House of Fraser And Its Environment

Introduction
Business environment is connoted to factors and forces that are within and beyond control of an
organisation and affect on functioning. For the assessment, selected business is House of Fraser which is
departmental store group having headquarters at London, UK since 1849. The company have around 44
store outlets across United Kingdom.
House of Fraser And Its Environment
External factors impacting business
External factors are those factors that are beyond controllable but require respondents towards them from business. By
considering external factors, managers of a business takes suitable adjustment to their operational plans so to make it
more adaptable to external environment. For House of Fraser, ways in which external factors effects business are as
described:
Political factors: In UK, political factors effect businesses such as House of Fraser through making the market less
friendly. For example, when government of United Kingdom raises or lowers corporation tax then the company have
to spend more to meet obligations of taxation that reduces profits. Moreover, at the time when new laws are governed
then managers of House of Fraser have to make changes in their strategies that becomes huge complex to carry out
changes in limited duration.
Economic factors: With economic situation of UK, certain elements including fluctuations in interest rates, changes in
business cycle and economic crises effects consumptions of purchasers that effects profits of company. In context to
House of Fraser, fluctuations in exchange rate have direct effects on organisational products in international market
place. Products of House of Fraser are hurt by dollar's rise again currency of Britain which reduces its revenue
generation capacity.
Social factors: Preferences and attitude of customers in UK are changing over time. In aspect to House of Fraser,
changing perception of customers towards organisation and its offerings effects business growth as when customers do
not purchase products then it reduces sales volume and revenue generation capability of the entity that impacts
negatively on performances.
Technological factors: Smart internet searches, chatbots, artificial intelligence and various high tech functions effects
business for ages. In UK, there are major changes in technological know how. In House of Fraser, technological
infrastructure effects efficiency, relationship as well as culture of the company. When organisation adopts new
technology, for example, chatbots then it have to change its way of communication from traditional to digital manner
which becomes complex for employees to handle and huge issues that effects adversely on business.
How the company impact its context
External Environment
There are various times, when business impacts on external environment. Some of the ways in
which House of Fraser impacts external environment are as follows:
Economy: House of Fraser impacts positively on external environment through generation huge
employment opportunities for society. It meets demand and supply of employment by hiring as
maximum of people on the basis of their expertise, area of interest and so on. This impacts on
employment rates of the nation positively.
Environment: There are various initiatives that an organisation undertakes for reducing or
managing environment of a country. House of Fraser have joined online platform so to cut its
supply chain emission addition to usage of resources in unnecessary manner. With this initiative,
the entity impacts on environmental factors through driving efficiencies, reducing resources
across supply chains as well as cutting emission.
Technology: House of Fraser also impacts on technological environment through leading ways
on innovation along with embracing immobile technology. The brand have leveraged online
platforms or online channels so to improve product offering together with storing technological
environment for attracting customers together with enhancing various technological options.
Internal factors impacting business
Business environment is sum total of internal and external factors that have huge impact on operations
and strategies for sustaining. Internal factor is termed to forces that are controllable by managers and
impacts on approaches along with success of operations. In case with House of Fraser, some internal
factors that effect the business are as described:
Strength of employees: It is one of important internal factor that effects business at great level. Strength
of employees can take the company to great level as it improves performances despite of working on
weaknesses. In House of Fraser, when employees are not aware and do not use their abilities or
strengths then they work without engaging with others, do not participate in decision making and lacks
innovation that effects the business. However, successful employees with knowledge of strengths meet
deadlines, build brand value, make huge sales volume and hence forth through positive customer
interaction that impacts the business in positive manner.
Organisational culture: There are different cultures operating with an enterprise which effect
performance of company. In House of Fraser, corporate culture results in poor quality, poor
communication, micro management, intense competition with workforce and leniency towards bad
habits because of which desired objectives are not attained which effects business image in market.
However, businesses with suitable organizational culture tends to become more successful as it includes
a system of working, sharing information, solving disputes and promoting collaboration that impacts
positively in productivity along with performance of the establishment.
Resources: Within a business, resources are classified as physical resources, human resources,
technological resources, financial resources and intellectual resources. In context to House of Fraser,
when cash resources are limited then it effect number of talents to hire and retain, quality of equipment
and amount of promotions it can buy. When business is flush with resources then it effects on its
flexibility for growth addition to expansion
References
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