Business Environment and Creation

This assignment delves into the significant impact of the business environment on the process of starting a new venture. It examines various factors influencing business creation, such as regulations, market conditions, competition, and technological advancements. The analysis includes examining relevant theoretical frameworks, exploring successful business models, and considering case studies to illustrate the interplay between the business environment and entrepreneurial success.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
M1 Structure, size and scope of different organisations link to the business objectives.......1
TASK 2............................................................................................................................................2
P3 Relationship between different organisational functions that link with organisational
structure..................................................................................................................................2
M2 Advantages and disadvantages of interrelationships between organisational functions 3
D1 Critical analysis of complexities and interrelationships of different types of business....4
TASK 3............................................................................................................................................4
P4 Identification of positive and negative impacts of macro environment on business
operations...............................................................................................................................4
M3 PESTLE model to support a detailed analysis of the macro environment .....................5
TASK 4............................................................................................................................................6
P5 Conduct internal and external analysis to identify strengths and weaknesses.................6
P6 Strengths and weaknesses interrelate with external macro forces...................................7
M4 SWOT analysis and justify how they influence decision-making for the chosen
organisation............................................................................................................................7
D2 Impacts of environmental factors have upon business objectives and decision-making. 7
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................9

INTRODUCTION
Business environment is a combination of internal and external factors that influence to
affect decision making procedure of firm directly. For this, firm needs to build specific strategy
to reduce its negative impact or control them in appropriate manner. Environmental factors are
partially impacts on operational and functional activities of firm, so for this an organisation
needs to manage their activities in effective or appropriate way. With various strategies and
planning, it is required to analyse and examine impact of these factors and its entire causes as
well. This project report is based on Michael Kors which is a American luxuries fashion
company and having its maximum outlets in Europe marketplace for gaining major competitive
advantage at global level. This organisation was established in the year of 1981 by well known
designer Michael Kors (Fernando, 2011). This firm has approx. 550 stores or aground 1500
boutiques in several countries. Main products of firm are watches, handbags, accessories and
footwear as well. This report is discussing about types and purpose of public, private and
voluntary sector organisations, Size and scope of such organisations as well as relationship
between several firm's function. At last this report is represent positive and negative impact of
macro environmental factors, Internal or external analysis as well as interrelated strength and
weaknesses with external factors of firm.
TASK 1
(Covered in PPT)
M1 Structure, size and scope of different organisations link to the business objectives
In a economy, several organisation provide their quality services to each and every
individual as per their need or requirement. Structure, size and scope of each organisation is very
different to others (Hamilton and Webster, 2015). This thing is basically depends on objective
and market value of firm to provide higher satisfaction to consumers. Public, private and
voluntary each sector serve specific services in public according to organisational objective and
goal. Scope and structure of these organisation are very different to each other and these are
based on its services objective for specific target as well.
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TASK 2
P3 Relationship between different organisational functions that link with organisational structure
In a business organisation several departments provide their effective services to achieve
firm's goals and objective in effective manner. Michael Kors has a large organisational structure
who provide their effective services to attain organisation's goals and objectives easily. For them
it is require to manage their organisational activities in effective manner to getting desired
outcomes easily (Klapper, Lewin and Delgado, 2011). Each and every organisation is works to
provider higher satisfaction to their customers through their effective working approaches. For
this, firm analyse their working approaches to enhance them in effectively to getting desired
outcomes easily. There are relationship between different organisational functions with its
structure are given below -
Research and development – This department of organisation is help to provide
appropriate information related to market and customers demand. Through this, organisation
easily examine several factors that are related to organisation's production and manufacturing
activities. This division is provider their contribution to analyse several are where organisation
needs to introduce their quality product to getting higher growth and income easily. Research
and development department of Michael Kors analyse demand of market and competitors
analysis to make specific strategy for this (Drucker, 2017).
Sales and Marketing – This department of firm is works to build effective strategy for
higher selling approaches. In this process marketing manager of organisation is provide their
own contribution to introduce new products and services in target market or in front of audience
easily. Through this they easily enhance selling activity to provide effective information to
consumers about organisational services. They analyse customers demand and need to make
effective service procedure for this easily. These kind of activities helps to enahce organisation
treading process easily.
Production – After analysing each and every activity, Michael Kors start their
production services as per the bases of customer's demand and requirement. This organisation is
basically work on several activities that are related to market and customers want or need.
Production department of Michael Kors uses technological equipments and tools to manufacture
quality products at a specific time period (Osterwalder and Pigneur, 2010). Employee of
organisation also provide their quality services to getting competitive advantages easily.
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Production department of firm is uses various methods that belongs to marketing research,
designing, strategy management and production implementation to manufacture quality products
easily.
Human resource:- This is a most important department of Michel Kors that analyse
organisational requirement to hire skilled and experienced candidate easily. Human resource
manager of organisation play a most important role to conduct recruitment and selection process
to select skilled employees in their firm. They also conduct training and learning session for their
workforce to enhance their interpersonal skill and working capacity easily. Main objective of this
department is to getting desired objectives through their effective working procedure easily.
Finance :- This department of organisation is working to provide appropriate funds and
reserve to implement their business procedure in effective manner. Through this firm easily
adopt higher opportunities to serve quality services in target market (Scheer, 2012). Finance is a
confidential department of firm tat manage all income and expenses of firm easily. For this, it is
require that firm has skilled and experienced candidate who manage their financial activities in
appropriate manner. Michel Kors is a large scale organisation, so for them it is require to has
effective workforce who helps to utilizer their funds and resources into desired income and
growth as well.
Manufacturing department:- This department of organisation is works to provide their
effective services in manufacturing quality products as per customers demand and requirement as
well. This division is working with a large process to produce quality products easily. In this,
they analyse market and customers demand to provide them quality products easily (Shigang,
2010). After analysing market element, employees of organisation design their products structure
that needs to related to consumers demand and requirement as well.
M2 Advantages and disadvantages of interrelationships between organisational functions
In a business organisation, it is require that their employees build specific relation with
each other to attain higher growth and income easily. Through this senior employees, manager
and leader of organisation provide effective direction and guideline to their employees to attain
future objective easily. Michel Kors is a well known organisation, so for them it is require to
build strong interrelation between their employees to attain higher growth easily.
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D1 Critical analysis of complexities and interrelationships of different types of business
As per the words of Aterido, Hallward and Pagés, (2011) in each and every organisation,
working process and departmental activities are held to attain desired objectives and objective
easily. Fro this management and employees of organisation needs to understand their roles and
responsibility to work according to them. These kind of activities build effectiveness in firm to
achieve higher growth and income easily.
TASK 3
P4 Identification of positive and negative impacts of macro environment on business operations
For a business organisation, it is require to analyse impact of external environmental
factors because these factors are beyond the control of organisational activities but management
of firm can make effective strategy to control its negative impact easily. There are various
element of macro environment are given below such as -
Political and legal factors – These factors are related to Government norms and policy that they
regulate for organisational activities. For a Michael Kors, it is require to manage their firm's
activity in appropriate manner or needs to follow all governmental and political values that can
impact on their operational and functional approaches.
 Positive Impact – By implementing political activities in organisational structure, firm
can easily expend heir business structure in several countries. These factors aid to build
effective collaboration to maximise bushiness structure in effective manner.
 Negative impact – For a business organisation, it is require to implement political and
legal values in their business procedure to getting long term benefits easily. Through
these implementation Michel Kors can easily build legality for their business approaches.
Economic factors – These factors are related to economic values that can affected through
organisational activities. This factors is totally related to economic effectiveness of a specific
country. These factors are related to tax policies, treading rates, inflation, economy growth and
currency valuation (Bryman and Bell, 2015).
 Positive Impact – For a business organisation, it is require to build effective strategy to
getting higher growth easily. These kind of political factors helps to provide effective
growth in economy of a country.
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 Negative impact – Inflation is a negative term that directly impact on organisational
values and economy growth. So for this, firm needs to build effective strategy to
maximise income sources and minimise expenses effectively.
Social factors – These factors are related to social values of firm that are affected through
customers demand, fashion changes, trends and different cultural values.
 Positive Impact – For Michel Kors, it is require to understand values of social factors that
helps to maximise sales of organisation easily. For this they needs to research on market
to analyse customers demand or needs easily.
 Negative impact – Social factors are related to change in customers requirement toward
organisational services. For this Michael Kors needs to implement effective changes as
per market and customer's requirement (Carroll and Shabana, 2010).
Technological factors – For a business organisation, it is require to make effective changes as
per technological advancement. Through this they can easily adopt proper modifications in
operational and functional activities.
 Positive Impact – Through this process, Michel Kors can easily adopt effective changes
that aid to getting effective growth easily. Through this firm can easily improve their
productivity and profitability effectively.
 Negative impact – Technological factors require appropriate information about its uses or
implementation process otherwise it an impact negatively on business procedure.
Environmental factors – For a business organisation, it is require to mage their business
activities as per environmental factor. For this Michael Kors needs to manage organisational
activities in appropriate manner.
 Positive Impact – These factors requires to manage organisational activities in
appropriate manner easily. Through this firm can get desired outcomes properly.
 Negative impact – These factors can impact negatively on organisational activities so for
this firm needs to build effective strategy to control them easily (Charter, 2017).
M3 PESTLE model to support a detailed analysis of the macro environment
For Michael Kors, it is require to analyse macro environment factors that can impact on
organisational decision marking procedure. In this process they can make effective research
through PESTEL analysis. This procedure is base on several factors as Political, Economic
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Social, Technological, Environmental and Legal to analyse its impact on organisational
activities.
TASK 4
P5 Conduct internal and external analysis to identify strengths and weaknesses
Michel Kors is a well known organisation that provide their effective services in world
wide. This organisation has maximum outlets in Europe marketplace for gaining major
competitive advantage at global level (Chesbrough, 2010). In this era, it is require that manager
and management of an organisation focusing on developing positive environment to getting
higher growth and profitability easily. For them it is require to analyse internal and external
analysis of firm lead on some strategical organizational activities. There is SWOT analysis of
firm are given below as -
Strengths Weaknesses
Michael Kors is a world class brand that
introduce its products and service as per
customers requirement. They provide its
effective collection in world wide to build a
strong supply and customers chain easily. Main
strength of organisation is their products ,
accessories and employees who serve its
appropriate services as per customers
requirement and demand.
This is a well known organisation that serve its
quality products in world wide. Michael Kors
introduce new products and services in market
with high cost which is not appropriate for
everyone to afford easily. Their customers has
strong demand toward its products but they
manufacture specific quantity.
Threats Opportunities
This organisation serve quality products and
services as per high rates. Some similar firm's
serve similar products as peer affordable cost.
These kind of strategy of rivalry firm create
threat for Michael Kors (Commander and
Svejnar, 2011).
This is a luxuries fashion company and having
its maximum outlets in Europe marketplace for
gaining major competitive advantage at global
level. These kind of strategy of firm helps to
provide them appropriate opportunities form
several countries easily.
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The internal analysis (SWOT) of Michel Kors assist to analysing their strength and
weaknesses effectively. The weaknesses of firm needs to be rectified and resolve in to overcome
its negative impacts easily. Whereas strength of firm helps to grabbing maximum opportunities
from target market to create a positive image in front of target competitors.
P6 Strengths and weaknesses interrelate with external macro forces
For a business organisation, it is require to build strong strategy to analyse Strengths and
weaknesses interrelate to external environmental factors. There are proper relation of internal
factors with external environment elements are given below -
Economic factors and Social factors – Michael Kors is a well known organisation that
serve its quality products in world wide. As the economic situation present in UK is quite
profound and high flow of cash is present in country.
 Strength - This organisation make proper research and analysis on market and customer
to analyse their needs and demand properly. This will creates the opportunity for
organisation to raise funds easily to meet out their working capital requirements.
 Weaknesses – Frequent changes in economic situation creates challenges for existing as
well as new ventures.
Political and legal factors - Michael Kors is a luxuries style or fashion organisation and
having its various outlets in Europe marketplace for increase better competitive advantage at
global level. Political situation present in UK is stable instead of that many carnages are happen
in regulations due to the adverse impact of the situations created after impact of BREXIT. (Craig
and Campbell, 2012).
 Strength – Stability in political situation becomes the strength of organisation as this will
allows them to specifically focus on organisation al activities rather then impact of
external factors.
 Weaknesses – One of the weakness which is faced by organisation is due to the impact
of BREXIT as many changes are happen in legal rules which adversely impact
organisational policies.
Technological factors – For a business organisation, it is require to use innovative ideas
and advance technology in their business process to getting higher business advantages easily.
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 Strength – Michel Kors provide their products and services on their physical stores as
well as through online servicing. Advancement of technology considered as strength fort
the firm.
 Weaknesses – Technological factor can not create weaknesses for Michel Kors because
they are working with major and advance technologies from manufacturing to final
selling.
M4 SWOT analysis and justify how they influence decision-making for the chosen organisation
Michel Kors is a well known organisation, for them it is require to analyse their strength
and weakness to grab higher business opportunities easily. In this process firm needs to analyse
external factors that can impact on their operational approaches in negative manner. These type
of factors are influence decision-making procedure of firm. So for this management needs to
make effective strategy to control its negative impact easily.
D2 Impacts of environmental factors have upon business objectives and decision-making
As stated by Dahan, (2010) for a business organisation, it is require to make appropriate
plan and strategy to control impact of environmental factors. These factors are divided in two
different elements as internal and external that directly impacts on decision making process of
firm. Internal factors are controllable but external environmental factors are beyond the control
of firm, so for this Michel Kors needs to build impactful strategy to reduce its negative effect
easily.
CONCLUSION
As per the above report it has been concluded that business environments is a specific
factor that affect organisational activities directly. For this manager and management of firm
needs to build effective strategy to analyse its impact on business approaches. This report is
representing specific research on Michael Kors which is a American luxuries fashion company
that provides its products and services in world wide. This organisation was established in the
year of 1981 by well known designer Michael Kors. This project represent its views on purpose
of public, private and voluntary sector organisations, Size and scope of such organisations as
well as relationship between several firm's function. It also represent positive and negative
impact of macro environmental factors, Internal or external analysis of organisation and its
interrelationship with firm activities.
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REFERENCES
Books and Journals
Fernando, A.C., 2011. Business environment. Pearson Education India.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Klapper, L., Lewin, A. and Delgado, J.M.Q., 2011. The impact of the business environment on
the business creation process. In Entrepreneurship and Economic Development(pp. 108-
123). Palgrave Macmillan UK.
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Scheer, A.W., 2012. Business process engineering: reference models for industrial enterprises.
Springer Science & Business Media.
Shigang, Y., 2010. Competitive strategy and business environment: The case of small enterprises
in China. Asian Social Science, 6(11), p.64.
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.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Carroll, A.B. and Shabana, K.M., 2010. The business case for corporate social responsibility: A
review of concepts, research and practice. International journal of management
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Charter, M. ed., 2017. Greener marketing: A responsible approach to business. Routledge.
Chesbrough, H., 2010. Business model innovation: opportunities and barriers. Long range
planning. 43(2). pp.354-363.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
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.
Drucker, P.F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard
Business Press.
Trkman, P., 2010. The critical success factors of business process management. International
journal of information management. 30(2). pp.125-134.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. 37(4). pp.1019-1042.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
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