SWOT Analysis of a Business in Order to Examine Its Strengths and Weaknesses

The provided references highlight several strengths, including the importance of considering business environment in decision-making, the need for innovative and competitive approaches to stay ahead, and the role of management accounting changes in Lithuanian business organizations. The references also emphasize the significance of examining the influence of business environment on socio-economic performance of informal microenterprises and the impact of electronic human resources management in an e-business environment.

Business and Business
Environment

Table of Content
INTRODUCTION...................................................................................................3
PART 1.....................................................................................................................3
P1 Company overview and discussion on the purpose of Network Rail Company and Iceland Ltd........3
P2 Size and scope of Network Rail Company and Iceland Ltd................................................................4
P3. Relationship between different organizational structure....................................................................5
PART 2.....................................................................................................................6
P4. Positive and negative impact of macro environment.........................................................................6
P5 Conduct an internal and external analysis to identify its strength and weaknesses.............................8
P6 How these strength and weaknesses are linked to the external macro factors.....................................9
CONCLUSION......................................................................................................11
REFERENCES......................................................................................................12

INTRODUCTION
Business environment include all functions and activities which are included in the
organization. It consist various types of internal and external environment which having impact
on the existence of the company. External environment included political, legal, social,
environmental and economical. On the other hand, internal environment include employees,
suppliers, customer etc. There are different types of organizations which are operated in the
international market such as public, private and voluntary sector (Gecevska, and et. al, 2010).
Managers and leaders of the organization are responsible to identify its strengths and weaknesses
through which they are able to improve their performance and work quality as well. The present
report is based on network rail company which is the public transport manufacturing
organization. Firm provide its goods and services in international market and attract large
number of customer. Leaders of this company are responsible to identify its weaknesses and try
to improve them as well and try maintain their strength through they are able to attain their set of
target as well as provide better of customer services to people. Internal and external environment
of this company is having impact its performance and work quality as well.
PART 1
P1 Company overview and discussion on the purpose of Network Rail Company and Iceland
Ltd.
In the different organisations, proper business environment is necessary as it assist in
attaining the goals and objectives. Network Rail Company is a public company. It is the owner as
well as infrastructure manager of the most of the rail network in the different countries. This
business entity is an arms length public body of the department which having no shareholders
(Kubasek, Brennan and Browne, 2016). Along with this it reinvests the income in the railways.
Network Rail Ltd. took over the control by buying the Rail track Plc which was in railway
administration from the Rail truck PLC for £500 million and they are reconstituted as a Network
Rail Infrastructure Ltd. The business entity is providing the training and development sites
around Britain. The firm operates the various essential telecommunication circuits for signalling
as well as electrification control systems, system which is related to train radio along with the
line side communication. The company is accountable to a body of members by its corporate
constitution to its commercial train operator consumers and they have to make the contract with
them and to the public interest by the statutory powers of Rail and Road. The main purpose of
Network Rail Company is that they provide the commitment to the consumers that they are
delivering the services in a specified time so that trains can run safely as well as punctually and
reliably in the future (Hamilton and Webster, 2015).

Iceland Ltd. is a British supermarket chain with the emphasis on the sale of frozen foods
which include the meals and vegetables. It is a private company and also having 2.2% share
approximately of the UK food market. The company has been made large scale changes which
helps in making the promotions. These have been reduced and replaced with the merchandise so
that they can offer the bigger packs at the original prices. The service is the main focus of the
business entity. Iceland discontinued the selling of saving stamps at their stores instead of
redirecting people so that they can save the money. Iceland Ltd. having a slogan that is “Mums
Love it” and they have to make the changes according to the needs and wants of the consumers
(Prajogo, 2016). The television adverts have used the tagline and hash tag of Power of Frozen
and they are fronted and voiced so that they can attain the benefits of the frozen products. Iceland
Foods was the main sponsor of ITV reality TV show that is I'm a Celebrity...Get Me Out of
Here! Along with this they have pursued the legal action against the Icelandic companies which
use the word “Iceland” in the different trading names. The regulatory of Iceland has to find the
solutions to the issues. Negotiation has reportedly been unsuccessful. The Icelandic government
filed a legal challenge at the European Union Intellectual Property so that they can make the
trademark and by that they are rendering the country’s firm so that they are unable so that they
can describe their products (Khan and Quaddus, 2015).
P2 Size and scope of Network Rail Company and Iceland Ltd.
Network Rail Company is a dedicated railway infrastructure manager. They are having
the holding organisation. In this they find traffic organisations which are responsible for the
entire transport infrastructure which includes rail, road as well as waterways. There are some
data which are related to the management or administration of railway infrastructure. They have
to maintain as well as operate the rail network 24/7 is the important part which helps in what
they do. Along with this they have to make the proper plans as well as they have to improve the
ways so that they can do proper and appropriate work. The railways bring together the families
as well as friends (Strumickas and Valanciene, 2015). Moreover, they have to open up the
communities so that they can make the opportunities that are jobs, clients as well as consumers.
It helps in expanding the business and by that economy will grow. The employees have to make
contracts so that they can do the work safely on the Railway. They have to use the planning
process which helps in making the improvements and have to make improvements as well as
changes in the rail network. They have to make the changes as well as improvements according
to the needs and want of the consumers and also provide the service so that they can attain the
goals and objectives.
Iceland, the westernmost country of Europe, is an island in the North Atlantic Ocean, just
below the Arctic Circle and a little more than 322 km (200 mi) e of Greenland, 1,038 km (645
mi) W of Norway, and 837 km (520 mi) now of Scotland. It has an area of 103,000 sq km
(39,769 sq mi), extending 490 km (304 mi) e–w and 312 km (194 mi) n–s. comparatively, the
area occupied by Iceland is slightly smaller than the state of Kentucky. The total length of
coastline is about 4,988 km (3,099 mi). The republic includes many smaller islands, of which the

chief are the West man Islands off the southern coast. Iceland’s modern as well as competitive
economy benefits from a strong commitment so that they can make the open market policies that
facilitate the dynamic flows so that they can make the trade as well as investment (Tallman,
2015). Transparent and efficient regulations are applied evenly in most cases and encourage
vigorous private-sector entrepreneurial activity. Measures to lift capital controls imposed in the
wake of the 2008 financial crisis are underway.
P3. Relationship between different organizational structure.
Every organization have different types of functions which are help company to attain
their set of target and objectives. Managers and leaders are responsible to maintain all function
through which they are able to complete their task in a timely and efficient manner. Every
function is interrelated with each other and try support each other as well (Laumer, Eckhardt and
Weitzel, 2010). Various of functions which are operated in the organization are as follows:
Operational function- This function lay an important role in every business organization
which is beneficial for every business organization. Through this factor companies are able to
improve their performance and earn more profit as well. Operational function include overall
operation of the company which support it meet their set of target and objectives as well.
Production function- This process is able to convert raw material into finished product
and after that sale them in international market. Network rail is public sector which manufacture
parts of public transport and deliver them in various countries. This factor is able to attain set of
target and goals. In this process organization have to use advance technology in order to
improve production quality and improve their performance as well (Welford, 2013). With the
help of higher production company is able to improve its sale and profit margin as well. This
process is help company to meet their target and objectives as well.
Finance department- This department is provide fund to entire company and maintain
overall functions. With the help of this process companies are able to meet their set of target.
They can provide fund to raw material suppliers and start production.
Account function- This process can record all the transaction of the company which is
use in the future time. With the help of this department companies are able to compare their
current performance with previous performance (Chavis, Klapper and Love, 2011). They are able
to identify that how much change in the performance of it whether it is positive and negative.
Through this department companies are easily meet their target and objectives as well.

Management function- This function can require good management skills in the members
of company. With the help of good management members are able to maintain overall functions
of an entity and improve them as well (Xue, Shen and Ren, 2010). Managers and leaders are
responsible to motivate their subordinates in order to improve their work quality and enhance
their knowledge as well. This function is help organization to meet their target and goals.
On the basis of above mentioned function companies are able to meet their target and
improve its performance as well. Organizational can easily achieved with the help of this factor.
M1
The main purpose of the Network Rail Company is to provide the best services to their
consumers. The main purpose of Iceland Ltd. is to deliver the healthy products and services so
that they can attain the goals and objectives. Network Rail Company has a good structure but on
the other side Iceland Ltd. having appropriate structure so that they can attain the goals and
objectives.
M2
There are some advantages and disadvantages of the interrelationship between the
different functional areas of an organization. The benefits that are associated with this are like
through this companies will be able to manage their operations in an efficient manner. All
departments will be able to know about the functioning of other so they can formulate strategies
that will be helpful for all enterprise. Communication gap between different departments are get
reduced and trust can be build among them. Some of the disadvantages are like that it will be
complex for the managers to manage all operations.
D1
Every organization consist various types of function and each of them require skilled and
experienced staff members (Klapper and Parker, 2010). Every function able to meet corporate
goals and objectives. Through which network rail can able to achieve their target in a timely and
efficient manner.
PART 2
P4. Positive and negative impact of macro environment.
Macro environment are those which are uncontrollable in nature. These having impact on

the performance of company and its work quality as well. Macro environment can directly and
indirectly affect the performance of the company (Iskanius, Page and Anbuudayasankar, 2010).
Business can be effected with theses factors and get effected with this. Mangers and leaders are
responsible to manage their performance in order to attain their long term as well as short term
goals. Unstable political factor can having impact on the existence of the company. In legal
factor government frame some rules and regulation which have to follow by them in order to
smooth working of it. In economical factor, at the inflation in the country people are ready to
purchase goods and services and able to spend more amount of money. This is a opportunities for
them to earn revenue or improve their profit margin as well.
Elements Positive Negative
Political factor The political factor of UK is stable
which is helpful for companies to
meet their set of target and
objectives. They can support
companies to expand their services in
international market and improve
performance as well.
Political party of UK maintain trade
restriction through companies are
not freely deliver its goods and
services in international market.
Also they set tariffs which are effect
their performance.
Environmental
factor
They can maintain environment of
the country and which is beneficial
for over all country. They promote re
cycle which provide healthy and safe
environment to people.
Flood and other natural disasters
can impact on the performance of
company which is not good for
their existence.
Social factor Changes in the population having
impact on the performance of
company. Increase the number of
population is beneficial for
companies to sale their products and
earn more profits. Changing in living
standard is also having good impact
But decreasing number of
population having bad on the
performance of company.

on the performance of company.
Technological
factor
Latest technologies are having
impact on the existence of company.
Through which they can improve
production capacity and put it in a
profitable position.
Technologies are changes according
to the changes in taste, demand and
needs of customers.
Economical factor In case of inflation in the country
people are wants to spend more
money and which purchase more
products of network rail company. If
interest rates are lower then the limit
then also people are ready to buy
goods.
But government some taxation
policies can drag down the
performance of company.
Increasing rate of tax can also
increase the cost of companies. And
if exchange rates of currencies with
other countries are increase then
cost of company is also increase.
Legal factor It can frame environmental
protection law is beneficial for
companies. Also they have to follow
them.
Legal factor are imposed restriction
on employment practices. They can
increased sanctioned when any
breaking rules. Also they frame
specific laws which are related with
goods, services and marketing of
them.
P5 Conduct an internal and external analysis to identify its strength and weaknesses
There are some internal and external factors which may affect the performance of an
organization. Some of the internal factors are employees, policies, executive and other external
factors are political, economical, social, technological environmental. By using the SWOT
analysis, Network Rail will be able to know about their strength and weaknesses. So, through
this an enterprise can assess their internal factors so that their overall performance can be
improved and they will be able to sustain their competitive advantage in the market. Along with
this, the industry can also use pestle analysis in order to identify their growth and position in the
market. These strength and weaknesses are:

Strength: These are the characteristics of an organization and through these they can
achieve competitiveness in the market. Company will be able to make their unique identify in the
market by using these advantages (Khan and Quaddus, 2015). The strength of Network Rail is
like they have a good brand image in the domestic market so they have a strong base of their
customers. Total labour cost of the company is low so their overall profits are more than cost.
They have their strong distribution and sales channel in the market so customers can easily
purchased the products. They are using latest technological advancements so they can retain their
customers to their service. Along with this, company also uses some of marketing
communication strategies in order to increase the brand awareness among all the people. Some
of the promotional strategies are advertisement, social networking media, radio, blog and
newspaper. Through these, people will be able to know about the benefits and features of the
services of Network Rail.
Weaknesses: These are the characteristics that should be reduced by an enterprise so that
their overall performance can be improved. Through these weaknesses Network Rail will not be
able to generate revenues in an efficient manner. Some of these limitations are like they offer
their services to domestic market not in international market. Due to this, their global brand
image is not good (Ishengoma and Kappel, 2011). Market structure is complex for an enterprise
and they will not be able to achieve future goals in an efficient manner. Demands of the
consumers are changing from time to time so the industry has to formulate some effective
strategies. By implementing these approaches, the manager of an enterprise will be able to
enhance their growth in the market. The future cost structure can also affect their performance
as for this they have to make their overall strategies flexible.
P6 How these strength and weaknesses are linked to the external macro factors
External factors are those which may affect the performance of an enterprise in a
significant manner. Some of these factors are political, social, legal, technological,
environmental and economical. The strength and weaknesses of an enterprise are linked to these
factors. Network Rail Ltd will not be able to control these factors and they have to manage their
operations as per their need so that competitiveness can be achieved. Some of these macro
factors are:
 Political factors are related to the trade barriers, foreign exchange and so on. As Network
Rail is performing their operations in domestic market so they have no need to follow the
rules of other country. There is political stability in London so through they will be able
to enhance their growth in the market (Weske, 2012). For example, if terrorist attack will
happen in the city then due to this they will not be able to improve their performance.
 Social factors are related to the need, demand, taste, preferences, lifestyle, and social
status of the customers. The industry offers their services as per the demand of their
consumers so due to this they will be able to build a strong base of their end users. So, in
this manner the strength are linked with this factor. If people will not be able to get the

services as per their expectations then they are going to purchase the products from that
particular company.
 Exchange rate, interest rate, inflation are some of the examples of economical factors.
The company is getting their labour at low cost so they will be able to generate high
profits as compare to other organization.
 The industry is using technological advancements in order to offer innovative and quality
products to their customers. Through this, an enterprise will be able to attract number of
consumers to their services and they can also achieve success.
The overall brand image of the company in international market is not good and they will not be
able to attract more people from external world (Onetti and et. al., 2012). Along with this, if
political stability is not there in country then Network Rail will not be able to increase their
growth in the market. So, in this manner the overall strength and weaknesses are linked to the
external factors.
M3.
Macro factors are those which are uncontrollable in nature. These having impact on the
performance of the company. The can effect positively as well as negatively. Network rail is
public transport manufacturing company which is affected with the various types of external
factors.
M4
Network Rail can use pestle analysis in order to identify their strategic position in the
market. Pestle is stands for political, social, economical, technological, legal and environmental.
IF political stability is there is in the market then an enterprise will be able to get the success in
the market. Marketing manager has to identify the needs and demands of their customers by
conducting a survey. As in the dynamics world, the desires of an individual are changing from
time to time so they have to formulate the strategies so that in every situation company can get
profits. Technological advancement is the factors that play an important role in the success of an
enterprise. So, by identifying these factors manager will be able to improve their position and
growth.
D2
According to the view point of Cavalcante, Kesting and Ulhøi (2011) Micro and macro
factors affect the performance of an organization and their decision making process. Micro
factors affect the operations of the company so they will not be able to increase their profits and
minimize their cost. On the other hand, there are some macro factors such as customers, political,
legal and so on that may their overall performance. Customers needs are changing from time to

time so they have to offer services to their consumers so that they will be able to fulfill their
needs.
CONCLUSION
From the above mentioned report it can be concluded that every organization perform
their operations in their business environment. There are many companies who are going to
perform their activities so that they can achieve competitiveness in the market. Network Rail is
following functional structure at their workplace so that they will be able to accomplish their
goals in an efficient manner. The industry can use pestle analysis in order to identify their
strategic position in the market. Further, they can use swot analysis in order to examine their
strength and weaknesses.

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