Understanding the Business Environment

This assignment delves into the complexities of the business environment. It examines influential factors such as legal frameworks, economic conditions, social trends, technological advancements, and environmental concerns. The assignment emphasizes the interconnectedness of these factors and their impact on businesses operating in both domestic and international markets. Students are expected to analyze how these elements shape business strategies, operations, and performance.

BUSINESSES AND
BUSINESSES
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Types of organisation and their legal structures...................................................................1
P2. Size and Scope of different organisation mentioned above..................................................3
TASK 2............................................................................................................................................4
P3. Relationship between organisational functions within the company....................................4
TASK 3............................................................................................................................................6
P4 Pros and cons effect of macro surrounding on burger king...................................................6
TASK 4............................................................................................................................................7
P6 Strength and weakness collegiate with external macro environment....................................9
CONCLUSION ............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business and various other factors which would be under the control of the organisation
or sometimes may not be under their direct control (Agarwal, Grassl and Pahl, 2012). There can
be so many affects which could be affected by the functioning of the government that includes
performance, profitability, growth as well as company's survival. There are so many types of
business organisations which operates in distinctive manner and with this there is one more thing
that is they cannot exist as an isolated environment. Thus, this affects their working and activities
of the business. This report is based on various sectors of organisation in which Private sector
includes Burger King, public sector includes Nestle and the voluntary firm includes Oxfam.
Main purpose of this report is to study different types of organisation, their sizes and scope to
mark the difference and relationship between them. There is PESTLE and SWOT analysis
described in this report.
TASK 1
Covered in PPT
TASK 2
P3. Relationship between organisational functions within the company.
As mentioned in this report, the company Burger king is a privately owned big firm and
has so many organisational functions which need to be carried out properly (Aterido, Hallward-
Driemeier and Pagés, 2011). Every function has an important role, so all are essential and unique
from each other. All are required for achieving the larger aspect or goal of the company so they
are needed desperately. The company's main aim is to make sure that the plans and strategies
which has been made by the firm needs to be fulfilled or accomplished properly. The functions
which are partitioned in the firm is decided according to the wish and requirement of the people
of the company. They must also be according to the legal structures that are provided by the
government for any private company to follow. All these tasks and methodology can only be
completed if all the employees would work together effectively and efficiently with full
coordination (Auzair, 2011). Those functionalities are discussed below. In the context of Nestle,
there are following department which helps to attaining organizational goals and target in an
effective manner. These functional departments can be:
1

Marketing: This field is very important for the company to get some kind of recognition
in the market. There needs to be some connection between the customer as well as the company
which is developed by this marketing team of the firm. Their main job is to target the audience
on which the operations will be performed that is products will be sold to. Their responsibilities
are selling, advertising, promotion and so on. Nestle required to provide enough resources to its
marketing department which helps to promote their products and services in an effective manner.
The cited organization is spending billions of dollars on marketing and advertising activities
which helps to gain competitive advantage in the market.
Finance: This is another important factor which is very essential for the company to
grow because it is the most essential resource for developing the company's performance.
Manager of Burger-king has to manage all the financial requirements as well as the distribution
of the economy to various parts of the company sections. They have to manage the money
distribution by making a priority list according to the needs of the company. The role of such
department is to make budget and plan for their proposed marketing campaign in order to meet
their short and long term targets.
Human resource: This company has to have so many employees to make it effectively
work for long duration. Thus, the human resource is an important factor which cannot be ignored
and should be properly maintained. There are so many departments in this company which
require human labour, so effective functioning of workers require some kind of skills which need
to be ensured at the time of their hiring. The selection process of this company makes sure that
they hire well suitable skilled person for their function so that the quality of the service of the
company can be maintained. Their main job is to make sure that their staff members should
perform their function properly and they are well organised according to the rules and
regulations of the company. In the context of Nestle, there are more than 3,00,000 staff across
the world which helps to contribute in order to achieving its organizational goals and target in an
effective manner. This department make sure that to recruit a highly skilled workforce so that it
will create competitive advantage over others.
1

1

TASK 3
P4 Pros and cons effect of macro surrounding on Burger King.
Generally, every organisation analyses their positive and negative aspects and try to
resolve them to evaluate their performance in the global market (Avramenko, 2012). Same as
with burger king they also observe and genuinely in current scenario they leave a great
impression in the market for their fast food spots. They are able to do all these because of their
smart strategies and smooth action of plan by the Burger king. Within a year they achieve lots of
target success by implementing these programmes and attracting consumer by gratifying their
needs and demands. Through this there will be more demands and requirements in market. They
exaggerate their ideologies, products, and keep their company updated by the taste and
preferences along with technology too. Specifically, in the market there are number of
companies which are suffering from decrement of the company's progress because of some
uncontrollable external factors which is somewhere present in macro environment.
Timely research and analyses of market is quite beneficial for any organisation because
due to this and update their strengths as per the needs and demands of market. Some of the losses
and failures of the organisation because of the menu for the advanced taxes of regions these are
some components which company cannot control over them. If company have to survive in the
competitive market, then they have to modify their strategies and policies as reported to business
environment along with preferences of customers. Burger king adopts the PESTLE analysis
method to exaggerate some factors through this they measure the external environment and their
impact on their company. PESTLE analysis are follow as: -
Political: - This element depicts the all legal situation and scenario and it has impact on
the company of burger king. While changing the government they apply some new policies
which is hard to identify and that affect hardly on the firm. These political elements influence all
the organisational functioning and in the curriculum of Britain it is difficult for the industries to
survive at this edge of time.
Political stability: Political stability is very necessary in the business environment at the
international level. Through this the companies will not disturb as well as they go smooth for
long run in the competitive market place.

Government ideology: The role of government ideology plays a vital role in the growth of a
business. In the context of UK, there are two types of political parties which having its own
ideology. Both ideology main focused on sustainable growth and development within the
economy.
Economical: - In the international market, they usually help to the other companies to
raise and modify the trade agreements of environment (Burns and Winter, 2011). They are
basically accountable for expansion of their business beyond the boundary and make strategies
according to their locals either they can also adopt methods of global supply chain for them
heighten. Multinational companies usually change themselves as according to different nation's
economic structure and their traditions. This is very beneficial for these companies and they get
opportunities of growth in business at global level.
GDP growth rate: This is related with the economic growth and development of the country. At
present time, the current GDP rate is approx. 2.5 percent which is quite impressive as compare to
other developed countries. It helps to Burger king and its future performance in an effective
manner.
Economy size: UK total GDP is more than $2.6 trillion which provide a long term and consistent
demand of products and services as compare to other countries.
Social: - These elements usually demand for fluctuate along with the trends and
preferences of the number of consumers at their fast food restaurant. It is important to updated
and go with the new technologies to cope up with the environment. Customers generally attract
to something unique and innovative so they should concern more about launching something
creative within particular time interval.
Per capita income: UK having a large number of middle income groups where its per capita
income is more than $35000 per year. It helps to provide a good opportunity for Burger king in
the longer run.
Technological: - Burger king is concern about their modified technologies and fresh
tools for performing their task which is not so time consuming. If they smoothly run with these
then this will be more beneficial for them by securing good reputation in the market and develop
their goodwill. Internet is trending and number of people access and that would be great idea to
use internet to promote as well as to take order bookings.

Use of digital media platform: In the modern era, use of digital media platforms plays a
significant role in the success for an enterprise. For instance, Burger king can use social media
communication plan for the company in order to promote their products at the global level.
Legal: - UK has multiple laws, policies which are essential for the companies to compel
them strictly if anyone of them abide them by chance so they have to pay charges and some
penalty. There are some guidelines given by the country for food and health safety. If any or the
organisation perform all the activities in concern with these legal formalities. Therefore, will be
more chances to catch up growth and maintain good dignity there.
Minimum wage act: Each and every country have its own minimum wage which should be
followed by every organization. In the context of UK, where the minim um wage rate is given
below:
Figure 1: Minimum wage rate in UK
Source: (P., Stubbs, 2015)
Environment: - This element restricts burger king in some of the sectors. This
environment badly affects to the company this is fluctuate along with the changing climate which
may be affect to the supply chain. They have to be flexible and modulated as according to
environment so due to this they can attract customers.
TASK 4
P5 SWOT analysis of company with positive and negative effects.
This is consisting of the internal and external factors of the burger king through the
SWOT analysis technique. There are many factors which affect to the organisation some of them
are controllable and on the other hand some of them are uncontrollable (Chow and et. al., 2011).

Weakness and strength are realising as an internal components of the organisation company can
handle and maintain them by hard work. Where areas, opportunities and threats are external
elements which company can't control they are uncertain as well. There all the need of any
company to achieve growth and success in the business environment. This method helps to
exaggerate and analyse these factors although they are responsible for creating those situations
through which they can improve their company and it will automatically lead to better result. To
improve productivity of the organisation in the indulgent scenario helps in strong market footing
which will be more beneficial. Burger king's SWOT analysis are as follows: -
Strength  Strong Franchise network with more
than 13000 outlets all over the world
 Strong product differentiation keeping
in view the taste and culture of UK
citizens
 Strong brand equity in terms of fast
food chain
 Using innovative techniques of broiler
which makes them different from their
competitor.
Weakness  Difficulty in operations due to large
number of franchisees which ultimately
results in poor quality and conflicts
generation.
 Not suitable for the people who are
health conscious because of high excess
of fat and calorie.
 Still on growing stage, doesn't hold a

unique market share unlike its
competitors
Opportunity  Market penetration or product mix
widening in current market scenario
 Expand themselves in terms of home
delivery and providing various offers
such as free coupons, free meal,
discount on meal etc.
 Can grow themselves in the area of
health conscious people who want
burger with less fat and calorie.
Threats  Level of competitors are quite high like
McDonald, Domino’s, KFC and many
more.
 Food costs are higher at inflation.
 Prices of raw material is also increasing
which ultimately increasing the total
cost of Burger,
.

P6 Strength and weakness collegiate with external macro environment.
In every organisation, they are consisting of many activities and different process at
varieties of sectors although they are interlinked together and it is necessary to set coordination
among all the departments (Cronan and et. al., 2011). There are many factors which influence to
the macro components and in the resultant that possibly may be positive as well as can be
negative for the organisation. Along with this In between their SWOT analyses and macro
environment somewhere interlinked together which probably affect to the performance and
public representation of the company and their activities.
Burger king is well known company and their mangers and team leaders are responsible
for all the legal authorities, policies and regulations they must have to follow and if anyone dare
to abide them then they have to face many troubles like give penalties, pay them to their fine and
chargers. This firm is follow all guidelines and legislation in an effective manner which create an
ideal image in the market. Company has to be legally right and produce all the products along
with the concern and guideline which is given by the government. These both analyses actually
help to the organisations and intentionally show them path of the success by concealing their
negative factors and empowering their strength along with maintaining all the social, economic,
legal things.
If any of the company moulded themselves as flexible, then it will be easy for them to
create a favourable environment as according to the needs and demands of the consumer. This is
a multinational company and they have very large number of food chain and in different
localities so they prefer to modulated their fast food restaurant as their locality and their taste.
This will lead to be very successful and help them to achieve their target at that places as
accordant to multinational company. Sometimes it will be big challenges for the burger kind like
different companies have varies of legal and economical norms and they have to adjust their and
remind all of them to get fit into their country (Dahan and et.al., 2010). Further, there are various
economic challenges facing by the company. This required to develop an effective strategy
according to the market dynamics. It will help to meet their short and term targets in an effective
manner. This above given strength helps to maintain performance of the company and minimise
risk from the business due to various external factors. For instance, Burger king is good in
analysing external factors which help to avoid potential risk on their business.

CONCLUSION
Business environment is very essential and it directly as well indirectly affect the
companies and this is fluctuating as according to climate and trends. It is concluded that Burger
king should empower their strengths and conceal all the weaknesses by covering all the social,
political, legal, environmental and many more. There tactics proved very beneficial for the
organisations like SWOT analysis and PESTEL these will help to the team leaders and help them
to take good decisions. In the present scenario, private organisation is over full-grown state-
supported sector organisation in the size of well scope. It will also help to rise the assisted
society in approach different problems that will not being admit before.

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Online
Business Management. 2017. [Online]. Available through:
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