Impact of Business Environment on Growth

This assignment delves into the relationship between a favorable business environment and firm growth. It examines various aspects of the business environment, such as regulations, competition, and access to resources, and how they impact firm performance. The analysis draws upon academic literature, including studies on business simulation, corporate-NGO collaboration, and service business development in small and medium-sized enterprises.

BUSINESS
ENVIRONEMNET

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1) Different types and purposes of organisation..................................................................1
P2)Size and scope of organisations........................................................................................3
TASK2.............................................................................................................................................5
P3)Relationship between organisation functions with objectives and structures...................5
TASK3.............................................................................................................................................6
P4)Positive and negative impact of Macro Environment.......................................................6
TASK4.............................................................................................................................................8
Covered in PPT.......................................................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is a vital element of all the businesses. These are the situations
where company need to carry out their operations and fun situations in an effective and
appropriate manner. There are factors that has its affect on the operations and functions of an
organisation, those aspects are internal and external. It is very necessary for a company to
manage and cope up with the challenges that occurs due to these factors. As to operate each and
every function of a firm it is very essential for them to concern about Al those aspect which are
having a positive and negative effect on company (Aterido, Hallward-Driemeier and Pagés,
2011).
Aldi is a private retail company which is having 10000 store in several countries of the
world. Products that is been served by it is food, beverages, household goods and sanitary items.
Its reputation in market is very good as it is very effectively carrying out all its operations and
functions in an appropriate way. It has won best supermarket award in UK, 2013. in 2017,
overtaking Co-op and become 5th largest retail chain in United Kingdom.
TASK1
P1) Different types and purposes of organisation.
At present scenario there are very tough competition in market. There has been many
different organisation has established to compete and sustain in market. As per the market study
it has been analysed that there are many different organisation that are performing their activities
and functions in an appropriate and effective manner. It has become very necessary to introduce
them as to develop the level of GDP of the country. Every company has their opinions, purpose
and objectives (Avramenko, 2012). There are many company that are existing in market so as to
generate income, many are there who are carrying out operations and functions so that they can
avail benefits to the society.
Public Sector
These are the organisation which is run with the support of government body. All the
aspects of this sector is been done with the help of nation's government. The legitimate part of
this sector is that regional and local governing body of a countries is paying for merchandise
where as nearby administration of the nation is in charge of paying upon products and services
that Council Tax that are availed.
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For example
McDonald is an American association which is an example of public sector firm. This is an
extremely perceived association in entire world as it is benefiting its items and administrations in
best way. Hamburger of this firm is very famous and are favoured much by each one. It is
currently eager to open its more stores in numerous more locales where it has not secured that is
around 119 nations and 35000 outlets. Organization is managing huge crowed on daily basis 70
million individuals are served on regular routine (Commander and Svejnar, 2011).
Purpose
 McDonald's motivation is to serve its clients in effective and great way.
 Quality is most worry and priority of them. Fulfilling clients with their endeavours.
Private sectors
This are an association is not under control of government. Items and administrations to
clients are given by distinct individual who is entire sole in charge of completing every last part
of this. These firm are more worry to win benefits and need to expand their riches for its
maintainability. There are number of lawful capacities that are available and imperative for
private segment firms, it fundamentally relies on class in which this part is depending (Dahan,
and et. al, 2010). Most vital perspective that ought to be taken in consideration at time of
building up a firm in private sector is MOA (Memorandum of affiliation) and AOA(Article of
affiliation) is extremely fundamental to get enrolled in Company Act,2013.
For instance
Virgin group is a speculation organization which is driving in a worldwide market. It is
playing out its exercises in around 50 nations and 5000 representatives are there. It is a private
division firm which does not have any overseeing specialist from the bureau of country's
administration.
Purpose
 Its fundamental goal and reason of its formation is to serve clients effectively with the
goal that they can have the capacity to get most extreme benefit out of them. It likewise need extend its business at territory where it haven't reached yet..
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Voluntary segment
It is an association where an individual starts to get into a movement for a specific reason.
These are built up so that to just serve clients rather that procuring benefits related to money.
These can likewise be said as NPO's (Non profit organisation).
For example
Diabetes UK is an intentional based association. It was built up in 1939, at introduce time 350
gatherings are there which are effectively performing operations and capacities for society's
welfare.
Purpose
 Its motivation of foundation is to concern more for clients and to create them from
confronting emergencies.
 NPO.
P2)Size and scope of organisations
As numerous organisations are very effectively carrying out their operations and
activities in an appropriate manner. As per the different type of organisations, their scopes and
size are also very different. There are public, private and voluntary organisation who are actively
performing for profit concern and other societies welfare aspects (Fernando, 2011).
Public sector
These are the sectors that are very effectively working in market with proper governing of
government. This will improve GDP rate of a nation where these associations are playing out
their exercises. This will likewise help to those retrogressive region where many issues are
confronted by all and this will improve them to carry on with a sound and standard life. This area
additionally performs corporate social obligation, with the goal that clients of the general public
will have the capacity to get help from this. Government is likewise assuming an essential part in
the improvement of such association in country as on the grounds that it is successfully
contributing in nation's development (Gebauer, Paiola and Edvardsson, 2010).
Private sectors
This segments is all the more participating in acquiring most extreme benefit for extending
itself in various market ranges. This as opposed to centring clients, riches expansion is its
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primary goals. It needs to develop itself in aggressive market and need to make an exceptionally
positive picture in customers mind. These association does according to prerequisites of clients
additional exertion are not made to profit benefits for the clients. Numerous private firms are
doing out their operations in extremely legitimate and lawful way so that if there should be an
occurrence of any issue lawful moves can be made for specific conditions (Halbert and Ingulli,
2011). Likewise they don't investigate their yearly report in simple way, with ask for and on
critical need just it will get imparted to other.
Voluntary organisation
These association is altogether different from others as in light of the fact that its intention
and target is to serve people instead of generating maximum wealth. Principle concern is to do
and give a few expected advantages to people with the goal that they can have the capacity to
carry on with a legitimate and great life. There it is exceptionally basic for an association to do
and contribute for society as they are who bolsters one to develop and to get by in advertise.
Stakeholders
Stakeholders are those entities which are directly or indirect manner interlinked with
activities of an organisation. For a particular organisation there are numerous people who are
connected like customers, employees, suppliers and many more, they play a very important role
in developing a firm in market and to sustain appropriately (Hamilton and Webster, 2015).
Following are stakeholders who are the part of a company-
 Customers- These are the people who uses the products and services that are availed by
company. Their opinions and feedbacks are very useful for company to perform in a
better and effective manner.
 Employees- Employees are the one who carries out all the operations and functions of a
company so they better know about customer's views as they directly communicate with
them. At time of planning it is very essential to consider employee's views as they will
provide better suggestion.
 Government- They are the authority who avail aid to business in various aspect such as in
time of crises they provide financial help to company so that they can be able to carry out
their operations and functions in an appropriate manner (Kang, Lee and Kim, 2010).
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TASK2
P3)Relationship between organisation functions with objectives and structures.
Aldi is a retail company which is performing all its work in a manner as required in
market. It is very important being a retail company to serve products and services to clients in a
qualitative manner. This will support the cited organisation in meeting its aims and objectives
and to survive in market for long time. In a firm there are different sections to manage all the
activities as because this will help in assisting in performing all the work in effective manner.
This will support in developing each and every section of company in appropriate way (Klapper
and Love, 2010). Below are the different section that are working effectively in Aldi company-
 Finance department- This is one of the section which is very necessary in a company as
because this department handles all the activities that are related to finance of a company
as it is a must aspect. It check each and every department's requirement that is regarding
funds, this way this section can be able to perform its task easily and effectively if it get
inter connection and communicate with other departments. Aldi has to manage all its
operations in a proper manner so that they can be able to avail better customers services
to clients and could be able to sustain in market at times of crucial condition.
 HR department- This is a division of a company which is very much responsible for
recruitments and selection of new candidates as per the requirement in different
departments. With the help of this section people will get hired for all the other
departments. For this purpose it has to be linked with other division through that it will
come to know that where all employees are more needed.
 Marketing- This is one of the most important section of the company as because it does
the part of doing market research where it can be able to understand all the needs and
wants of customers (Mahmood and Hanafi, 2013). This will help in knowing what all has
to be manufactured and displayed in market so that they can attract customers as they are
providing what actually are needed by them.
 R&D department- With the help off marketing research and development department will
be able to know what all improvements and developments has to be made by company so
that products and services can be enhanced and presented in more effective and
appropriate manner. This will also lead a firm to attain its objectives and standards which
ultimately help in sustaining and growing in competitive market (Oh, 2010. ).
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TASK3
P4)Positive and negative impact of Macro Environment.
Aldi is one of the very well recognised organisation working very appropriately in market
but there are some of the issues that are affecting operations and functions in both positive and
negative manner. Macro environmental factors are the elements which has a direct connection
with activities of a retail company. With the help of PESTLE analysis company will be able to
understand all those aspects which is hampering every functioning of a supermarket.
Political factors
Political factors are those elements which affect business activities if not effectively
followed by an organisation. It is very essential to be focused by a company as because these has
an adverse effect on all the operations and functions that is been carried out in a retail sector. As
Aldi is performing tasks and operations regarding retailing there are several aspects that has to be
considered by it especially political factors. As it is dealing in many country so several times it
faces challenges in terms of laws and norms of parties governing in different nation. The
company is being accused due to the paying that is done to suppliers are very law. This is very
adversely affecting business of Aldi.
Positive impact- As Aldi is in retailing therefore, regulations of political factors are very much in
favour of it. New changes assist company in performing in better manner (Reinhardt and Stavins,
2010).
Negative impact- Guideline of government can change any moment so this will affect company
in their operations and activities.
Economical factors
These are the aspect of macro environment which is the major concern of present market
as because this will shows the income, currency rates, inflation rate and many more all these are
very much affecting an activity of a company. Many times customers are not able to afford for
several goods and products hence, they switch to items that are inexpensive than that of retail
product. This kind of aspects are affecting company.
Positive impact- Income power of customers increase will positively help company to survive
and earn more revenues.
Negative impact- Price factor affect company's product very badly if it is very high in rates.
Social factors
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Now a days customers more concern about the social responsibilities that can avail
betterment of a particular society. Considering that clients are opting those goods and services by
a company which is effectively performing and doing welfare for society as well. As preferences
and tastes of customers are very frequently changing which is becoming a challenge for retail
sector as to meet their needs and wants (Siewiorek and et.al, 2012).
Positive impact- Needs if effectively fulfilled by company then customers will more prefer the
products offered this will positively affect firm's activities.
Negative impact- Social norms are very essential for a company hence if not followed then
society will resist company's items.
Technological factors
At present scenario technologies are very frequently changing as to carrying out all
operations in effective manner it is very essential for an organisation to consider the recent trends
of market. In current market, online retailing is very much in boom situation. Aldi is adapting a
new technology of tracking the ingredients and to control the stocks of company with help of
RFD(Radio frequency identification device).
Positive impact- Adapting new technologies are very effective for company as they will help in
sustaining and meeting competitive challenges.
Negative impact- If technologies are not updated by company then they will face many issues
and problems of market.
Legal factors
Issues related to tax services, VAT, cross border transaction tax all are the factors that
come under legal environment of macro factors. These elements are very important as because
they are carrying out operations of retailing (Avramenko, 2012). If not followed the legal system
of any of the country where company is dealing them there are chances where firm will face
problems and legislative actions can be taken against them.
Positive impact- Many times laws introduced by government become in favour company this
will help in smooth functioning.
Negative impact- Many times legal factor become totally against of companies operations then it
become difficult to perform.
Environmental factors
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The prior most liabilities that lies upon a company is to provide safety of the surrounding.
It is very essential for company to do welfare of society so that more customers could be
attracted towards services of the firm. Most important aspect is to carry out activities in most
ethical and in lawful manner.
Positive impact- CSR is one of the activity that company can perform which is very beneficial
for it, along with this customers more get attracted towards services of Aldi (Commander and
Svejnar, 2011. ).
Negative impact- Not concerning environmental factors will affect company's operations as
because customers will not spend money for products and services of the company.
TASK4
Covered in PPT
CONCLUSION
According to above examination it can be reasoned that business condition is one of the
basic factors that require to consider by the association. There are two sorts of elements as inside
and outer which incorporate representatives, clients, administration, supply, request and business
standards and directions. This is critical for business to have successful stream among PESTLE
factors and SWOT with the goal that they can accomplish their objective in viable way. It is
required for refereed to organization to utilize refreshed innovation with the goal that they can
enrol compelling and talented individual that give help to secure bigger range of market. There
are distinctive sort of association that are working in condition as private, open and wilful. They
are not like each other. A portion of the organization that has fundamental thought process to
produce more benefit however there are a portion of the business that are worked for non gainful
reason.
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REFERENCES
Books and Journals
Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011. Big constraints to small firms’
growth? Business environment and employment growth across firms. Economic
Development and Cultural Change. 59(3). pp.609-647.
Avramenko, A., 2012. Enhancing students' employability through business simulation.
Education+ Training. 54(5). pp.355-367.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Dahan, N.M. And et. al., 2010. Corporate-NGO collaboration: Co-creating new business models
for developing markets. Long range planning. 43(2). pp.326-342.
Fernando, A.C., 2011.Business environment. Pearson Education India.
Gebauer, H., Paiola, M. and Edvardsson, B., 2010. Service business development in small and
medium capital goods manufacturing companies. Managing Service Quality: An
International Journal. 20(2). pp.123-139.
Halbert, T. and Ingulli, E., 2011.Law and ethics in the business environment. Cengage Learning.'
Hamilton, L. and Webster, P., 2015.The international business environment. Oxford University
Press, USA.
Kang, D., Lee, J. and Kim, K., 2010. Alignment of Business Enterprise Architectures using fact-
based ontologies. Expert Systems with Applications. 37(4). pp.3274-3283.
Klapper, L.F. and Love, I., 2010. The impact of business environment reforms on new firm
registration.
Mahmood, R. and Hanafi, N., 2013. Entrepreneurial orientation and business performance of
women-owned small and medium enterprises in malaysia: competitive advantage as a
mediator. International Journal of Business and Social Science. 4(1).
Oh, S., 2010. New role-based access control in ubiquitous e-business environment. Journal of
Intelligent Manufacturing. 21(5). pp.607-612.
Reinhardt, F.L. and Stavins, R.N., 2010. Corporate social responsibility, business strategy, and
the environment. Oxford Review of Economic Policy. 26(2). pp.164-181.
Siewiorek, A and et.al., 2012. Learning leadership skills in a simulated business environment.
Computers & Education. 58(1). pp.121-135.
Online
SWOT ANALYSIS OF ALDI. 2014-2017. [Online] Available through:
<http://www.managementparadise.com/sayed123/documents/15997/swot-analysis-of-
aldi/>. [Accessed on 14th July 2017].
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