In the public company higher levels of transparency required and lot of issues of
control and ownership (Belás and Macháček, 2015). It is a short termism company and initial
financial commitment is more higher, so that it is very big disadvantage for public limited
company. More vulnerable to takeovers in it.
Mark and Spencer's size, scope, legal structure and objectives -
Mark and Spencer is a public limited company in London. It has 979 stores in the UK
including 615 that only sell food products. It is a first British retailer company in the market. It
is worldwide retail company. It revenue is 10,622 million in 2017. It has 84,939 employee in
2017. It has 979 store in the UK, 454 international stores, 58 stores in india, 48 store in Turkey,
and rest of the world. Mark and Spencer is the biggest company in the UK and their objectives
are influence of stakeholders, give a sense of the future, complete the mission on time, want to
become food selling company in the market, want to give best service to their customers,
employee orientation, sale objectives, increase number of sale, and environment friendly.
5. Voluntary -
It is the non profit sector or non for profit sector. It is the service of social activities
undertaken by companies that are not for profit or non governmental (Bryman and Bell, 2015).
Voluntary company's main purpose is to benefit and enrich society, without profit. It is for
public and society who can not able to complete the need for survival in their life.
Advantage -
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One of the biggest advantage of voluntary company is that they don't have to pay income tax,
capital tax (Pestle, and Smith E.K., 2017). It is a tax free organisation, because it is not
profitable company and it is for society or people who can not able to survive in the world.
Charity can get special VAT treatment in some situations. Charities are able to provide the
public assurance that they are being monitored and advises by office of the Scottish charity
regulator or in England and Wales, The charity commission. One of the another advantage of
this company is that they can get charity from the another people or another companies or
celebrities.
Disadvantage -
There are very strict rules that apply to trading by charities. Trustees are not allowed to get
financial benefits from the charity which they manage. When charitable and personal interest
conflict then trustees need to ignore this situations. Can not get the profit.
Friends of Williamson's size, scope, and objectives -
It is a certified charity dedicated to the protection and exploration of the Williamson
Tunnels and to increasing knowledge of Joseph Williamson's works. It is the worldwide charity
company in the world. Its scope is very large than other companies. Objectives of this company
are provide the services to the people who need that services like fund, food, house etc. Other
than that their main objective is help the poor people who can not able to survive their life.
Company provide charity to the people for their survival, children who can not able to pay in
schools, colleges, and many more activities done by this company for different objectives or
purpose. Further, main objective of this organisation is non profitable and wok without profit or
earnings.
Task 2
Volkswagen organisational structure
Each and every organisation in business environment has a particular structure. This
structure usually includes the framework, features, manage of organisation and their objectives.
The main structure of Volkswagen is Inline, functional and staff aligned structures
organisational structure examples - inline. Volkswagen follow the both type of structure which
are Project bases structure and matrix structures. Project base structure is based on entire project
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which started by the company. Volkswagen structures are very good in term of products and
services.
Mark and Spencer's organisational structure
Every public sector organisation in the business environment has different types of
structure. This company follow the Vertical structure for their organisation. In this structure,
people who on the top are increasing number of people in the middle management and lower
level positions. Other than that some people make decisions and policy and make people carry
them out. Other structure is Horizontal, which characterized by some people who at top position
and middle position. The third one is Divisional structure which based on speciality or
geography and it divide responsibility and function. Mark and Spencer follow these three
different type of structure for their organisations and through these they can able to make good
structure for their company.
Relationship between organisational function and department
In every organisation they hire many people for the work and complete the different task
on time. They make different department for each and every different work which allotted
according to employee's profile and knowledge. These all things manage the relationship
between Volkswagen's function and department. There are lot of function in the Volkswagen.
When that functions are followed by employees then a relationship create or build between both
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side ( Kolari and Smith, 2016). It can be positive or negative, but if employees and department
will work good and together then entire negativity will reduce as soon as possible and positivity
will be increase. Each and every department receive different task from the organisation. They
hire a manager in every department for entire work. It will help to company in increasing brand
value, smooth work , profitability, numbers or employees, numbers of satisfaction employees
and entire department's work. When some department will work according to task then their
relationship will increase in good or positive thing. It all relationship will help employees in
term of execute the task, complete the work on time, etc. Volkswagen follow the different type
of structures for their employees and department, so they can work together and help each other
in very professional way. That entire structures help the people or employee in increasing help,
work on time and employees happiness. The relationship between organisational functions and
department are based on organisation's structure, It depend on which structure is followed by the
company and how that create a good relationship between bot part. Relationship is very
important thing in any organisation, because lot of work and thing depend on relationship. If
company's employees will be happy then their entire department will be automatically happy
and they will able to give their best at work place .
Help to achieve organisational objectives
Organisational objectives are main part of any business, because through this company
can get the result as they want in future. They receive fund or profit and become the brand in
competitive market. There are some benefits from organisational objectives which are
mentioned below :
 Through Marketing department company can increase their sale and profitability.
 Marketing team work according to customer need and their satisfaction, then
Volkswagen can be able in increasing numbers of customers and satisfy customers.
 Human resource team hire employees and manage the entire employees or department.
 They can be able in learning and teach to employee about company's relationship and
professional working.
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 Finance department manage the entire fund of an organisation and they provide fund
when its required by company. It will help company in best investment and accounting
for the goods, profit or loss and sale or purchase.
 Through learning session, development program company increase the employee's
development. When company required employee's development, then its very beneficial
for the company and employees.
 Entire department complete their task according to allotted to them and they can try their
best at workplace to execute the work in professional way.
 Company can increase their profit and revenue through these all department and
objectives.
 They can invest in best business and increase the business in term or size, customers,
locations and product wise.
 Satisfaction customer make more customers, because they are happy and satisfied with
the services and products which provided by the organisation.
 Company can increase their product and services for the customers and according to their
need or requirement. So people can easily get the product which they want and use the
services in easy way.
Task 3
With Pestle analysis, Positive and negative impacts on Volkswagen
Introduction
In this present task pestle analysis of the Volkswagen organisation is covered. Other than
that their positive impacts and negative impacts are discussed. Along with this, their political,
economic and social impact are discussed in the task.
1. Political -
Positive impacts -
 Some time government reduces tax, then it is beneficial for the organisation and it will
help company in deceasing expenses. Tax can be reduce when government will change
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in the specific country. When change the government, then also cage the tax slabs or
their rules and regulation.
 Economy can be improve through political working, some politics leader work according
to economy so it can be better in the company (Boons and Lüdeke-Freund, 2013).
 Business environment can be good and it help company in making healthy workplace.
Negative impacts -
 Some time government increase the tax, then company has to face some of the issues
regarding fund and investment.
 Company's revenue system can be damage and profitability can be decrease, if tax will
be increase. Some time government increase their tax system for the business, and it will
be not beneficial the organisation.
 Volkswagen is a world wide organisation, so when tax slab is change of different
countries then they have to face problems of tax return and fund.
 Business expand can not be possible. There are different tax rules and regulation and
different countries, so it is very touch to expand business in another area.
2. Economic -
Positive impacts -
 When economic performance will be good then it is also profitable for the Volkswagen.
because company's economy is depend on world's total economy.
 When company's product prices will increase then they will be able to increase more
profit, because they can stock their product and they will sale after price increase.
 Purchasing power of customer can increase and they purchase more then before.
 World wide business can be expand and they can explore their business more.
Negative impacts -
 In the low economic factors, company has to face issue of their prices and rate.
 Foreign exchange services can not be use by company, when prices will decrease.
 When economic performance will not be good, then company's shares
automatically go down.
 If prices decease of any products, then Volkswagen has to face a issue of selling
their product in the market.
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 Volkswagen can lost their customers and their loyalty or faith in the bad
economic circumstances.
3. Social -
Positive impacts -
 Through marketing company can increase their customer's number and explore the
business in different areas.
 When people satisfy and happy with company's products and services, then they start the
mouth to mouth marketing and its helpful for the company in marketing their product in
large scale.
 Volkswagen can sale their products to the customers, who requirement of their product.
 Through cultural scheme company can increase their sale and provide best scheme to
their customers.
Negative impacts -
 When customers not satisfy with services and product of the Volkswagen, then they have
power to destroy image of the company. If they start destroy image then company has to
expense in marketing and it is a liability for the organisation.
 Through normal selling, company can not get the best revenue and profit from their
customers and can not sale their product. Product sale can be decease and liability can be
increase, if company will not start the cultural scheme.
 If company can not be able in produce their goods according to customer need, then it
will very bad impact on the organisation.
 When company expand their business in different areas then some location is full of
population and company can not able to provide their product and services to their
customers.
4. Technological -
Positive impacts -
 Well operational work and employees are able to do their work in easy way.
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 Employees can execute their work on time and they can handle their work with time
management ((Savrul and Sener, 2014)).
 They can be multitasking workers, as the company need and its beneficial for the
organisation.
 Employee development can be easy and they can able to learn technological things.
 Technology is very important and valuable thing in any company.
Negative impacts -
 Employees has to face some issue of learning while company teaching them about
technology or their systems.
 Time can be waste in learning system and teaching technological knowledge.
 It is an expensive factor of company, because when company work with technology, then
they need lots of system in the offices.
 Need more fund to invest and require more time to teach.
 Entire employees can not learn in a time, they need more time to learn proper system of
Volkswagen. So this is main part of the organisation in the profit and revenue.
5. Legal -
Positive impacts -
 There are certain lows that affect business environment in good way and save the
company's documents.
 Through legal structure company can build their brand anywhere in the world.
 No one can take action against the company if company's documentation is legal.
 Volkswagen can start their business in another location with legal structure.
 They are selling their product with legal, so their customers can not able to fraud with the
company.
 Company can receive the outstanding amount from their customers.
Negative impacts -
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 When company doesn't have any legal documentation, then its a big fault of an
organisations (Wetherly and Otter, 2014).
 Government can take an serious action against the company, if company's legal
structures is not good.
 Company can lost their entire assets and liability can be increase through bad or weak
legal structures.
 When company is not doing well in their accounting system, then it is very crucial
impact on company and they can lost their value and branding in the entire market.
 According to weak legal structure, company can lost their customers and their faith or
loyalty. So Volkswagen should be careful in the legal structures.
6. Environmental -
Positive impacts -
 Through this analysis company can get the information of their environment and
business structure.
 Volkswagen can get the information of their strength, weakness, opportunities and
threats.
 Strength can be increases, weakness can be deceases, and threats can be reduces in the
organisation.
 In order to earn more revenue, company can make a better strategy.
 Good strategy is help company in increasing profit, become brand value, get the
customers faith and loyalty.
 In the organisation employees environment can be improve and they are able to help
each other.(Belás and Macháček, 2015)
Negative impacts -
 Weakness and some threats create, when company can not able in providing good
services to their customers.
 Bad environment is decrease the employees behaviour and its not good for the company.
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 If company want that their environment will be good , they they should give training to
their employees, but it is very expensive. Through this expense company's profit can be
decrease and it can be main threat for the Volkswagen (Yi H., 2014).
 When tourism, farming, agriculture environment will not be good then it is not beneficial
for the company. Company's share can be dawn from these environments.
Conclusion
From the above task it is conclude about the positive and negative impacts on the
Volkswagen company. Along with this, it is also conclude about their strength, weakness,
opportunities, and threats.
Task 4
Swot analysis of Volkswagen
Introduction
Every organisation require to know about their condition of the business and company.
In this present task company's strength, weaknesses, opportunities, and threats are covered.
Along with this, Impacts macro and micro factor on business strength and weakness are
discussed.
1. Strength -
 Volkswagen presence is across the world and it is strong company in the competitive
market.
 Excellent brand recognition and it is the worldwide brand.
 Company's operational work is very well and it is the well managed by entire department
and their members.
 Volkswagen company is provide their products and services in 117 countries of the
world (Bovée and Thill 2014).
 The biggest brand portfolio among all automotive companies.
 Joint venture with local Chinese auto makers.
 It is top most company in gross revenue.
 This company's research and development are very well and through these they able to
use more technology in their company.
2. Weakness -
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 Through competition margins can be decrease.
 Volkswagen could not be able to make a big brand in India's market, because in India
Maruti and Hyundai have an very good sales figure, that why Volkswagen is not able to
penetrate against Maruti.
 Volkswagen expense more in advertisements for defeat Audi, Bentley and Porsche, but it
could not be able to defeat them ((Tukker and Tischner, 2017)).
 Marketing strategies are not attractive as customers requirement and their satisfaction.
3. Opportunities -
 Volkswagen can start their business in more countries.
 They can increasing fuel efficiency.
 They can start to make a modern cars and innovative designs.
 They can make auto driving cars, so people can attract to the cars and purchase that car.
 Company can make a best marketing strategies to attract their customers and increase the
sale (Kuratko and Covin, 2014).
 Fuel prices are expected to rise in the near future.
 Acquire skills and competences through acquisition.
 Purchasing power can be increase.
4. Threats -
 When company started marketing against Audi and Bentley, Volkswagen's brand
reputation has been hurt badly.
 Competition is more increasing.
 Different government rules and legal structure in different countries.
 Volkswagen's innovation is being implemented all across.
 It could not explore in India as well as good.
 Unattractive marketing strategies (Tukker and Tischner, 2017).
Impacts macro and micro factor on business strength and weakness
When political factors change in taxes, and it reduces then it will strength for the
Volkswagen, but many time taxes increase then it a weakness for the company. Economical
factor is also important for the organisation, because when economy going good then company's
economy also managed. Some time economy is not profitable for the company and it is main
weakness of a Volkswagen. Social factor is strength of the company through social scheme and
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selling, but when its go wrong then it is be a reason of weakness in the company. Some time
company can not manage the technical things, because its change time to time, so its also a big
weakness of a Volkswagen, But positive thing is company can use the entire technology for the
good operational work. Many of the time company can not be able to make a good legal
structures, then its become biggest weakness, but company manages some important documents
in legal structures, so it will help company in future and save the value of Volkswagen.
Conclusion
In this report it has been recognised about advantage and disadvantage, size,
scope, legal structure and objectives of Sole trader, Partnership business, Private company,
Public company and Volunteer company. Trough these entire report it is conclude that company
can know their strength, weakness, opportunities and threats and through it they can easily make
better strategy for the future. They can make some innovative plans for explore their business
and they can reduce their weaknesses and threats.
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