Business and the Business Environment: Types and Purposes of Organizations, Relationship between Organizational Functions, and PESTLE Analysis of Admiral Sportswear

This report discusses the different types and purposes of organizations, the relationship between organizational functions, and the PESTLE analysis of Admiral Sportswear. It covers the impact of political, economic, social, technological, legal, and environmental factors on businesses. The report also includes a SWOT analysis of Admiral Sportswear.

Business and business
environment

Table of Contents
INTRODUCTION..............................................................................................................................3
TASK 1..............................................................................................................................................3
TASK 2..............................................................................................................................................7
CONCLUSION................................................................................................................................13
REFERENCES.................................................................................................................................14

INTRODUCTION
The term business environment is refers to the all internal and external components that influence on business organisation.
Among these factors some elements are favourable and and some are unfavourable. These factors include the competitors,
technologies, customers, social economies and other etc. All these components impact the business externally and internally. The
changing business environment provide many opportunities and risk for the business organisation. The business which are operated
with the purpose of to earn profit are profitable business and some business work without profit motive are called non profit
organisation (Alfy, 2019). In this report three types of organisation are selected that are private (Admiral sportswear), public (UK
sports) and voluntary (Sobell Leisure centre). This report will cover types of, purpose, scope, size of the organisation, relationship
among various business functions in companies, negative and positive impact of macro environmental on business, strength weakness
and external analysis and their effect of organisation.
TASK 1

Business and the Business Environment
P1 Explain different types and purposes of organisations; public, private
and voluntary sectors and legal structures.
There are three types of sports organisation with different purpose
which age given below:
Public sectors- These business organisation are supported and funded by
the government as these are operating their business in public sectors.
These type of organisation perform their work to provide services to the
general citizens without earning any profit. For example the UK sports is
an public organisation in sport industry (Alon and et.al., 2020).
 Purpose- Provide best services by using scare resources in order to
maximise the productivity of country at low cost.
Legal construction
 Central government- In this, the public organisation or sectors are
controlled by country's central government as these sectors are
funded by government through its treasury collection
 State government- Only dew department has the authority to
control public organisation and central government do not intervene
much in these sectors.
 Local government- In this, the maniple authorities has the power to
control these sectors and generate profit or revenue for local
communities.
Private sectors- These types of business are run by an individual or companies.
It work with the aim of profit earning as these are not operated by the
government. It is created by the forming new enterprise or privatizing the public
sectors. For instance, the Admiral sportswear is a private sport company (Aslan,
2021).
Purpose- Make money or profit out of investment's return and employs more
workers that public sectors.
Legal constructions
 Partnership- The business is rune by two or more individual by sharing
their all losses and profit in their business organisation
 Sole proprietorship- It is that legal entity where an individual own a
business and personally responsible or accountable regarding all the
debs.
Voluntary sector- These are those organisation which are formed with the
purpose to create social impact rather than the profit. It is also called third sector
non profit organisations. Thee are not on national and local government and
different form private sectors. For instance, the Sobell Leisure centres is a
voluntary sport organisation ( Cincotta and Liberopoulos, 2021).
 Purpose- Help the peoples in order to meet their aspiration and live the
lives as they want.

Legal constructions
 Trust- These sectors are formed with the aim of money and
property management to define clear purpose. In this, the Trustee
are responsible for contract on trust's behalf.
 Unincorporated dissociation- It does not contain the separate legal
existence and ideal for the small group with a membership as it is
very quick and easy to set up.
P2 Size and scope of different types of organizations
Private company- Admiral sportswear
This firm is British internally recognised cricket, football and
sportswear brand. It has rich history in fashion and football.
 Background- It is oldest English sportswear brand and it concern
about the football association (Huang and Teo, 2020).
 Services- This firm offer a large variety of the clothing and
football, it focused on the performance of football sports (del Río,
Peñasco and Mir-Artigues, 2018).
 Size- It has about 75500 worker across the world with the yearly
turnover approximately $ billions.
 Stockholders- It's stakeholders are primarily its players, workers
and suppliers.
 Mission- To increase profitability by providing good quality or
material of products and services to the participant.
 Vision- To make a reputed and strong brand image in order to
become a well know organization in the world-wide.
Public company- UK sports
This company is a government agency and liable for the investment
in Olympic and Paralympic sports in United Kingdom.
 Background- It lead Paralympic and Olympic sports by working in
partnership to the international class success.
It evolve the individuals and program in order to support leading athletes
(Fahrner and Schüttoff, 2020).
 Services- It assist the people by providing them funds and suggest the
players that how they can exploit their performance.
 Size- It has invested in sport as the British sports have about 65
Olympics and 120 Paralympics award in London.
 Stockholders- Its stakeholders are mainly include the players, partners
and board members.
 Missions- They wish to drive and display in British medal attainment on
the world stage.
 Vision- National inspired by Paralympic and Olympic attainment.
Voluntary company- Sobell leisure centre
 Background- The respective sports facility is located in Islington,
London. It is a central provider of the sports and other fitness
information for the residents of Islington.
 Services- It offering a variety of the fitness outfit including device and
provide fully equipped air conditioned gym.
 Size- It offering facility in 260 and operating close to 60 hubs related to
the fitness centres.
 Stakeholders- Its stakeholders are the voluntaries, trustees and its staff.
 Mission- To provide and promote the better opportunities for the sports
activities to individuals.
 Vision- It want to provide best quality service in the support commercial
enterprise by managing and rising the living standard.

P3 Relationship between different organization functions and its linkage to
organizational objectives and structure
For the success of a business it is very important a relationship among its
several and different functions. It is essential to manage the relationship
carefully in order to lead the achievement of organisational productivity
and profitability. All functions in the origination are depend on each other.
(Faisal, Albrecht, and Coetzee, 2020).
 Production and finance- The production department need
monetary expenditure to allocate raw material, labours, machinery
and other equipment’s. For this, the finance department make a
production budget and allocate required funds to the production and
other department of organisation.
 Marketing and HRM- These both functions work together with
common objective in the organisation. Marketing is responsible for
communicating the brand information to its customers while
Human Resources is liable to hire trained and skilled workforce in
the organisation to acting the business goals (Gander, 2017).
 Information technology and sales- These section with the
organisation are related to each other as the technical department
provide and access to the sales person in relation to the goods and
tool for enhancing the effectiveness or efficiency of the sale pitch.
The sales business is embracing innovative technology to fire
organisational productivity and profitability.
Link the organisational functions to the objective and structure of
organisation.
Structure of the organisation are mainly depending upon the
organisational function as the business always make their objective and
structure on the basis that role they serve to its customers.
In relation to the Admiral Sportswear, it has the hierarchy organisational
structure, and it affect the business objective by restricting innovation and
limiting collaboration. To raise the organisational productivity it generate
objectives and it also formed the effective organisational assembly to maintain a
respectable movement of command at the workplace. The respective company
offer product and services to its customers and uphold an uniformity as well as
control within the organisational (Hii, and Ko, 2019). Admiral Sportswear,
maintain a consistency through an actual amount of the control. This company
monitor their business activity through the structural structure. The company
attain better functionality by related everyone with a task or project has good
knowledge regarding their roles. Hence, the effectiveness in setting of real
objectives and structure of business can help Admiral sportswear to accomplish
organisational functions as it help employees to know about their role and
responsibility with an effectiveness.
REFERENCES
 Alfy, S.E., 2019. Exploring organisation citizenship behaviour in a
higher education institution in United Arab Emirates. International
Journal of Work Organisation and Emotion, 10(3), pp.198-215.
 Alon, I. and et.al., 2020. Global Marketing: Strategy, Practice, and
Cases. Routledge.
 Aslan, T., 2021. The sequential organisation of gossip talk. Discourse
Studies, p.14614456211001604.
 Cincotta, R. and Liberopoulos, G., 2021. EVOLVE: The Business
Partnering Playbook. BookPOD.

TASK 2
Notes- An organisation undertake the PESTEL analysis to identified those different factors which impact a company on the basis of
social, political, technology and economical elements. This analysis is helpful for the company in scanning the business environment
to evaluate its direction or potential position in respect of their business (Kamrani, 2020). In context of the Admiral sportswear , the
positive and negative affects of PESTLE analysis are mentioned below:
Political- The government has power to control an economy and industry. The political factors include legislation and economic
policies. These component impact the company by trade tariffs, taxation, fiscal policies and taxation. In case of Admiral Sportswear,
the positive impact is that the political stability of UK's economy is very favourable for the respective company. Whereas the negative
impact is that the sport industry is dependent on government for funding.

Economic- This component has direct impact on organisational long term prospects. And effect the demand or supply of company's
product ( Pryke, 2017). In relation to Admiral Sportswear company its positive impact- the UK economy is showing positive signals
from economical and inflationary crisis and its GDP is estimated higher than previous. Negative impact- turnover of the company may
be affected due to the depression.
Social- These elements include affect industrial environment in the term of culture and demographic. As it influence the purchasing
habits of customers, people's lifestyle and peak buying period. The business sale is also affected by the customer's brand preferences,
religion, health and many more. In case of Admiral Sportswear its positive impact is that it assist to evaluate opportunities of the
selling and targeting new loyal customers through the Olympics. Whereas, its negative impact is that in order to maintain their brand
reputation and its existence with in the market, the respective company has to adopt all social culture in the changing surroundings
Technological- These factors affect the business industries more than any other component. The technological invention may effect a
market and the customer's choice. This component include the research and department, technological awareness, trademarks, patents
and information technology. In context of the Admiral sportswear, its positive impact is that the ability or knowledge of company's
manager increased in a positive mode for operating and managing sports as well as increasing performance. While its Negative
impact is that player's fans want to connect online with their favourite athlete due to this, it is very difficult for the company to have
such type of strong technology and latest digital platform.
Legal factors- The organisation get influenced by the internally and outwardly because the legal situation has adverse effect on
company's procedure and policies. This element include the employment laws, regulatory bodies and regulations (Sharpe and et.al
2018). In case of Admiral Sportswear its positive impact is that the antitrust law and major sport leagues impact the company
positively. Whereas its negative impact is that if it will not comply with the government laws then it has to face several consequences.
Therefore, these laws can directly harm the respective company.
Environmental- These factors involve the climate, consumers, stakeholder values and geographical locations. These elements has
gained an importance because now the peoples are becoming very health conscious and aware about the pollution. In relation to
Admiral Sportswear, its positive impact is that it monitor the dangerous substances in order to minimize the environmental impact and

eliminate all hazardous factors. While its negative impact is that, now citizens are aware about the situation of environment as a result
they start to evade plastic or non recyclable elements and carbon emission.
Notes-
The internal and external determination foe a business highlight all those different elements that influence an organisation. Form this
analysis it is find out out that Admiral sportswear's biggest strength is to provide product diversification. The analysis of internal and
external minimize organisational weakness and help to develop different effective strategies (Then and et.al 2018). In case of Admiral
sportswear, there is a SWOT analysis that is discussed below:
Strength Weakness

The sales of Admiral sportswear is high as it
offer a top quality products to its customers and
it help them to create their reputed brand
position within the market as compared to its
rivals.
It has a good brand recognition and marketing
budget which make it enable to core big
sponsorship deals in context of sports athletes
and team (Zhang, and Zou, 2020).
It has a diversified price range of products, due
to this, the Admiral sportswear continue
facing its narrow product line and operating in
a low profit margin. It can create a doubts
about company's future profitability.
Nowadays, the competition is become very
tough in sports industry as a result the growth
of respective company is very slow in exist
market.
Opportunities Threat
 By using the quality and smart material
the Admiral sportswear can provide
superior quality products in order to
attract more customers.
 The respective company start to grow
and promote fitness. It will lead a
consistence in enhancing peoples
practising sports that will need a suitable
sportswear. It is because now the health
or fitness are more hotter than ever.
 A rise in the raw material and policies
regarding tax may create a big hurdle in
the revenue of Admiral sportswear
vastly. It will result in a low operational
cost.
 The environmental customers force the
respective company for further goods
and innovation so that there can be a
cut in wastage and lead to promote the
recycling.

Notes -
Hence, if an organisation is not performing well in its home nation and have different weakness then in this situation they have to face
different challenges to accomplish world wide (Thompson, and Hopkin, 2021). Therefore, an organisation need to make its
internationalize strategies or plan by reviewing its internal strength and weakness. In context of Admiral sportswear, it has strength in
national market which lead a quick decision making process regarding its business as its strength or power. On the other hand, the
respective company, has many weakness, in this situation the company's management should be alert in implementing different
business strategies. Due to this, they may face many difficulties or challenges to perform well. If the organisation wish to perform

effectively in home county with its several weakness then it is essential for it to prepare some internationalize strategies by reviewing
their strength and weakness.
In context of Admiral sportswear, it can interrelate its micro and macro environmental factors mention below:
Political factor- The Admiral sportswear, manage the politics affect by its strong network of the allies and champions. To minimize
these impact it uses their resources carefully.
Economical factors- The respective company solve economical issues by offering good quality items to its customers at a competitive
price and mange crises difficulties.
Social factors- The company offer healthy and quality sportswear to keep the athletes fit and healthy. It can create a major issues
which the company has to face.
Technology- The respective company facilitate new digital platforms in order to connect the fans with their respective players and
satisfy these fans in order to increase its customer base.
Legal factors- The Admiral sportswear, practise to avoid legal issues by adopting all the government's rules and laws related to the
sports industry.
Environmental factors- The respective company has the ability to handle or manage environmental issues by using new or smart
material in order to manufacturer product in such a manner that can satisfy those customers who are very concern for their health.

CONCLUSION
From the above report it is concluded that there are different type of organisation such as private, public and voluntary. Every
business organisation contain different structure, goal, objectives and legal construction under several legislation. All functions of
these organisation are interrelated with each other in order to maximise company's profitability. But due to this, there are various
advantage and disadvantage of working together and business face many challenges. To overcome from these difficulties, the
organisation should follow some strategies and practices to run their business. In changing business environment, organisation get
impacted by the different macro and micro environmental factors in the from of social, political, economic, technology and many
more. Therefore, it become essential for all type of business to evaluate internal and external factors in order to identify their strength
over weakness and grab opportunities to handle threats. The micro and macro factors are interrelated and impact the business on a
large scale. Hence, to operate a business efficiently, it it essential for all organisation to consider these elements.

REFERENCES
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