The Structure of Business

The Structure of Business 1
THE STRUCTURE OF BUSINESS - BUS0001
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Word Count: 2676

The Structure of Business 2
Executive Summary
Decision-making in business is fundamental for its success and enhancing competitive
advantage. These decisions are based on the application of critical knowledge and strategic
reasoning, which lead an entity into long-lasting profitability; equally, business decisions are
also executed considering the available resources or factors and available legal frameworks.
The paper presents a critical evaluation of the political, social, economic, technological, legal
and environmental analysis of the e-Bay Company, which provides the basis for forming a
new business venture. In the legal evaluation of creating a new business, the GDPR and
Consumer Right frameworks, including the relevant HR policies are used to effectively make
the business choice. The search for funds is also necessary to facilitate the start-up of the
desired business as illustrated in this analysis. Moreover, business ideas are also based on the
identification of key business sectors within the geographical location. In that regard, this
paper presents the primary, secondary and tertiary sectors in the UK, where the online
business can operate, including a thorough evaluation of the sectors’ value to UK.

The Structure of Business 3
Table of Contents
Executive Summary...................................................................................................................2
Question One..............................................................................................................................4
PESTLE Analysis...................................................................................................................4
Discussion of What to Consider When Making the Decision to Start an Online Business a
Reality....................................................................................................................................5
Identify Factors Impacting Success of New Venture.............................................................6
Question Two.............................................................................................................................6
The Legal Framework Used to Make Decisions....................................................................6
Table of Relative Strengths and Weaknesses of Various Legal Frameworks.......................7
Fund Seeking for the New Online Business Start-Up............................................................8
Question Three...........................................................................................................................9
Three Sectors within the UK Where the Business Operates..................................................9
Differences between the Three Sectors..................................................................................9
Their Value to the UK Economy.........................................................................................10
HR Policies & Importance to the Modern Workplace.........................................................13
References................................................................................................................................15
Appendices...............................................................................................................................17

The Structure of Business 4
Question One
This section presents a critical evaluation of PESTLE analysis based on the presented
e-Bay case study. The analysis describes the relevant external factors, which affect the
operation of the company. These factors include:
PESTLE Analysis
Political Factors: One of the most vital issues faced by the company is the necessities
of implementing the privacy policies introduced by the government. The company received a
lot of information concerning potential customers; hence, there is need to safeguard this data
in a secure system since a lot of transactions are completed on a daily basis (Wiercinski,
2015). The government makes it necessary for online companies to upload a document that
composes of all the relevant data to be shared and those that are restricted, including the
items to be sold. For instance, the selling of firearms was declined since the management of
the company believed that the government will not differentiate them from terrorists if they
continued with this business.
Economic Factors: For economic factors, the online business considers meeting the
demands of both the local and international market by availing the desired products to
potential customers. With this, the company aims at ensuring that the loyalty level of buyers
is boosted. This is evident from the assumption that approximately 7% of customers in the
international market save by purchasing from the eBay compared to purchasing from the
store (Kashi and Franek, 2014). Another factor is the possibility to develop the online market,
which might cease to exist when online platforms are eliminated. The market is developed
such that approximately 277,000 customers from UK, Germany, and France by from eBay.
Factors to consider under the economic analysis are the exchange rates, inflation rates and
interest rates.