Business Models and the Environment

This assignment delves into the critical relationship between business models and environmental sustainability. It requires students to analyze how different business models impact the environment, exploring both positive and negative aspects. The task involves examining real-world case studies of businesses implementing sustainable practices and evaluating their effectiveness. Students are also expected to propose strategies for developing more environmentally responsible business models through innovation and strategic decision-making.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Different types and purpose of organisation..........................................................................1
P2 Explain size and scope of different types of organisation.....................................................1
TASK 2............................................................................................................................................2
P3 Relationship between different organisational functions that link with organisational
objectively and structure.............................................................................................................2
TASK 3............................................................................................................................................3
P4 Identification of positive and negative impacts of macro environment on business
operations....................................................................................................................................3
TASK 4............................................................................................................................................5
P5 Conduct internal and external analysis to identify strengths and weaknesses.......................5
P6 Explain strengths and weaknesses interrelate with external macro forces............................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment generally refers to entire factors of internal and external which
affects on organisation functions and operations in which includes employees, customers,
demand and supply, management and business regulations. Every organisation usually conduct a
study of business environment that support in discovering all kinds of forces which can influence
sustainability aspects. The report is totally based on WALMART as it is an American retail
corporation. This firm operates a chain of hypermarkets, discount department stores and grocery
shops. They are focusing on growing fast and competing with various competitors so that
business goals can be achieved in the critical environment. It can be analysed that successful
organisation can be made by adoptions of several effective strategies in critical environmental
situations. This assignment will explain different types and purpose of organisation such as
public, private, voluntary and legal structures etc. Size and scope of company also will discuss. It
will explain relationship between organisational functions and identify positive negative impacts
of macro environment. It conduct analysis for identifying strengths and weaknesses and
interrelate with external factors.
TASK 1
P1 Different types and purpose of organisation
Covered in PPT
P2 Explain size and scope of different types of organisation.
Covered in PPT
TASK 2
P3 Relationship between different organisational functions that link with organisational
objectively and structure
Business firm can maintain and develop their structure of organisation with the help of several
operational environment. In an enterprise, an individual finish their work for accomplishing their
business target and effective goals in proper manner. For governing and maintaining various
department surroundings and assist in developing strong relationship with their buyers or
customers (Teece, 2010). There are different types of departments which require to maintain
communication and relationship within WALMART which are discussed as follows:

 Research and development department- It is one of the necessary department of
WALMART which works for examining or analysing top position of market with the
help of using scientific tool and policies of firm which entirely depend on research and
development projects. Remaining division of business organisation are doing work
according to the need of research reports for productivity and profitability within an
enterprise (Storey and Greene, 2010).
 Marketing department- In present time period, publicity of various goods and services
of company will play an important role in making and maintaining powerful relation
with customers by sharing and giving correct information regarding their effective
products and services for using different methods and channels. An enterprise
marketing, sales, financial department and products which can delivered by customers
in given time period that includes merchandising department, manufacture section
which can not provide assist towards firm success and development for making high
earnings.
 Production department- It is one of the leading department of cited firm because it
help in making and producing innovative goods and offer to their desired customers. If
customers return back the purchasing products so this action will directly affect the
financial growth and sales. This can also impact on buyers ability towards firm creative
products and services in effective manner. In addition to this, manufacturing division
concentrate on wastage material which reduces the income value of an organisation. It
will help in minimising products cost that directly affect on firm productivity and
growth level.
 Human resource management- This is very important department of each
organisation because it will play an essential role in operating and managing business
functions and activities in appropriate manner. Human resource division make and
create effective environment where employees give facilities for achieving potential
goals and targets in coming period of time. The main aim of this company is to
conduct training and development sessions for their workers for doing innovative
functions and activities.
 Accounting and finance department- It is another essential department where
company manager operate and manage all necessary information and facts which are

related to business organisation (Osterwalder and Pigneur, 2010). This
division manage and maintain all commercial functional activities in the firm which
can help in setting priority for giving accurate finances according to the demand and
requirements of market place. Also they perform functions and activities for getting
better business operations. Finance and accounting division work is to manage and
control all cash flows and make proper budget reports. The main purpose of this
department is to manage and maintain all financial budgets in appropriate manner.
TASK 3
P4 Identification of positive and negative impacts of macro environment on business operations
In today's environment every company is working according to the market environment
as because external and internal environment is such which affect the performance of
organisation in great manner (Klapper, Lewin and Delgado, 2011). Moreover, it also
affect the decision and strategy making of company in effective way. It is something which
involve different thing like political, legal, environmental, social and technological etc.. although
in this external risk and challenges are such which have a opportunity to look for factor which
somewhere have the open and different path as well which can be adopted with the desired
success with strategies as well. The WALLMART is a biggest chain store and they also work
according to environment so that they can satisfy their customers in proper manner too.
Political and legal factor: All factors are there which is somewhere based on
government policy, activities as well with various changes which affect the working of company
and procedure as well. Political and legal factor are such which has the direct impact on business
operation. Although in this era, it is be like that it also identify legal factor and looking
government with regulation as well with procedure too. Moreover, for everything it is like other
kind of laws are there as well.
 Positive impact: Laws are such which has many rules and regulation, which does have
positive side in country. Although such factors are there which reduce negative
approach like illegal term.
 Negative impact: Government is something which also regulate different protocol
which help to make company to make them for implementation in procedure
(Gecevska and et. al., 2010).

Economic factor: Various factor is such which is being used to have based on economic
condition country, which is somewhere very much affected with procedure as well. This is
something which has a broad structure too which include direct legal and trade as well in
business too.
 Positive impact: Moreover having a proper planning and strategy can help in having a
income which somewhere also contribute in the amount of economy growth (Drucker,
2017).
 Negative impact: Although, inflation and tax rate is related with economical factor and
negative is there and they also has great impact on business procedure with growth as
well.
Social factor: Factor is such which is required to have determination of customer
demand and needs as well which somewhere has worked forward for different company as well.
Social factors are those which is having a direct affect on manufacturing and also have a quality
of service as WALLMART does the same and works according to environment too.
 Positive impact: A proper research of market can help WALLMART to satisfy their
customers demand and also analyse it in better manner as well.
 Negative impact: This is something which is based on improper services and quality of
product as well which also lead to have a reduction in marketing image of firm in great
way as well. Something it is like which has negative impact of firm as well which also
required to have a growth of income as well.
Technological factor: It is being considered as important aspect in environment in UK
which has technology changes on regular basis and even organisation has to choose the better
one for having a smooth functioning of work and make them to utilise the factors in effective
way.
 Positive impact: Advance technology is such which also does help in having a exact path
and and in which the firm can be attained their exact and desire as well with growth
profit.
 Negative impact: Untrained staff and improper knowledge is that which cannot be like
making company to use various technology in great manner as well which also affect in
negative manner too (Commander and Svejnar, 2011).

TASK 4
P5 Conduct internal and external analysis to identify strengths and weaknesses
It is an important study or analysis which used to consider for identifying about
company's situations as it describe strengths,weaknesses, opportunities and threats which are
strategic factors for every successful organisation. SWOT analysis is an essential for identify the
important areas so that appropriate strategies can be made in effective manner. Some of internal
analysis generally focus on internal forces that provide several advantages and disadvantages for
meeting its target markets (Chow and et. al., 2011). There are various factors of strengths
and weaknesses of the WALMART organisation such as :
Strengths :
 This organisation focus on adopting new innovative ideas and technologies for the entire
systems as well as international logistics. This can be understood by undertaking an
example that how an individual products which producing by this firm is performing at
the market place according to increasing stores at a glance.
 Company generally have ability because they concentrate on adopting various strategies
that directly related with human resource management and other individual development.
Employees are key personal for every successful organisation as they put efforts and time
as well as work hard for achieving predetermined goals or objectives within an
organisation. Therefore, this firm conduct training and development programmes for
enhancing employees skills and knowledge and also increase abilities for achieving tasks
or objectives.
 WALMART is growing rapidly in the market place so it has experience of business
expansions at global level. For example it has purchased UK based firm ASDA. They
also make joint venture with BHARTI in India.
Weaknesses:
 This company is dealing with variety of products at the marketplace like cloths, food and
stationary so there is no any flexibilities for competing with competitors.
 WALMART has lots of competitors at the marketplace such as KMART and targets.
Along with this, there are another competitors exists such as smaller retailers, primary
dollars stores and many more. This is biggest weak point of this firm.

 It is world's largest grocery retailers in the market so it has major control than the IT
benefits.
Opportunities :
 There are number of opportunities are available in the market for expanding business
among competitors as take over, merging and join venture as well as strategic alliances
with many retailers (Chesbrough, 2010). It must be required to focus on new
market for launching new products or services so that customers satisfactions can be
increased. Like BHARTI WALMART in India (Chavis , Klapper and Love,
2011).
 It has limited stores that are operating at various countries so it also various
opportunities of business expansions.
Threats :
 In this consider that there are huge competitors and number of small firms who are
entering in the market day by day so it is biggest threats of WALMART that to have lots
of competitions in the market as local and global.
 This firm is generally consider as the global retailer so there are numbers of
environmental forces that affects on the business operations. These cannot be avoid
because it influence organisation at various ways and create problems while running an
organisation.
P6 Explain strengths and weaknesses interrelate with external macro forces
Macro environment impacts business environment of Walmart in both negative and
positive way. The company compares with different factors of macro environment like political,
economic, legal, technological, environmental and social factors and then managers generate
effective strategies to enhance growth and productivity of organisation. External environment is
uncertain and any change can impact business operation. Interrelationship between
macro factors and company's strengths and weaknesses are described
below:
Social factors – this factors is all based on market demand and need for specific product
and services. This factors is directly impacting on organisation procedure and approaches. For
this WALMART needs to build effective marketing strategy to analyse each and every element
that can be related to market and customers demand and their need as well. These factors can

easily affected if various change are done fashion and tread in market activities (Cavusgil and
et. al., 2014). All these factors can impact on manufacturing and market demand of products
and services that WALMART serve. After analyse these factors, WALMART can easily attain
competitive advantages easily that helping them to getting higher profits and growth effectively.
Social factors are also related to economic factor of external environment because these all are
directly and indirectly affecting to each other. For WALMART it is require to manage their
business activities and approaches properly according to social factors influences.
Technological factors – these kind of factors are directly related to changes that are done
through generation and technological changes (Carroll and Shabana, 2010)
For WALMART it is require that they manage their business activities effectively according to
innovative ideas and creative thoughts. In this process they can use effective advance technology
and sources that helps to improve productivity of employees and product quality. Through this
process they can easily attract more customers toward their goods and services that related to
market and customers need. In this process WALMART can easily adopt new equipments, e-
marketing tools, online delivery and promotion activities through internet, social media and other
sources. Technology and its impact can be easily determine through market and customers
demand as well as their satisfaction level. For this WALMART can utilize their further
resources in appropriate manner and increase their employees productivity and organisational
profitability through advance equipments. Through this organisation can easily adopt their
objective and goals easily.
Environmental factors: Organisation operates in an open area and
discharge their effluents in external environment which causes degradation
of environment. Walmart is efficient in managing their discharge and other
wastage to prevent environmental degradation.
Political and legal factors: These factors are closely related to legal
policies, rules and regulations which are necessary for Walmart to follow to
prevent form any disputes. These regulations ensure smooth functioning of
activities within organisation. Proper up gradation of policies ensures
company to remain up to date (Cantwell and et. al., 2010)
Economic factors: These factors are critical to business as it can
affects profitability and productivity of an organisation. Economic factors

mainly include exchange rates, inflation, GDP, sales, tax rates, etc. If
Walmart wants to expand and regulate their activities in other countries,
then manager should consider all these factors because different country
have different economic strategies.
CONCLUSION
The above assignment concludes that to have smooth and efficient working, managers
should consider factors of external environment and formulate strategies according to that. They
should implement all necessary legal and political factors to avoid any disputes. Company should
monitor their internal and external factors so that the managers can implements those factors in
their strategies and company can maximise its productivity. An organisation is basically divided
into three sectors such as – public, private and voluntary and Walmart is a public company which
is a leading brand in market. With the help of PESTLE and SWOT analysis, company can
identify their strength, weakness, threats, opportunities and other factors efficiently.

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