Business Environment Analysis

Running head: BUSINESS ENVIRONMENT ANALYSIS
BUSINESS ENVIRONMENT ANALYSIS
Name of the Student
Name of the University
Author Note

1BUSINESS ENVIRONMENT ANALYSIS
Executive Summary
The report is built on the study of different stakeholder groups that have been developed by a
firm. The firm that has been chosen for the analysis in the report is Woolworths. Woolworths
is an organization that functions in the retail industry of Australia. The internal and external
stakeholders of the company have been examined in the report based on activities that are
performed by them and services that they provide as well. The levels of influence of the
stakeholders on operations of Woolworths have also been analysed in the report. The report
further provides details based on the comparison of stakeholders of Woolworths with that of
an organization that belong to another industry.

2BUSINESS ENVIRONMENT ANALYSIS
Introduction and the background of the organization
Stakeholders of an organization are able to influence the processes of a company in
their respective industries. The stakeholders are also influenced by the organizational
processes and the levels of profitability as well. The main stakeholders of the organization
who are able to affect the operating processes and revenues include, creditors, employees,
suppliers, unions, owners and the community as a whole (Barros, Hernangómez & Martin-
Cruz, 2016). The support that is provided to the stakeholders is able to play a crucial part in
the methods by which the company is able to develop its place in the industry. Two types of
stakeholders play the most important part in the methods by which the companies can uphold
their revenue levels in a stable way. The internal and the external stakeholders are considered
to be the significant part of the operations that are performed by organizations (Daspit et al.,
2017).
The report will be built on the study of the internal and external stakeholders of an
organizations and their levels of influence on the organizational operations as well. The
organization is taken into consideration for this study is Woolworths that functions in the
retail industry of Australia. The operations of Woolworths will be compared with the
stakeholders of another industry.
Woolworths is the largest supermarket chain of Australia that functions more than 900
stores in different parts of the country. The organization is dependent on more than 100000
team members who are a part of the stores, support offices and distribution centres who are
able to offer superior levels of services to the customers. Woolworths is also known in the
industry for working in a close manner with the farmers and growers in Australia. The
organization has also been able to grow itself as the most innovative retailer in Australia
(Woolworths.com.au., 2019).

3BUSINESS ENVIRONMENT ANALYSIS
Analysis of the organization
Identification of functional areas
The major stakeholders of Woolworths can be identified and analysed with the proper
implementation of PESTLE analysis framework. The most significant role that is played by
the analysis is based on the picture that PESTLE framework is able to offer based on the
levels of importance of the different stakeholders. The levels up to which different
stakeholders are able to influence the processes and functions of the company will be
analysed in a detailed manner with the help of this framework (Demir, Wennberg &
McKelvie, 2017).
Political factors – The level of political stability of Australia has an influence on the
methods by which Woolworths is able to uphold its operations in the retail industry. The
major stakeholder of the organization with respect to the political factors that have an impact
on Woolworths is the Australian government (Durand, Grant & Madsen, 2017). The
regulations and policies that are established by the government are able to play a significant
part in the methods by which Woolworths can develop organizational regulations. The tax
based laws formed by the Australian government are also able to influence the prices of
products and services which are offered by Woolworths. The firm can decide the wages that
can be provided to the employees with the support of appropriate study of the government
policies and regulations (Dyer et al. 2015).
Economic factors – The economic condition of a country has a key effect on the
prices of products of Woolworths and levels of revenues as well. GDP rate of Australia in the
year 2017 was around 1 Billion US Dollars. The stable economic condition is able to offer
maximum levels of support to the processes of Woolworths for a long period of time. The
major stakeholders who are affected by the economic factors of Australia are the business