Internal and External Information for Planning, Decision-making and Control: A Case Study of Zeal Limited

This report discusses the internal and external information required by Zeal Limited for planning, decision-making and control purposes. It covers the PESTLE and Porter's Five Forces frameworks of business organization.

Assessment – 2

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Determine what type of internal and external information is required by your chosen business
for planning, decision-making and control purposes..................................................................3
Internal information ...............................................................................................................4
External information :.............................................................................................................5
PESTLE Analysis...................................................................................................................6
Porter's Five Forces :..............................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
A business organisation is an establishment formed for conveying private enterprise
undertaking. It comprises of functioning of contracts and exchange, property rights and
incorporation which is administered by law. There are many structures of organization that
includes sole proprietorships, cooperatives, partnerships, companies with limited liability and
organisations . Corporative organisations basically describes the structure of business and how it
further helps in meeting their goals (Child 2015). Overall, businesses are formed to either
generate profit or improve society. The internal organization signifies who makes their decisions,
controls which organization and whose goals are not aligned with objectives of firm. External
organisation refers to corporation, community, corporative body or company and any other
organization that is capable of doing business dealings on their own. This report will cover
internal and external information of Zeal limited and also the pestle and porter five sources
framework of business organisation.
TASK
Determining what kind of external and internal information is needed by the selected
organisation for decision-making, planning along with control purposes
There are four main type of business structures exist which are described below:
 Limited Company
 Sole Trader
 Limited Liability Partnership
 Partnership
Zeal limited comes under the structure of limited company(Grusky 2017).
The main internal factors that are required for running a company are :
 human resources
 finance
 current technology
Examples of areas which are to be covered for considering internal factors :
 Investment opportunities, sources of income and funding are financial resources.

 Location, facilities and equipment of company are physical resources.
 Employees, volunteers and target audiences are human resources.
Internal information
It determines the internal running of business which are as follows
1. Value System : It can be describes as ethical belief of an organisation which helps in
guiding the organisation to achieve its objectives and goal. This will also help in
determining the behaviour towards its employees, customers and society at large. The
promoters of business organisation mainly indulges in selection related to business as
well as adoption of practices and policies of business. The company may deny for
producing or distributing liquor if it considers it virtuously wrong for intake of alcohol
due to its value system. It serves as an crucial contribution for achieving success as well
as establishing prestigiousness in this business world. In case of Tata group of industries,
its value system describes that its founder JRD. Tata, imposed itself towards moral
obligation for adopting fair as well as just business practices and policies for promoting
interests of employees, consumers, society and shareholders at large.
2. Mission and Objectives : The objective of firms is considered on increasing long-run
profits. The mission of company is different from objective which is profit maximization
which shows the real reason and purpose for its existence. Such mission helps in guiding
and influencing its business decision and economic activities (Rane and Narvel 2021). It
guides the choice, direction and development of business strategy and policies of
business. For example, the mission of Reliance Industries India is “to become a world
class company as well as to meet global dominance”. Similarly, the mission of Ranbaxy
Laboratories India is “to become a research based international pharma company.
3. Organisation Structure : This describes that the things which are considered as
composition of board of directors, such as independent directors, extent of External
information : share holding patterns and professional management. It has found that the
nature of structure of an organisation has impact on their decision making process. This
makes important for the company in order to make their organisational structure
conductive in order to make their decision making quick. Delays in it can cost a good
deal to business firm.

4. Corporate Culture and Style of Functioning of Top Management : The factor of style
of functioning and corporate culture is an essential factor in considering internal
environment of an organisation. Corporate culture is a closed and threatening type of
Porter's Five Forces :corporate culture that is generally taken by top-level managers.
The subordinate officials of company lacks trust, confidence as well as secrecy in all over
the organisation. This in turn has no awareness of belongingness in between the low level
workers and managers. Whereas, in participatory and open culture, the decisions of
business are taken at low level of management, on the other hand, top management has
broad level of trust as well as confidence among its employees(Foss, N.J. and Saebi
2015). The ability to communicate freely is a link between top management as well as
low level managers which is rule in participatory and open kind of organisational culture.
The participation of workers is managed in open and participatory system. Elaborately,
corporate culture is describes the functioning style of top management. Managers on top
level consider in giving orders as well as want to be strictly followed without consulting
with low level managers. This functioning style describes that the flexibility and
adaptability is not applicable to deal with changing environment of an organisation.
5. Labour Unions : This is other factor where unions together negotiate with top managers
related to their wages and working conditions of various categories of workers. There
must be good relation in between the management as well as labour union for smooth and
effective working of business organisation. Sometimes, it needed modernisation and
restructuring. The condition and term must be implemented for cooperation of workers in
labour union.
External information :
It is one in which documentations successful acquirable to public from 3rd party and
information which involve data created for only usage of an organisation which produces
personnel files, trade secrets etc. Companies uses external data to for argument on decision
making, meet customers needs, predict supply and demand and more. Some external actors
determining the external running of business which are as follows:
 Political – includes new legislations
 Economic – includes inflation and unemployment

 Social – includes increase in spending power with change in taste and fashion
 Technological – includes online sale of goods using automation in factories
 Environmental – includes weather conditions affecting sales or increase in production
and rates and interest by going green with recycling process.
 Competitive : The effect of a rival or opposite firm which have similar products with
low prices.
PESTLE Analysis
PESTEL analysis refers to important frameworks for helping companies to identify as well as
analyse factors in their macro-environmental that consist potential to impact their business
environment. It also helps them to make strategic decisions with the political factors affecting
U.K, which consists of Wales, England, Scotland and Northern Ireland. The six elements of
Pestle analysis are:
1. Political Factor : It describes those factors that provides on business due to intervention
of government which includes policies of government, corruption, political stability or
instability, tax policy, foreign trade policy, labour law, environmental law as well as
trade restrictions. This mainly focuses on areas where government changes in legislation
that impacts the specific industry, economy as well as business organization that is in
question. It particularly affects an organization which includes tax and employment laws.
2. Economic Factor : After the financial crisis in 2008, the business and economy of US
faces many problems in order to get recover from greatest economic crisis after the Great
Depression faced in 1930s. The businesses which are established for a long time has
costing workers their jobs, closed their doors, retirement savings as well as even their
homes (Holbeche 2015) (Hooper and Potter 2019). So far, the economy progression has
been make for stabilizing the housing industry, maintaining affordable and low interest
rates to render extra incentives for companies.
3. Social Factor : The attitudes, values, beliefs, wants as well as desires of overwhelming
public encompasses social environment. The age brings and ethnic diversity and forces
like Corporate Social Responsibility, where most of customers are want that businesses
need to become “good corporate citizens” by giving support to various charity as well as

contribute to local communities, enhancing the ethical standards in order to treat of
workers and adopt environment friendly activity.
4. Technological Factor : Technology which has been used in business are considered as
digital tools which includes telecommunications, computers and internet. The best benefit
of it is that their customers have to no longer stay in stores for ordering or purchasing
products and services. Customers can very easily and handily purchase their products and
services from their home, phone or desk without going anywhere.
5. Legal Factor : This describes most dangerous and complex factor for business
environment. There are a combination of different laws, regulations as well as liabilities
that organisations engage to act in their business. The legalization of same sex marriage
and marijuana or strengthening of privacy laws have a great effect on the style companies
does their business for manufacturing, labelling and marketing.
6. Environment factor : The flow of free trade between nations and countries has allowed
to flow goods and services across international borders in cheapest and efficient manner.
The development of Chinese economy brought a flood of affordable and reasonable
goods into U.S and the availability of cheaper prices has created a reliability between
international goods and material(Wial 2018). The increase or decrease in foreign oil
prices has impacted the business of U.S. Therefore,its not just local economy but the
national economy that must be in track and also to keep an eye on world economy to
adapt to the changes that will affect their products and services.
Porter's Five Forces :
Porter's Five Forces refers to a framework which help company to analyse its competition
environment. It can also be describes as simple framework to assess as well as evaluate
competitive strength and position of an organisation. It is an important tool for analysing the
main competition forces at work in an industry. The power and number of competitive rivals,
potential new market entrants, suppliers, customers, and substitute products of company which
impacts its profitability. Some Porter's forces are:
 Bargaining power of Supplier : The ease by which suppliers increase their prices which
is impelled by the number of suppliers of every necessary input, relative size and strength

of supplier , uniqueness of product or service along with the cost off switching to another
suppliers.
 Bargaining power of Buyers : The increase by which buyer decrease their prices which
is driven by numbers of buyers in marketplace, value of each individual buyer to
organisation, and cost of buyer for switching to another suppliers.
 Rivalry among current competitors : The primary driver is the quantity and ability of
competitors in market. Many competitors offer indifferent products and services which
will reduce market value in the industry.
CONCLUSION
From the above report it is concluded that, a business organisation is an establishment
formed for conveying on commercial undertaking. Such an organisation is based on property
rights and incorporation as well as systems of law governing contract and exchange. The internal
organization signifies who makes their decisions, controls which organization and whose goals
are not aligned with objectives of firm. External organisation refers to any organisation, society,
club, corporation, body corporate, company, trust or any other body capable of forming legal
transactions on its own behalf. PESTEL analysis is important tool for helping business strategist
to understand the macro-environmental factors on their businesses.

REFERENCES
Books and Journals
Child, J., 2015. Organization: contemporary principles and practice. John Wiley & Sons.
Foss, N.J. and Saebi, T., 2015. Business models and business model innovation: Bringing
organization into the discussion.
Grusky, O., 2017. The effects of succession: A comparative study of military and business
organization. In Organizational Careers (pp. 369-374). Routledge.
Holbeche, L., 2015. The Agile Organization: How to build an innovative, sustainable and
resilient business. Kogan Page Publishers.
Hooper, A. and Potter, J., 2019. The business of leadership: adding lasting value to your
organization. Routledge.
Rane, S.B. and Narvel, Y.A.M., 2021. Re-designing the business organization using disruptive
innovations based on blockchain-IoT integrated architecture for improving agility in
future Industry 4.0. Benchmarking: An International Journal.
Wial, H., 2018. 21. New Bargaining Structures for New Forms of Business Organization.
In Restoring the promise of American labor law (pp. 303-313). Cornell University
Press.