Higher National Diploma in Business

Business And The Business
Environment
1

Table of Contents
INTRODUCTION...........................................................................................................................3
P1- Different types and purpose of organizations.......................................................................3
P2- Size & scope of different types of companies.......................................................................4
M1- Scope, Structure and size of varied firms line to venture products and objectives as well
as services....................................................................................................................................6
P3- Interrelationship between different functions of Arcadia Group and its connection to
structure and objectives...............................................................................................................6
M2- Benefits and drawbacks of relationship between organizational functions and its impact
upon company structure...............................................................................................................7
P4- Positive and negative impacts of external factors upon Arcadia group business operations 8
M3- Application of PESTEL model in context of chosen company...........................................9
P5 SWOT analysis in regard to Arcadia Group...........................................................................9
P6- Strength and weakness interrelation with external macro elements...................................11
M4- Application of SWOT analysis and justification in regard to how it influence decision
making procedure......................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
2

INTRODUCTION
Business environment means all of external & internal elements that can affect how a
firm functions within particular sector, including consumers, workers and other resources like
technology usage. The current assignment will be based on Arcadia Group, which falls under
category of leading fashionable brands in the UK. This study will explain varied forms of
companies, their purpose and legal structures. It will define scope and size of a range of different
forms of firms and will also justify relationship between all functions of chosen company and its
link up to organizational structure as well as objectives. This report will clarify identification of
positive & negative impacts of macro environment in context of selected business firm
operations with supported examples. Furthermore, this assignment will explain external and
internal analysis in regard to chosen company to determine its key strengths & weaknesses. It
will define interrelation of a strength and weakness with external macro forces.
P1- Different types and purpose of organizations.
There are different kinds of organization which are established into the market place for
getting success at market place in effective manner. There are two type of business like profit
making and non profit making. Generally the main of profit making organization is to create
more profit (Hamilton and Webster, 2018). On the other side, non profit making businesses has
focus on keeping their image at market place. This kind of business is providing free services to
their customers. Below is mentioning some different types of organizations which are as follows:
Private organization:
This kind of organization is run and established by individual people and companies for
earning profit margin as well as having main purpose for grow at market place within effective
economy. The most effective example of private company is to Arcadia group who maintain
their profit by offering product and services at market place. Company follow functional area of
market the business as well as include CEO in every meeting is helpful for business in effective
manner.
Public sector:
This type of organization is established by government for providing better services to
people. Those types of organization has goal to provide better services to people and doing
welfare (Quinlan and et.al., 2019). British Broadcasting Corporation (BBC) is one of the most
3

appropriate examples of public sector companies. By following Public Company tag it has more
than 30% share at market place. Company have their perfect growth factor by analysing
complete market place. It had been legal structure for the business at market place as per
considered with whole government norms.
Voluntary sector:
This type of organization is done all the social works and activity which are undertaken
into the non profit organization. One of the best examples of Public Company is British Red
Cross which is providing better health care and medical services to local people in the UK and
other as well at international level. Company have CEO and make board of association for
managing complete legal work. That have legal norms and regulations which is helped to
understand business legally.
P2- Size & scope of different types of companies
In the world of business, there are different types or forms of companies have been
operated in variety of sectors or industries in effective and systematic manners with existing
resources (Ansori and Widyanti, 2020). For example, Arcadia group has operated in private
sector, BBC has established in public industry and British red cross manages its venture
operations under voluntary industry. All these have effectively operate and manage their
business activities, practice and functions. But size and scope of these organizations are quite
different from each other, which are mention below;
Basis Public company Private company Voluntary
organization
Scope Just like Arcadia and other
companies, like BBC has
also operated its business
within specific sector and
that is public which is quite
beneficial for it in term of
serving millions of
customers and satisfy them
by providing ten national
Arcadia group included in
this category of firm,
which has successfully
managed its business with
seven different high street
companies in the world,
such as Burton, Wallis,
Miss Selfridge, Topman
and Outfit. It began to
Scope of voluntary
company such as
British red cross is
charity that help
disable people and
their families in term
of health treatments,
child education etc. Its
objective is to
4

TV channels, internet TV
services, 10 national radio
stations etc (Charneca,
2020). The organization
broadcast current news and
updates via varied range of
electronic devices such as
TV, Online, Radio and
other within more than 42
languages plus English.
work in UK in early 1900s
with few resources and
now it has managed its
functions within different
regions effectively (Ali
and Akter, 2018). Its
objective is to satisfy
customers by providing
fashionable and branded
products to them.
continuously cater
better services which
in return improve
living standards of
local and needy
people (Iacobucci,
2020). Above, 150
nations it has serves
its services with
skilled and
experienced
volunteers or health
care providers.
Size Recently, chosen company
has employed 22,401
workers who work from
longer period of time with
its business in public
sector. In 2021, firm has
generated 3.52 billion
pounds market share or
revenue by serving its
services.
The size of Arcadia group
company could define
through its number of
employed workers and that
is more than 22,000
applicants, who are able to
work for chosen firm and
allow its management to
grab current as well as
further growth
opportunities. It currently
have 1100 outlets in 34
nations outside the United
Kingdom and shipping to
107 nations as well
through online websites
which permit organization
to grow at international
British red cross while
work in voluntary
sector manage its
functions with more
than 3354 staff
members who manage
everything from
internal to external
business activities in
professional manner.
Firm could not seek to
earn money or make
profit; it just wants to
provide world service.
5

level.
M1- Scope, Structure and size of varied firms line to venture products and objectives as well as
services
As discussed above, the structure, scope and size of public, private and voluntary
companies are interconnected with product, service and objectives of Arcadia Group in term of
offering products and manufacturing through existing number of workers who are able to
perform even better. By working in effective manner at different locations employees can work
hard to achieve set objectives of company.
P3- Interrelationship between different functions of Arcadia Group and its connection to
structure and objectives
Arcadia group successfully manage its business operations and activities while operated
in private sector, all it happen just because of its different functions which work together,
following are:
Marketing department with production team-
Marketing and production or operation are two different functions of chosen brand, their
relationship could define by its collaborative practices which they can conduct at workplace in
order to achieve set goals and objectives of company (Prawira and Rizkiansyah, 2018).
Marketing team within firm can perform closely with selected business unit because it make
them able to product and serve quality items according to target market needs which is quite
essential and beneficial act in term of increasing customer satisfaction and in return maximize
profits margin even better. Furthermore, they coordinate with each other because it is important
to do in order to grow business even better.
Marketing with IT-
Not only with production team or function, marketing department work with and conduct
coordinative practices with other functional units as well such as IT because they need to
generate brand awareness by using the latest software or digital promotion tools which is
possible when any technical issues could not hamper their work (Rajamma and Sciandra, 2020).
Information technology (IT) team is able to solve this kind of problems and because of that
reason marketing coordinate with this section. Collaboration and coordination between both
6

functions is very important, useful and beneficial for Arcadia Group in term of increasing
productivity and profitability as well as gaining competitive advantages.
Marketing and Finance-
As discussed above, marketing by working with two different organizational functions
within Arcadia Group gains a lot of benefits. Furthermore, it can work more closely with finance
department as well which is also very helpful for overall venture growth and success in term of
generating excellent brand image and attracting new customers after promoting existing or new
products successfully. Relationship between these two varied functions is base on requirements
and its fulfilment which relate to money, need by marketing team and provide by finance. This
resource is require by marketing team because of conducting product or business promotion
practices which are really very essential to do in order to generate brand awareness, gain
attention of profitable buyers and investors as well.
Link up of above functions with objectives and organizational structure-
Relationship between all above functions of Arcadia Group is useful and helpful in form
of increasing productivity level. It can relate to its objectives in term of working even better and
systematic manner which boost performance level and productivity as well which in return help
to obtain desire outcomes. Furthermore, collaborative practices between different functions is
link to other element such as structure of company in term of completing daily work of each
department workers that enhance working ability of employees and allow to increase functional
structure of firm.
M2- Benefits and drawbacks of relationship between organizational functions and its impact
upon company structure
The biggest advantage of interconnection between all functions of Arcadia group
business is that it helps to increase performance, confidence and productivity level which is
actually its management needed because it contribute in gaining competitive edge and support
for achieving set goals and objectives.
While the disadvantage of interrelationship between marketing, finance, HRM and IT is
that it may create conflict and miscommunication when needs of any department could not
understand by other one.
7

P4- Positive and negative impacts of external factors upon Arcadia group business operations
The macro business environment has high influence within fashion competitive aspects on
developing higher growth within competitive fashion retail industry on which external factors
analysis will enable higher revenue targets to be attained . Pestle analysis of Arcadia group of
companies will promote strategic development and also up scale new innovation on larger new
productive scenarios.
Political factors:
With Brexit implementation there are varied new competitive aspects coming on where
Arcadia has to focus on consistent stability further in businesses scale goals on which exports
and imports strategies shall be analysed competitively. This factor also brings strength factor
vividly on which political stable growth dominance shall be focused on further for growing up
explorative scenarios widely. Political stable growth will enable business to competitively form
higher focus on larger functional innovation which wills inform
Economic factor’s:
The economic stable growth also plays high role within business environment where
Arcadia aims to be developing higher stable growth operations where this will enable business
dominance within larger horizons. Within economic growth and expansion into international
domains stable policies should be taken care of informatively for building goodwill horizons and
also up scaling targets. This factor is of wide importance among business formation, for
developing larger new efficacy among goodwill and revenue targets. Thus will enable business
to competitively form higher growth among operations of goods and services which will keep up
larger effective new competitive goals further for keeping up new goals widely strong. It will
enable business to form strong goodwill and profound scope among competitive industry growth
scenarios for keeping up higher informative diversity.
Social factor-
Life style changes, market trends and preferences change are included in category of
social factors. In case of Arcadia group, life style change is one of social elements that put
positive impact on production operation of company because firm as already manufacture cloths
and other items according to life styles of its buyers and needs as well, which is really very
important to do.
Technology factor-
8

Development of digital marketing platforms gives organization an excellent chance
which it could use to promote existing and new products at global level in effective and
influencing manner. For example, firm can use search engine optimization discipline which is
one of the best marketing sources. It could make company able to gain attention of international
buyers towards purchase.
Environmental factor-
Customers and government concern in context of reduce carbon foot print that keep
environment safe from harmful things like water and other types of pollution could put positive
impact on business operations like production, marketing etc. As organization already take part
in CSR concept and take further steps towards reducing its carbon foot print by taking major
actions and improving current practices.
Legal factor-
Employment laws and regulations put negative impact on recruitment and selection
function or operation of Arcadia group in form of making changes within existing employment
policies and practices according to new legislation or terms & conditions which are beneficial for
employees and employers as well.
M3- Application of PESTEL model in context of chosen company
From above analysis, chosen concept has been used in order to determine those external
factors which directly put negative or may positive impact upon Arcadia Group and its business
environment. Its implication brings a lot of benefits in term of generating awareness about all the
forces.
P5 SWOT analysis in regard to Arcadia Group
The internal business environment can be understood as one of the most highly
influential aspect having high functional impact on keen working scenarios, for bringing on long
term scale efficacy within companies. The swot analysis will enable business companies to be
implemented effectively, for bringing on larger functional efficacy for new determinants to be
analysed further. Swot analysis of Arcadia group will bring forward various aspects of internal
business environment, which are as follows :
Strengths: Arcades strength of capital and large range of expansion among varied parts
of world with new range of investments, is one of the strength which enhances goodwill widely
9

for keeping up new functional diversity (Thompson and McLarney, 2017). The strength of
capital efficiency has been found to be highly positive for company where it profoundly works
ahead to bring on new range of products and services further. There is strength of large reach
among business environment, on which varied new explorative aspects can be further
competitively build on.
Weakness: Arcadia is facing high competition within fashion retail industry where there
is high competitive pressure coming up within various aspects, within which there are larger new
products demanded among industry scenarios (Donnelly, Gee and Silva, 2020). There is weak
functional abilities within competitive fashionable products domains, where there are high
competitive pressure developing within industry from global markets. Due to this the market
efficiency has been lowered and goodwill factor has been widely lowered, where there are varied
new competitive domains coming on which have lowered factors of businesses scenarios.
Opportunities: There is opportunity for coming on within business industry where varied
new innovation scenarios shall be expanded further, for keeping up new productive goal efficacy
which shall deliver growth and also develop goodwill on varied domains. There should be
inclusion of various other innovation machinery for implementation of new technologies which
will deliver growth and also to keep up larger goals among industry aspects. The opportunity of
new functional capital investments developed on within new technology governance and for also
capital goal promotion, which will keep up larger functional abilities further.
Threats : Arcadia group of companies have higher threat coming on within business
products innovations and diversity of digital platforms services, where there is threat of
competitive domains within retail industry (Stevenson and Cole, 2018). Also there is large
deficiency within employee's services among consumers demand, where new training shall be
provided further on up scaling functional diversity among varied range of goals. There is threat
within competitive fashion retail industry for coming up with consumer prefrenced services, to
cope up on productive goals and also to productively build inner strength widely.
These above discussed analysis of various factors have brought internal analysis within
business competitiveness scenarios of fashion retail industry, for pertaining higher work growth
synergy within Arcadia group of companies. There has been also quick growth efficacy coming
up among business goals widely for generating smarter working scenarios within fashion retail
10

industry, and also varied new demands coming within fashion retail industry where Arcadia
company should strategically focus further.
SWOT analysis of British Petroleum :
Strengths: High brand value with the best quality products and services making it one of the
best brand widely valuable market presence
Weaknesses : New brands coming in with high competition is weakness for British petroleum.
Opportunities: There is scope for bringing dynamic growth by investments in new untapped
market areas.
Threats: High demand for new technology products is threat for company.
P6- Strength and weakness interrelation with external macro elements
Above discussed strengths and weakness in regard to Arcadia group can interrelate with
external macro elements like political, economic, social, technology, environment and legal
factors. For example, organization strength is its capital investment capability which makes it
able to over come negative impact of external factors such as intense competition and other as
well. The weakness of company is also relate to specific external element, for instance due to
ineffective functional activities may hamper work of management in term of decreasing
efficiency to use advanced technologies. Organization may overcome all the negative impact and
weaknesses by using key strengths that mention above. Furthermore, decreasing brand image is a
weakness of chosen organization which is interrelates with social factor as people could not
consider it a good brand.
M4- Application of SWOT analysis and justification in regard to how it influence decision
making procedure
This model has been applied in context of Arcadia group which is quite useful in term of
determining strength, weaknesses, threat and opportunities which directly influence decision
making of management in form of developing strategic plan to grab current and further business
growth chances.
CONCLUSION
By summing up above analysis, it has been concluded that Arcadia group by using its key
strengths and opportunities as successfully overcome weakness and threat which in return boost
11

its performance and productivity even better than other brands. Furthermore, it has been
identified that collaborative practices and coordination between all functional units has allow
chosen company to obtain competitive advantages and help to keep it competitive for longer
period of time which turn into maximize sales, customer base, productivity and profitability
level. It has been summarized that by applying effective models organization get information
about factors which put negative impact on its business which they would overcome by
developing effective plans and strategies as well.
12

REFERENCES
Books and Journals
Ali, M.J. and Akter, S., 2018. Human Resource Management (HRM) Practices: A Case study on
Arcadia Group, UK. Global Journal of Management And Business Research.
Ansori, N. and Widyanti, A., 2020. The Role of Safety Silence Motives to Safety
Communication and Safety Participation in Different Sectors of Small and Medium
Enterprises: Investigation Results on Two Kinds of Industries in Indonesia. Safety and
Health at Work.
Charneca, P.M.C., 2020. How consumers perceive the impact of sustainable strategies in Energy
Companies: British Petroleum case (Doctoral dissertation).
Donnelly, S., Gee, L. and Silva, E.S., 2020. UK mid-market department stores: Is fashion
product assortment one key to regaining competitive advantage?. Journal of Retailing
and Consumer Services. 54. p.102043.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Iacobucci, G., 2020. The BMJ Interview: Victor Adebowale on systemic racism in the NHS. bmj.
371.
Prawira, I. and Rizkiansyah, M., 2018. Search Engine Optimization in News Production Online
Marketing Practice in Indonesia Online News Media. Pertanika Journal of Social
Sciences & Humanities.
Quinlan, C. and et.al., 2019. Business research methods. South Western Cengage.
Rajamma, R.K. and Sciandra, M.R., 2020. Planning and implementing a graduate online team-
taught marketing course. Journal of Marketing Education. 42(2). pp.108-122.
Stevenson, M. and Cole, R., 2018. Modern slavery in supply chains: a secondary data analysis of
detection, remediation and disclosure. Supply Chain Management: An International
Journal.
Thompson, J. and McLarney, C., 2017. What effects will the strategy changes undertaken by
next Plc have on themselves and their competition in the UK Clothing Retail
Market?. Journal of Commerce and Management Thought. 8(2). pp.234-264.
13