Unit 1 Business and Business Environment Assignment

Unit 1
Business and Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Introduction of different organisation and their growth in international business
environment.................................................................................................................................1
2. Explanation, background, scope and size of the organisation................................................2
3. Functions of organisation using its and its inter-relation and its impact on structure of
organisation.................................................................................................................................5
TASK 2............................................................................................................................................6
1.PESTLE analysis of organisation and its negative and positive impact:.................................6
2. SWOT analysis of G-Tech......................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is a combination of internal and external factors which influence
the company. The external and internal factors influence each other and work together to affect
the business environment. The five factors affecting the business is Economic, technological
environment, competitive environment, the social environment and the global environment. This
report will show the different types of organisation and their growth in international business
environment.
This report will provide the background details of the different organisations about their
products and services, the size and scope of the organisation. This will report about the impact of
functions on structures like financial structure, matrix structure and divisional structure of
organisation. This study shows both positive and negative impact of macro environment on
organisation. This will also show the PESTLE and SWOT analysis of organisation identifying
the strengths and weakness of the organisation.
TASK 1
1. Introduction of different organisation and their growth in international business environment.
Organisation is a group of organised, capable and intelligible people for
determining the purpose of specific company. Organisation has a management structure to
decide the team members and different organisation relationships, subdividing and assigning the
roles, responsibilities and authority for carrying out different tasks (Banica and Hagiu, 2015).
The international Business Environment is multi-dimensional as it comprises cultural
differences, exchange risks, political risks, legal and taxation issues. Hence, the international
business environment includes economic, political, Social and cultural, regulatory, tax and
technological factors of environments.
There are three different types of organisation:
Public Company- The public company is the company owned with equity and debt securities,
and through capital markets traded by the public. The shares of public company are openly
traded and distributed extensively. In a public company the ownership is shared between
shareholders, involving the public shareholders and the board of management. The government
raise funds for such companies which is assumed by taxes taken by the public pay.
NHS is a public limited company which is committed towards providing quality of majority
healthcare that meets the needs of everyone. In international market demand for knowledge,
1

services and skills enhanced in NHS is growing day by day. NHS offer their contribution to
health systems in developing countries of world (Bouckaert, Peters and Verhoest, 2016).
Private Company- It is the company owned by private ownership. Private companies can issue
stock and have shareholders, but the company's members shares do not offer the company shares
on stock market exchange to the public. Instead of this the company shares are owned,
exchanged, traded and offered privately.
In order to set up a private firm owner is required to choose suitable name for
organisation and have to give detail related to company’s share. Private firms have separate legal
identity and owner can keep part of profit after paying tax to government. Shareholders those
who have more than 25% shares have right to give their views and participate in decision making
of company.
Growth of Grey Technology company in international market-
The company went stronger by stronger in 2006, after five years of its launch and its turnover
marked upto £6m mark. It has achieved huge growth since 2006 and have sold more than 22m of
products in most of the countries around the world. The G tech company has expanded in
international market so rapidly that it has started to focus on meeting demands in Britain instead
of exporting globally (Chang, 2016).
Voluntary Company- It is a group of people who enters the agreement, usually as volunteers,
for its formation and to fulfil a purpose of organisation or the one who rely on temporary or
regular volunteers for its operations and may have or not have paid staff. e.g. trade unions, trade
associations, learned societies, environmental groups and professional associations.
The chief objective of such organisation is not to earn or make profit but to promote a specific
point of view. e.g Charities trust which is in Liverpool, UK and is non-profitable trust.
Growth of British Red cross company in international market- It is the part of International
Red cross and Red crescent movement, the world's largest humanitarian network because of its
emergency services and other services given to the required public.
Legal structure on volunteers firms is based on unincorporated associations. Members
have voting rights and entity is not incorporated. Unincorporated firms can carry out any activity
without any restriction. Group members can draw up constitutions and can set rule for running
the firm.
2

2. Explanation, background, scope and size of the organisation.
Public (NHS) Private (Grey technology) Voluntary (Red cross)
Backgr
ound
The NHS was established
in 1948 with the idea that
good healthcare should be
provided to all. Aneurin
Bevan opens park hospital
in Manchester. Bevan was
one of the founding
members of the “Query
club”
G tech was founded by
Nick Grey Who has
previously worked in
Vacuum cleaner brand
VAX. Today the G tech
business is named after
his electric sweeper that
has rounding around huge
success. Earlier Nick
Grey was a Lab
Technician with VAX
vacuum cleaners company
and then his curiosity for
all mechanical things
developed. He launched G
tech from garage in 2001,
and finally got financial
support from powerful
market campaigns.
After the war between the
France and Prussia in
1870, Colonel Lloyd-
Lindsay wrote a letter to
Times calling for the
National society
formation. In 1870 it was
formed. Later on in 1905
it was named as British
Red cross.
Vision To deliver better
healthcare, good value and
care.
Foster a winning network
of customers and
suppliers. Bring in the
world the quality products
brands that expects the
people's desire and needs.
And to be a greatly
effective, lean as well as
fastest growing
organisation.
To express the spirit of its
organisation's beliefs and
values.
3

Mission To give better quality of
care to each and every
person every day.
Its mission is to provide
best loved floor-care and
garden products in world.
To organise the power of
humanity.
Objecti
ve
To treat all people with
respect. To treat them with
dignity. To deliver most
compassionate health and
care service in world,
based on its principles.
Its objectives is to be one
of leading company by
maximising its profits and
maintaining long-term
sustainable growth in
competition in industry.
To prepare the
individuals and
communities to deal allot
with and recover from the
crisis.
Product
&
services
NHS provides medicines,
healthcare products,
medical equipment’s.
Service-meet the service
of need of customers. This
is the service of NHS to
give quality standards of
its products with safety,
quality, performance and
effectiveness.
G tech SW01, G tech Air
AM, G tech Air AM Mk2,
G tech power Floor and G
tech pro. It has some more
products like. G tech has
sold more than 22m
products all over the
world.
Service of G tech-To
provide the best quality of
products.
Products- Furniture and
electrical charity products
and vintage.
Service- Borrow
wheelchairs, help for
emergencies, young
refugees, with money
problems, victims of
terrorism abroad, etc.
Legal
structur
e
Accounted by central or
local government. It
inclines to provide public
services instead of
producing products for
benefit or profit. Central
government pay tax for
public and merit goods.
Run by Board of directors
on selected by
Shareholders and headed
by the chairman. It sells
the stock exchange. The
amount of capital is raised
by its sale of shares.
It is Governed by
constitution. Three main
legal structures used by it
are- Unincorporated
association, a charitable
trust(Donors of money or
property), trustees(who
are the nominal
owners)and is referred to
management committee,
4

executive committee.
Scope It will achieve seamless
business continuity for its
health care support
services.
Gtech is in process of
creating 100 jobs in UK,
as it is shifting some
operations from China
back to home. It has
employed 200 staff
growing into £121m
business.
G-tech has high scope to
grow into international
market, as firm can enter
into new market and can
make communication
with mass audience.
Reduce the pain and
develop recovery in
emergency in UK.
Red cross has possibility
to enter into new
locations in order to
provide services to
people. It has wide scope
to grow into international
market.
Market
size
(profit,
no. of
employ
ees, no.
of
branche
s)
Size- 1.5 million
employees.
Branch- UK and Scotland
Profit-£62.4m to £81.1m
Size-G tech has approx
8600 employees working
with it and is ranked 8th in
top 10 competitors.
Branch-Worcester,
England
Profit- more than £100m
Size-3500 staff
32500 Volunteers.
Branch-Scotland, Wales,
Northern Ireland and Isle
of man.
Profit- Non-profit
organisation.
Stakeho
lder
Public, Government and its
agencies, creditors,
suppliers, unions.
General partners and its
investors.
Fundraisers, partners and
donators.
5

3. Functions of organisation using its and its inter-relation and its impact on structure of
organisation.
Organisation structure is the definition of activities like task allocation, co-ordination, and
Supervision maintained to achieve the company goals. Organisation structure has to be efficient,
flexible and innovative in order to beat the competitors in market (Pearson, 2017).
G tech have Flat structure organisation. It allows all the team members and employees
contribution in its decision-making. It has no barriers between the management and employees.
They both can equally contribute in decisions taken by the higher-level management. It removes
the levels between all the staff and enhance co-ordination and communication between
employees.
Functional structure of Grey Technology
Functions of Grey Technology-
In society like democratic, socialistic and welfare, private organisations like G tech is
crucial, as it perform a number of functions (Chang, 2016). It performs several functions and has
the ability to concentrate on human and financial resources onto specific functions. It manages
the product which is interdisciplinary role which reaches across teams to plan, and design and
continuously bring better and quality products in the market for its customers. The product
managers of G tech have responsibility to set a product's vision, define the product strategy,
while develop the roadmap which meets the both company goals and the customer’s needs.
Marketing and Accounting- The marketing function manages and develops the sales of
business. The accounting department works to monitor the efficiency of the sales promotion. The
accounting functions is responsible for preparing and analysing the financial statements of sales
and by compiling Marketing departments functions include the sales strategy and programs
aiming for increasing sales through promotions and advertising. Accounting department includes
marketing department to monitor trends in business and manage the effectivity of sales
promotions originated by G tech. It works together to enhance the market share and improve the
bottom line. They together create profitable and beneficial relationship with the company.
Impact-It provides financial statements or information to stakeholders of the company i.e.
managers, investors and creditors. It measures and analyses the activities of G tech. It adds value
to G tech when it Is under pressure by managing the complexity, reducing the cost and utilising
financial areas of G tech properly.
6

Marketing and Production- The co-operation of marketing and production functions will result
customer's needs and increase the profit of organisation. There may be conflict between this both
as both functions seeks for attaining its own goals (Erasmus, Strydom and Rudansky-Kloppers,
2016.). The production function focus on creating new products, manage the quality and its
quantity and arranging its deliveries. Marketing functions focus on fulfilling the needs of
customers. The inter-relation between both will help to improve the performance of G tech
company.
Marketing and Operations- The relationship between this both functions is quite problematic.
Marketing and operations in functional areas initiate the key value adding the adding areas of
business organisation. The contribution of marketing and operations is important to assure
effective fulfilment of G tech company's aim.
Impact- Both functions relates to enhancing the quality and quantity of the product or services to
create long-term relationship with customers. And it can be only attained by healthy and
productive co-ordination between Marketing and production function.
TASK 2
1.PESTLE analysis of organisation and its negative and positive impact
There are many factors affecting the business environment of G tech company.
Political Factor- It may add risk factors and leads to major loss if the company is not aware of
it. The political factor defines the current situation of the country. The global political condition
affects the country directly and indirectly effects the company.
7
Illustration 1: Pestle analysis
Source: (PESTEL Analysis, 2015)

e.g. Government policies, Taxes of laws and tariff, Government stability, Bureaucracy,
corruption level, Trade controls, employment law, education law, Anti-trust law. If import and
export tax rate is increased by government, then company have to pay extra rates on export and
import (Moullin, 2017). In that case company net profit affected. Its positive effect, if Govt.
stable their rules and regulation long time, then company not do change their policies
Economic factors- The economic factor of includes the determinants of economy of its state and
company. It includes interest rates, exchange rates, labour rate, recession, inflation, Taxes,
Demand/supply which can impact Grey technology in both negative and positive manner. Like
for example a hike in labour rate can act as a disadvantage for G-tech as company's operational
cost will increase. Meanwhile, if labour rates are reduced by government then firm can increase
its earning. Recession is economic factor where in temporary economic period decline affects the
trade and industrial activity which is reduced in terms of GDP. When Gdp is strong G tech hires
more employees and is able to pay higher salaries and wages to employs which increase the
production of goods and services, and its vice versa with when GDP falls it decreases the profit
of the company.
Social factors -The social factors can have impact on sales of the product and revenues earned.
It is essential for G tech to communicate with its image as a global brand to change the
perception of people. The company expects from its buyers to be known about the product they
are purchasing. e.g. lifestyles, buying habits, religion and beliefs, Health consciousness, average
disposable income, minorities, attitude towards saving and investing (Kolk, 2016). If company
not analysis customer taste &latest fashion, then customer not satisfy by company. But if
frequently change in customer taste so company suffer losses because company store product
and then stored product is waste. Whereas, its positive for Grey technology to produce products
according to customer taste so customer attract towards the company. This will raise its demand
and will enhance its profit. Mostly customer want to purchase product in bulk. G-tech keep all
product so that achieve their targets smoothly.
Technological factor- Technological factors directly affects the business of G tech if the
company is not aware of recent technology used daily life. Automation of lots of unskilled tasks
can let the G tech to replace the human resources with machines. Automation can help to deduct
the costs of manufacturer, distributors, supermarkets, and other things related to business.
8

Internet connectivity can help to reach its customers efficiently. A global rise in internet
connection can reduce the interest in traditional communication.
e.g. The 3D technology, Engine efficiency, Automation, wireless charging, security in
cryptography. The Business is affected by changes in technological environment. It is the
application of knowledge to manage, control and change the business environment to achieve its
goal. It will help G-tech in improving the existing products and process and to create new
products and process which helps to enhance and expand the profits in market. If not aware of
this technology the company will be not able to beat the competitors in markets as it will not able
to fulfil demands of customers knowing about the latest technology (Wheelen and et.al., 2017).
Legal Factor- There are legal factors affecting the environment of company which are consumer
law, discrimination law, copyright law, Health and safety law, Employment law, Fraud law,
Import and export law. Consumer law is designed to prevent the consumers from fraud
companies and maintain their rights in marketplace. This lets G tech company to devote the huge
amount of its resources in giving the detailed information of their products and services. Also, it
has negative impact that if the firm is not engaged in following these laws then it can lay
negative impact on the mind of consumer's.
Environmental factor- Business is affected by different factors contributes forming the business
environment. There is internal and external factors affecting the business also known as
ecological factors. The factors like consumer health, climate change, culture, the availability of
energy, direct result in company loss. Various laws related to environment protection has been
implemented by government that needs to be followed by G-tech. Like for firm is engaged in
making consumer's aware about the ill-effects of using poly-bags and encourage them to use
paper bag. This has laid a positive impact on the mind of consumers. Also, company is engaged
in performing the CSR activities that can negatively impact there business.
2. SWOT analysis of G-Tech
9

Strength: G-tech is one of the most popular brands in manufacturing industry across the
world. It has sold over 22million products in 19 countries. G-tech has recipient of almost 53500
reviews, with 84% of customers giving five-star rating to G-tech. Company has planned global
expansion in other eight countries across Asia, Europe and the middle east in the next 12 months.
It has also employees in US and china other than UK. G-tech holdings has strong financial
position. G-tech holdings makes the turnover 100 million pounds during latest financial year.
Firm invests also for advance technology. G-tech continuously invests in research and
development focusing on new technologies like battery technology.
Weakness: Marketing strategy is essential element for getting success in market.
Marketing informs customers what product company produce or sell. G-tech has poor marketing
strategies compared to other manufacturing firms. It spends less money on marketing compare to
its competitive firms (MacGregor, Doyle and McEachern, 2015). Therefore, customers are not
aware about the products of G-tech compare to other firms. Company also have poor product
diversification.
Opportunities: G-tech sold its products in many countries like US, China etc. G-tech can
improve its technology by adopting new technologies for manufacturing quality products. It
expands its market by collaborating with other manufacturing companies of other countries. G-
tech can be increase its revenue by online marketing.
10
Illustration 2: SWOT Analysis
Source: (SWOT Analysis. 2016)

Threats: Competitive pressure in manufacturing industry has grown that creates
difficulties for G-tech to survive in manufacturing industry. Increasing raw material and labour
costs also a threat for G-tech. It is facing much competition in global markets that increases
expenses in marketing as well as technologies.
SWOT analyses of Electrolux
Strength
 It has strong financial position
 Company uses advance technologies
 Strong brand image
 Unique products
Weakness
 High debt burden is the major
drawback of firm
 Staff turnover rate is too high
 Supply chain system is weaker
Opportunities
 Globalisation
 Technological advancement
Threats
 Changing government norms
Inter-relationship with the external macro factors
Political factor: Reduce in the rate of tax for import and export of products like vacuum
cleaners, bikes sold by G-tech can act as a strength for them. By this they can expand their
market share and increase their profitability (Silva, 2017).
Economic factor: A reduce in the rate of labour is strongly connected with the increase
in G-tech profits and reducing operational cost. It can act as a strength for firm and can help
them to grow.
Social factor: G-tech needs to prepare and design the products according to the values
and beliefs of consumers. Providing dis-respect to their values and beliefs can act as a weakness
for firm.
Technological factor: Making use of advancing technology like booking through online
apps can become strength for G-tech. By this they can target more wider range of consumers.
Legal factor: Various laws like anti-discrimination law is been followed by G-tech in
which they make sure that all the employees get equal pay for same job. This has helped them in
creating employee satisfaction and also acted as a strength for them.
11

Environmental factor: Firm is not engaged in following the CSR activities that can act
as a weakness for them. This can hamper their goodwill.
Strength and weakness of organisations
Basis Grey technology Goblin vacuum cleaners
Strength Strong brand image Strong marketing capabilities
Weakness Limited business portfolio Low penetration outside United
Kingdom
CONCLUSION
From the above study, it has been summarized that marketing function has been inter-
related with accounts and production departments of company. It has helped the organisation in
attracting more consumers and increasing their sales. Also, various laws such as anti-
discrimination law has impacted the decision-making process of enterprise. They have made a
policy that defines equal pay for same job which has helped them in retaining the employees. It
has also laid positive impact in the mind of consumers.
12

REFERENCES
Books and journals
Banica, L. and Hagiu, A., 2015. Big Data In Business Environment. Scientific Bulletin-Economic
Sciences.14(1). pp.79-86.
Bouckaert, G., Peters, B.G. and Verhoest, K., 2016. Coordination of public sector
organizations. Basingstoke, UK: Palgrave Macmillan.
Chang, J.F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
MacGregor, S., Doyle, T. and McEachern, D., 2015. Environment and politics. Routledge.
Moullin, M., 2017. Improving and evaluating performance with the Public Sector
Scorecard. International Journal of Productivity and Performance Management.66(4).
pp.442-458.
Pearson, R., 2017. Business ethics as communication ethics: Public relations practice and the
idea of dialogue. In Public relations theory.(pp. 111-131). Routledge.
Saleem, M.A., 2017. The impact of socio-economic factors on small business
success. Geografia-Malaysian Journal of Society and Space. 8(1).
Schaltegger, S. and Wagner, M., 2017. Managing the business case for sustainability: The
integration of social, environmental and economic performance. Routledge.
Silva, C.N., 2017. Public–Private Partnerships and Urban Governance: Towards a New Concept
of Local Government?. In New Challenges in Local and Regional Administration (pp.
87-98). Routledge.
Wheelen, T.L. and et.al., 2017. Strategic management and business policy. Pearson.
ONLINE
13

PESTEL Analysis. 2015. [Online]. Available through<https://pestleanalysis.com/what-is-pestle-
analysis/>
SWOT Analysis. 2016 [Online]. Available through <https://www.liveplan.com/blog/what-is-a-
swot-analysis-and-how-to-do-it-right-with-examples/>
14