Business & the Business Environment

This assignment explores the different types of companies and their functions in the business environment. It discusses the size and scope of companies, their legal structures, and their interrelationships. It also analyzes the strengths and weaknesses of companies using PESTEL analysis. The assignment further examines the impact of micro and macro factors on company performance.

BUSINESS & THE
BSUINESS ENVIRONMENT

Table of content
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Different kinds and functions of company.............................................................................1
Size & Scope of companies....................................................................................................2
Relationship between different types of company in context of objectives...........................5
PART 2............................................................................................................................................6
Micro and macro analysis in relation to strength and weaknesses of company.....................6
Interrelation of strengths and weaknesses with external macro factors.................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment is the combination of micro and macro environmental factor which
enforces direct impact on operational function of organisation. In this assignment, the company
is determined as Zara is determined as private organisation, NHS is considered as a public
organisation and Oxfam is voluntary company that help in increasing the knowledge related to
purpose of organisation. In assistance of this, there is an interrelationship among different
function of company in an appropriate manner. The assignment will also provide discussion
regarding various types of companies such as private, public and voluntary by determining their
size, legal structure as well as scope. They also provide explanation regarding PESTEL and
SWOT analysis and also interrelates these factors in an appropriate manner (Beynon-Davies,
2020).
PART 1
Different kinds and functions of company
There are various types of organisation which provide product and services to its user for
satisfying the needs of public. In addition to this, there are different types of associations which
are discussed below:
Private Association this organisation focuses on improving as well as maintaining the
operation and function by an individual person for earning more and more money. This helps
business in providing services to its user and achieve goal in timely manner. Zara is determined
as a private organisation which manufactures clothing and provided various items to its user.
Purpose the primary aim of private organisation is to satisfy the needs and wants of
customer. The main purpose of Zara is to produce trendy or fashionable clothes so that needs of
user is satisfied.
Public Association it is considered as another type of organisation who is supported by the
government for improvement of nation. There are various types of projects of public that is
provided through these types of business venture to satisfy the needs and wants of community.
And NHS is a public sector organisation which provides Medical services to individual person at
UK.
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Purpose the primary purpose of this type of organisation is to provide effective services to
local people as well as community for welfare and improvement. NHS work for welfare of
society at UK.
Voluntary organisation it determines the organisation that focuses on increasing the social
standard and provide benefits in an appropriate manner. The focus is on improving standard of
living of community for achieving objective in timely manner. Oxfam is considered as an
organisation that provide comfort zone to the individual person who are required and also
provide philanthropic that helps to youngsters (Bitkowska, 2015).
Purpose the primal aim of voluntary organisation is performing their work for the welfare
of the society. The main purpose of Oxfam is to provide services to deprived society for
increasing their living standard during particular phase of time period. Oxfam is determined as a
charitable organisation that provides free services that help in improvement of structure and
provide benefit to the individual person for reducing poverty as well as injustice during particular
phase of time period.
Growth and improvement in international organisation has been considered by using
different factor such as changes in politics, competition, labour, education, foreign exchange
market and weather as well as many more. The business operates at global level and their focus
is on adopting effective strategy in order to achieve goal or objective of business organisation in
timely manner. Their main purpose is to achieve competitive advantage over rivalries at
marketplace.
Size & Scope of companies
Public, private as well as voluntary organisations are considered as a kind of organisation
who operates their business along with various purpose and scope and size. Such kind of
organisation differentiate their operations depend upon size & scope. Herein, the explanation in
relation to size as well is scope is explained in connected to three kinds of organisation which is
going to be mentioned below:
Public company: NHS is financed organisation at UK which provides health care facilities
and treatment to individual person.
Products as well as services: The health organisation provides facilities and medical care
services to individual person along with payment. It also provides free services such as dental
care, eye test and so on.
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Size & Scope: NHS has around 211 clinic along with 4 million facilities of facilities
provides. The government sector of UK is responsible for NHS and also spent above 110 billion
in a year for providing free services to poor persons and that requires help during particular
phase of time period. It is considered as provider of health care in context of providing different
types of facilities to an individual person.
Vision and Mission: The mission of NHS is to provide facility or treatment to patient
during particular phase of time period. Apart from this, is the organisation is to provide proper
care to its patient and also offer services across boundaries.
Business objectives the main aim or objective of NHS is to provide treatment or other
facility related to medical to its patient at relatively low cost (Dowell, Morrison and Heffernan,
2015).
Legal structure
State government it is considered as a national authority that provide political rights to an
individual person during particular phase of time period. For example, the policy or strategy
which is implemented for school in England that needed to be determined by educational
institution involving local authority.
Local government it is type of public administration that involve low degree management
authority in country. They take appropriate action for performing different activity and operation
in an appropriate manner. For instance, the improvement of campaign like maintain pace across
houses which is coming in their division.
Central Government it is the type of association that maintain policies, policies or rules
for performing different task in an appropriate manner. For example, provide endorsement
facility to constructor in order to implement range of buildings.
Organisation structure Healthcare organisation require precision for implementation of
accountability related to job for different functions and activity of company. NHS adopts vertical
structure of organisation along with different layers related to management.
Stakeholder the stakeholder of National Health organisation is employees, customers as
well as other director and many more.
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Private organisation
Private organisation as Zara is considered as a well-known company of UK that provide
facility to the individual person in order to satisfy them.
Products and services It is determined as an international brand around the world for
fashionable products and services provided to its user as per their demand in order to satisfy
them across the world.
Size and Scope Zara has operating business around 7475 outlets at global level where the
user focuses on assessing various trendy or fashionable clothes for both male as well as female.
In present time, around 12000 subordinate perform their functions and activity within business
organisation.
Vision and Mission the mission of company is to provide superior product to its customer
in order to retain them for a longer period of time. In addition to this, the vision of Zara is to
achieve a leading position around the globe.
Business objective the objective of Zara is to improve need or want of user and provide
them opportunity to purchase innovative design of clothes as well as bags.
Legal structure
Sole proprietorship business is handled or managed by individual person to generate
income level for livelihood is known as sole proprietor. There are various examples of this
organisation such as groceries, tailoring and many more are the superior example of sole
organisation (Franklin and Marshall, 2019).
Partnership it is determined as that organisation which is formed by more than two
individual people and makes a agreement to share profit and loss during particular phase of time
period.
Organisation structure Zara focuses operating their organisation by using the lean
structure of organisation with proper execution. It also helps in minimising the managerial
hierarchy during particular phase of time period.
Stakeholder the primary stakeholders of company named as Zara which includes
employees’, customers,’ managers, retailer and so on.
Voluntary organisation Oxfam is considered as a non-profit organisation which is located
in UK.
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Product and services it is considered as an organisation that focuses to fight for injustice
activities that leads to poverty.
Size and scope there are around 20 NGO’s that is connected with organisation and their
main focus is to reducing the level of poverty in across the World.
Vision and Mission the mission of business organisation is fight for injustice and poverty
during particular phase of time period. In addition to this the vision of company is to improve the
situation or condition of community by using mobilizing power of individual person and to
reducing poverty level.
Business objective the objective is to start their organisation for livelihood and increase
situation related to living.
Legal structure
Unincorporated Association it signifies organisation which is formulated by individual
person for improvement in the community.
Trust it signifies the organisation that is considered as a trustee, agent, fiduciary and
their motive is to manage or transfer assets to achieve advantages. This business venture is not
considered as a flexible so it is necessary to bring modification in an appropriate manner.
Organisational structure
The organisation structure that is adopted by firm is considered as a network structure
because they focus is on operating their business at international level; it requires the
organisational structure in systematic manner.
Stakeholder the stakeholder of company named as Oxford which includes volunteers,
sponsors as well as trustee and many more (Gorla, Chiravuri and Chinta, 2017).
Relationship between different types of company in context of objectives
Herein, the individual are categories on the basis of various subsection in order to
implement different task in an appropriate manner. There are various finance, marketing, sales
department which is improved by managing director of Zara. The individual person are
categorised in respect of the skill, competence and knowledge. It enhances the organisation to
possess satisfactory employees that help in sharing right services to individual person. In
assistance of this, there is an interrelationship with each other that has been going to be
mentioned below:
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HR department with finance HR division focuses on supervise subordinate of Zara in
order to possess appropriate or competent staff member for conducting different work in an
appropriate manner. There are different functions such as recruitment, reward, preparing as well
as improving diverse activity which is executed by management team of Zara. In addition to this,
the financial sector also focuses on preparing financial statements related to HR division
expenditures that are useful in future period of time.
Sales division with marketing this department determines the individual person who
connects and interact with its user in an appropriate manner (Hillary, 2017) the sales department
of Zara focuses on offering information to its user regarding products and services. In addition to
this, the marketing sector must be related with the sales that help in providing awareness
regarding products and services in front of customer at marketplace and it increases the sales and
profit margin in future period of time.
Organisational Structure:-
Practical, matrix as well as divisional are considered as a specific types of framework which
is adopted by organisation to plan structure in an appropriate manner. The financial condition,
goals are considered as various plans that considers subordinate of Zara across the world. For
divisional company framework is used by management for transference of organisation
universally. Herein, the resource which is used in an appropriate manner and position of
organisation is managed in context of applicants.
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PART 2
Micro and macro analysis in relation to strength and weaknesses of company
PESTEL analysis is a method which is executed by management team to assess the effect
of external environmental factor on business venture. The PESTEL analysis which is adopted by
company which is going to be mentioned below:
PESTEL Analysis of ZARA
Political factor the government focuses on formulating policy or procedure related to taxation,
licensing and many more that imposes direct impact on company. This is considered as an
international organisation so their implementation is influenced by legislative as well as political
condition of nation.
Positive impact Due to political condition, the main advantage of Zara is to operate their
business at international level (Kasemsap, 2018).
Negative impact the national authority focuses on implementing employee legislation that
providing different offer mix options of job that is considered as an inferior and flexible.
Economic factor it includes interest rate, exchange rate, inflation which is completely depend
upon fiscal situation of nation. The business organisation focuses on earning more profit during
particular phase of time period.
Positive impacts They focus on improving GDP which is advantages to Zara to make
necessary improvement in organisation.
Negative impact Bank modified rate of interest for managing outflow of capital that
affects Zara in negative manner.
Social factors the organisation provides products and services for satisfying need of community.
They offer variety of food products to individual person.
Positive impact in context of UK, the individual person focuses on purchasing commodity
from goods from supermarket which increases sales in future period of time.
Negative impact Due to frequently change in taste and preferences of customer which
decreases sales of company.
Technological factors it is other factor that monitor and control advantages related to
technology in order to perform different function in appropriate manner.
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Positive impact they provide innovative product and services by implementing Artificial
Intelligence and innovative technology that help in retaining customers for a longer period of
time.
Negative impacts the cost of technology is very high that adds cost to company that
imposes negative impact on organisation.
Environmental factor involves climatic and weather condition which enforces direct influence
on company.
Positive impact they provide eco-friendly products and services to its user that increases
sales of company.
Negative impact due to increasing pollution it decreases the sales or profit margin of
company.
Legal factor involves laws, legislations, regulation which must be followed by the organisation.
Positive impact the organisation follows all rules and regulation so that they perform their
activities and function of company in an appropriate manner.
Negative impacts due to alteration in laws and policies of government, it imposes
negative impact on company (Khan and Quaddus, 2015).
PESTEL Analysis of Oxfam
Political factor include policy of taxation, political stability and many more.
Positive impact the organisation follows the government policy which is good for
company.
Negative impact due to instability in political condition, it negatively affects the
company.
Economic factor it involves inflation and unemployment rate and many more.
Positive impact the organisation focuses on providing better services for increasing
standard of living of individual person in society.
Negative impact they provide free services to users sometime it negatively affects the
company.
Social factor the organisation offer different types of goods and services for satisfying wants of
community.
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Positive impact herein, the organisation provide free treatment to its user for satisfying
them.
Negative impact sometime, they do not provide those products and services which is
necessary for reducing poverty that negatively affects company.
Technological factor they implement innovative technology for satisfying the need and wants of
customer.
Positive impact the innovative technology increases standard of living of people in
society.
Negative impact it increases additional cost for the company during particular phase of
time period.
Environmental factor
The organisation emphasised on fight for injustice activity that helps in reducing poverty level
which increases standard of living of society.
Positive impact The organisation emphasis on fight for injustice activity that helps in
reducing poverty level which increases standard of living of society that positively affects
company (Pratistha, 2016).
Negative impact On the other hand due to increase in the level of pollution that or
negatively affects company.
Legal factor
Positive impact There are various laws and regulations which are followed by company
that positively affects the company.
Negative impact Sometime, due to alteration in laws affects sales of company in
negative manner.
SWOT Analysis
SWOT is considered as a strategic framework that is adopted by management team to
determine opportunities, weaknesses threats or opportunities for organisation which is going to
be mentioned below:
SWOT Analysis of Zara
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STRENGTHS WEAKNESSES
 Zara is considered as a famous
organisation that provide superior
quality goods and services to its
customer at relatively less cost that
attract large number of customer across
the globe (Lyu and Hwang, 2017).
 Furthermore, the weakness of Zara is
that they do not provide proper
compensation to its subordinate for
performing their functions that
increases dissatisfaction level of
employees and they do not provide
better service to its user.
OPPORTUNITIES THREATS
 The company focuses on spending their
money in advertisement for achieving
competitive advantage over rivalries at
marketplace (Yeh, Lee and Pai, 2015).
 Due to increasing high level of
competition, there are different types of
organisation provides similar products
such as H &M, E-spirit and so on that
erode sales and profit margin of
company.
SWOT Analysis of Oxfam
STRENGTHS WEAKNESSES
 Oxfam is considered as a voluntary
organisation that provide effective
services that increases in standard of
living of individual person of society
which increases brand image or
reputation of company in front of user
at Marketplace.
 The weakness of Oxfam is to provide
free services to its users so that
sometime they feel that free facility is
not good for them that are considered
as a main weakness for company.
OPPORTUNITIES THREATS
 The opportunity for Oxfam is to
provide effective services for increasing
benchmark of living of their life that
help in satisfying individual person of
society.
 The threat of Oxfam does not conduct
appropriate research regarding need of
its individual person that helps in
decrease satisfaction level of user.
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Interrelation of strengths and weaknesses with external macro factors
Micro environmental factor helps management team to assess their influence on
organisation and its functions or operation. The strength and weakness in context of Political,
economical, social and technological tool that is going to be mentioned below:
Political
Strengths Due to political condition, the main advantage of Zara is to operate their
business at international level.
Weaknesses the national authority focuses on implementing employee legislation that
providing different offer mix options of job that is considered as an inferior and flexible.
Economical
Strengths They focus on improving GDP which is advantages to Zara to make necessary
improvement in organisation.
Weaknesses Bank modified rate of interest for managing outflow of capital that affects
Zara in negative manner (Xu and Koivumäki, 2019).
Social
Strengths in context of UK, the individual person focuses on purchasing commodity from
goods from supermarket which increases sales in future period of time.
Weaknesses Due to frequently change in taste and preferences of customer which
decreases sales of company.
Technological
Strengths they provide innovative product and services by implementing Artificial
Intelligence and innovative technology that help in retaining customers for a longer period of
time.
Weaknesses the cost of technology is very high that adds cost to company that imposes
negative impact on organisation.
Environmental
Strengths they provide eco-friendly products and services to its user that increases sales of
company.
Weaknesses due to increasing pollution it decreases the sales or profit margin of
company.
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Legal
Strengths the organisation follows all rules and regulation so that they perform their
activities and function of company in an appropriate manner.
Weaknesses due to alteration in laws and policies of government, it imposes negative
impact on company
CONCLUSION
On the basis of above given assignment, it has been analysed that there is an
interrelationships among different function of company in an appropriate manner. The
assignment will also provide discussion regarding various types of companies such as private,
public and voluntary by determining their size, legal structure as well as scope. They also
provide explanation regarding PESTEL and SWOT analysis and also interrelates these factors in
an appropriate manner.
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REFERENCES
Books and Journals
Beynon-Davies, P., 2020. Business information systems. Red Globe Press.
Bitkowska, A., 2015. The orientation of business process management toward the creation of
knowledge in enterprises. Human Factors and Ergonomics in Manufacturing & Service
Industries, 25(1), pp.43-57.
Dowell, D., Morrison, M. and Heffernan, T., 2015. The changing importance of affective trust
and cognitive trust across the relationship lifecycle: A study of business-to-business
relationships. Industrial Marketing Management, 44, pp.119-130.
Franklin, D. and Marshall, R., 2019. Adding co-creation as an antecedent condition leading to
trust in business-to-business relationships. Industrial Marketing Management, 77, pp.170-181.
Gorla, N., Chiravuri, A. and Chinta, R., 2017. Business-to-business e-commerce adoption: An
empirical investigation of business factors. Information Systems Frontiers, 19(3), pp.645-667.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Kasemsap, K., 2018. Mastering business process management and business intelligence in global
business. In Global Business Expansion: Concepts, Methodologies, Tools, and Applications (pp.
76-96). IGI Global.
Khan, E.A. and Quaddus, M., 2015. Examining the influence of business environment on socio-
economic performance of informal microenterprises. International Journal of Sociology and
Social Policy.
Pratistha, B., 2016. The influence of strategic control, strategy orientation, and business
environment on competitive strategy and its effect to business performance. Academy of
Strategic Management Journal, 15, pp.15-23.
Yeh, C.H., Lee, G.G. and Pai, J.C., 2015. Using a technology-organization-environment
framework to investigate the factors influencing e-business information technology
capabilities. Information Development, 31(5), pp.435-450.
Xu, Y. and Koivumäki, T., 2019. Digital business model effectuation: An agile
approach. Computers in Human Behavior, 95, pp.307-314.
Lyu, S.O. and Hwang, J., 2017. Saving golf courses from business troubles. Journal of Travel &
Tourism Marketing, 34(8), pp.1089-1100.
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