Business Organization and Environment

This report analyzes the Lego Group's business organization and environment, including its financial performance, international operations, ownership structure, and the impact of political, legal, economic, cultural, and financial factors. It also examines business opportunities using approaches like listening to customers, analyzing competitors, and identifying trends and insights.

BUSINESS
ORGANIZATION AND
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
financial performance, present international operation and ownership structure of details in the
business organization..................................................................................................................1
The business environment in steps of the political, legal, economy, culture and financial
system..........................................................................................................................................3
Analysis of the business opportunity using approaches..............................................................5
CONCLUSION................................................................................................................................7
REFERENCE...................................................................................................................................8

INTRODUCTION
This report identify about the construction toy. And also Lego group has clarified about
the construction plastic toys. These group established privately business based in Billlund,
Denmark. The company manufactured by flagship products. There are many types of products
manufacturing. Lego group made the interlocking toys and colourful interlock plastic toys bricks
in 1949. These are support for developments like; movie, competition, games and so on in the
Lego land and parks. Lego group replaced Ferrari like as most wonderful finance brand in
February 2015. Lego group will increase the number of workers in the Czech republic. They will
increase employees by more than 1000, from the present 1500 to 2000 according on the future
need and demand. They will make decision to expand their industry in the Czech
republic(Dyllick, and Muff,2016). Lego group should have need expectation for increase future
demand in Europe and whole world. They will investments capital to a broad 2 digit a million
euro figure in the future. Lego groups will provide government agencies for foreign direct
investment in the Czech republic. FDI inflows to this country leaved from USD 9.8 billion to
USD 7.4 billion in previous year. Czech republic will the largest and broad level of FDI inflows
in the Europe. The company should have given introduction of money investment of the current
skilled and inexpensive labour, and more than benefits and profits of the Czech republic. It is
destination in the part of central Europe. The company invest in this country. Czech republic is
independent and strong a hold currency for the central bank(Falkner, 2017). The bank provides
the country great and good access to positive and hold international relations in the European
market.
MAIN BODY
Financial performance, present international operation and ownership structure of details in the
business organization
There are size and scope of the industry and this is business management, structure,
ownership, and business broadly and clearly identified or analysed in the company. There are
includes taxes and duties benefits, needs and requirements, country. The Lego group will analyse
customers needs, employees requirements, management and ownership. They will learn about
other corporation. Lego group could be organized in choose a way from its affects the business
and directors' tax and legal liability.
Financial performance
1

Nowadays ego group reported benefits and maximum earnings for the half of this year.
The company have full concentrate for on currency and customers sales increase 1 percent, and
broad level of revenue growth, healthy stock levels in European market(Joyceand Paquin,, 2015).
The Lego group are unique satisfied with their performance provide the challenges and tasks of
the improving retail landscape, involves closures toys are famous in US, UK and Australia. They
should have encouraged by new activities, new developments, opportunities for customers and
shoppers. Leo group will good capital use for all channels and activities in the commerce
platform. There are the company operating benefits in DKK steps has 4.2 billion to 4.4 billion in
the Czech republic country. Leo group continues to establish in strategic markets and they will
operate maximum 2 flagship store in china in next year. They will uses capitalise for their
growth and developments or innovations.
Legal ownership structure
The legal structures are use for more than new companies. And best and good ownership
structure is involved owner like; partnership, sole proprietorship. There are considers many
legals and ownership structures, it is including owners want to prepare work in order to prepare
the business. And company will pay the taxes. Lego group want to how profits and earning from
their business then they are contributed owners and their employees. Owners and personal
responsibilities has had of the company(Hatch, 2018). Lego group is private limited company.
They are manufactured by plastic toys and interlocking bricks. The group will make good plan
for fulfil customers demands and their requirements. The Lego group will provide brand facility
for the owner governance of regarded acclivities. The company will decide to establish a new
brand entity of the Lego brand group.
They can use easy idea with endless possibilities for built on brand. The organization
should have making careful preparations for their growth in the future. They are now prepared to
take certain important decisions toward the adult generational handover so that they will manage
energetic and active ownership of the company. There are most important liability and
responsibility of owners. The structures in allowed partners, owners, stakeholders. The Lego
group will use for idea to financial, legal or company advisor before operating their company.
The ownership structure to select from, depending on their condition. Thus, if they are sure or
not which ownership structure would great and better set their firm. Nowadays Lego groups will
2

look the legal ownership structure for their company and they can change the laws for their needs
accordingly.
Current international operations
Lego groups will plan for sensitive costs, low margin, and cost benefits, will supply to the
china. Toy and interlocking bricks manufacturing is low price in china due to minimum labour
and raw materials costs and their economic condition is very high capacity industries for
exporting products(Dyllick, and Muff,2016). Lego group want to expanding their market in the
UK, Australia and china. They should have savings on shipping costs, import taxes and duties,
delivery time, so that its very important strategy of the company.
Lego group have had already taken the points to get about very large import taxes. They
want to started their first Chinese firm. They are full working to try to full capacity while
arranging quickly and quality standards expanding their china and international market share.
The Lego group will provide game and toys for media and customers entertainment, education,
information and play in the China. Today are increase toys, media and games in internet website
of marketing which depend on customers needs and demands. Nowadays the company will deal
with suppliers and retailers maximum 12000 in china. The Lego group announced their new
products and new supplier for the global market. China sold the products they produce in Asia,
the remaining demand met via shipments from Europe.
The business environment in steps of the political, legal, economy, culture and financial system
The company will use pestle analysis for their business. It is involves main objectives and
aims to explain external factors. Like; political, legal, economical, technological, environmental,
social. But there are they determine these factors such as, political, legal, economy culture and
financial system.
3

 Political
Lego group have profited from their governments friendly and family investment motivate
support policies. The company will survive on economic times, political factors could be make
government policies are investment friendly so that they will be given these policies for Lego
group. The company have remained most popular and attractive Lego land and park to invest
accordingly to economic system.
 Economy
Economic terms like Europe have provided the team the opportunity to supply their items across
European and other international countries. The group will taken these opportunities for their
products due to many cultures. Diverse marketing helps for gain experience on the management
in Lego group(Falkner, 2017). The company will be taken benefits of minimum priced market.
The company will manufacture maximum average priced fits, then higher expensive fit for the
balance transaction. The group operated to add and collect many new designs and colours. The
country and their economy, however they will expect to ride given the rough patch on the
economy high and increased and large potential and sectors like as retail, automotive and energy,
so they will increase export will further economic condition develop and increased.
4
Illustration 1: PESTLE analysis
source: What is PESTLE Analysis. 2016

 Legal
Czech republic has got very strong legal structure. It has got several constitutional acts
which is also known as constitutional order of Czech republic the legal system of Czech
republic is hieratic al which forms the pyramid structure of the total legal force that exits
in the legal system of Czech republic its main principle areas are classified into two
though, civil increment course that is code of criminal code of civil and code of
administrative processors etc. The legal framework of business that exits in Czech
republic are equality in the treatments of people from foreigners and nationals. It provides
equality standards or each and every person living in Czech republic. It also focuses on
the employment loss and rights of an individual in the country. It also focuses on the
labour loss and acts. It also focuses on minimum wages act and other employment loss
like maternity leaves, payable sick leave, payable holidays, paternity leaves etc. Thus
there exists as strong legal structure in the country Czech republic. There for an
organization as comply as per the legal loss of the country in order to operate their
businesses and Czech republic.
 Culture
There has been increasing living standards of the people of Czech republic. There has
been increasing educational and economic standards of the people living and Czech
republic. From last 20 years the increasing educational level have increased living
standards of the people so they want quality assured products and services to be
delivered. Some last 7 years it is ranked consecutively 20th place at human development
index. Large number of people are price conchies while buying product and services.
Which have impact on the companies operating in Czech republic. There has been change
in the social and cultural factors in Czech republic. There has been change in the social
and culture structure in the country. And it has gone at transformation in recent years.
 Financial system
Czech republic will estimate to be 2.152 billion for the year 2018. Czech republic is
financial freedom it has managed to increase the export and import values up to 15300 %
of gdp(Burke, 2017). The tariff rates if only 1.6%. There is a investment freedom in
5

Czech republic and the government of Czech republic is not interfering with foreign
investments but inspire of that it has well regulated financial markets and these financial
markets is growing statements. But there exists tax Burden in Czech republic where
individual is paying tax at the rate of flat 15 % while as corporate tax is 19%. Thus, the
overall tax equals to 33.55 approximately of the total domestic income of Czech republic.
There also exits business freedom in Czech republic and had made business easier for
start up by posing a leniency in registration of business. There has been increase in labour
freedom in Czech republic from several years since. The rate of wages is increasing
rapidly at 5% per year. So this is financial analysis of Czech republic.
Analysis of the business opportunity using approaches
The company will listen to their clients, past leads when they are task and target potential
buyers listen to their demands, requirements, challenges with their industry. There are many
types of approaches but they will some approaches explained. The opportunity given by business
development approaches objectives at gain the effectiveness of the organization provides the new
company. It is different to the traditional process of Lego group strategy. They will use for good
opportunities approaches. The company should have use this approaches for their better financial
condition, purchasing power, incentive training programs, professional advertising and
promotion and so on. The company will create develop with bound(Joyceand Paquin,, 2016.).
Lego group could be good business plan then they will evaluate and analysis customer shopping
habits, and willing adapt to their items. This process operates with explain their market and their
opportunities in the business.
 Listen to their customers
The best marketer are good listeners who concentrate with buyers demands and help them, the
product and services purchased in the high effective way. The great way to listening to customers
for they gather to company information.
There are divide tier customer base into micro groups that transfer common
characteristics, like as gender, age, place, attitude, lifestyle and buying habits. Leo group will
analysis their customers demand and need accordingly they will be given products and services.
The company should have provided offering and promotions on their specific marketing.
Customer segmentations are helps their new business opportunities. They should have taken new
6

trends and developments in the market when customers are attracted from their market trends.
Lego group should have changes in relationship, partnership with their competitors and suppliers
and so on. Listening can be brand, customer and their employees between share to the
information. Lego group and their customers will talk, sharing opinions and feedback, and its
listening for opportunities to money on what they learned.
 Look at their competitors
Lego group is most popular toy manufacturing company. The company clarify their competitors
and identification their business opportunity to define their strength and weaknesses related to
their products and services. The competitive urinalysis is very difficult part of their business in
the marketing. A competitor is a people who takes piece in the competition, they can compare
with other company. A competitor can reduce the rats of products and services as the business
attempt to increase a broad market share(Schaltegger, Lüdeke-Freund and Hansen, 2016. ). So
other companies are in loss or decrease their market share. Leo will compete their competitors,
they will be reducing price of their products and services so their company attempt to growth and
high gain in the market position.
 Look at company trends and insights
The company will take decision for new trends and development, insights. Leo group will take
new idea, design, skills in their business. They need to customers demands according making
new products and services. Trends give insights comes emerging trends, such as related
technological, innovation, branding solution and so on. They will be taken new trends in their
bushiness so customers are very attracted from their new trends. There are trends is what they
see coming, new trends in the Lego company. The trends will stay on the high of the shifts in
buyers needs, demands, trust and beliefs, behaviours that they will help unlock refresh insights to
through their company(Stead and Stead,2017.). Lego group should have use technology,
customers are interacted their new styles and new design of products. So they will maximum
purchasing for their products and services. So company will more than profits earn from new
trends and innovation.
CONCLUSION
It was studied about business organisation and environment which factors affected by the
Czech republic country. It was analysed about business opportunities approaches, and company
FDI condition. It was studied about business environment of basic information and identified to
7

the pestle analysed like; political, legal, culture, economy, and financial systems. The company
was want to good approaches of the opportunities. It can be concluded for the report for any
businesses to be successful in any country to company needs go for pestle analysis which will
provide them the framework of what are the opportunities and challenges to be faced or
operating the business in that country.
8

REFERENCE
Books and journals
Joyce, A. and Paquin, R. L., 2015. The triple layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production.135. pp.1474-1486.
Hatch, M.J., 2018. Organization theory: Modern, symbolic, and postmodern perspectives.
Oxford university press.
Dyllick, T. and Muff, K., 2016. Clarifying the meaning of sustainable business: Introducing a
typology from business-as-usual to true business sustainability. Organization &
Environment. 29(2). pp.156-174.
Falkner, R., 2017. Business power and conflict in international environmental politics. Springer.
Dyllick, T. and Muff, K., 2016. Clarifying the meaning of sustainable business: Introducing a
typology from business-as-usual to true business sustainability. Organization &
Environment. 29(2). pp.156-174.
Burke, W.W., 2017. Organization change: Theory and practice. Sage Publications.
Joyce, A. and Paquin, R .L., 2016. The triple layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production. 135. pp.1474-1486.
Schaltegger, S., Lüdeke-Freund, F. and Hansen, E. G., 2016. Business models for sustainability:
A co-evolutionary analysis of sustainable entrepreneurship, innovation, and
transformation. Organization & Environment. 29(3). pp.264-289.
Stead, J.G. and Stead, W.E., 2017. Management for a small planet. Routledge.
Online
What is PESTLE Analysise. 2016. [ONLINE] available through<pestleanalysis.com/what-is-
pestle-analysis/>
9

10