Introduction of Business Studies

Introduction of
business studies

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Internal and external factors that impacts on business................................................................3
Describe the role of HR, Marketing and finance functions within organisations.......................6
Develop an understanding of collaborative working practices....................................................6
Demonstrate knowledge of the role of financial management and reporting within the
organisation..................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business studies is referred as the combination various elements such as finance, marketing,
accountancy, organisational studies as well as operations that affect all business activities and
functions in effective and efficient manner. In this report the chosen organisation is The Body
Shop which is a British cosmetic, skin care as well as perfume company which is founded in 25
March, 1976 by Anita Roddick. Headquarter of respective organisation is situated in London
Bridge, London, United Kingdom. 10,000 employees are working with organisation at 3,000
locations. In this report various internal as external factors that affect business functions and
performance, collaborating working practices is discussed. Apart from that role of financial
management and reporting in organisation is covered in this project report.
TASK
Internal and external factors that impacts on business (covered in power point presentation)
Business environment: Business environment is the collection of various internal and
external factors such as employees, customers, suppliers, government, market changes, economic
changes and technological factors that affects business functions in direct and indirect manner.
Sum of these factors influence business environment. These factors are defined below:
Internal factors: Internal factors are defined as the aspects that are in control in The Body
Shop organisation either they are tangible or intangible. Internal factors are divided into different
groups such as strengths and weaknesses. If these factors consist positive impacts than these are
known as strengths on the other hand, if these factors prevent development than it is weakness.
All internal factors that affect The Body Shop are discussed below:
Organisational policies and procedure: Organisational policies plays important role in
functioning of The Body Shop in positive and negative manner. If organisation has flexible
policies and functioning procedure than management can update these policies according to
current requirements that facilitates the respective organisation to attain organisational goals and
objectives efficiently.
Quality of human resources: Quality of human resource is important factor of internal business
environment. As the success of The Body Shop is depends upon the capabilities, skills,
commitment and attitude of human resources (Banfield, Kay and Royles, 2018). If employee

supports organisation functions than it works in favour of respective organisation and enhance its
profitability level as well. On the other hand, inefficiency of employee affects business in
negative manner.
Physical resources and technological capabilities: There are various physical resources
such as plant and equipment as well as technological capabilities are considered as the internal
competitive strengths of The Body Shop that facilitate it to gain various competitive advantages
and enhances organisational productivity. On the other hand, if business has no technological
resources it affects its performance.
External factors: External factors are those elements that are affect the organisation and The
Body Shop do not have control over them. These factors facilitate the respective organisation
prepare effective strategies and plans in order to attain all organisational goals and objectives.
There are number of external factors that directly impact on ability of business to achieve
strategic objectives. Some factors are discussed below:
Political factors: Political factors and government intervenes affect The Body Shop
organisation directly. There are various factors are included such as government policies, foreign
trade policies, labour and environmental laws and political stability or instability that impacts on
business performance.
Economic factors: Economic factors are most significant factors that on The Body Shop and
its profitability. Some factors are examined by the organisation such as interest, exchange,
inflation rates, economic growth and disposable income of customers and formulates strategies
accordingly.
Social factors: It is known as the socio-cultural factors that includes various aspects like
population growth, career attitudes, age distribution that affect the affect The Body Shop
working to know about their customers efficiently.
Technological factors: In current competitive environment technological factors affect
business in efficient manner. The Body Shop organisation adopts technological advancements,
innovation and automation that provides various competitive advantages.
Legal factors: Government have passed various legal rules and regulations that affect business in
positive and negative manner (Johnson, 2017). Health and safety, employment laws, consumer
rights and product safety affect The Body Shop and its profitability as well.