Importance of Effective Business Operations

The assignment provided focuses on the critical aspect of effective business operations in achieving success. It discusses how a well-structured organizational framework, transparency in business practices, and leveraging digital technologies are essential for businesses to thrive. The assignment draws from various sources, including books, journals, and online resources, to provide a comprehensive understanding of the topic. It is recommended that students publish this document on Desklib, a platform providing past papers and solved assignments for students.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................1
TASK 3............................................................................................................................................3
P4 Positive and negative impacts the macro environment has upon business operations,
supported by specific examples..................................................................................................3
TASK 4............................................................................................................................................4
P5 Internal and external analysis of specific organisations in order to identify strengths and
weaknesses..................................................................................................................................4
P6 Strengths and weaknesses interrelate with external macro factors........................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment is a set of both internal and external factors which directly affect
the entire activities of the company at market place. It refer to those person and factors which can
be and can not be controllable by the firm. Thus, it is important for manager to effectively
analyse as well as examine all the factors which can put their impact on organizational activities
in positive and negative manner. In addition of this various type of companies are operate
business with some specific purpose and aims at market place. This will aid them in enhancing
their performance level (Bagtasos, 2011). Along with this, business environment consider as an
important aspect for every type of business to attain better success. It define various chances in
technologies, customers demand, government policies and many more. For attaining better
success manager is responsible of implementing all these changes in business organisation to
improve their performance level. Present report is based on Walmart, is famous and popular
retail company in which they having various departmental stores, supermarkets and many more.
By this they serve quality products and services to their customers. This report discussed about
different type of business organization with their specific purpose. Along with this, relation of
business function with its organisational structure is also mentioned in this project which may
leads in performing entire activities. Lastly impact of external environment is also mentioned in
this report with its positive and negative ways.
TASK 1
Covered in PPT
TASK 2
P3 Relationship among various functions of organization and how they link to organisational
objectives and structure
Walmart is an biggest company that operate a chain of supermarkets, grocery stores in
various location. They manufacture various products and services to its customers as per their
needs and wants. The main aim of this company is to capture larger ,market share form its rivals
by competing its customers. Along with this, various function of business organization are there
which is interlinked with organizational structure. In this company perform their activities with
the purpose of earning profit. Apart from this, it includes marketing, human resource,
operational, finance and so on which helps in achieving objectives (Bhaduri and Ha-Brookshire,
2011). All these are play vital role in improving the performance level of the company in which
1

they offer services to end consumers. Furthermore, function of various department also related
with each other in which they perform their activities to get positive outcomes. Thus it is
important for manager to ensure that all the function are perform their activities in right direction
(Bovee and et. al., 2016). By this company easily attain desirable goals and objectives. All these
function can be understood by following points: Human resource department: This department consider as an important section in which
manager of the company hire skilled and talented people to fill their vacancy at
workplace. With the help of this company execute their entire activities in most effective
manner which may leads in attaining set targets. Along with this, manager also consider
various aspects such as performance appraisal of workers, compensation and job rotation
which may help workers to enhance their productivity level at workplace. In addition of
this, for attaining better growth level by hiring right people at right job which may leads
in attaining positive better results. Finance department: it is important for manage to formulate as well as prepare effective
budget to various department in which they effectively execute their business activities in
effective manner. Along with this, adequate amount of funds to operate their entire
function in appropriate way. This will help in reducing the wastage of funds and
resources by maintaining their standards. With the help of this number of customers are
attracted towards the products and services. Marketing department: It is also a vital department of organization which aid in
increasing overall sales of the company. In this, it is important for manager to determine
the customers needs and wants by using better communication channel. Along with this,
marketing manager also communicate with their target customers in order to increase
overall sales of the company by delivering quality services (Budhwar and Debrah, 2013).
For example, Walmart tries to increase their market share by10% in upcoming time in
which they focus on their marketing activities. This will aid in increasing their
profitability level.
 Production department: Under this, company manufacture quality products and services
as pert their customers needs. Along with this all the activities of this section is highly
related with the organizational objectives which helps in enhancing performance of the
company at market place. For example, Walmart wants to improve their products quality
2

so that they focus on manufacture process which may leads them in enhancing their
quality of products in effective manner.
Organisational structure: It define a way which follow by the company to perform entire
business activities in order top serve their services to end customers. Basically, the structure of
the company is divided in some aspects are as follows: Function based: In this segmentation of the business is related with the function which is
perform by the company to attain set goals and objectives (Charter, 2017). Along with
this, finance, marketing, HR and another function are also based on segmentation. Geography based: Under this, segmentation of the company also based on different
regions in which company serve their products as per customers demand which may
leads n enhancing their performance level. Customers based: Segmentation of business organization is also related with customers
taste and behaviour which helps in providing better satisfaction to their customers by
providing them quality services.
 Product based: Under this, company segment their products which offer to customers as
per their needs. Walmart produce variety of products and services like home and
furniture, clothing, sporting goods and fitness and many more. In this, the organisation
structure is divide as per its various products and services.
TASK 3
P4 Positive and negative impacts the macro environment has upon business operations,
supported by specific examples
Walmart is famous company in which they operate their activities in various countries in
this so many factors are exist in business environment which impact on overall performance of
the company. Along with this, any kind of changes in external elements that influence the
company in both positive and negative way. Political factors: Government of the nation formulate various policies and regulation
which impact on the entire business activities. Thus it is important for Walmart to follow
all the policies within their workplace to attain better results. If company fails in
maintaining then it create issues and obstacles at the time of expanding their business
activities (Walmart PESTEL/PESTLE Analysis & Recommendations, 2017).
3

 Economical factors: It consider inflation, interest rate and many more which exist in
country which directly affect the overall performance of the company. In this positive
condition of the economic will assist in increasing overall profitability of the company at
market place (Cheng and et. al., 2012). Social factors: This factors includes customers taste, attitude, culture, and age which
affect the purchasing decision of the company in which company enhance overall sales of
the company. For attaining better results, company have to consider all the elements at
the time of serving their products and services to its customers which may leads in
attaining their satisfaction level. Technological factors: It is vital for Walmart to implement new and innovative
technologies within their production activities which may help them in enhancing their
productivity level at market place. The negative impact of using advanced technologies is
that it increase overall cost of the company. Legal factors: For attaining positive brand image at market it is important for Walmart to
consider all the legal factors within their business activities which may leads in
improving their performance level. Along with this, if company fails in implementing
legal action then firm responsible for paying penalty. This will negatively affect on the
brand image of the company.
 Environmental factors: Different type of business organization produce various products
and services to offer their services to its customers. In this, it is important for company to
adopt principle of minimum wastage which may leads in improving the performance
level at market place (David, 2011).
TASK 4
P5 Internal and external analysis of specific organisations in order to identify strengths and
weaknesses
Internal and external analyse is highly contribute in improving the performance level of
the company. With the help of this, company maintain their positive image at market place. In
this context Walmart is famous and biggest retail company which offer variety of products to its
customers. In this they conduct SWOT analyse which aid in capturing larger market share.
Strength Weaknesses
4

 Walmart is popular retail store in UK
market and it is one of the main
strength of this company in which
company easily enhance their
profitability level.
 Company serve variety of services to
its customers as per their needs which
may leads in attaining sustainability at
market place.
 High competition is main weakness of
this company in which they reduce their
performance level at market place.
 In some areas, company fails in inviting
customers due to less wages of the
country.
Opportunities Threats
 Company expand their business in new
areas to attain better success.
 Walmart operate their process for rising
standard of the products.
 Due to global retailer, number of
political problems are highly affect the
overall performance of the company.
 Number of people use online selling
which may reduce the profitability
level.
P6 Strengths and weaknesses interrelate with external macro factors
For analysing the macro factors it is important for management to conduct PEST analyse
which may leads in evaluating the impact on business activities. In this, company use effective
device to evaluate its strength and weakness (Meiners and et. al., 2014). Thus it is important
for manager to utilise strength as an opportunities in which they easily overcome form the
weakness in effective manner. In this context, manager of Walmart assess the external macro
factors with its strength and weakness are as follows: Political factors: It is important for Walmart to follow all the government rules and
regulation at the time of executing their business activities. With the help of this company
enhance their overall sales at market place. The main strength of this factors is that if firm
consider all the regulation then they easily manage their reputation at market place. Economic factors: It include exchange rates, inflation and many more which directly
impact on overall performance of the company. So that it is important for Walmart to
5

consider all these factors for performing their activities effectively. In this company
easily generate profitability level at market place by making their positive image. If any
kind of variation are occur then it negatively affect the performance of the company. Social factors: This factor largely affect the company performance level in which
Walmart have to consider customers needs and wants to produce quality services to its
customers in order to provide them higher satisfaction level. The main strength of this is
that company easily make their strong goodwill at market place. On the other side, if
company dose not consider quality services then it negatively impact on customers and
company image as well.
 Technological factors: For attaining better success at market place, it is important for
Walmart to use new and innovative technologies within their production process. As they
offer quality services to its customers as per their needs (Pikka and et. al., 2011). The
main strength of this is that company will able to utilise resources in effective way. On
the other side, it also required time and cost in which company needs to conduct training
and development programs for their workers.
CONCLUSION
From the above mentioned report, it can be concluded that it is important for manager to
analyse all the factors business environment which may leads in improving the performance
level at market place. As per today's market, number of companies operate their business with
their specific purpose and aim for attaining better success. Thus, it is vital for manager to
maintain their entire business effective so that they can easily accomplished their target in
appropriate time frame. Along with this, all the business function are interrelated with
organisational structure. With the help of this, company enhance their positive brand image at
market place by performing all the activities in appropriate manner. This will aid in capturing
larger market share form its rivals.
6

REFERENCES
Books & Journals
Bagtasos, M. R., 2011. Quality of Work Life: A Review of Literature. DLSU Business &
Economics Review. 20(2).
Bhaduri, G. and Ha-Brookshire, J. E., 2011. Do transparent business practices pay? Exploration
of transparency and consumer purchase intention. Clothing and Textiles Research
Journal. 29(2). pp.135-149.
Bovee M. R. and et. al., 2016. Business communication today. Pearson Education India.
Budhwar, P. S. and Debrah, Y .A. eds., 2013. Human resource management in developing
countries. Routledge.
Charter, M. ed., 2017. Greener marketing: A responsible approach to business. Routledge.
Cheng R.S. and et. al., 2012. Supply risk management via guanxi in the Chinese business
context: The buyer's perspective. International Journal of Production
Economics.139(1). pp.3-13.
David, F. R., 2011. Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Meiners M. and et. al., 2014. The legal environment of business. Cengage Learning.
Pikka A. W and et. al., 2011. The business enabling network–a tool for regional
development.nInternational Journal of Innovation and Regional Development. 3(3-4).
pp.324-344.
Rose, and et. al., 2013. Work environment and the bottom line: Survey of tools relating work
environment to business results. Human Factors and Ergonomics in Manufacturing &
Service Industries. 23(5). pp.368-381.
Sass, M. and Fifekova, M., 2011. Offshoring and outsourcing business services to Central and
Eastern Europe: Some empirical and conceptual considerations. European Planning
Studies. 19(9). pp.1593-1609.
Scheer, A. W., 2012. Business process engineering: reference models for industrial enterprises.
Springer Science & Business Media.
Turban, E., Sharda, R. and Delen. 2011. Decision support and business intelligence systems.
Pearson Education India.
Wheelen, T. L. and Hunger, J. D., 2011. Concepts in strategic management and business policy.
Pearson Education India.
Zsambok, C. E., 2014. Naturalistic decision making. Psychology Press.
Online
Walmart PESTEL/PESTLE Analysis & Recommendations. 2017. [Online]. Available through:
<http://panmore.com/walmart-pestel-analysis-recommendations-case-study>.
7

8