Literature Review and Analysis of Business Environments

The provided assignment is a literature review and analysis of business environments. It includes a list of sources related to the topic, which covers various aspects such as governance indicators, innovation, entrepreneurship, and environmental uncertainty. The assignment also provides online resources for further reading and understanding of the subject matter.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different purpose and types of organisations........................................................................1
P2. Scope and size of different types of organisations................................................................3
TASK 2 ...........................................................................................................................................4
P3. Relationship between organisational functions and their link with structure of organisation
.....................................................................................................................................................4
TASK 3 ...........................................................................................................................................5
P4 Impacts of macro environmental factors on business operations..........................................5
TASK 4............................................................................................................................................8
P5 Internal and External Analysis of Skoda Auto with other similar organisation....................8
P6 Evaluate how strength and weakness interrelate with the external macro factors...............10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
.......................................................................................................................................................15

INTRODUCTION
Business environment is a proper combination of external and internal factor that highly
influence on business and its operating situations. It means all of the factors that effect how the
enterprise functions including customers, employees, supply and demand, management and
business regulations. In other word, it is a collection of whole entities, individuals and other
aspects, which may or may not be under the power of the company, but can influence its growth,
profitability, performance and even survival. Health and safety act is an external part that effect
the internal situation of business functions or operations. In the present report, chosen
organisation is Skoda Auto, it is a UK based auto mobile industry. This assignment includes
different functions of organisations and their relationship with objectives and structure. There are
mainly three type of business such as private, public and voluntary like Skoda, Tesco and
Oxfam. All these organisations has different size, scope and legal structure which is also
determined in this study. Internal and external factors such as SWOT and PESTLE analysis also
analysed in this assignment that influences on business and its functions in a direct and indirect
and indirect way.
TASK 1
P1 Different purpose and types of organisations
Main aim and motive of every organisation is to gain maximum profit by satisfying needs
and wants of clients by providing quality products. There are different activities which are
performed by each and every departments of company. Scope of all organisation is highly
influenced by the business size. All companies has different types and purpose which are
determined as below:
Public limited organisation: It can be either a listed and unlisted business entity on the
stock exchange. They has limited liability in order traded securities to public and shares may be
freely. This business strictly regulated by government and are needed by law to bring out their
true and complete financial position so that capitalists can analysis the accurate worth of its
shares or stocks. Main aim and purpose of this organisation is to satisfy customers needs and
wants by rendering quality and healthy products. One of the main example of public limited is
Tesco which deals in different variety of grocery products. Legal structure of public sector is
divided into three parts which are shown as below:
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Central government: It is legal authority of national state and is a features of a unitary
state. They have distinct power at different levels which delegated or authorized to it by its staff
member. There are two activities such as printing of currency and collections of taxes are
undertaken in the hand of central government.
State government: It is a provincial government of a state subdivision in a national form
of regime, which exchanges political power and authority with the federal government. Main
function of this is to set the affairs of specific country. For instance: in order to encourage
education, different kind of programmes and policies are planed by the state government.
Local government: It is a form of public governance which, in a seniority of context
present as the lowest level of management within a given country. They have lack of power as
compare to state and central government.
Private company: Such type of business held under the private ownership. They may
publish stock and have business people, but their shares or assets do not dealing on public
exchanges. In addition, the shares and stocks of these entity are less convertible and their
estimation are not easy to determine. Main motive and purpose of this organisation is to earn
maximum amount of profit by satisfying basic needs and wants of audience. Main example of
private company is Skoda which is a part of automobile industry. Legal structure of Private
company are classified into three parts which are described as below:
Sole trade: It is type of enterprise which is also known as sole proprietorship. This
business is run and regulated by an individual with aim to maximise profit.
Partnership: It is an arrangement where two or more than two partners are accept to
advance their common and mutual interests. In partnership, there are different partners includes
such as individuals, interest based business, governments, schools and combinations.
Franchising: It is identify as a continue relationship among franchisee and franchisor in
which franchisor gives license or approval to franchisee which enable them to do business on
their behalf. It is necessary in training, organising, marketing, managing and merchandising
business in return of economic consideration.
Voluntary sector: This are type of business which are established for the motive of social
welfare of people are known as voluntary sector. One of the main purpose of this enterprise is to
render social services to people or community. Another motive of this sector is to enrich and
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enhance society. Main example of voluntary sector is OXFAM which is a non-profitable
organisation in United Kingdom.
P2. Scope and size of different types of organisations
There are mainly three type of organisation such as private, public and voluntary like
Skoda, Tesco and Oxfam. All business have different size and scope which are determined as
below in detailed manner:
Public organisation: Tesco is a public sector which deals in different variety of grocery
and many other products. It is a British international and general merchandising grocery chain
headquartered in United Kingdom. This company is founded in 1919 by John Allan with purpose
to maximise their profit. In the organisation, about 472000 workers are employing with aim to
increase business sales and revenues in given time period. Size of this company is minimum 7
and maximum is unlimited.
Private sector business: Skoda is a auto-mobile industry which is foundered by Vaclav
Laurin and Klement in 1895 headquartered in Czech Republic, Mlada Boleslav. In the
organisation, there are approx 28,375 employee are working with aim to maximise shares and
profit. They delivers large number of the vehicles in particular year which results is higher
growth and success of company. Main motive of this organisation is to provide variety of
vehicles by satisfying basic wants and needs of customer's. Size of this organisation is minimum
2 members and maximum 50.
Voluntary sector: It is another type of business organisation which render different
services to the customers. OXFAM is a non-profitable enterprise who performs for growth and
success of community. They organised different programs and activities to the services user in
order to remove poverty and solve injustices related issue from the country. Main motive and
purpose of this firm is to render effective services to the customers in a quick way. It was
established in 1942 by Winnie Byanyima headquartered in United kingdom. Main focus of such
enterprise is on the alleviation or comfort of global poverty. It is non-governmental firm who are
emphasizing on disaster relief, poverty educations, policy research and many others.
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TASK 2
P3. Relationship between organisational functions and their link with structure of organisation
In the organisation, there are different functions are established with aim to attain their
long term goals and objectives in given time period. There are certain functions which are
prepared by Skoda such as to define the individual role, determination of authority,
specialisation, coordination, fixation of duties, accurate utilisation of human resources, efficient
functioning and many other. All these are main and essential role of business manager in order to
complete all functions in an accurate and efficient manner. Further, it assist in the achievement
of higher growth and success. All functions are interrelated with the structure and objectives of
company. In the Skoda, there are different department who are work with each other and have
common interest to maximise sales and revenues in allotted time period. These are determined as
below:
Human resource management: It is a main department of the organisation which work
with the aim of accomplishing long term goals and objectives in given time period. Main role of
this department is to hire knowledgable and experienced person who can easily deals with
customers and maximise sales. They provide proper training and development to their existent
employees, thus result of this is effective workforce planning. In this role and responsibility of
HR manager is to recognise gap between present workers. Structure of the company is very
attractive that effects large number of employees while working and functioning business
activities. In this Skoda have to implement proper channel of communication which assist in
reducing the conflict and miscommunication among the entire employees.
Finance function: It is another department of the company which is highly required by
each and every organisation in order to do their all activities and functions in accurate manner. In
this main role of finance manager is to arrange different and suitable resources of fund. With the
help of sufficient money, an enterprise easily do their all activities in an effective and efficient
manner. On the other hands, lack of money develop unnecessary hindrance and delays in the
business activities or functions. Size of business operation that define its requirement related to
finance. Company needs maximum amount of money in order to established various policies and
strategies appropriately.
Research and development: It is another department of the company, they are
responsible for identifying needs of customers and demands of market about business products
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and services. Research is very essential and important part of the enterprise to organise different
activities and innovate their new products in marketplace. Structure of this department is very
simple which attract wide number of clients towards innovative goods and services. In during the
investigation they apply various tools and techniques such as questionnaires, survey and many
other options which help them to maximise their profitability and productivity. In this main
objective of company is to recognise customer's needs and market trends in systematic manner.
Thus, they are understood regarding this, further they tries to satisfy them appropriately.
Sales and marketing: Sales is very essential and necessary for the each and every
enterprise to produce their vehicles to the audience. In this process marketer use different tactics
such as promotional mix, communication channel and many other. These includes advertisement,
publicity, public relation, sponsorship and other. All these are valuable for the organisation to
easily introduced their all products varieties in marketplace and to the customers.
Production and operation: Skoda provides new and high quality products to their clients.
In this role and responsibility of production manager is to render luxury cars and many other
vehicles to the customers systematically. Reputation of such organisation is good and effective in
marketplace which attract maximum number of clients towards business products. Along with
them, needs of operation and production administrator is to control all manufacturing activities
carefully, so that cost of the goods is automatically controlled effectively.
TASK 3
P4 Impacts of macro environmental factors on business operations
Business environment is determine as a combination of external and internal factor that
highly effects on business and its functions in an effective and efficient manner. These factors
determine the inside and outside elements of an enterprise which influence company and its
profitability. It is important for the organisation to maximise their profitability and productivity
in given time period. Macro environment is the conditions the present in the economy as an
entire, rather than in a specific region and sector. It includes employment, gross domestic
product, monetary, spending, inflation and fiscal policy. In this PESTLE Analysis is very useful
and valuable for the company which define its political, economical, environmental, social,
technological and legal. All these factors are highly effects on business functions and its
activities in negative and positive ways. These are determined as below in detailed manner:
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PESTLE Analysis Description Positive effects Negative effects
Political These factors regulates
different rules and
regulations which is
formed by
government. These
laws are mainly
related to the business
functions and
activities. Different
aspects are includes in
this such as taxation,
international trade
regulations, consumer
protection,
environmental
protection and
regulations,
employment law,
competition
regulations and many
other.
Government rules and
regulations assist in
preparation of better
policies and strategies
which renders
directions to the
employees while
performing business
activities in an
accurate way.
Strict regulation of the
government has
adverse effective on
company and its
functions. High tax
rate of the products
also influence on
profitability ration of
enterprise in negative
way.
Environmental This factor mainly
related with
environment of
business in order to
attract large number of
the customers towards
business products and
services.
In this business
manager of the
company tries to fulfil
basic needs and wants
of customers which
result is higher success
in marketplace.
If business entity not
take care about
atmospheres, they face
different issues and
problems which has
more and negative
effect on organisation.
6

Social This factor is mainly
related with society.
There are certain
aspects which are
includes in this such as
income distributions,
demographics, social
mobility, labour,
lifestyles changes,
education, attitudes to
leisure and work,
fashions and fads,
living conditions,
health & welfare and
many other.
In the country,
different number of
persons are living that
have positive effect on
business. This factor
also support in
maximisation of sales
and revenues.
Poor and negative
effects on this factors
is lack of education. It
reduce profitability
and productivity of
company.
Technological It is another factor
which is essential for
the growth and success
of company. This
factors cover various
elements such as
government spending
on research, industry
and legal authority
mainly emphasis on
technological effort,
new development and
discoveries, rates of
obsolescence,
technology speed,
energy use and costs,
It is one of the main
and foremost factor
which has positive
effect on business and
its operations. With
the help of this
aspects, an enterprise
reduce their time and
money which is
beneficial for them to
established their better
position in
marketplace.
In Skoda, there are
large number of
employees are
working with the
motive of gaining
more profit in given
time period. Some
workers are doesn't
have knowledge
regarding advanced
technology. Thus they
can not treat all
customers in proper
manner.
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variation in material
sciences and many
other.
Legal This factor also based
on government rules
and regulations that
highly effects on
business functioning
and working in an
effective and efficient
manner. In this factor
government play vital
and critical role
towards improving
business position in
marketplace.
This factor also effects
on business operations
and activities in a
positive manner.
Fulfilling of rules and
regulations assist in
find out government
support.
Different legislation
and rules are not
applied in proper
manner that adversely
effect on business
operations and
activities. If health &
safety act are not
completed
appropriately which
effects adversely on
company and its
operations.
Economical This factors includes
different aspects such
as economic growth,
monetary policy,
taxation, policy
towards
unemployment,
exchange rates,
inflation and many
other.
Economic condition of
the country is good
which has positive
effects on business
development. Thus it
assist in the operations
and functions of
organisation at
international level.
In dynamic
marketplace. There are
various states where
income level of person
is low and inflation
rate is more high that
directly effects on
vehicles demands and
needs.
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TASK 4
P5 Internal and External Analysis of Skoda Auto with other similar organisation
Internal and external factor analysis is very important and essential for the company in
order to maximise their position in marketplace. In this Skoda use SWOT analysis which is
beneficial for them to identify their strength and weakness, threats and opportunities. These are
based on internal and external. With the use of this factors, company can easily maximise their
profitability and productivity in limited time period. Skoda and other similar organisation is
Nissan Motors which are applied SWOT analysis with aim to identify their internal and external
factors in an effective and efficient manner. These are determined as below:
SWOT Analysis Strength Weakness Threats Opportunities
Skoda Auto Skoda is available
in a more range of
variants, both
diesel and petrol.
They includes
technological
innovations such
as EBS, MSR,
Anti-skid
banking,
telescopic power
steering and many
other.
Still trying to set
up itself in the
rising economic.
Extremely, strong
competitions in
the part means
sufficient market
share success for
Skoda.
Innovative
concept of car
and hybrid
fuelled. Speedy
technological
innovations
implemented and
created in futures
products of cars.
Augmenting
automobile sector
can be beneficial
and essential for
business
organisation.
Hybrid cars and
Cheaper variants
can assist
company to
maximise its
market.
Nissan Motors Effective research
and development
spending
outputting into
the accurate
selling electric
vehicle products
Poor advertising
and marketing
capabilities
outputting in lack
of brand
awareness.
Massive vehicles
Increased
competitions is
one of the main
threat of the
company. Low
fuel prices that
could be effected
Maximising
government
regulations is
main opportunity
for the enterprise
to improve their
reputation in
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in the world. Well
-managed
business
operations in all
over the globe.
Strong presence
in the emerging
and leading
automotive
markets.
and other car
products recalls in
the United state.
leaf sales in a
negative manner.
Natural disasters
is also a big
threats for the
business. Rising
Japanese Yen
transaction rates.
marketplace.
Along with them,
frequency and
timing of
innovative model
releases.
Enhancing United
state economy is
also big chance
for the enterprise.
P6 Evaluate how strength and weakness interrelate with the external macro factors
It is very important and essential factor for the organisation to identified their internal and
external factor that effects on business operations and its activities in positive and negative
manner. This factor provides different opportunities to the company in order to identify their
weakness and strength in an effective and systematic manner. Through application of various
methods, business management have large duties to overcome all weakness in a proper manner.
There are various benefits which are generated by Skoda such as competitive advantage, higher
sales or revenues, enhanced profitability and many other. All these are highly influence on
business operations and its functions.
PESTLE Analysis Description Strength Weakness
Political In order to expand
business operation in
global level, this factor
have large effects on
them. Legal teams of
the organisation is
capable to apply all
rules and regulations
in proper manner.
Legal team of the
company is capable in
order to apply all rules
and legislation.
Further, it enhance
business image and
goodwill in
marketplace.
Highly, strong
competitions in the
part that means
sufficient market share
success for Skoda. In
order to maximise
business position in
marketplace, political
factors highly effects
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on them.
Economical In different countries,
there are various
economic condition
are highly available. In
some states such
initiatives has positive
effect due to having
better situation in
many other nations.
Car products of
company is well-
established and
popular in all over the
glove which is main
strengths of this factor.
In Asia situation is
better for the company
to expand their
business operation
over there.
Main weakness in this
is still trying to found
itself in the emerging
economise which
effects on business and
its development in
marketplace.
Social Main aim and motive
of Skoda is to provide
variety of products to
the customers. In this
business entity tries to
design effective
policies and strategies
which help in the
welfare of society and
community.
In this cooperate social
responsibility is main
strength of the
organisation to
improve their image
and goodwill in
marketplace.
Less of Eco-friendly
products effects on
business activities and
operations in an
effective and efficient
manner.
Technological It is one of the main
and essential factor
that influence of
business profitability
and productivity level.
This factor highly
essential for the
enterprise to reduce
Advanced technology
has positive effects on
business operations
because it reduce time
and maximise sales in
limited time period.
With the help of this
factor, company easily
Negative effect of this
factors is influence on
company and its
functions. In the
company, some
workers are not
understand about
innovative technology
11

time and sources of the
organisation.
attract large number of
customers towards
business products.
that effects on
profitability and
productivity ratio of an
organisation.
Legal It is another factor
which is based on
different rules and
regulation of
government. Lays
related to health and
safety, discriminatory,
employment and
environment that may
influence the entire
production and
operations of company
constructively.
With the help of this
factors, all applicable
rules and regulations
are assist company to
innovate their
innovative features in
cars and many other
auto products.
Inaccurate rules and
regulations highly
impacts on company
and its image. It is also
influenced on
company goodwill and
brand in adverse
manner.
Environmental Different
environmental factors
related to weather,
climate can influence
the business practices.
They are needed to
produce their cars in
this way that effects
the environment. Main
aim of company
during production
process is to apply fuel
efficiency cars.
Strength of this factor
related to business
operation is to
maximise profit and
productivity of firm in
given time period.
High brand recall in
Europe and United
Kingdom marketplace.
In this an enterprise
has received some
awards for its effective
cars products in
Petrol and diesel
highly influence on
Eco-friendly
environment. It is an
adverse impact on
business operations
and functions in an
effective and efficient
manner.
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different segments.
Therefore PESTLE analysis and mainly interrelated with SWOT analysis that have
positive and negative impacts on company operations and activities. Strengths and weakness of
political, environmental, economical, social, technological and legal factor that impacts on all
process and activity of enterprise.
CONCLUSION
From the above mentioned report, it can be concluded that business environment is a
main part and combination of internal and external factor that effects on company and its
functions in a systematic manner. Size, scope of three organisation such as private, public and
voluntary that influence on productivity and profitability of enterprise. Different functions of
organisation and its relationship with business structure and objectives also assist in the
improvement of firm growth and development. Internal and external factor such as SWOT and
PESTLE analysis are important for the organisation to identify their strength, weakness, threats
and opportunities. PESTLE analysis also beneficial for the firm to define political,
environmental, social, technological, legal and economical impacts on company and its
operations. Both factors are interrelated with each other and have some relation to expand their
business operation at national and international level.
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