Introduction to Business: Types of Organizations, Organizational Structure, and Key Factors Impacting Business Decisions

This report on Coffee Bloom, a new start-up offering herbal and organic coffee in the UK, covers different types of business organizations, organizational structure, and key factors impacting business decisions. It includes a PESTLE analysis and Porter's five force model to identify external and internal factors affecting the business.

Introduction to
business.

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Different types of business organisation and justify why partnership start up is better than sole
proprietorship..............................................................................................................................3
Determine organisational structure and highlight the significance of main functional areas.....3
PART 2............................................................................................................................................3
Analyse the key factors that impact organisation and support business decisions.....................3
PORTERS five force model........................................................................................................7
Internal and external factors required in decision making, planning and control purpose.........8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business plan is defined as a document which provide an overview of company’s objective,
mission, vision and goals as well. The main purpose of business plan is to develop an effective
strategy for growth or to bring something new at marketplace. Coffee Bloom is a new start-up
that will be based on offering herbal and organic coffee. The start-up will be operating in UK and
is offer product such as Chicory root coffee, roast organic coffee which is blend with herbs. The
main reason to coming up with the idea of herbal and organic coffee is increase concern of
people towards their health. The report will cover the types of internal as well as external factors
that is required to consider by a start-up business foe decision making, planning and controlling
purposes. In addition to this, various frameworks were used such as Pestle, porter’s in order to
identify the key factors impact on organisation.
MAIN BODY
Task 1
Different types of business organisation and justify why partnership start up is better than sole
proprietorship.
COVERED IN PPT
Determine organisational structure and highlight the significance of main functional areas.
COVERED IN PPT
PART 2
Analyse the key factors that impact organisation and support business decisions
It is important for an organisation to identify the key aspects that has impact directly on its
performance and assist in taking effective business decision for growth. There are various
frameworks is used in order to analyse factors impact on organisation and is discussed below:
PESTLE analysis
It is referred as a framework that is used by an organisation in order to analyse impact of
macro environmental on the performance and activity of company (Lubawa, 2021). In context to
the new start-up, it will be operating in UK and for this pestle analysis is given below:

Political factor: The coffee industry within the UK is highly dependable on international
trade in order to operate and this might impact negatively on Coffee Bloom. In addition to this,
the government of UK support start-up businesses to expand which is an opportunity for Coffee
Bloom to attain opportunity and gain higher growth.
Economical factor: Most of the people in UK prefer to consume coffee which help Coffee
Bloom to attract large number of customers and attain success. On the other hand, the spending
level of people prevailing in UK is decline because of which company can face issue that is low
customer base, decline in profitability and many more.
Social factor: The trend prevailing within the society towards consuming beverages is
health consciousness. The mind-set of people towards consumption of coffee is negative as it
involve high amount of coffee which reduce the demand of coffee. In context to Coffee Bloom ,
it provide organic and herbal coffee which involve less amount of caffeine and is good for the
health of people. This will help company to attract large number of people and risen its sales in
an effective manner.
Technological factor: It is important for an organisation to make use of new technology
as at the present time people prefer to consume those offerings that is innovative and new at
marketplace. In relation to Coffee Bloom, it make use of multipurpose coffee machine which
help in providing orders to customers in a rapid manner (McKeever, 2018) It also makes use of
instant payments technique which help organisation to reduce queue time of customer and
provide them high customer experience.
Legal factor: It is vital for a new start-up to follow all the legal policies and procedures in
order to execute activities properly. In relation to Coffee Bloom, it is significant to follow all the
employee laws, trade laws and so on. This will help in executing all the activities without any
issues and discrepancies which further has positive impact on the performance of an
organisation.
Environmental factor: In context to Coffee Bloom, it provide organic and herbal coffee
to its customers which will not haCONCLUSION
From the above discussion, it has been concluded that business plan is a document that
describes organisation’s objective, goals, mission, vision and so on. In addition to this, it is
determined that there are various external and internal key factors that a new start-up must
consider at the time of planning that is customer’s requirement, market demand, finance, labour

cost and so on. By the assistance of Pestle analysis, an organisation is able to identify the impact
of external factors on the activities and operations of organisation. Moreover, Porter’s five force
model allow company to know about key factors that impact on organisation and facilitates in
effective decision making. rm the environment. In addition to this, it will also help company to
develop its brand image level and attain high performance in an effective manner.
Swot analysis
It is referred as a tool that allow an organisation to identify its strengths, resources as well
as capabilities. The wot analysis in context to Coffee Bloom is given below:

SWOT Analysis -
Strengths With the introduction of organic and herbal
based coffee the company can attract more
customers which are more into Fitness and are
health conscious. It will also result in more
profitability and building brand reputation. All
these aspects will act as a positive factor for
the company.
Weakness Increasing price of coffee might affect the
operations of the company. If it is not able to
manage its start up costs as compare to other
coffee shops (Barrow, Barrow and Brown,
2018).. Also if a company uses negative ways
of publicity it may affect its brand value
resulting in loss of profits.
Opportunities Being a organic and herbal based coffee shop,
the company can create a positive impact on
customer's mind resulting in increasing
awareness for environment. Also its unique
features of organic ingredients will help the
company to expand and extend its supply range
in the market. Also these opportunities will
help the company to enter in more developed
regions.
Threats A rise in price of milk products or coffee beans
can create a disruption in supply leading to
more competition with other coffee shop
chains. Lack of proper supply and less demand
of customers can lead to reduction in profits

which can act as a threat for the company.
PORTERS five force model
Competitive rivalry: As the business is new in the market they have to face severe
competition in the market. They have to face competition from big players in the market and in
order to cope with the competition it is important for the company to provide best quality
services and products to their customers.
Bargaining power of customers: the bargaining power of customers are high as the
company is new in the market and are in requirement of support of customers (Bureau,
Guimbard and Jean, 2019). It is important for the company to work according to the preferences
of the customers.
Bargaining power of suppliers: As the company is not very established and there are
limited number of suppliers who are supplying the quality of goods which the cafe actually
wants, the bargaining power of suppliers are high.
Threat of substitute: There is a low level of threat of substitute as the products and
services of the company is unique and are attracting customers.
Threat of new entrants: The business is already new in the market and is trying to
capture a market share which can help them in attracting customers. It is analysed that the
company is having low level of threat of new entrants.
The three factors which can influence and support the business decisions:
Firstly, the company is not able to have the latest technology prevailing \in the market.
As the company is a new start up, it is difficult for them to implement latest and new
technologies in their workings as it involves huge cost.
Secondly, the company must make sure that they are providing proper training to their
employees in order to prepare a skilful and talented workforce which is most important resource
for the company in order to have competitors advantage in the market .
Thirdly, the company must make sure that they are preparing their pricing strategies
effectively as after the pandemic, the disposable income of people have reduces
tremendously(Zhang, Daim and Zhang, 2018). The company must make sure that they are able
to attract their customers and can provide them affordable beverages.

Internal and external factors required in decision making, planning and control purpose.
Internal factors
Employees: It is one of the major resource of the company as it helps the company in
providing best in class services to their customers. It is important for the company to make sure
that they are working and making decision keeping the factors related to employees in mind.
Culture: The culture of the company is another internal factor which can influence
decision making in the organisation (Hamilton and Webster, 2018). It is important for the
organisation to make sure that their culture is not affecting their decision making process.
Customers: The customers of the company are the ultimate decision makers which can
help the company in surviving in the market and in having competitors advantage in the market.
It is important for the organisation to make sure that their planning process involves the
perspective of customers as well.
Suppliers: The suppliers of the company help them in getting products or raw material
which the company requires in order to start the processes or operations of the company. It is
extremely important for the company to have a clear discussion with the suppliers before making
any decision.
CONCLUSION
From the above discussion, it has been concluded that business plan is a document that
describes organisation’s objective, goals, mission, vision and so on. In addition to this, it is
determined that there are various external and internal key factors that a new start-up must
consider at the time of planning that is customer’s requirement, market demand, finance, labour
cost and so on. By the assistance of Pestle analysis, an organisation is able to identify the impact
of external factors on the activities and operations of organisation. Moreover, Porter’s five force
model allow company to know about key factors that impact on organisation and facilitates in
effective decision making.

REFERENCES
Books and Journals
Armarego-Marriott, T., 2021. ‘Hot’coffee taste test. Nature Climate Change, 11(5), pp.378-378.
Barrow, C., Barrow, P. and Brown, R., 2018. The Business Plan Workbook: A Step-by-step
Guide to Creating and Developing a Successful Business. Kogan Page Publishers.
Bureau, J.C., Guimbard, H. and Jean, S., 2019. Agricultural trade liberalisation in the 21st
century: has it done the business?. Journal of agricultural economics, 70(1), pp.3-25.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Lubawa, G.G., 2021. Business Plan and Industrial Development: The Case of Family-Owned
Food Processing SMEs in Tanzania. In Handbook of Research on Institution
Development for Sustainable and Inclusive Economic Growth in Africa (pp. 231-253).
IGI Global.
McKeever, M.P., 2018. How to write a business plan. Nolo.
Sujatha, G., Shanthakumar, S. and Chiampo, F., 2020. UV light-irradiated photocatalytic
degradation of coffee processing wastewater using TiO2 as a
catalyst. Environments, 7(6), p.47.
Zhang, W., Daim, T. and Zhang, Q., 2018. Understanding the disruptive business model
innovation of E-business microcredit: a comparative case study in China. Technology
Analysis & Strategic Management, 30(7), pp.765-777.

10