Business Environment and Organizational Performance

The provided document is an assignment that analyzes the business environment and its impact on organizational performance. It includes various articles and research papers from reputable sources such as The World Bank Economic Review, The Review of Economics and Statistics, and Journal of Computer Information Systems. The assignment covers topics such as entrepreneurship, marketing, finance, and management in different contexts, including small and medium capital goods manufacturing companies, steel product industry, and business/IT alignment using requirements engineering.

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
P3. Relationship among various types of organizational function..............................................1
P4. Positive and negative impact of macro environment............................................................3
TASK 4............................................................................................................................................5
P5. SWOT analyses of different organizations...........................................................................5
P6. SWOT is interrelated with PESTLE.....................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
..................................................................................................................................................10

INTRODUCTION
Business environment consists various internal and external factors which having impact
on existence of company. These both factors influence each other as well as work together.
There are different types of organizations which having different purpose and objectives.
Members have to use their collective efforts in order to attain their target. The present report is
based on Subway which UK based fast food providing company. It has appropriately 45,000
store in all over country and around 40,000 workers employed. This company was founded by
Peter Buck and Fred DeLuca and incorporated in August 1965. It offer varieties of goods and
services to their targeted audiences in order to attain their target. Through such services, firm is
able to attract large number of customers and maintain their performance as well in international
market (Iskanius, Page and Anbuudayasankar, 2010). Tesco plc is the public organization which
is UK based retailing firm. It provide various types of goods and services to people. On the other
hand, Oxfam is charitable firm. The purpose of this firm is maintain health of people and provide
social welfare.

TASK 1
Covered in PPT
TASK 2
P3. Relationship among various types of organizational function.
Subway is the multinational fast food providing store which is focus on their quality in
order to attract large number of customers and expand business in across the national border. In
such company there are several departments who are working as team, they have to use their
collective efforts in order to attain their target and maintain performance as well. Each
department having their own functions and duties which have to be fulfil by employees. Such as,
finance department is responsible to maintain financial position of the company (Klapper, Lewin
and Delgado, 2011). They must ensures that firm have to record all transaction which are
conducted by them. Prepare proper written document in order to mentioned all information
which are related to company. For maintain work quality of employees, higher authorities of
entity have to provide opportunities to them. Such as reward and any other additional benefits.
Through this employees are effectively contribute in decision making process. Managers and
leaders are responsible to offer healthy and safe working environment to their workers. Such
procedure is able to attract large number of employees and keep them for long time.
Members of subway, opt some methods for the purpose of improve quality of their goods
and services and serve the same in international market (Aterido, Hallward-Driemeier and Pagés,
2011). If people purchase food products of cited company, it is beneficial for them. Managers
and leaders are responsible to frame plans and strategies which is helpful for them in order to
meet their long term as well as short term goals and objectives. Through this process companies
can attain their target. There are different types of organizational structure which is beneficial for
entire company. Every organization having separate departments which having separate
functions and activities. Managers of each departments are responsible to recruit best person who
having appropriate skills, knowledge and experience.
Functional Structure- In this process all organizational functions completed into
separate department. Managers of each departments are responsible to conduct transaction in
effective way in order to attain their target. They have to set clear target for the same and try to

attempt one after another. Conduct training session for their employees in order to improve their
skills, knowledge and experience (Chavis, Klapper and Love, 2011). And educate to them to
focus on their mission. In such training session, manager are responsible to conduct open session
with employees in order to identify their problems. Provide best possible to solution for this
problems.
Divisional structure- In this process, functions are separated into different branches.
Members of each division are bound to follow their own division strategies for attain their
objective. Having its own research and development programme, sales, marketing and
accounting department. Managers of each division are responsible to recruit person according to
their requirement and try to motivate them accordingly. Effective recruitment can be done on the
basis of their skill and knowledge (Welford, 2013). The main benefit of such firm is workers
carry out their functions which are appointed to them.
Matrix structure- Each company have to opt matrix structure which provide better
flexibility to them to perform their function in effective manner. The work has been assigned to
workers by their managers and team leaders. But sometimes it becomes complicated for
company and not able to resolve matter of employees. Conduct training session for employees
for betterment of their work quality. Furthermore, workers are bound to attend such training
which is helpful for them to improve their performance. With the help of this concept companies
are able to resolve matter of employees in effective way (Pirson and Malhotra, 2011).
Their are various departments in Subway liken finance, human resource, marketing etc.
Finance division is responsible for managing financial resources of company,. On the other hand,
human resource department focus on finding best man for a job. This is their prime aim but
besides this they also do work relating to resolving problems of employees. Marketing wing is
responsible for completing the task related to finding needs of customers and offer them product
which fulfil their demands. They play crucial role in retaining and making permanent customers.
Below is relation between different departments:
Finance and marketing – Finance department make all the significant decision relating to
where to invest and what source of finance should be adopted. If relationship between finance
and marketing division is fine then company can attain their objectives and use their financial

resources in better way. Marketing wing has sound ground knowledge and they know financial
strategy of other player of the market.
HR and marketing – Their are various kind of function which marketing department do.
If connection between HR and marketing wing is fine then HR manager can understand the skills
which is needed by the employees and hire employees accordingly. This will result in generation
of quality workforce in company. Marketing division can also communicate with HR division
and provide them important information about thinking of customer. This will help HR division
at the time of recruitment process.
Finance and HR – Highly qualified people are required in finance division. If connection
between HR and finance division is good then prior one can promote right people at right post.
This will reduce workload of human resource wing and they can invest their time in other areas.
Finance division also allot money to all other division. If their relationship with all other wings is
good then no department will complain about problems in getting financial resources.
P4. Positive and negative impact of macro environment.
PESTLE analysis is considered as macro environmental factors which having impact on
existence of business organization (Craig and Campbell, 2012). Positive and negative impact of
such factors is able to reduce their performance. With the help of this process companies can
operate its function in effective way.
Political- The Government of UK may influence entire industries. Unstable political
environment is able to reduce performance of company. Legal authorities amend tax rate which
is imposed on companies and they are bound to follow the same. This factor is able to evaluate
the extent of legal authorities which having great impact on their existence (Moutinho, 2011).
Managers and leaders are responsible to focus on dynamic political factors such as taxation
policy, excise duty etc. which are helpful for their smooth functioning.
Dynamic changes having impact on its performance and work quality. If tax rates
increased by company then it create negative impact on their customers as well. Through this
entities are not able to earn profit (Boons and Lüdeke-Freund, 2013).
Economical- Economic condition of various companies are able to prove with the help of
economical factors. Every country having different condition. Business organizations are bound
to set price according to needs and demand of people in order to fulfil their requirement. Higher

authorities are responsible to take effective decision which bis helpful for them. At the time of
inflation situation the purchasing power of customers has been increased through which
companies earn better profit (Aula, 2010). On the other hand, at the time of deflation condition
the purchasing power of buyer has been decreased which is not beneficial for them. So that, at
the time of inflation situation the condition of market is beneficial for entities. At the time of
economic crisis they must face various types of problems regarding distribution of goods and
services in international market.
Social- In this modern era, increased education process is helpful in growth and
development of entire country (Harrison, 2011). Through this companies can increase awareness
among people regarding quality of products and services. Higher authorities are responsible to
offer better quality of products to people on the basis of their needs. Furthermore, every entity
must ensures that members have to focuses on the customers changing behaviour. The main
positive impact of this factor is that Subway can built trust among people and improve market
reputation as well. This factor they able to attract large number of customers (Strumickas and
Valanciene, 2015).
On the other hand negative impact of such factor is that, through unequal distribution of
firm it create financial equality among people. It is the biggest reason of poverty which is not
beneficial for entire country (Ullah and Lai, 2010).
Technological- In this modern world, large number of companies use advance
technologies in order to promote their goods and services in international market. Cited firm can
use advance technologies for marketing its fast food products in order to attain their target and
meet their goals as well (Smallbone, Welter, Voytovich and Egorov, 2010). Use of database is
considered as technologies which has been used by members of Subway for record all
transaction which are conducted entity during purchasing and distributing products. The main
positive impact of such factor is that organizations can operate their business in effective and
fulfil their requirement of customers. Companies have to maintain confidential their information
or data. But there are various types of techniques present which are able to leak such information
which can raise competition for them. Furthermore, if cited firm perform in competitive
environment then it require latest technologies.

Legal- Members of Subway facing various types of problems regarding rights of labours.
Government frame various types of rules, regulation and policies in order to protect interest of
employees (Ullah and Lai, 2011). Managers must ensures that company must provide healthy
and safe working environment to employees in order to keep them for long. Legal authorities
imposed restriction on companies regarding production and selling of product. Also firms are
bound to import raw material according to limit which is imposed on them. Staff members have
to comply with rules and policies which are mentioned provision of law. The negative impact of
such factor is that it imposed some restriction on companies which is bound them to conduct
activities in limit, if they can entertain activities beyond their limit them legal authorities impose
punishment on them equal to mentioned under law.
On the other hand, positive impact of such factor is that there are various types of laws
are able to protect interest of employees and provide better opportunities to them (Gebauer,
Paiola and Edvardsson, 2010).
Environmental- There are various number of companies opted production function
which create polluted environment. Through this such companies are able to provide clean
environment to people which may not harm to their health. The main positive impact of this
factor is that entities are able to offer friendly working environment to their employees in which
they easily survive and use their collective efforts to attain their target (Chavis, Klapper and
Love, 2011).
On the other hand, sudden changes in weather is considered as negative impact for them.
Such concept is directly impact on selling as well as distribution of products and services on
firms (Cai and Yang, 2014).
TASK 4
P5. SWOT analyses of different organizations.
SWOT Private(Subway ) Public (Tesco) Voluntary (Oxfam)
Strengths They brand loyalty is very
high because they serve
They are considered as
the leading organisation
This organisation has
clear goals which

fresh and healthy food.
They are present in more
than 112 countries and
operating around 44000
restaurants. They staff is
well trained which can be
considered as the main
reason that they provide
high customer satisfaction
(Aterido, Hallward-
Driemeier and Pagés,
2011). Their service is
very fast and they offer
customers.
in retail sector which
gives them some extra
edge over their
competitors. They have
almost 520,000
employees in different
part of this world, this
factor helps them in
gaining trust of
customers. The
packaging technique is is
better than other players
of this sector, they have
adopted advance methods
which attract large
number of customers.
convince people to move
towards their brand.
Customers understand
that the money they are
paying for a product will
be used for needy people
so they prefer them over
other private companies.
They have a global
network and they have
support who are loyal
towards brand. Their
portfolio has diversity
and they fulfil all the
basic demands of a
consumer. They have
sound online presence
and they sell their
product at reasonable
price.
Weaknesses Most of the companies are
selling their product online
but they do not have any
online presence. Their
customers are not happy
with this decision. They do
not offer much variety on
their menu card, lack of
diversity is among one of
They have a huge burden
of debt which is making a
negative impact on their
financial position. They
have weak presence in
emerging markets which
will become a serious
issue fro them in
upcoming time. They
Their brand do not
proper recognition and
they are compare with
other NGOs who do
same kind of activity.
Customers do not choose
them at the time of
buying any luxury
product. They do not

their major weakness.
Managing franchise is
creating various kind of
hurdles in their business
operation which is
ultimately making a
negative impact on their
profitability.
faces various
controversies like strike
of employees which
made a negative effect on
their goodwill.
have sound global
presence.
Opportunitie
s
They can exploit
vegetarian segment
because it still has lot of
scope. Nowadays people
are getting more health
conscious which so they
are becoming vegetarian.
They can start home
delivery of their product
which will expand their
marketing and sales. They
can enter in emerging
markets where this sector
is still unorganized.
They can invest huge
amount in emerging
markets like India, China,
Brazil etc. They can
spend more money on
advertising which can
help them in connecting
with more customers.
They can acquire small
companies in domestic
and international market
because these
organisations have
potential to become next
big company.
They can invest more
resources in advertising.
Currently they are
known for their charity
but now they show
represent themselves as a
retail shop. They core
values can win heart of
many people so they can
promote it in large
audience.
Threats Their competitors are
doing aggressive
marketing and in
upcoming time they can
steal their market share.
Customer are getting more
Their opponents like
Asda, waitrose, etc. are
getting more stronger in
domestic market. Their
global competitor like
Walmart is also capturing
They do not have proper
number of volunteers,
their current employees
are also not committed
towards goal of
organisation. Their

health conscious so they
have to improve their
product quality other wise
their sale can decreasing in
forthcoming time.
developing economies by
investing huge amount.
This move is giving them
proper head start. Their
products are getting
imitated by other
organisations of this
industry so they have to
do innovations in regular
interval of time. The
invest that they have
done in some economies
is not getting expected
return which may create
extra burden on their
poor financial position
product quality still has a
big question mark. Other
players of this industry
are offer much better
quality at an affordable
price.
P6. SWOT is interrelated with PESTLE.
Every company have to conduct SWOT analyses in order to identify strength and
weaknesses of firm. Through this process company can maintain its performance and able to
improve work quality as well (Craig and Campbell, 2012). Such process is interrelated with
external factors of company. They have to set some policies and procedure and instruct
employees to follow the same. Members of company are bound to follow rules and policies
which are imposed on them and able to define their strengths and weaknesses.
Strength- In the situation of stable political factors then company effective perform task
in timely and effective manner (Commander and Svejnar, 2011). Through comply with legal
proceeding firm can identify its strengths. The Government of the UK is support fair trading
which is helpful for them. Through this entities are able to expand business and build trust
among people. Members have to use their collective efforts in order to provide equal
opportunities to employees and maintain their health as well.

Weaknesses- The biggest weaknesses of such firm is that they are highly depends on the
advertising process (Halbert and Ingulli, 2011). So that, they have to opt advance technologies in
order to promote their goods and services. Furthermore, technological factor are having impact
on the existence of firm. Sometime its hard for complies to made payment to employees. So that,
on the basis of rules of law entities are bound to provide payment of their workers equal to
minimum wages. They have to produce goods and services which badly impact on environment.
But such step needs to be taken by companies.
CONCLUSION
On the basis of above report, it has been concluded that there are different types of
organizations name called public, private and voluntary. The purpose of incorporation of all such
firms is different from is each other. Subway is the largest fast food providing firm which is have
to offer best quality of products to people. They have to maintain relationship among various
types of organizational function which having impact on existence of firm. Members of all firms
are responsible to identify their strengths and weaknesses in order to maintain their performance
and maintain work quality as well. There are various types of macro environment factors which
having impact on the existence of business organization. Managers and leaders are responsible to
frame plans and strategies in order to meet their target in effective manner.
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