Individual Report of Organisation and Business Environment

This report examines how the business, cultural, and natural environments shape the behavior of Next Plc, a British multinational retailer. It discusses the impact of these environments on the organization's operations and strategies. The report includes a PESTEL and SWOT analysis to evaluate internal and external factors. It also highlights the importance of considering market conditions, economic activities, technological developments, and socio-political changes in order to achieve desirable outcomes.

Individual Report of
Organisation and
Business Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
BODY OF REPORT........................................................................................................................4
How do the Business, Cultural, Natural Environments shape the behaviour of your chosen
organization? ..............................................................................................................................4
PESTEL and SWOT example and analysis................................................................................7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Organisational environment is one of most important aspect that directly influence
business works and activities. It composed of forces or institutions that surround of an
organisation that affect performance, operations and resources of a firm. It includes all the
elements that existed outside of organisation such as government regulatory agencies,
competitors, consumers, suppliers and pressure from public. On other hand organisation internal
environment that also affect business works and activities includes entities, conditions, events
and factors. As business not operate in vacuum but operates in dynamic environment that
directly influence on way organisation operate works and activities (Agrawal, 2015). Business
owners and managers have a great task to access environment and operate business that covers
day to day decision making of organisation. Organisation needed to choose culture in which they
want to operate, the products they sell and choose and place to sell the same in order to remain
competitive in the marketplace. To access the internal and external business environment
organisation can avail the PESTEL and SWOT analysis tools that helps collect crucial
information which assist in building strategies and tactics to gain potential outcomes. On other
hand in natural environment consist of disasters that impact on businesses of not only the
specified nation but also to others connected with it. Respective factors are uncontrollable in
nature and adversely impact on business activities. This assignment rely on the Next Plc which is
the British multinational clothing, footwear and home appliances by operating around 700 stores
in UK, Europe, Asia and middle east. Respective report is based on the internal and external
business environment factors such as business activities, cultural factors and natural environment
and way respective factors shape the chosen organisation. Further it includes the evaluation of
respective factors with help of PESTEL and SWOT in order to gain reliable information. Further
information generated by analysis of internal and external factors helps to organisation in
handling the problem of uncertainty and complexity of business environment (Bagheri and
Movahed, 2016). In that regards it is potential to collect information pertaining to market
conditions, economic activities, technological developments, demographic factors and socio
political changes and many more needed to consider in order to gain desirable outcomes
potentially. So it is very much potential for organisation to plan strategically in order to gain
desirable outcomes so that improvements should be made in organisational works and activities.
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BODY OF REPORT
How do the Business, Cultural, Natural Environments shape the behaviour of your chosen
organization?
In the business environment, there are no. of factors that directly influence organisational
works and activities. It is very potential to analyse business activities, culture of organisation and
natural environment that are uncontrollable in nature in order to build strategies accordingly
(Erasmus, Strydom and Rudansky-Kloppers, 2016) . Business is defined as an organisation entity
engaged in industrial and commercial activities, it can be for profit or not profit organisation
operate for different purpose.
Business:
Business also refers to the collective efforts and actions of an individual in order to
produce, sell goods and services for gaining profitability positively. In context of Next Plc in
their products consist of the Clothes, appliances, footwear and many more. They design,
manufacture and distribute the clothing and home furnishing in nearly 330 next stores. In
business consist of products and services of organisation that directly contributes in enhancing
the consumers experiences. In the Next Plc which deals in the retail industry, working of
respective industry involves interacting with people in order to provide the excellent customer
service and knowledge related to the products and services (Hillary, 2017). In that regards the
management of Next Plc provides adequate training and development to their employees and
provide flexibility in their work culture. With the help of flexibility in work environment they
can be able to think innovatively that is major characteristic of Next Plc. So it can be stated that
with business, shape the behaviour of respective organisation. To enhance sales they have to
greet and serve the consumers by taking immediate feedbacks, in that regards they trained their
employees to treat properly. The major role of Next Plc is to involve employees in problem
solving which assist in the sales and marketing skills to show, promote and sell products and
services in order to remain competitive in marketplace. Due to change in taste and preferences of
consumers rapidly organisation tends towards adopting the talented personnel that can bring
disruptive innovation in the marketplace. So they focus on the favourable work practices in
which individual can give one of their best efforts in organisational development and
enhancement. In that regards it directly shape behaviour of individual as well as organisation. In
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context of Next Plc to operate business activities potentially focus on the management and
coordination of activities in best manner.
Culture:
Culture is the characteristics and knowledge of a specified group of individuals which
defines language, values, beliefs and social habits (Jenkins and Williamson, 2015) . Culture also
includes the organisational vision, values, norms and systems that directly influence the business
works and activities. Organisational behaviour is the through study used for not only to learn
about the complexities of the workplace but also connect with the tools used in future. Culture is
invisible in nature although it affects the behaviour of employees, their thinking and behavioural
patterns tends to become more aware about organisational culture. In context of Next plc where
the employees dressed casually and properly that shows the positive work culture. Further more
they encouraged to raise issues and question from their boss in order to reach at best solution of
problem in order to build healthy relationship with employees. On contrary the other
organisation where employees dressed formally and consider inappropriate to question from boss
that also the culture of an organisation. In that regards evaluated that culture matters a lot for
employees in building their motivation level and give one of their best efforts in organisational
development (Ji-fan Ren and et. al., 2017). Organisational culture is one of strongest assets that
related with the increases performance and build positive relationship with employees. Culture is
not only concerned with employees and internal work environment but it also concerned with
their suppliers. In context of suppliers they trade ethically and act as an responsible organisation
while working with suppliers in their factories. By behaving rationally with suppliers
organisation can be able to gain loyalty and they give one of their best efforts in organisational
development and enhancement. In context of consumers their culture is to build products and
services that meet their level of expectations by providing exciting, designed beautifully and
excellent quality of footwear, accessories and home ware. By using respective attribute
organisation can be able to build a distinctive place in mind of their consumers and become very
well known brand in the whole world. The culture of Next plc towards the environment that they
put lot of investment in saving the environment as they work under it. They consider their
responsibility and obligation to lessen down the adverse impact of their business operations on
the environment. In that regards they spend lot of amount in CSR activities potentially. The
culture of Next Plc towards community that they assist a wide range of charities and working
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with all size of organisation to provide benefit to them so that they can contribute in economic
development. Respective culture with all their stakeholders positively impact on the
organisational loyalty and sustainability in market. They can be able to hire and retain one of
talented personnel, suppliers and consumers as they possess distinctive brand image in
marketplace. So it can be said that culture of Next Plc share positively behaviour of each and
their every stakeholder.
Natural environment:
In natural environment consist of all living and non living things that occurs naturally. An
organisation operate across the entire country or in just in town, business shaped by many ways.
Each environment represents their own set of challenges and opportunities that management
have to observe or evaluate in order to remain competitive in marketplace (Jonathan and et. al.,
2018). Weather, geographical location, global changes in climate and other adverse impact on
strategies and policies of organisation while they enter into international marketplace. Next Plc
operates in almost all continents that are Africa, Asia, Europe and Oceania in which different
weather conditions appears such as flood, earthquake, thunder and many more. Respective
natural disasters directly affect the business activities such as not able to supply products and
services to the ultimate consumers. Consumers also not able to purchase the products as it
disrupts their life by adversely impact on economy. The soil, water and air if not favourable for
their business in that regards they apply some practices such as carbon footprints. As a
responsible business by adopting the sustainable ways to conduct business activities positively.
They always focus on reducing the operational carbon footprints that enables to deliver better
resources to the end user (Maijanen and Virta, 2017). Their first and foremost priority in regards
of environment is to minimize the environmental impact as carbon intensity adversely impact
their business activities. They by working with suppliers in order to reduce the adverse
environmental impacts on the products. By improving the efficiency and identification of
opportunities in order to reduce energy in building products and services. As waste from the
factories indirectly impact on their organisational activities so that work on minimal of waste so
that potential outcomes should be obtained. Here are the factors of natural environment and the
way impact on the business:
Sources of raw material: Natural and physical environment provides raw material that is very
much important for functioning of industries (Cosic, Shanks and Maynard, 2015). For an
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example: Fashion industries based on the thread and cotton. If natural disaster occurs it destroy
mines, flora, fauna, land mass and many more. Next Plc operates in Russian market where most
common kinds of natural disasters such as frost and drought takes place. Hydrological hazards is
one of major cause of 12 emergency situations across the country in that regards it directly
impact adversely on business activities.
In 2019 Corona virus impact the business of majorly all the countries and their business
activities. In context of Next Plc, they suffer from the problem of “out of stock” as Chinese ,
Americans and other companies conduct their business activities with china concerned with
supply chain problems. Respective concerns rise in context of retailers the out of stock
replenishment could start within the 60 to 90 days and continue up to next few weeks.
In that regards it is very much potential for organisation to work on respective areas by
building strategies and tactics so that adverse impact of business, culture and natural
environment should be minimised in order to remain competitive in marketplace. As it has been
observed that if organisation not possibly work on respective areas, resulting organisation
encounter the adverse impact such as low sales, consumer distraction, high operating cost and
many more (Martins and Nienaber, 2018). Hence, it is very much potential for organisation to
keep eye on respective areas in order to gain desirable outcomes.
PESTEL and SWOT example and analysis.
PESTEL and SWOT analysis is one of most important kind of tool to analyse the internal
and external business of organisation.
SWOT analysis:
Strength:
 It has impressive product innovation:
by using respective strength they can
able to develop the new products in
order to gain desirable outcomes.
 Strong product portfolio: They deals in
the large products and services for
satisfying the wants of large no. of
consumers (Mežinska, Lapiņa and
Mazais, 2015) (Mollan and Tennent,
Weaknesses:
 The profitability ratio of Next Plc is
below the average profitability in the
marketplace that hinders their self
interest.
 There are large no. of competitors and
integrating firms with Next Plc are not
impressive that sometimes spoil brand
image of respective organisation.
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2015)
 Strong cash flow: They have strong
cash flow by which they can be able to
expand their business activities.
Opportunities:
 The major opportunity in front of Next
Plc that they effectively engage in
celebrity endorsement by recruitment
of celebrities in specified target
customer market.
 They by clarifying business strategy
(cost leadership or differentiation) can
be able to avoid stuck in the middle in
successful implementation (Olutoyin
and Flowerday, 2016)
Threats:
 They face the fierce competition from
the discount clothing brands that
hinders their profitability majorly.
 The another major threat that price of
raw material increases day by day.
PESTEL analysis:
Political:
 In the context of Next Plc which
operates in UK and other countries too,
the political stability of UK is very
much great strength for respective
organisation to gain profitability from
there. Although Brexit create some sort
of uncertainties in selecting the best
personnel and create chaos (Otieno,
Waiganjo and Njeru, 2015)
Technological:
 Technology is one of most important
factor for organisation and UK is great
hub for technology. A lot of investment
and talent coming in respective sector
in order to improve the life style of
people. It attracted £28bn technology
investment since 2011.
Economic:
 In economic factor very important is
economic landscape and 5th largest
Environmental:
 Protection of environment plays very
much important for organisation, in
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economy in world , however wages do
not rise as per the increased pricing.
The current inflation rate is 1.7% in
September 2019. rise in inflation rate
hinders self interest of organisation.
context of UK marketplace they
sometimes faces adverse weather
conditions that directly impact on
organisational profitability and
government favours organisations that
invest in CSR activities.
Social:
 The UK is one of big consumer market,
the rise in no. of young population rise
the demand of products and services
that is one of potential factor for Next
plc. They continuously conduct
research and development to remain
competitive in marketplace (Sarkis,
Meade and Talluri, 2017)
Legal:
 The UK government is very much
concerned for the laws and regulations
as it positively impact on organisational
activities to coordinate properly such
as employment act 1996 protects right
of people. Minimum wages, holiday
pack and many more.
So it has been analyse that SWOT and PESTEL analysis is very much important tool for an
organisation to manage the factors directly influence their activities (Swanson and Niehoff,
2017). In context of Next Plc as they operate in the UK marketplace that is dynamic in nature so
it potential to plan strategically in order to gain desirable outcomes.
CONCLUSION
From the above report it has been concluded that for an organisation business
environment plays very much important role for building strategies and tactics in positive
manner. Generally environment refers to the business surroundings, external business objects,
influences and circumstances in which business occurs its business operations and activities. In
that regards manager must have the clear understanding regarding the situation of organisation so
that they can take relevant decision regarding the direction and potentially moderate their
strategy. As characteristics of business environment is very much complex, dynamic in nature,
multi facial and impact far reaching impacts on operations of business. In the business
environment there are majorly two kinds of factors internal and external business environment.
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In internal business environment consisted vision and mission of organisation, objectives,
organisational structure, corporate culture, quality of human resource and many more that affect
business activities. In external business environment consist of the workers and their union,
customers, marketing intermediaries and competitors and many more. From the report it
analysed that macro environment that it impact on the business in both the positive and negative
manner. It implies that large no. of forces in the environment of firm not provide wider space for
business opportunities in order to gain desirable outcomes. Non economic factors influence the
business objects and provide information related to various opportunities. To analyse the
business environment PESTEL and SWOT tools assist to analyse the external and internal
business environment respectively. In internal business environment consist of the culture of
organisation as every have their differ values, beliefs and customs and it vary from individual to
individual and from region to region. So for the business have to consider the culture of
community at time of formulation of policies and marketing products. Natural environment in
business come under the internal that is uncontrollable in nature and impact on the business
works and activities adversely so it is need to be consider while implement in properly. For an
organisation to respond well to their environment, is very much potential and it can be possible
after monitor and make sense of their environment regarding internal capacity to gain potential
responses. By evaluating the business environment organisation can be able to mould their
present strategies and tactics in order to build differentiation in the products in comparison to the
other competitors. Natural or ecological factors in a industry is set up in a location it must to
evaluate that it not harm the environment. it very much potential to work by saving environment
as it builds distinctive image in mind of consumers so that purchase products and services from
the organisation in order to remain competitive in marketplace. Analysis of environment which
carry out competition, is known as brand competition and in that case almost of durable products
in goods market. By evaluating the market organisation can be able to enjoy the monopoly that is
very important for organisation for organisation in gaining large market share and potentially
serve the huge consumer base.
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REFERENCES
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Virglerova, Z., Dobes, K. and Vojtovic, S., 2016. The perception of the state's influence on its
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Online:
Next, 2020. [Online]. Available through. <https://www.nextplc.co.uk/corporate-responsibility>.
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