Analysis of Business Environment and Types of Businesses: A Case Study of Eco Sports

This report provides an analysis of the business environment and types of businesses with a case study of Eco Sports, a partnership start-up business in the UK. It covers the macro and micro environmental analysis using PESTLE and Porter's Five Forces frameworks, respectively. The report also discusses the impacts of these factors on the business and provides recommendations for the growth of the company.

Introduction to
Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Different Types of Businesses :-.................................................................................................3
Business structure :-....................................................................................................................4
Macro Environment analysis by using PESTLE framework :-...................................................4
Micro Environment analysis by using Porter’s Five Forces framework :-.................................6
Impacts on your Business:-.........................................................................................................7
CONCLUSION ...............................................................................................................................8
Recommendations :- ...................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The term business may be defines as an organisation or an entity in which an individual
or group of people are engaged in order to carry out some professional, commercial and
industrial activities. The main objective of a business enterprises is to provide quality of goods to
their consumer and to earn more and more profit(Cartwright, Davies, and Archer-Brown, 2021).
A business enterprise can be profit motive or non profit firm. In this report a partnership start up
business name as Eco Sports has been launched in the market of United Kingdom. The company
own by three partner name Tintari Elena who is responsible for making the market strategy,
Rodica Iatoc who is responsible for analysing the competitive market and George Tarbau who is
responsible foe managing all the financing activities within the business. The company deals in
accessories and sportswear cloth for men, women and children of any sex and any age category.
In the shop of Eco Sports the designed cloths and sports accessories are available in large range
and in any colour. Company deals in high quality product which is 100 % eco – friendly. For the
commencement of business around 312000 £ has been contributed by three partners. The
company import their accessories form Germany and the stores of the Eco Sports are located in
the area where gym, Leisure centre and park are available in many numbers. This report is going
to give information on the different types of business. This report also cover the analysis of both
the business environment i.e. external and internal with the use of proper framework in respect to
the Eco Sports company. Afterwords this report cover the impact of these micro and macro
factor on the different activities of the business. In the end recommendations has been given in
relation to the growth of the respective company.
TASK 1
Different Types of Businesses :-
In simple terms the the meaning of business may be defined as the activity of making the
money by buying and selling of goods and services in exchange of money or any government
security. Business can be done in many ways. The information related to the different types of
business has been discussed below :-
 Sole proprietorship firms :- the another name of the sole proprietorships firms are sole
trader ship and individual entrepreneurship. Generally these types of firms are run and
owned by an individual persons and in these enterprises the owner of the company is

responsible for enjoying all the benefits as well as responsible for bearing all the risk. In
the sole proprietorship business there is no separate legal entity the owner of the company
is liable for anything(Du, 2021). The owner of the firm can use the trade name or
business name differ from their legal name.
 Partnership firms :- Partnership firms may be defines as the association of two or more
people in which they are agreed to share the profit and losses of the business on equal or
agreed basis. The persons who own the business individually known as partners and
collectively known as partnership firms(Du, 2021). A partnership firm cannot be started
without partnership deed. This deed is an agreement between the partners in which the
roles, responsibilities, profit and loss sharing ratio and many more things has been
defined. The partners of the firms bear the unlimited liability as any act performed by one
partner can affect the performance of another partner or the whole firm.
 Corporations :- a corporation is basically a legal entity which is totally separates form
its owner. Business has its own separate legal entity means that the firm is being
considered as a legal person. The shareholders of the corporations is being considered as
the owner of the firm who elect the board of directors which oversees the different
activities of the business in a very effective manner. Same rules and regulation has been
followed by the individuals in these corporation but the most important element is the
limited liability. This means that the shareholder of the company are not liable to pay the
debts of the company.
Business structure :-
The Eco Sports firm is a partnership firm and the partners of the company are Tintari
Elena (Marketing strategy), Rodica Iatco (Market analyses), George Tarbau (finance). A
partnership agreement has been made between these partners in which al the partners are equally
responsible for enjoying the profits as well as responsible for bearing the risk.
Macro Environment analysis by using PESTLE framework :-
PESTLE Analysis :-
Pestle analysis may be defines as a tool which are used by the organisation in order to get
a macro picture of the business environment. With the help of this analysis the organisation is
able to face the impact of all the factors in the different activities of the business. In context to

Eco Sports company, the macro environmental analysis with the use of PESTLE application has
been discussed below :-
 Political factor :- In this factor tax policy, trade restrictions, tariffs policy, government
stability has been included. This factor determined that how much an industry and
company can be influenced by the nation government(Goi, 2021). In context to the Eco
Sports, the management of the company has to follow all the rules and regulations
which are formed by the government.
 Economical Factor :- This factor comprises the economic growth/ decline rate, interest
rate, inflation and wage rate, unemployment rate and many more. These factor
determined the performance of the economy which has a huge impact on the different
business functions. In context to the Eco Sports, the management of the company have
to focus on the variable rates of interest so that they can operate their business activities
in a very smooth manner.
 Social Factor :- this factor included the health, beliefs, values, perceptions, buying
preferences and behaviour, age distribution, safety and many more. These factor help
the company the company to make better strategies for the market. In context to the Eco
Sports, it is very important for the company to focus on the demands, seasons and
buying behaviour of the people so that smooth functioning of the business can be done.
 Technological Factor :- innovation, use of new machinery, development of technology
within the business has been included in this factor. This factor came with the new
opportunity with in the business which directly impact on the business operations. In
context to the Eco Sports, it is very important for the company adopt the new
technology to improve the stability in the market.
 Legal Factor :- this factor is directly related to the change in the rules in relation to the
of the welfare of the employees as well as the members of the society(Yaşlıoğlu, 2021).
These laws directly impact on the environment of the business within a country. In
context to the Eco Sports, the management of the company have to focus on the welfare
of their employees as well of the society.
 Environmental Factor :- this factor of the pestle analysis concern with the security of
the environment and the influence of ecological aspects. Disposal law, environmental
law, energy consumption law and many more has been included in this factor. In context

to the Eco Sports company is is very important for the company to focus on their
packing method which don't harm the environment. Due to this they are able to operate
their different business functions in a very effective manner.
Micro Environment analysis by using Porter’s Five Forces framework :-
Porter’s Five Forces :-
This model is basically a frame work which help the company in identifying and
analysing the strength and weakness of the firm within the market by using five using five
competitive forces. With the use of this frame work the organisation is able to shape their
business by framing effective and competitive strategies. In context to the Eco Sports company
the micro environmental analysis with the help of Porter’s Five Forces model has been discussed
below :-
 Competition in the industry :- this factor is related to the number of competitors
available in the market which are able to undercut the company(Giragosian, 2021). If
there is larger competition within the industry, companies are able to offer their product
at low prices and vica-versa. In context to the Eco Sports, High rate of competition has
to be faced by the company in the market of UK because of well established companies.
These company have acquire huge market base with loyal customers due to which high
competition has been seen.
 Threat of new entrants :- the power of the company has also been affected by the entry
of new firm in the market. In context to the Eco Sports, High threat new entry has to be
faced by this industry because no many hurdles have to faced by the company in opening
a sport shops. Small amount of capital has been requires in order to open a business with
low level of skilled employees. Along with this target market of the new company has
also same which directly impact on the existence of the company.
 Threats of Substitutes:- this factor means that the user of the goods can use the
substitute product in place of company's goods and services. In context to the Eco Sports
company, Low amount of threat has been faced by the company in relation to the
substitution of goods. As the product in which company deals like sportswear and
accessories are in the demand for centuries and stay in demand in the upcoming
centuries.

 Power of buyer :- this is related to the ability of the customers which drives the prices
lower. In context to the Eco Sports company, the bargaining power of the buyer is
Moderate because the companies who deals in quality sportswear and accessories are
available in moderate numbers(Yilmazkuday, 2021).
 Power of Supplier :- this factor is related to the suppliers of the company. As how they
easily drive up the cost of raw material. In context to the Eco Sports company, the power
of supplier is high because they import their accessories from Germany. In addition to
this company don't have a well known image in the market so the respective company
face low power in front of their supplier(Jaim, 2021)..
Impacts on your Business:-
It is very important for the Eco Sports firms to analyse all the internal as well as external
factor in a very effective manner. As the political stability of the government of UK is very high
due to which they don't have to make regular changes in the policies and strategies of the
business. It is very important for the company to keep their eyes on the inflation rate of the
economy because if the inflation rate is high then this directly affect the purchasing power of the
consumer due to which the sales of the sportswear cloths and accessories has been affected. In
addition to this it is very important for the company to provide quality of goods to their
consumer due to which the image as well the profit of the Eco Sports company has been
increased(Finn, 2021). Along with this, they have to bring new and innovative product in the
market because if they don't do this they are not able to stand in the market for a long period of
time and in addition to this proper environment and legal laws which are made by the council of
the nation has to be followed by them, if they don't follow the rule penalties or shutdown of the
business has to be faced by them.

CONCLUSION
From the above report it has been concluded that to run all the activities of the company
in a very effective manner it is very important for the management of the company to analyse the
internal as well as external factor. This report concluded that there are different types of business
and the Eco Sports company which is a start up in the market of UK is a partnership firm. The
internal as well as the external environment has been concluded in context to Eco Sports by
using Porters Five Forces model and PESTLE analysis respectively. This report also concluded
the impact of these factor on the business and afterwords recommendation has been give.
Recommendations :-
 When Eco Sport company develops a well known image in the market of UK then they
can expand their business in the market like India, America, South Africa and many
more. By doing this not only the sales of the company has been increased but also the
profit of the also been increased.
 In the initial stage if company wants to expand their business in all over the globe they
can use the online platform because this is cheapest source. With the help of this cost of
the products can be minimized.

REFERENCES
Books and Journals
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Goi, C.L., 2021. Business Simulation Games: A Direction in the New Era of Teaching and
Learning. In Handbook of Research on Analyzing IT Opportunities for Inclusive Digital
Learning (pp. 65-76). IGI Global.
Yaşlıoğlu, D.T., 2021. New Economy, E-Commerce Businesses, and E-Businesses: Types,
Similarities, and Differences. In Research Anthology on E-Commerce Adoption,
Models, and Applications for Modern Business (pp. 1-18). IGI Global.
Giragosian, N., 2021. Successful product and business development. CRC Press.
Yilmazkuday, H., 2021. Introduction to the special issue on COVID-19: Economic and financial
effects. Journal of Economics and Business.
Finn, D.K., 2021. Business Ethics and Catholic Social Thought. Georgetown University Press.
Jaim, J., 2021. Bank loans access for women business-owners in Bangladesh: Obstacles and
dependence on husbands. Journal of Small Business Management, 59(sup1), pp.S16-
S41.