Corporate Citizenship and Sustainability in Globalization

This assignment delves into the complex landscape of corporate citizenship and sustainability within the context of globalization. It examines various theoretical perspectives, influential frameworks, and real-world case studies to understand how businesses navigate ethical responsibilities, environmental impacts, and social issues on an international scale. The provided resources offer insights into key concepts, research findings, and best practices for promoting sustainable business models in a globalized economy.

Running head: BUSINESS ENVIRONMENT
Business Environment
Name of Student
Student ID:
Name of University:
Author’s Note:

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Table of Contents
Introduction:....................................................................................................................................3
P4. Identifying the negative and positive impacts in the external environment of the operations,
with examples..................................................................................................................................4
Scope and Size of several types of organizations:.......................................................................4
Evaluation of size, capacity and structure of different forms of organization that are involved
with the products and services and the objectives of the organization........................................4
Relationship between several functions of organization and their association with objectives
and structure:...............................................................................................................................5
a. Divisional Organizational Structure:...................................................................................6
B. Matrix Structure:.................................................................................................................7
Merits and demerits of inter-relationships between impact on the structure of the organization
and the different organizational purposes....................................................................................7
Identifying the positive and negative impacts of the business operation through the external
environment:................................................................................................................................8
P5. Conducting micro and macro analysis of the organization to identify the strengths and
weakness..........................................................................................................................................9
PESTLE Analysis:.......................................................................................................................9
P6. Explain how strengths and weaknesses interrelate with external macro factors....................15

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Interrelation of strength and weaknesses with the external macro factors:...............................15
Applying SWOT/TOWS analysis and justification of it in decision-making:..........................17
SWOT Analysis.....................................................................................................................17
Conclusion:....................................................................................................................................18
References:....................................................................................................................................19

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Introduction:
This report takes into account various kinds of business and environment where they
generally operate. Business environment takes in both the macro and micro environment. This
report would also be taking into account the ways these factors would be interrelating with each
other and the ways they help in the organizations to develop new strategies along with improving
on the existing ones.
There are various kinds of organizations like:
Sole trading organization: The sole trading organization can be defined as the institution that is
being exclusively owned on private basis and sustained by a person who is responsible for
bearing the losses and profits of the organization.
Partnership Organization: This is the kind of organization that is being administered taking in
two or more people sharing all the profit and loss of the company, like FAB.
Limited Organization: These organizations are the ones where the transfer of ownership can be
conducted easily by the Board of Directors. For instance, Associated British Foods Plc; would be
considered for this paper ass the limited organization related with factors of safety in food, and
for the purpose of the sole trader the paper would deal with Zaffirson food.
It has been noted that the purpose of Associated British Food Plc is the sustainable and
strong position of leadership within the marketplace along with offering of various category of
food items to the customers (Wooten and Hoffman 2016). The purpose of Zaffirson food is in
providing fresh food products to the consumers and maximizing of the revenue on sales.

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P4. Identifying the negative and positive impacts in the external environment of the
operations, with examples
Scope and Size of several types of organizations:
The dimension of the Associated British Foods Plc is being formed with approximately
more than 1000 employees. They are further boosted by revenue of £12,800 along with operating
revenue of £947 million. Their work scope is in serving nationally along with their global
customers through their varied segments in business like retail, agriculture and grocery. In case
of Zaffirson, it is very small, consisting of only ten employees with revenue figure standing at
£17000 with operating income showing £950. Their work scope lies in the fact of serving various
types of food along with items of beverages to the national customers and earning huge profits
from them (Grade 2013).
Another organization taken in for this assignment is IKEA which is a big organization
having its existence across the globe employing many and having revenue that is worth noting.
Their furniture has been doing good business everywhere it has expanded.
Evaluation of size, capacity and structure of different forms of organization that are
involved with the products and services and the objectives of the organization
Any organization’s size and extent are associating with the business organization’s goals
where it has been seen that organizations generally set bigger targets within their objectives only
when they possess a good organizational configuration. As per Schaltegger and Wagner (2017),
if an organization boasts of fewer people within their business structure with no one having apt
knowledge concerning their responsibilities and that of their subordinates, then it becomes
difficult for these people to accomplish their goals for less clarity within the roles. On the

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contrary, any business organization that is in the habit of setting their objectives based on the
size, big money is being invested for them to set bigger targets. However, as per Kim and Li
(2014), it has been witnessed every organization has certain widespread objectives for the
purpose of serving their customers and earning of profits, though the level of profit differs with
the organizational size. For instance, Zaffirson food would be setting smaller targets related to
their objectives, whereas, Associated British Foods Plc would be setting bigger targets as their
purpose.
Organizations have been setting their objectives for business through reviewing their
scope for the business. If the organizational scope is in serving the national level of customers,
then the organizations would be setting their objectives consequently. On the other hand, if their
focus is in serving the global customers, then their business objectives would be according to that
factor. If the organization is of the notion that their product or service does not necessitate
massive structure of organizations, then they do not generally set those. On the contrary, if the
business scope for any service or product is vast only then an organization would be creating a
scope, or else, they would be creating an organization of small sized nature (Crane and Matten
2016).
Relationship between several functions of organization and their association with objectives
and structure:
The structures of the organization are mainly dependent upon the function of the business
as organizations are in the habit of making the structure of the organization along with objectives
based on the responsibility they provide to customers. Associated British Foods Plc has been
generating objectives for augmenting organizational productivity and creating an efficient
congregation of organization for maintaining a reputable movement of commands within the

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organization. The function of business within Associated British Foods Plc is for the purpose of
serving the customers with the services and products along with upholding a homogeny along
with the control of the organization. The company can maintain consistency through proper
control and monitoring of their business through their structural formation. It has been observed
that Associated British Foods Plc can accomplish better functionality if all the people associated
with a project possess proper knowledge related to his or her role and responsibilities (Grade
2013). Thereby, efficiency within the setting of the authentic objective and structure of the
organization might assist Associated British Foods Plc in attaining functions of the organization
as it assists employees in knowing regarding their responsibilities with efficiency.
IKEA has been a profit making organization having a goal of regular improvement in the
standard of living of its customer. The structure of the organization takes into account an
understanding of the line of authority along with other responsibilities and rights of
communication at various organizational level (Hobley et al. 2015). IKEA has been adopting a
formal structure of organization where two of the structure of information exchange has been
operating between the external and the internal environment. It adopts processes of standard
policies and culture. It is important for the company in adopting its structure around the function
it has. There are availability of certain types of organizational structures that are being planned as
per the functions and objectives of the organization. These take in:
a. Divisional Organizational Structure:
In this function of the organizational structure, the business is being divided as an
exacting group or branch based on the product, market, geographical or the service group. Each
division tales into account a complete function set, having their own head for carrying all the
functions in attaining of the objectives of organizations (Smith and Rees 2017). This structure

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facilitates divisions in focusing on certain particular product or service through a leader.
However, structures of divisional organization at times might invite office politics instead of the
strategic thinking offering views over the attainment of the organizational objectives.
B. Matrix Structure:
Some of the organizations do go for this matrix structure that is stated to be more flexible
than some of the others. Under this each of the employees would be working within a department
that is function based like the human resources or the marketing department and they are
required to work under a group or team on certain particular projects. The team would be
comprised of employees from various functional areas. This can be stated as an amalgamation of
the divisional organizational structure and the functional organizational structure. This structure
is generally been adopted by many of the organizations for the purpose of the needs of the
organization. The structure of matrix organization assists in improving the system of
communication through effective information exchange. Departments need to work together
along with communicating with each other in solving the issues. This exchange of information
before the decisions brings in internal complexities signifying that employees are at times
confused about whom to report (Ashkenas et al. 2015).
These organizational structures have their own advantages and disadvantages. Business
organization needs to accept one of the structures of the organization according to the objectives
along with the work profile.
Merits and demerits of inter-relationships between impact on the structure of the
organization and the different organizational purposes
Merits:

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Inter-relationship of employees amidst various functions of the organization assists any
organizations in maintaining cooperation. It also helps in up-surging of connection between the
employees and augmenting efficiency within the business. It escalates the level of profit because
each employee of several purposeful departments sharing their information.
Demerits:
Every employee from several branches should know and understand the responsibilities
attached with their jobs along with the operations of other branches for them to exploit those
information in harming that branch. It amplifies the competition factor among various functional
branches.
Identifying the positive and negative impacts of the business operation through the external
environment:
In the macro environment, new risks have always been appearing and for the
organizations it becomes harder everyday in identifying the same. In case of retail organizations,
it is not probable for any organizations in rejecting the modification as they ascend and adapting
those transformations (Real, Roldán and Leal 2014). Macro environments take into account
economic, societal, governmental and technological persuasion. Technology does have various
vigorous and unconstructive impacts on the operations of the business.
Advancements within the technological aspect can offer various opportunities in business
to the Associated British Foods Plc if they are able to take it. Technology has the ability in
opening up of the networks of home shopping, new markets of retail, web-based retailer and
other markets of online, offering added online market to any sort of organization (De Villa,
Rajwani and Lawton 2015). Therefore, it augments point-of-sales in increasing sales by

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facilitating any of the organization to route debit and credit card classification along with cash. If
Associated British Foods Plc is not able to pertain efficient advancements in technology they
might lose out on their competitive development. Policies along with various regulations of
government might have positive and negative influence on the business. If the government helps
the company through provision of various supports like subsidiaries and loans, helping them in
establishing their organization in a positive way is the need of the hour. On the other hand, rates
of tax on any of the corporate organization might negatively affect any of the organization.
An economy of healthy nature has the ability in increasing the consumers’ disposal
income, augmenting their sales factor and helping them in selling more services and goods. On
the other hand, on the economy that is of lethargic nature, it might decrease the disposal income
and might cause lesser amount of spending within the marketplace (Purce 2014). After that, it
generally leads to the dilapidated sales level and forcing the retailers in lowering their pricing
strategy. The retail industry has always been under demands in becoming a socially accountable
organization if they are selling products of environment-friendly nature, removal of any sort of
product that is controversial at the marketplace, placing warranties within market (Capon and
Singh 2017.). However, there are various cases where social factors along with government
overlie each other in various areas and that might cause harm to the various organizations.
P5. Conducting micro and macro analysis of the organization to identify the strengths and
weakness
PESTLE Analysis:
Political Factor Associated British Foods Plc has been operating
across the globe in countries like China, US,

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Portugal, Africa, Belgium and US along with other
countries. The performance of them is being highly
influenced by the legislations and politics existing
within those countries.
In employing labors, governments have been
encouraging organizations in hiring employees
through provision of flexible, locally-based along
with average paying jobs. Adding to that the UK
government has developed a tax recently affecting
the operation of Associated British Foods Plc. In
2011, the company’s VAT rate amounted to 20 per
cent from 18 per cent augmenting the revenue of 13
billion pounds, decreasing the profit factor of
various organizations (Camisón, and Villar-López
2014).
Economical Factor The economy of UK has been portraying the
positive signs from the factor of inflation along
with the crisis of the economy. During the recent
times, the estimated GDP was stated to be 2.7 per
cent more than which was in previous year.
Therefore, the results of growth in expansion of
Associated British Foods Plc. However, it would
take up sometime in increasing the clearance that
was monthly of the citizens so it would be taking
time in increasing development within their

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revenue.
Socio-cultural Factors During recent times, the customers demand has
also been distorted, they have started in buying
more fresh and organic kind of food. Consequently,
it is significant for them in filling their stores with
the organic products. In recent times, the number of
mature people has been expanding and due to the
issues of mobility (Liefbroer et al. 2015). They are
more akin to buying of groceries online so it would
be improved for the company Associated British
Foods Plc. in having good strategies of online in
meeting the requirements along with earning bigger
profit amounts. Along with all that, they can extend
a good catalog with their assorted collection of the
products.
Technological Factors Customers have been giving more values to the
present day upgraded technology, so it becomes
highly important for them in paying consideration
to effective technologies. There has been an
increase in the number of e-shoppers, it is
significant in developing efficient activity of
internet for the technologies in attracting
customers. Various technologies needs to be
utilized like the self-checkout machines along with
wireless devices and certain other things.
Legal Factors There exists various factors of legislations that

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would be affecting directly the operation of
Associated British Foods Plc. like the food vending
commission has executed a policy in suggesting
one practice code that bans various activities in
retailing of food.
Environmental Factors In being responsible environmentally, Associated
British Foods Plc needs to reduce or lessen the
carbon footprint, expulsion of various greenhouse
gases and other factors.
IKEA is also being affected with such kind of environmental forces. Within this external
environment new factors of risk arises on regular basis that are difficult to recognize for the
business managers. IKEA has been facing these macro environmental factors. Certain big and
major changes within the macro environment that is exterior to the control of the business where
it becomes necessary for the company management in monitoring the upshot of the factors for
making good decisions (Henri, Boiral and Roy 2014).
Political Factors Political stability generally leads to stability within
economy which in turn signifies to enhanced sales
and profits. IKEA has been planning in dominating
the emerging markets of Asia. The Red Tape has
been stated to be a major concern for the global
brands operating within these markets (Purce
2014). In the past few years China and India have
been lowering the political barriers for the global

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brands leading to increased presence of the
international brands in such markets. With
reduction in such barriers slowly, China and India
are all set to become battlegrounds for bigger
brands like IKEA.
Economical The world economy condition decides on the
amount of profits and revenue the business would
be earning. Several of the bigger brands have been
in poor shape during times of recession, with
decline in the purchasing power of people. IKEA
did manage well the prices of its products which in
turn help in managing of some of the pressure
arising out of fluctuations within economy.
Social It is significant in respecting the cultural and social
aspects existing within the local market. IKEA
have not been able to get these local nuances
accurate. The company came under much criticism
for removing a lesbian couple from its Russian
magazine. The company has learnt from those
mistakes and has been more aware recently on
improving their values (Dubey and Singhal 2016).
Technological Information technology has become a significant
factor from finance to marketing and customer
service for offering better service to the customers.
IKEA has been focusing on the kind of knowledge
through the digital channels providing a feel of real

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shopping experience. Technologies such as the
Artificial Intelligence and Cognitive Intelligence
have been enabling the retailers for understanding
the behavior of consumers in better way to provide
them with new experience level (Fairfield 2016).
Environmental An important area for most of the business brands
is sustainability, not for the fact that it helps in
lessening the cost but also helping in generating of
a good brand image. IKEA too is a brand that has
been focusing on sustainability where it planned in
investing $1 billion in helping the poor countries
cope with climate change threat.
Legal Big businesses do face the issue of legal threats for
the fact that rules and regulations have become
tough and companies might find themselves in
trouble with the slightest hassling with the law.
Laws do differ from market to market, especially
the Asian markets where legal web is quite
complicated (Dananjaya and Kuswanto 2015).
IKEA too needs to follow the stricter market rules.

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P6. Explain how strengths and weaknesses interrelate with external macro factors
Interrelation of strength and weaknesses with the external macro factors:
Strengths along with the weaknesses and factors of macro environment are associated
with each other and would be affecting each other too. If the company fails in identifying the
weaknesses and strengths of its then evaluating the factors of macro environment becomes
problematic, generally failing in formulating the strategic plans (Crane and Matten 2016).
Weaknesses would negatively be affecting the organization if the company fails in fulfilling the
demand of the consumers through supplying of ample product amount. An abrupt change within
the environmental factors affects the management decisions, interrelationship between the macro
environment factors and strengths and weaknesses of organizations are as follows:
Economic Factors: Economic factors take into account a modification within the rate of interest,
inflation rate and exchange rate within the market. If the business organization is financially
practicable it has ample financial resources than altering these rates would not be affecting the
company’s pricing and marketing strategy (Bah and Fang 2015). The organization needs to be
ready in facing the challenges cropping out of the economic factors.
Political and Legal factors: The political and legal factors take in the legal regulations along
with policies. Changes within these legal policies would be affecting the organization in facing
these legal issues; the company needs to have special and expert staff.
Social and cultural: In facing the challenges of the ever-changing social and cultural factors, a
business needs to have good staff, feasible financial resources along with natural resources.
Companies’ needs to have strength in fulfilling the taste of customers along with preferences as
per their requirements based on the values and beliefs (Liefbroer et al. 2015).

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Technological Factors: If the company has strength of upgrading its existing technology for a
new technology then the organization can adopt alterations wherein comes the technological
factors. For this reason the company needs to have good amount of financial resources (Dubey
and Singhal 2016).
Environmental Factors: Every business organization makes use of the natural resources for
offering of its products and services. For example, IKEA needs to pursue the environmental laws
and not misuse any of the natural resources. It is up to the management of the company in
preparing strategies and follows the conducts.
Associated British Foods Plc have direct contacts with the business along with the
strengths and weaknesses that plays a significant role in influencing their daily business.
Contrary to this, the factor of macro environment does affect the performances along with
making of decisions and working on the business front. The strengths and weaknesses generally
affect the environment in close proximity whereas macro factors generally affect the overall
geographical region within which the firm operates (Dubey and Singhal 2016). Therefore, if any
of the firm does not execute well within the home country and they have varied weaknesses then
they would be facing various issues in attaining on global basis.
If Associated British Foods Plc possesses strength within the national market, then the
organizational management might take the abrupt decision related to their business-based in that
strength. On the other hand, if the organization does have various weaknesses, then the
management needs to be alerted in implementing the various strategies of business.

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Applying SWOT/TOWS analysis and justification of it in decision-making:
SWOT Analysis
Strengths:
-They have broader collection of operations in
business
-They possess geographical diversification
-The organization has helped in creating a
commercial culture of the company and developing
the loyalty factor of both employees and customers.
Weaknesses:
-They have some issues related to limited position
of liquidity
-They have some issues in implementing the ethics
of common nature along with norms which ascend
mainly for the lack of domestic or national cultures
within varied geographical areas.
Opportunities:
-There are numerous opportunities of growth
within new markets
-They can enter new market with the hope of
expanding their global market share and up-surge
the stability in sales.
Threat:
-The changing pattern of the demand of the
customers along with the financial crisis.
-Facing threats due to the growing intensity of
rivalry for the global developments, encountering
threats from international organizations.
SWOT analysis is stated to be one of the subjective methods involved in thriving and
accomplishing of an objective. SWOT analysis takes into account the measurement of the
objectives along with the identification of the external along with internal factors that are
generally critical and favorable for the accomplishment of the objective of the companies
discussed above. SWOT analysis have been made use of as one of the important tools of
business helping firms like Associated British Foods Plc and IKEA in taking proper advantage of
the one’s capabilities, talents along with the opportunities (Pettigrew 2014). SWOT analysis can
assist the organizations in summarizing and clarifying of the important issues along with the

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opportunities related to any sort of business in making decisions for them to improve on their
existing strategies and develop certain new ones. SWOT analysis assists any sort of business
organization in maximizing their strengths along with minimization of the weaknesses for them
to take opportunities lying within marketplace and decreasing of the threats (Wooten and
Hoffman 2016).
Conclusion:
This report takes into account the in-depth knowledge of the macro and micro
environmental factors where the organization operates. It also takes in various tools of analyzing
the business like SWOT and PESTLE which would be performed by the strategy maker of the
company or the organization.

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References:
Ashkenas, R., Ulrich, D., Jick, T. and Kerr, S., 2015. The boundaryless organization: Breaking
the chains of organizational structure. John Wiley & Sons.
Bah, E.H. and Fang, L., 2015. Impact of the business environment on output and productivity in
Africa. Journal of Development Economics, 114, pp.159-171.
Camisón, C. and Villar-López, A., 2014. Organizational innovation as an enabler of
technological innovation capabilities and firm performance. Journal of business research, 67(1),
pp.2891-2902.
Capon, N. and Singh, S.S., 2017. Managing Marketing: An applied approach. Global Journal of
Enterprise Information System, 9(3), pp.113-114.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Dananjaya, I. and Kuswanto, A., 2015. Influence of External Factors on the Performance through
the Network of Small and Medium Enterprises. Assessment, 7(27).
De Villa, M.A., Rajwani, T. and Lawton, T., 2015. Market entry modes in a multipolar world:
Untangling the moderating effect of the political environment. International Business
Review, 24(3), pp.419-429.
Dubey, A. and Singhal, A.K., 2016. Role of organisational structure in empolyee's
empowerment. International Journal of Education and Management Studies, 6(1), p.110.