Business Environment Analysis and Report

This assignment requires you to analyze a given business environment using various frameworks like PESTEL analysis, examining the impact of political, economic, social, technological, environmental, and legal factors. You will also explore different organizational structures and their effectiveness in navigating the business landscape. Case studies will be used to illustrate these concepts and provide practical insights into strategic management within a dynamic business environment.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Covered in PPT.....................................................................................................................1
P2. Covered in PPT.....................................................................................................................1
TASK 2............................................................................................................................................1
P3. Various organisational function and their contribution in the firm......................................1
TASK 3............................................................................................................................................3
P4. Positive and negative impacts of macro environment on Business......................................3
TASK 4............................................................................................................................................4
P5. External and Internal analysis of organisation......................................................................4
P6. Strength and Weakness of firm affected by macro factors...................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Businesses environment basically symbolises collection of all individuals, things and
other factors which would be under the control of an organisation. All these factors can affect its
performance and profitability margin. This would help them to grow and work for their survival.
There is distinctive environment for every type of businesses organisation. It cannot work in
isolation and it is adversely affected by the external and internal impacts of environment. They
affect their activities. This report consist of different sectors of organisation in which public
sector includes Nestle, which is a transnational food and drink company whose headquarter is
situated in Switzerland. Private part incorporates Burger king, this is a worldwide chain of
cheeseburger fast food eatery whose base camp are arranged in Miami-Dade Country, Florida.
Deliberate firm incorporates World Food Program, is a nourishment help branch of United states
and world's greatest compassionate association that think about yearning and sustenance security.
The principle reason for this report is to recognize diverse sorts of association and their
extraordinary objectives and targets..They tend to have different sizes and scopes which is
described in this report. There is also a relationship drawn between various organisational
structures. Macro factors have great impact on business operations in positive manner as well as
in negative manner. In this report there is also an internal and external analysis made for the
businesses organisation to find its strength and weaknesses.
TASK 1
P1. Covered in PPT.
P2. Covered in PPT.
TASK 2
P3. Various organisational function and their contribution in the firm.
In every business organisation, there are various functions which have an important role
in growth and success of the company. These functions are implemented in order to managing all
activities and tasks of the company. Along with this, an effective organisational structure is the
skeleton of the firm which is capable to defines roles and responsibilities of each and every
department. Business functions work more effectively when all employees understand their job
duties. There are given below the various functions of Burger King, such are as follow: -
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Marketing – Marketing has an essential role in achieving goals and objectives of company from
marketplace. It is responsible in establishing relationships between customers and the
organizations offering to the market. The marketing function is also tasked with branding of the
organization, participation in publicity activities, advertising and customer interaction through
feedback collection. The prime role of this department is to attract many customers and people
towards company as it can improve its sales and make higher profits. For example- Burger King
is regularly developed its products and services; it’s also gives attractive offers to its customers
in order to attain or retain them.
Finance and accounting – Finance has a significant role in business it is helpful in internal and
external stakeholders to make better business decisions by providing them with financial
information. Along with this, if company have proper finance as it can take its short and long
term decisions effectively. The finance department of the firm is focuses on creating budget so as
to decide the expenditure on each and every activity of company. It is also liable in forecasting
the financial position of the company in competitive market. The growth and success of Burger
King occurs when the principles and procedure of corporate finance are followed in effective
manner.
Human resource department – The department obligates on managing, attractive, motivating and
developing employees in order to achieve the goals of higher performance. It is the responsibility
of company's HR to provide timely training and development assistance to employees as they
can acquire more skills and competencies High level of productivity gives high returns of profits
to the company. The department also liable for performance management and employee’s
relations which put a direct impact on decision making process of the company.
Research and development department – By conducting marketing research, managers can easily
understand needs and wants of customers. It is also accessible to recognise the competitor’s
strength and power; if managers have knowledge about future plan and product of the rivals, as
they can also develop their strategies and polices accordingly. Effective strategies help in
accomplishing goals and objectives of company from target market.
Production and operation department – The main work of production department is to focuses on
timely delivery of raw material; it is also liable in producing inputs into finished outputs.
Production unit helps in providing quality products and services to customers as they can easily
attract towards it.
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TASK 3
P4. Positive and negative impacts of macro environment on Business.
Burger king is well known global food chain in all over world. The journey of this
company started from 1955 from united stated. Now in current scenario burger king is almost
situated in across 73 countries, with the achievement of 12,400 food stores. Initially it started
offering basic food like soda, milkshakes, burgers, French fries now they offer many other
varieties to costumers. This food chain one of the most rapidly growing and expanding franchise,
they secured second position after McDonald.
Political factor: - They have to take membership of MRSRS (market and research social
research society) they inform guideline to them and make sure that no one can abide them
otherwise they can face issues. Their market strategies all control by fiscal policies of
government where all taxation policies are including. They also have follow food act in which
they care about healthy and fresh food ingredient.
 Positive: - they take about all the taxation and food quality whatever they provide to
clients Negative: - They focus more on the good value they charge by clients.
Economical factor: - Different economic environment directly affect the burger king
because of the multinational organisations they have to adapt the economic trends according to
countries scenario. It has opportunity to expand their business more.
 Positive: - Its beneficial to expand the company's food chain and made the goodwill in
international market.
 Negative: - Sometime for the burger king it’s hard to understand the trends of the another
country's economy and rare some they disappoint clients too.
Social factors: - Social trends also affect the company and it keep changes according to
season. The company offer some food services, gift packages and other lots of interesting
schemes to attract people and according to the season.
 Positive: - By offering them many things on menu, they attract customers to visit burger
king more and more.
 Negative: - Offering food services may be distracting from quality also and this can lead
to be in big trouble.
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Technological factors: - In the world of internet, its good chance to promote and start
online services to the clients. So they can easily order the food and company can give them
service of home delivery.
 Positive: - it may give clients comfort and good facility of burger king by providing them
home delivery.
 Negative: - it’s easy and convenient no doubt but not all people can access the internet
and know about this facility.
Environmental factors: - There are few factors which directly and indirectly affect the
company like climate change, it may be decision the popularity in the low lifestyle area so may
be company go in loss there sometimes sustainability status also affect them it needs to be
improve by company to get rid of loss there.
 Positive: - It’s good that they concern about the quality in changing season and in
different country at a time.
 Negative: - They hardly take any action to change them self as according the client's
demand and season.
Legal factors: - Burger king follows all the legal requirement of the countries where the
company is running and have to do all the formalities of protection law in which they should not
harm the environment by doing some irrelevant activity, import export and follow all legal rules
of country.
 Positive: - Company follows legal formalities and environmental law for the geographical
protection. They act as loyalty and honesty for ethical norms and they try to provide
higher gratification to customers.
 Negative: - As a multinational company, they may confuse people by changing taxation
policies and make client's face price issues too.
TASK 4
P5. External and Internal analysis of organisation.
The external and internal analysis of the organization is also known as SWOT analysis.
The internal analysis covers the strengths and weaknesses of the firm while external analysis
covers the opportunities and threats of the firm.. While performing this internal and external
analysis there is usually useful information is provided regarding the company's strength and
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weaknesses. There is a management system of Burger King conducts internal and external
analysis for improving their business. This is carried out in terms of cost position, competence
and competitive validity in the market place. In addition to this, there is a dynamic part of the
procedure which performs management in effective manner.
Strengths: It basically defines the organisational power and capabilities. There may be
many illusions due to many theories. It is defined as the qualities and abilities of any business by
which it is capable of completing their goals and objectives. This quality is tangible in nature but
it can also act as in tangible. It involves conditions like no doubt, large economical state and
committed employees. The strengths of burger king are strong market position, global
operations, strong franchise network, strong product line and strong branding. Burger king is the
largest fast food chain in the world. It has strategic advantage as the investments are primarily
funded by franchises. The partnerships include contracts with soft drinks for its customers. Its
strength lies in extending its business by approach of franchise. Since the company would have
franchise in large parts of the world then. Its biggest strength is International operations which it
carries out for expanding its business and cost leadership strategy. This is an investment plan
which will later provide some benefits. They have great amount of economic strength which is
very much responsible for extending its business to large areas. There are large range of products
in its stores and operation capacity. This company's information system is very strong and highly
competence. Its supply chain is very efficient.
Weaknesses: This quality basically seems to symbolises the disabilities that stops a
company from achieving its target and specific goals. It is basically responsible for preventing
any organisation to achieve their aims and missions. Basically if a weak firm is to be
characterised then it is one which is outdated and have olden technologies and lack of facilities
or skilled labour and employees. The weaknesses of burger king which impacts the business are
that it is too much dependent on its franchises for revenues, lack of presence in global market in
comparison to competitors, decrease in the sales in mature markets and unstable ownership. It
fails in adopting new innovative marketing strategies to gain competitive advantage in the
market. There is huge competition which is rising every now and then. The presence of this
company is only present in some countries and need to be extended more. The practice of
keeping wages of employee low will make them happy and less efficient for work. This company
has an easily copied business model which include thin profits.
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The external analysis of the burger king includes:
Opportunities: This can be defined as those factor in which company can easily earn
benefits from. It is presence of those situations which are favourable for the company terms and
conditions. They can rise in competition from their competitors if they get such situations at the
right time and right place. They can improve their technology and market position by grasping
this chance. This basically involves business capabilities to acquire and manage resources and
then supply the required amount of services or items to their customers. The opportunities for
burger king are expansion in international market. Strengthening its network by penetrating the
market helping in increasing its revenue Planning such strategies which can help the company in
acquiring new markets and make presence in the market among its competitors. Burger king can
also take advantage over the market by introducing products with healthy elements. It can also
build a strong brand image by organizing joint marketing programmes and promotional
activities. There is also one more step of bringing opportunities is by including retail market
growth in emerging marketplace. There are some reasons by which chance of opportunities
increases is rising popularity of own label. Its popularity helps in increasing their rising capacity.
In this company there is improvement in quality standards and they are trying to expand their
company procedures in various developed country. They are constantly trying to improve human
resource practices. One of the best technique of creating opportunities is through online shopping
centres. They are promoting and practising for trends towards healthy eating.
Threats: These are factors which are considered to be very important facts in which the
vulnerability of the company conditions is described. Those factors by which the cited firm gets
threaten for getting any kind of profitability. It stakes the reliability for any company. The threats
to the company are competition, changing consumer eating habits, raw material prices, lack of
direction and non-changing marketing strategies. This affects the image of the company and
decrease in the profits. The rising price of commodity is the biggest threat to market strategy of
this company. The major threat is about the eating habits of the consumers which are rapidly
changing due to health awareness campaigns run by the government and affecting the business of
fast food industry.
P6. Strength and Weakness of firm affected by macro factors.
In business association each movement and operations is fundamentally identified with
each other. Burger King Company's quality and shortcomings are connected with full scale
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natural variables. There is an investigation of full scale natural variables which should be
possible through PESTLE examination. Alongside this, SWOT technique is fundamentally
associated with large scale ecological elements which may impactsly affect business position in
this focused market. Alongside this, if supervisors are following all administration standards and
direction at that point delivering legitimate items can be effortlessly making its development and
progress. Aside from this, different political components may likewise affect on organization's
quality. Like if administration of UK lessen the rates of expenses and obligations on retail items
then it is useful for Burger King.
Changes in monetary state of the organization likewise builds deals and acquiring retail items.
Improvement in innovation additionally open the entryway of chances for an association; they
can create quality items and administrations. Innovation and new developments likewise
supportive keeping in mind the end goal to pull in clients, yet some private companies are not
ready to embrace every one of these strategies because of absence of cash. It lessens their market
picture and notoriety. In setting of social factors, client's decisions are change as indicated by
their life cycle. Once in a while social improvement has positive effect over the execution of the
association on the grounds that through this the results of the organization can be acknowledged
everywhere level. Along these lines, large scale condition factors having positive and also
negative effect on quality and shortcomings of the business. Now and then these components
might be in charge of association's development and they may decrease association's market
picture.
CONCLUSION
From the above report, it has been analysed that there are different types of organisations
which has unique functions that distinguish them from each other. They still have some
relationship with each other. The features by which they characterize themselves is by their
scopes and sizes. In this report various organisation that is mentioned include public, private and
voluntary sector. There are some specifically defined organisational functions which needs to be
focused as they lead to accomplish the company's aims and objectives. After all these analysis,
this report also addresses the macro impacts which affect the business performances using some
real life examples. To properly understand the organisation and work effectively for achieving its
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success there is requirement of external and internal analysis of those firms. This is described in
this report and also how these factors are influenced through macro factors of environment.
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