Business Communication Between Networks

This assignment delves into the intricacies of business communication by analyzing U.S. Patent 8,155,155. The patent focuses on establishing a communication system that effectively connects a broadband network with an enterprise wireless communication platform within residential or business environments. The analysis also considers various academic publications that explore the influence of the business environment on firm performance and global strategy.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
P1. Various types and purpose of business organisation............................................................3
P2. Types of stakeholders influencing the purpose of two contrasting business .......................6
TASK2.............................................................................................................................................7
P3. Organisational structure with their functional areas along with strategic plan.....................7
P4. Role of organisational structure and strategic planning for achieving aims and objectives. 9
TASK3...........................................................................................................................................11
P5. Influence of two contrasting economic environment on business activities within selected
organisation...............................................................................................................................11
P6. Political, legal and social factors impact on business activities and their stakeholders in
context of Lidl's.........................................................................................................................12
CONCLUSION..............................................................................................................................13
REFRENCES.................................................................................................................................14

INTRODUCTION
Business environment plays an important role in overall operation of business. Further, in
dynamic environment changes are coming with rapid fast speed so to cope up with all challenges
and beat the rivalry strategies company require to make alteration in their organisation structure
which is affected by legal, political, economical and technological changes (Aula ,2010). Apart
from it different micro and macro factor of environment is also impacted the working style of
corporate culture which includes their policies, norms, ethical practices and other different
operations. Therefore there is a need for organisation to regularly scan external market in order
to grab market opportunities and reduce all the risky elements of business. Under this assignment
the company which is preferred i.e. Lidl's and save the children. Lidl's is Germany based largest
grocery market operated 10,000 stores in all over the world and save the children is a non profit
organisation which work for the right, provide relief and support children in developing
countries. This project discuss about the type and purpose of business, types of stakeholders,
significance of organisation structure and PEST analysis in business structure.
TASK1
P1. Various types and purpose of business organisation
Their are different types of business organisation who works in external environment.
Mainly organisation is divided into three parts such as public, private and voluntary. Every
company has their own objectives, aim and separate legal structure which are differ from each
other (Babatunde and Adebisi ,2012). The main objective of every business is to uplift the living
standard and earn the profit by satisfying the needs and wants of customers. In business world
business is divided into two sector I.e. Public and private sectors which described below:-
Basis for comparison NGO NPO Profit based
organisation
Meaning National health service
is a UK based
organisation that
provide range of
health service which is
free for people
Non profit
organisation which is
not established for
earning profit but for
solving all the issues
and problem faced by
Profit based
organisation are
generally private based
company whose main
objective is to earn
profits through their

specially for the UK
residents apart from
dental treatment and
optical care. The main
objective of this
organisation is to
uplift the welfare of
society .
society in recent era.
These are generally
trust, cooperative
society and religious
group. For example
save the children is
non profit organisation
who believes that
every child deserve
good future so they
generally work for the
rights, education and
welfare of needy
children.
products and services.
For example Lidl's
which is German
based grocery store
deals in different
sector like food
beverages and wine
sector.
Area of Operations Carry their operations
on large basis.
Limited up-to some
extend
Operation of company
depend upon their
profit earning capacity
which is accomplished
by providing goods
and services to large
number of customers.
Aim and objectives The major objective of
this sector is to
develop the economy
of that particular
country by their social
work for benefits of
needy people.
This sector has been
established in order to
promote the art,
science and
commerce.
The main objective
and goal of business is
to earn more profits by
using different
marketing and
business strategies.
Apart from it three main sector description along with their purpose which are stated below:-

Public sector:- This sector can be described as such type of organisation which are
generally formed by government. All the policies, legal regulation and organisation structure is
enforced by government only in order to provide more employment and reduce all the fraudulent
practices. For example NHS is government based organisation who work for providing health
services to people.
Purpose of NHS:-
 Offer various medical facilities to different individuals.
 Provide free health services and create disease free environment in that country. Efforts is made to implement innovation in different health practices.
Private sector:- This sector is basically work for earning profit by attracting more and more
customers through their products and services. Although these firm does not get an opportunity
to sale their share on public stock market. But in order to remain sustain in external environment
for longer period they have to adhere with all rules and regulation enforced by government and
focus on innovation in their existing and new product segment. For example Lidl's is largest
supermarket deals in retail sector in different items for the purpose of earning profit.
Purpose of Lidl's:-
 Lidl's is largest supermarket of Germany operate different stores in order to earn profit by
providing high quality of products and services. Main focus is to improve the living standard and economic status of people.
Voluntary organisation:- These types of organisation carry out their operations and taking
different business decisions for the purpose of betterment of individuals living in particular
society. For example Save the children is non profit company who work for the right and
benefits of children.
Purpose:-
Work for the betterment of society not for earning profits.
Division is wholly controlled by group of trustees.
Advantages Disadvantages
Low cost involved At the time of decision making acceptance of
stakeholder is mandatory.
All the director and members are under the Contract under it is run for long purpose.

control.
P2. Types of stakeholders influencing the purpose of two contrasting business
Their are different types of stakeholders who affect the purpose and decision making of
organisation. Any decision taken in organisation is implemented only when it is accepted by
major key holders of company (Chavis , Klapper and Love ,2011). Stakeholders generally invest
in company after considering the purpose and scope of development of that unit so in case if
organisation required funding in order to implement their initial projects then they also consider
the view points and thoughts of different investors.
Apart from it in any big corporation the role of stakeholder is very important at the time
of taking decision related to change in MOA, objective and name and at the time fixing dividend
which is given from the profit earned by organisation. Lidl's and Save for children both are two
different business sector whose objective and purpose are differ from each other but the company
has to considered all the opinion and needs of stakeholders in order to achieve objective and
carry out the business for long term purposes. Following are the types of stakeholders who
influence the aims and objectives of business in context of Lidl and save the children.
Primary stakeholders:- These are the internal members of company who engaged in economic
transactions of business which are subdivided into following categories:- Stockholders:- These are owners of company who purchase the share and invest in the
capital of company. If company providing less return to stockholder then it create bad
image of company and they also waive their ownership at any time which affect the
overall objectives of company in financial term. Customers:- These are internal members who buy the goods and services of company so
it is vital for the whole management to make improvement in their products through
innovation and different techniques. If customers needs and demand is not fulfill by
company product then they can switch to other brand. For example Lidl's is large
supermarket dealing in different products but if they are not considering customer choice
then it effect their profitability and objectives. Supplier:- these are those people who supply the goods and services to company so it is
vital for organisation to maintain long term relation with them so they delivered goods to
end user at proper time period. For example in Lidl's company have different supplier

who supply product and services so conflict with them highly affect their daily operation
and barrier in accomplishing goals. Creditors:- These are basically investors of company who credit the loan to company in
order to implement their upcoming projects. For example save the children is not profit
organisation who need more funds in order to achieve their aims of helping children.
Therefore they need to maintain good performance in order to satisfy creditors.
Secondary stakeholders:- These are the external stakeholders of company who directly not
impact on business operation of business but indirectly effect the aim and objectives of business.
Following are the category include under it:- General public:- These includes all those individual who is highly affected by business
activity of company. For example save the children Uk based non profit organisation
whose main objective is to promoting children rights and provide relief support to the
children in developing country so if they indulge in such type of uthetical practices which
harm general public then it affect on sustainability of that association. Business support groups:- These are important stakeholders who invest funds and
promote the business in order to aware the customers regarding all the services they
provided to their clients. For example Save the children has different collaboration and
strategic alliances with many corporations that invest money in their vision in order to
transform the future of children better. Their global partners are IKEA foundation, TOMS
and google which plays greater role in influencing aims, objectives and decision making
of company.
Excluded Stakeholders:- This category include children and other disinterested public who has
no direct impact on business organisation. Although their perception, thinking and actions highly
impact on the aims and profitability of business.
TASK2
P3. Organisational structure with their functional areas along with strategic plan
Organisation structure is define as process in which different hierarchy has been define
within an organisation. Further it discuss about the roles responsibilities and the person to whom
they have to report after accomplishment of task and objectives (Chow and et. al. ,2012). In
every organisation the work is divided into structure of organisation which have their specific

functions. Further there are two types of organisation structure along with their functional area
having their own advantages and disadvantages in aspect of Lidl's and save the children.
Formal organisation structure:- This type of organisation has their own organisational chart and
job descriptions. Further the relationship between superior and subordinate is clearly understand
by every workforce and it is subdivided into following parts:-
Line organisational structure:- this type of structure is generally adopted in order to accomplish
the primary objectives of company because of including line department only. Different function
performed under this department including marketing and production function. Lidl's follow
chain of command in which there is direct relationship between different division and level of
organisation. They have their own advantages and disadvantages:-
Merits:-
 It is simple organisation structure that clarify all authority, responsibility and
accountability relationships.
 Easy to understand and facilitate fast decision making because of involvement of
strategic management only.
 Flexibility easily obtained under it so all the changes coming in external environment are
adopted by workforce because of flexible nature in them.
In Lidl's employees are divided into different department according to their specialisation which
ensure proper performance and maintain the relation between superior and subordinates because
of active participation of both them in business decision making.
Disadvantages:-
 In case if organisation is planning to expand more then their working become ineffective
because of different culture, language of people in different countries.
 In most of the cases it is not necessary managers are specialised in each and every field
which affect overall efficiency and productivity of business.
 Higher dependency on few members create lot of problems.
Following are the functional areas of them:-
Marketing function:- Lidl's in order to create awareness among customers regarding their
products and services need to adopt different promotional tools like social networking,
advertising and roadshows in order to enhance sales.

Production function :- Under this case Lidl's need to formulate such type of strategies under
which production of goods and services is made according to external demand which help in
reducing cost of production.
Source: Organisational structure, 2018
Matrix organisation structure:- This type of organisation structure is generally used in order to
achieve specific targets of company. Save the children used this structure whose main objective
is to promote the rights of children and bring the future of children more bright-able and
successful.
Advantages:-
the organisation generally adopt decentralisation structure in which decision making is done by
all workforce.
Improved environmental monitoring and maintain ethical practices in over the society.
Different business partners support this type of organisation in the form of finance, and help in
shaping their vision in good manner.
Disadvantages:-
Lack of financial resources
Chances of conflicts and issues are more among trustees because profit earned used for welfare
of society.
Apart from it both the organisation need to established such strategic plans that help in
improving the quality standard of their products and services. Further it assist in beating all the
challenges of rivalry through innovation that help in satisfy the needs and requirement of people.

P4. Role of organisational structure and strategic planning for achieving aims and objectives
Their are different structure of organisation which define proper hierarchy in which role
and responsibilities are clearly defined among workforce in order to achieve organisational
objectives (Commander and Svejnar ,2011). Apart from it proper strategic plans has been made
in which different marketing, operational and financial strategies has been made in order to
enhance sales and profitability. In context of save the children and Lidl's organisation mainly two
organisation structure has been defined which stated below:-
Chain of command:- It refers to that hierarchy of company that define reporting relationship
which follow structure from bottom to top management and include who report to whom. Further
it not only describe the accountability of person but discuss about line of authority and decision
making procedures. Under this structure all the task, responsibility of work and target are
achieved on the control of one person only. Further all the plans related to strategy are made by
senior person only in order to achieve aim and objectives of business. Under this structure
decision making is done by the active participation of all workforce. Employees got chance to
use their skills and abilities in performing daily targets effectively.
Advantages:-
Reporting relationship are more clear and they follow unity of command in which subordinate
has to give report to one boss only.
Further employees are not confused about whom they have to go for resources, feedback and all
the issues they faced at the time of performing work.
Customer are clearly understand to whom they have to contact at the time of facing difficulties in
respect of products and services.
Disadvantages:
It is an time consuming process because of involvement of all level of department in decision
making.
Office politics, partiality and bureaucracy are always present which demotivate all the workforce
leads of higher employee turnover.
Line of control organisation structure:-This is also known as flat organisation structure in
which fewer members are needed in middle management so company has less of power
hierarchy. Under this structure all the power is distributed among workers and chain comprises
of employees and owner or employee to the manager to the CEO. Lidl's is work on this structure

only where task is divided among staff members according to their specialisation so they achieve
targets effectively.
Advantages:
Employees are given full authority to take decision so they are highly motivated.
Effective communication channels because of less members involved.
Disadvantages:-
Workload among employees is increase because they have to perform all the operations of
business.
Opportunities for promotion is less.
The above two organisational structure are also affected by different stakeholders which plays an
vital role in operations of business. Further, both internal and external stakeholders give their
suggestion at the time when company take decision in respect of choosing organisation structure
which highly impact of overall working and also on those policies which are made to achieve all
the organisation aims and objectives.
TASK3
P5. Influence of two contrasting economic environment on business activities within selected
organisation
Economic environment:- It consist of different external factors of market which influences the
overall working of organisation. It is divided into two elements I.e. micro and macro economic
environment which impact on overall decision making of company. Micro factors are internal
factor of organisation within which they have full control and macro factors are external to
environment within which organisation has no control. Lidl's is largest supermarket operated in
Germany describe the impact on their business during recession and boom period. UK is
developed economy where the chances of growth is more but at the recession the sale of business
is decreases. Following are the economic factor that impact on business activity are:- Importance of stability:- Stability arises at the time period when organisation made
prediction on short term, medium term in relation to the demand and supply related to
their products and services (Cuervo‐Cazurra ,2011). In economy if there is any changes
arises in economic environment related to exchange rate, inflation will impact on income
capacity of individual in both positive and negative manner and this also influence sales
and productivity also.

 Tax rates:- Their are different tax regulation which enforced by UK government in order
to maintain decorum and fair trade practices in environment. All the organisation need to
compile with all the legal law in order to running business in smooth manner. Lidl's a
largest supermarket also impact by tax regulation of business at the time when they
expanding their outlets in all over the world. Several formalities has to accomplished
which leads to huge cost, time and efforts. Unemployment rate:- At the time when the economic condition of country is not stable
then it leads to poverty and unemployment which impact on purchasing power of buyers.
Further if employment is less then it impact on living standard of people. For example
Lidl's market is highly impact because of unemployment among people which imbalance
the demand and supply of products and services.
 Competitors:- Their are different competitors which impact on profitability of lidl's.
Changes are coming in environment at rapid fast speed because of innovative products
and digitalise service introduced by rivalry affect Lidl's business. Therefore they need to
prepare such marketing strategies which provide competitive advantages over
competitors.
P6. Political, legal and social factors impact on business activities and their stakeholders in
context of Lidl's
Business activities has been impacted by different factors of environment due to drastic changes
in technology and other different components. Lidl's is the subsidiary of ALDI company and
their whole operation is decided by ALDI management only. Different component of external
environment that highly impacted by political, social and legal environment whose description is
stated below:- Political environment:- Various conflicts and political changes and vulnerability across
the world will act as threat for the sustainability of foreign company. Most of Lidl's stores
are found in UK as well as USA and china which according to data free from all issues
and conflicts therefore their operation are safe from such impact (Deasy and et. al. ,2016).
Lidl's after Brexit found themselves uncertain in European market but due to huge FDI
investment is not effected as other firm has. Due to stable political condition stakeholder
of Lidl's are satisfy with their business performance and plan for future investment.

 Legal factors:- According to research and internet information it has been observed that
Supermarket of UK is highly affected by the fraud or scandal found in food products.
Lidl's business performance is highly impacted by that scandal because their parent
company ALDI found in legal disputes because of misrepresentation its sales of herbs.
Therefore, it vital for strategic management to adhere with all the laws and regulation
which applied on their business because non compliance leads to huge penalty and spread
bad image in the mind of stakeholders.
 Social factors:- There are different social factors that socially impact on Lidl's business
performance. Change in customer life styles and their distinct perception regarding
quality standard of products and they are health conscious over last few years. This will
impact Lidl's sales. It can increase its sales in the areas of fruits, vegetables and other diet
products. Good performance and better brand image attract more investors to invest and
become stakeholder of company which enhance capital and overall market share of
company.
Therefore, it is necessary for Lidl's to considered all the above factors at the time of making
policies, strategies and tactics in order to accomplish organisational objectives and increase the
profitability and market share of company.
CONCLUSION
It has been concluded from the above assignment that different factors of business
environment impact on overall performance of company. Further more emphasis is given on
rationality of management team at the time of selecting organisation structure and their
functional area. Apart from it PESTEL analysis which help in making improvement in products
and services that enhance their sales and profitability.

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