Business and the Business Environment

This report discusses different organizational types along with structure, size, scope addition to stakeholders. It also discusses the relationship among organizational functions along with their linkage to structure and objectives of the organization. It also includes internal addition to external analysis along with the interrelation between strength and weaknesses with macro factors.

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Organisational types with purposes, legal structure as well as stakeholders.........................1
P2. Size and scope of different organisations..............................................................................3
M1. Structure, size addition to scope of organisations linked with business objectives............4
TASK 2............................................................................................................................................5
P3. Relationship among organisational functions........................................................................5
M2. Advantages together with disadvantages of interrelationships among functions of
organisation..................................................................................................................................7
D1. Analysis of complexities.......................................................................................................7
TASK 3............................................................................................................................................8
P4. Impacts of macro environment..............................................................................................8
M3. Application of PESTLE model...........................................................................................11
TASK 4...........................................................................................................................................11
P5.Internal and external analysis...............................................................................................11
P6. Interrelation of strengths and weaknesses with external macro factors..............................12
M4. Application of SWOT analysis...........................................................................................14
D2. Evaluation of impacts of macro and micro factors on business objectives and decision
making........................................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business organization is a enterprise which is commercial and deals with goods and
services in order to meet the needs as well as wants of the customers. Business environment
comprises of an individual, organisation addition to other forces that are controllable or
uncontrollable by business enterprises (Ambler, Witzel and Xi, 2016). Such environment
constitutes economic conditions, technologies, suppliers, trends, media, market conditions,
consumer groups together with multiple other institutions. All these presents opportunities
including threats for the business. It helps in dealing with ongoing changes, tapping useful
resources, improving performances and assists in planning for future. This report is based on
John Lewis which is located at Leeds, England, United Kingdom. Such company performs its
key operations in retail industry. The report further discusses different organizational types along
with structure, size, scope addition to stakeholders. It also discusses relationship among
organizational functions along with their linkage to structure and objectives of organization. It
also includes internal addition to external analysis along with interrelation between strength and
weaknesses with macro factors.
TASK 1
P1. Organisational types with purposes, legal structure as well as stakeholders.
Organisations are the groups addition to structure that were set as well as managed by an
individual with the aim to achieve certain objectives. In the competitive world, there are
numerous types of organisations which performs activities to maximise profits. Organisations are
categorised into different types having distinct size and scope. The categorisation are the
following
Classification by sector
Public Sector
Companies that are controlled and accountable to local or central government authorities
are termed as public sector organisations. Range of public sector organisations are British Army,
NICE, Crown Prosecution service and so on that perform numerous activities across UK
(Becker, 2018). The selected organisation among all is NICE which is National Institute for
Health and Care Excellence located at London, United Kingdom. It publishes guidelines for
health technologies, medicines, clinical practices and social care services.

Private Sector
Such organisations are launched, managed, controlled together with run by single person
or majority of individuals (Brown, 2018). They generates profits through delivering goods at
better prices as well as quality other than competitors. In context to report, John Lewis,
Sainsbury's, Caterpillar, Tesco, John Lewis and Apple are some of the range of business working
as private sector organisation across UK. Among all, John Lewis is selected. Such company is a
private entity that performs activities to supply grocery items.
Voluntary Sector
Such associations comprises variety of institutions such as charitable, religious, educational,
healthcare, advocacy, recreational and satellite organisations. Wide range of voluntary
organisations within UK are British Heart Foundation, National Trust, Oxfam and many more. In
relevance with present scenario, Oxfam is chosen (Cullen, 2017).
Primary
This sector of business have the extraction of raw material as per more of finishing, mining and
respective agriculture development
Secondary
The next sector is more concerned with more of producing finished product along with more
known as manufacturing sector .
Tertiary
This is sector which is more concerned with major level of offering of intangible good and
services to there respective customer. This ave inclusion of retail, tourism, banking,
entertainment and I.T. services.
Classification by purpose
Profit
The companies services related to financial services to survive and grow in order to maximise
profits and attain satisfaction. Core purpose of profit making business are such as John Lewis
existence is to cater great services at fair prices to enhance customer satisfaction along with
maximise revenues by delivering demanded products by targetted audiences on appropriate time.
Non Profit
Trustee is considered to the contribution of an individual which is considered in major ways of
welfarism the common people. This helps in leading major way of development in more

respective manner. Charity is major level of contribution in order to have the proper level of
serving the in way of welfare of suffering and needy people.
Classification by legal structure
Sole Trader
It is considered to be the business which have the requirement of small financial amount by
bearing all level of risk at all. The company have the no existence of boss and attaining
maximum level of privacy. The company tends to bear audibility without any level of restriction
on legal level.
Partnership
This business firm has been developed to overcome the various problem of sole traders. The
company have the association in 2 to 20 partners which is benefited as the way of establishment.
On other hand the partner have the major audibility of in limited liability of debt which is
considerer as risky in firm.
Privates And Public Companies are new kind of business which has been characterized as the
dual set of company and partnership firm. The member of company have the limited share of
liabilities with having the development of respective share by there respective share holding
limit. The other feature in to have development in perspective order. Stakeholders that are part of
public sector organisation are financial institutions, employees, government and so on. Key
stakeholders of NICE are local authority, trustees, investors and employees.
Advantages: This organization main aim is to work for public and provide them with job
opportunities.
Dis-advantage: These type of company is mostly difficult to be managed.
Cooperatives
As per the suggestion of name there are proper formations of the purpose which leads to have
development of community along with social welfare along with all profits and capital which is
Marley being suggested to be used for community development. They are not for profit
organizations.
Advantage: They bring out new and innovative products and services in order to satisfy
consumers.
Disadvantage: There can be a risk of producing ineffective products, it can also be expensive.
Classification by size and scope

Micro
The business micro business based on the above would be a business with less than 10
employees. There were 5.4 million micro- businesses in the UK in 2018, accounting for 96% of
all businesses.
Sme
The usual definition of small and medium sized enterprises (SMEs) is any business with fewer
than 250 employees.
Large
The large companies are such as the NICE to redistribute income along with wealth in all
regions or sectors, provide capital formation sources, developing infrastructure facilities and
attaining planned resource allocation. There is more level of existence of the of NICE is to
provide guidances and advices, setting quality standards together with managing database to
make improvements in health along with social care systems.
Classifications by UK standard
Transnational
International companies are having mainly the level of consistency of exposure along with
importers as there is nor large level of requirement of investment in their outside there respective
level of home country development
Multinational
on the other hand with subdevelopment of multinational companies have the requirement of level
of investment has been required in different countries, but they are not allowed to have major
level of contribution in ways of offering the products in more effective and developing ways.
Global
With more proper level of understanding of the companionship which are existential at global
level have the investment which is being required in different countries which is having the leads
in several levels of development.
P2. Size and scope of different organisations.
In the competing world, distinct organisations run businesses with the motive to attain
great heights. Different organisations posses distinct sizes and accordingly set procedures or
plans to reach towards objectives. In context to present report, three organisations together with
scope and size are as mentioned:
Particulars Public organisation Private organisation (John Voluntary

(NICE) Lewis) organisation (Oxfam)
purpose Purpose of NICE is to
redistribute income
along with wealth in all
regions or sectors,
provide capital
formation sources,
developing
infrastructure facilities
and attaining planned
resource allocation.
NICE is to provide
guidances and advices,
setting quality standards
together with managing
database to make
improvements in health
along with social care
systems.
Purpose of John Lewis
existence is to cater great
services at fair prices to
enhance customer
satisfaction along with
maximise revenues by
delivering demanded
products by targetted
audiences on appropriate
time. they generates profits
through delivering goods at
better prices as well as
quality other than
competitors.
Oxfam is entity
federation of more
than 20 charitable
organisations that
emphasis on global
poverty alleviation.
The purpose behind
Oxfam working are to
empower society
members so that they
are capable to tackle
poverty issues through
social services.
Size: NICE has hired large
employee size which
consists of more than
600 personnels working
across England along
with Northern Ireland,
Wales and Scotland to
deliver services that
results in increasing
customer satisfaction
(Size of NICE. 2019).
John Lewis has size of 32
super centres, 33 living
stores, 61 Gateway
Supermarket, 341
superstores, 319 petrol
filling stations, few pilot
George stores, 209
supermarkets and many
more where approx
165000 employees are
performing distinct
Oxfam has opened
diverse shops
including 650
speciality shops related
with bridal wear,
books, music, furniture
and many more that
has more than 10000
items and are managed
by approx 23000
volunteers across the

They offers services
related with health,
education, social care
and many more.
operations to deliver
products such as clothing,
home wares, electronics,
beauty products and toys
together with services
related to financial services
(Size of John Lewis. 2019).
world (Size of Oxfam.
2018).
Scope: Such organisation has
scope for operations
expansion by adopting
digitalisation techniques
to cater faster services
to people living within
and outside the national
boundaries. It provides
services across globe.
Management team hires
skilled and unskilled
individuals those who have
capability to perform
activities as well as
learning new things by
using advanced techniques
which expands business
scope to perform activities
globally. It provides
services related with
delivery and financial
services.
Such company renders
humanitarian services
in around 14 nations. It
can expand the scope
through adding new
service or products in
their wide locations
that can expand
satisfaction of
potential customers. It
provides services in
order to reduce
poverty addition to
saving people from
disastrous conditions.
Objectives: The objectives of NICE
is to eliminate
discrimination by
building strong
relations. The company
has other objective to
provide healthy
guidances to general
Core objectives of John
Lewis is to satisfy customer
expectations for grocery
items together with non
grocery items. It aims to
provide products and
services in affordable prices
so to attract new audiences
Objective of Oxfam is
to eradicate
discriminations
between poor or rich
individuals together
with supplying
safeguard global
services.

public by creating more
values through
recognizing
innovations.
while retaining existing
ones.
M1. Structure, size addition to scope of organisations linked with business objectives.
In context to public organisations, the business objective of NICE is to deliver guidances,
helping to attain quality and sustainable services as well as contributing towards thriving science
industry. Such objective was set after considering available employee size which is enormous
that helps in researching market and investing money so to set big targets and attain them
effectively. In context to private organisation, John Lewis being a large private organisation with
diverse range of employees, products, services and scope which follows divisional along with
functional structure by communicating all informations to serve international customers,
managers set objectives accordingly and attain them effectively. In context to voluntary
organisation, Oxfam objective is to organise civil societies, empowering women, safeguarding
food supplies, reducing poverty together with injustice. By having huge shops, they provide
employment opportunities and empowering women so to attain objectives. Hence, having vast
scope, structure together with large size employees helps an organisation to formulate massive
size with diverse scope, otherwise small sized organisations with limited objectives are build.
The non profit organizations are more focused towards the welfare of the society, and
they are small and the contribution in the economy is small. Whereas the non NGOs are more
focused towards making profits and earning money. They are large and the contribution in the
economy is also large. There are various legal structures such as partnership in which two or
more partners conduct business by sharing profit as well as losses. They are separate from the
entity if the partnership is of limited liability. Sole trader is a trader which is having unlimited
liability, and they are solely responsible for the profits as well as for the losses. Corporations are
huge and the liability of the organization is also unlimited. The advantage of sole trader is there
is low risk. The advantage of partnership is there is distribution of investment and advantage of
corporation is there is a huge investment. Whereas disadvantage of sole trader is liability is

unlimited. The disadvantage of partnership is there is sharing of profits and for the corporation
the disadvantage is the equity holders shares the maximum risk.
Role of technology, globalization and legal trade agreements in growth of global multinational
corporations
The industrial revolution was earmarked by the development of technology and workforce
machinery to allow the mass production of goods. This technology included items such as the:
cotton gin, steam engine driven machinery.
The international companies are termed as the exporter and importer who is not havering the
investment out the country in order to have the development in more significant way t achieve its
desired level of gaol and organization in more specific way. On the other hand multinational
companies have the major level of investment in different countries in order to have the
coordinated level of development regrading the products . At last the global companies have the
major level of investment which is having there presences in may of forgiven counterfeits for
signifiant level of expansion
TASK 2
P3. Relationship among organisational functions.
Organisations functions consists of main activities which are performed by personnels in
different areas. Distinct types of functions are finance, market research, managing human
resource, customer relationship management, operation management and many more.
Organisational structures are changed with changes in market conditions, distribution channels,
competitors actions and so on. John Lewis is a retailer organisation which plans objectives
addition to utilising structures that are interrelated with various functions of the company
(Organizational chart. 2019). Three organisational structures are as described below:
Interrelationship of functions of John Lewis with linkage to objectives addition to structure
as as mentioned:
Marketing function with human resource function: Marketing function have the role
in formation of different business strategies as well as plans to promote brand image in the
multinational market. They analyses market situations related with customer demands, prevalent

trends and accordingly communicates information to other department. Marketing function of
John Lewis organises activities with the help of human resource function. Human resources
collects information related with demands of customer and accordingly plans activities that are to
be performed. They also help in the marketing department by providence the sense of skilled
employee to company in order to gains the level of competitive advantage in market
development strategy. Marketing department coordinated activities with human resource
department so to attain the objectives in effective manner. Activities related with marketing
function are closely linked with structure and objective or organization in numerous ways such
as they cater directions to perform actions.
Operation function with marketing function: Operation function comprises
warehouses, distribution, production and packaging. Such function of John Lewis is related with
supervising, and redesigning operations so that production activities are carried out in smooth
manner without any barriers. Such function of John Lewis collects information related with
demand or supply of goods and synchronize undertakings with marketing function
(Hillary,2017).
Research and development function with production function :The research is having
the analysis of all activities as per the tends in market inn order to make the business department
of production one to produce activities at in order to increase in demands. All the activities are
set by considering structure as well as objectives so that activities are performed to attain them.
They have the attainment of the close relationship in developing the radiosity level of ideas in
order to have achievement of gaol and organization in more respective manner.
M2. Advantages together with disadvantages of interrelationships among functions of
organisation.
Organisational structure plays important character at workplace as such structure is used
to make critical decisions through exchanging thoughts, views addition to information.
Functional interrelationship benefits managers of John Lewis to assist activities by maintaining
cooperation, up surges associations, escalate profit level and increases business effectiveness that
results in impacting in positive aspects on business structure. One of the disadvantage of such
relationship is that there are chances or risks associated with sharing of confidential information
by employees to competitors. Some employees for their own benefit builds trusted relationships
with other functions and shares confidential information through informal communication that

results in negative impacts as employees can use such information in wrong ways which can
impacts on serious manner on business structure (Lloyd-Jones and Lewis, 2017).
D1. Analysis of complexities.
The management of John Lewis have embraced different structures at different
workplaces. For instance, in functional structure, distinct functional groups faces complexities
while communicating and grabbing attention of international market which diminishes
performance flexibility this causes complexities related with miscommunication as well as
misconduct of operations between functions such as marketing and human resource. While
considering divisional structure, employees faces complexities associated with operational
inefficiency among particular functions like marketing function in which they fails to
communicate specific information to operation function or which enhances implications on
marketing practices.
Illustrat
ion 1: Organisational chart. 2019

(Source: Organisational chart. 2019)
Pre- bureaucratic- this type has been majorly being followed by the small level of companies
which has been used in order to solve the task at simpler level. This structure has been
considered total level of being centralized along with making proper level of decision making
and makes proper level of implementation of communication which is being answered by one to
one conversation.
Bureaucratic structure- this is having in the types of the historical organization along with
management of authority which is being based on the rationalist legal one which have the
ordered level of management level along with proper strategic implementation of the
subordination which is need to be answered towards the higher level.
Post bureaucratic structure has been developed along with various levels of standard along
with procedure development these have the compromising of the company having proper
implication of central demand along with various level of board members through which proper
devisor making could be there through the development of effective demonstrative propels.
Wheel structure: It is simple organisational structure which is used by start up
companies. In such structure, the managers have all powers to take decisions and all the activities
are organised around owner of the company. It benefits the owner by controlling growth along
with development of business. But the limitations of such structure is that it is appropriate till
certain size only as well as owner may not posses specialist knowledge in context to different
functions.
Matrix structure: Such structure combines distinct function or departments with project
teams in which employees work across projects in teams within their won functional areas. It
benefits in decentralising decision making authority, increases managerial motivation,
complexities are controlled and people with similar skills are put under one project. But such
structure is difficult to implement, comprises of high conflict level along with high overhead
costs (Hamilton and Webster, 2018).
Divisional structure: Under this structure, organisational functions are divided into
divisions that are corresponded to product or geographical areas to deliver demanded range of
products. It benefits top level management to concentrate on long term plans by spreading profits
across products, markets as well as divisions but it is difficult to coordinate all divisions and
results in conflicts among divisions on the basis of resource allocation and many more.

Managers of John Lewis follows distinct structures at different stores or other locations as
per the convenience of managers. For instance, in some stores, divisional organisational structure
is followed where as at some places matrix organisational structure is followed due to the
convenience as well as adaptability of employees to work in team or divisions.
TASK 3
P4. Impacts of macro environment.
John Lewis is among the leading retail company that deals in general merchandise,
grocery together with delivering financial services. Business environment comprises of macro
addition to micro elements or factors that impacts on functions or operations of the company.
Micro factors are controlled by managers and exists within organisational boundaries. It includes
customers, values, suppliers, competitors, new entrants and substitutes. In contrary, macro
factors are outside the control of management team and includes political, social, technological,
economical, legal and environmental factors. The detailed description of PESTLE is as follows:
Political factors: It comprises of government stability, competition regulation, funding
grants, government policy and competition regulations. In context to UK, there is stability in
political system and such authorities enforces laws considering health, safety and employment
levels. All political factors affects organisational working in numerous manners.
Positive impacts: UK is a stable country in which policies remains consistent through out
the year that assists John Lewis to control its operational costs, source raw materials along with
improving profitability. Operating the business in consistent environment impacts in positive
manner as John Lewis can effectively manage all business operations by following
predetermined political policies.
Negative impacts: John Lewis is popular for planning corporate social responsibility
initiative but due to lack of clarity of such concept by UK government in context to energy
efficient schemes, government may put some actions against John Lewis that can affect its
decision making elankavil, 2015).
Economic factors: Such type of factor involves credit crunch, exchange rates, inflation,
growth and disposable income. UK's economy is highly developed addition with market
oriented. Economic factors are strongly considered by John Lewis managers at the time of
determining investment values together with business portfolio. John Lewis is highly affected by

its pricing strategies due to changes in economic cycle. Due to this, managers are not able to
attract customers.
Positive impacts: The management of John Lewis provides various various discounts on
main prices on online shopping that attracts numerous customers and impacts on sales and profits
in positive manner.
Negative impacts: In various locations across the nation, due to changes in economic
cycle, managers of John Lewis faces inflations in which prices of organisational products rises
along with higher borrowing costs for the business. It impacts in increasing borrowings and
investments that reduces profit margin and increases risk related with lending money that
influence business decisions.
Social factors: These factors includes population age profile, attitude to work,
disposable income and education level. In the present time period, population of UK prefers to
shop products available under single roof. Managers of John Lewis emphasis on factors related
with ethnic customs, family preferences and economical status so to target potential audiences.
They manufactures products by considering present trends in market together with customer
preferences.
Positive impacts: John Lewis operates various activities in international market and
accordingly manufactures products as per different cultures that favourably impacts on sales
together with productivity and influences decision making in positive manner by satisfying
customers demands (Neubauer and Lank, 2016).
Negative impacts: Customers are sensitive in nature as they changes their perceptions
very frequently and needs all products as per their economic status. If John Lewis delivers
products at higher rates against rates perceived by consumer then it can influence sales as well as
image that can impact in changing its decisions also.
Technological factors: This factor comprises of digital methods, technological
developments, research spendings and technological innovations. The UK market is achieving
success due to technological factors and is planning to build digital technological business.
Information technology team of John Lewis time to time make updation in their technology and
adopts latest technologies in order to perform all operations in consistent ways. The trending
technological trends in UK are artificial intelligence and search engine optimisation pertaining
in technological environment.

Positive impacts: By adopting new advancements together with technological innovations
such as search engine optimisation, the IT team helps John Lewis to communicate informations
so that all business operations are performed smoothly which positively impacts on building
relationships and grabbing opportunities to expand the business in competitive market.
Negative impacts: Regular adoption and frequently changing technologies adds
additional costs which impacts on margins of profit in negative manner. Adoption of new
technology such as artificial intelligence will require huge costs and can lower the profit margin
of John Lewis together with impacting on business operations of the company as it becomes very
difficult for employees to understand the technology and accept its workings.
Legal factors: It involves rules and regulations, securities together with legislations. UK
being a constitutional monarch where common law systems are followed and legislations are
passed or governed based on case laws. All such laws governed by such monarch are mandatory
to be followed by all companies. In UK there are changes frequent changes in the legislations as
to protect health and safety of the society. John Lewis managers carefully understand the reason
of the implementation of primary laws and follows them to attain beneficiary results (Pounder,
2015).
Positive impacts: John Lewis managers properly follows laws related with packaging and
labelling so to reduce health issues as well as provides products with proper packaging and
labelling all ingredients on the cover of goods that helps in gaining governmental recognitions,
grants and securities that impacts in enhancing efficiencies in business operations in positive
manner.
Negative impacts: If the managers of John Lewis breaks laws or does not follow the
governed acts to protect societal environment then they have to face issues such as penalties or
cancellation of licences that may hamper their sustainability and decision making in negative
manner.
Environmental factors: It is a combination of environmental protection laws together
with eco friendly environment. John Lewis managers focuses on all such factors and provides
organic food along with keeping workplace and surrounding localities clean through reducing
wastages.
Positive impacts: John Lewis managers have taken initiative actions towards reducing,
recycling as well as reusing concepts that impacts in reducing carbon footprints along with

wastages that results in positive impacts to perform business operations as well as receive
recognition in international market.
Negative impacts: Few environmental factors like non compliance of standards laid by
legal authorities adds additional costs for financial department of John Lewis which impacts in
adding additional costs and managing sales level in negative manner. If such organisation does
not perform business operations as per such standards then they have to face negative
consequences.
M3. Application of PESTLE model.
John Lewis is a supermarket retailer which perform activities to deliver products that
satisfies customers (Sun and Richardson, 2016). The managers of such organization applies
PESTLE model so to analyse macro environment in order to frame strategies and implement
actions that By operating the business in static environment can impact in positive manner as
managers of John Lewis effectively manage operations by following political policies. If any
legislation is nor followed properly then the organization has to pay penalties that can impact in
negative manner on profit margins. Adopting search engine optimization technology will help
John Lewis to communicate necessary information and building relationships with customers
that can impact in positive manner on the image of business. Hence, following political systems,
environmental laws, technological advancements, economical business cycle, social beliefs and
legal systems helps in building good image along with making huge profits.
TASK 4
P5.Internal and external analysis.
Porters five force model of Levis
Threat of New Entrants
This has the major conservationist as the threat of new entrants is to be low as there is
requirement of massive capital investments which is being required to have the establishment of
the successfully chains of store. The company's has already being developed as the brand store
along with havering high level of loyal customers which is considerer to be reactively impoarttnt
in homogeneous market there is major lack of market knowledge to foreign competitors which
is considered to barriers to new entrants
Bargaining Power of Suppliers

these are considered to be large companies which huge level of turnover so always the supplier
have ants to customer on the retailer shelve in order to reach the large based of customer. John
Lewis is not overly dependent on suppliers as it mainly sells own branded products. This means
that it largely buys raw materials and not finished goods, which is favourable for margins.
Bargaining Power of Buyers is considered to be relativity high as there is major level of buyer
concentration in which retailer will try to have cut down of proves by focusing on needs of
customer.
Threat of Substitute Products or Services
this considered to be transitively high as the high level of buyer concentration is major
advantage to changing level of taste and preferences. The switching coats have the level of
relativeness in which retailer will try to have cut down of proves by focusing on needs of
customer.
Rivalry Among Existing Firms
Competition in the retail industry sector is extremely fierce. John Lewis is particularly having
competition in sealing large level of apparel and household goods. This leaves it vulnerable to
competition from giant supermarkets such as Next, Topshop, Marks & Spencer and Zara.
John Lewis is among the leading British supermarket retailer which deals in groceries,
merchandise retailing and has numerous stores across worldwide. Such organization is
performing operations at more than 600 localities in the multinational market. By conducting
SWOT analysis, John Lewis managers identifies their internal strength addition to weaknesses
together with external threats addition to opportunities.
SWOT analysis of John Lewis is as described:
Strength Weaknesses
 John Lewis has built community in
which dealers as well as distributors not
only promotes products rather makes
investments to train sales personnels that
enhances beneficiary results (Thompson,
Strickland and Gamble, 2015).
 Chosen business has strong brand
portfolio which differentiate John Lewis
 John Lewis limits its spending towards
advertising or marketing activities that
results in building it negative image.
 The marketers of John Lewis have
limited the expansion of such company
in rural addition to semi urban areas that
limits customer attraction from such
places.

from competitors.
 Management team of selected firm
works effectively to satisfy maximum
customers needs and retain them for
long time period.
 John Lewis ignores presence in far
countries due to high concentration on
satisfying customers from home country.
Opportunities Threats
 By adopting upgraded technologies,
John Lewis can serve its customers
through catering online shopping
facilities.
 Following stable free flow of monetary
resources can help in making further
investments towards adjacent product
segments.
 Dominance of large organisation does
not allow John Lewis to expand in
nearby countries.
 Multiple players in retail industry creates
huge competition level that affects
profitability of John Lewis (Wood and
Logsdon, J. M., 2017).
 Significant changes in political systems
along with laws is the another threat for
selected company.
P6. Interrelation of strengths and weaknesses with external macro factors
Interrelation among strength and weaknesses with external macro environmental factors
are as described:
Interrelation Strength Weaknesses
Political factors Political system of UK is strong and
stable which acts as strength for John
Lewis to understand addition to
implementing all policies and
legislations so to work in effective
manner without any complications.
Sudden Changes in legislations,
rules along with policies results
in complexities, changing
organisational policies and adds
risk factors for John Lewis
while performing operations as
it limits expansion of selected
company in another nations.
Economic factors In UK, numerous investors are ready to
invest on business operations in huge
amount (Yeh, Lee and Pai, 2015).
Due to changes in business
cycle, there are changes in
savings, foreign exchange rates

Determining expected values of
investments, John Lewis can grab
attention of enormous investors and can
motivate them to invest which will
benefit the firm to achieve brand image
which is a strength.
and taxation rates that hinders
John Lewis to attain strategic
objectives and a big weakness.
Social factors In UK, customers prefer online
shopping as they have lack of time to go
to stores. John Lewis has skilled
marketers who understands customer
demands and accordingly offers services
through online shopping websites that
acts as strength to attract together with
retaining targetted audiences.
There are various regulations
governed by UK government to
perform activities online and
frequent changes in customer
attitude addition to perception
for John Lewis's products
decreases sales along with
profitability and reduces
efficiency to sustain in
competition. Thus, a weakness
for John Lewis.
Technological factors The UK technological market is
attaining success paths through various
technologies such as artificial
intellegence and search engine
optimisation. By adopting and using
advanced technological systems, John
Lewis manager provides innovative
products with high quality services
which is a strength for the company.
In the competitive market, there
are numerous changes in the
technological environment
within UK. Periodic
technological changes as well as
technology becoming obsolete
reduces operational capabilities
and reduces business efficiency
which delimits profit margin of
the retailer.
Legal factors In UK, now a days fo9cus is on to
protect health and welfare of customers
together with employees. John Lewis
has adopted all the governed legal
In the competing world, UK
government cancels license of
stores if no law is followed
properly. John Lewis is bound

formalities and implements the same in
effective manner such as following Fair
Packaging and Labelling Act which is
its one of the strength.
with numerous legal formalities
which impacts on business
functions in negative aspects
(Brown, 2018).
Environmental factors The UK environment comprises of
various laws in order to make the
country pollution free. John Lewis
managers have professional managers
who posses knowledge to opt eco
friendly technology while producing
products which reduces wastage along
with pollution levels and acts as
strength.
In context to UK market
environment, organisation have
to perform activities in ethical
manner. Several environmental
factors pertaining with different
countries limits John Lewis's
working in multinational market
which it position in retail
industry.
M4. Application of SWOT analysis.
SWOT analysis is applied with the objective to determine strength and weaknesses of the
company so to make future decisions. Managers of John Lewis by applying such framework
analyses key aspects that will increase hurdles or will benefit in attaining objectives. Using such
concept, managers formulates plans to expand the operations by overcoming weaknesses and
grabbing opportunities (Hillary, 2017). Strength of John Lewis are loyal customer base and
strong portfolio. The organisation is majorly dependent on its home market shares which is its
biggest weakness. The company has opportunity to expand the operations by providing services
through online shopping. Stiff competition and recession are threats for John Lewis.
Management team of such firm has to timely implement strategies to overcome weaknesses
addition to minimising threats in such manner that helps workforce to perform operations as per
the decisions and influence decision making in positive aspects.
D2. Evaluation of impacts of macro and micro factors on business objectives and decision
making.
According to above discussion, it can be evaluated that micro factors involves internal
organisational factors such as competitors, suppliers and new entrants where as macro factors are
social, technological,economical, political, environmental and legal factors (Thompson,

Strickland and Gamble, 2015). The objective of John Lewis is to maximise its profits and for this
they have taken the decision to hire more workers and expand its store locations but if there are
sudden changes in any of the factor such as political factor such as governemnt makes new rule
related with limited number of store locations then John Lewis has to face misbalancing
operations, increased taxation implications and changed customer preferences that can influence
the organisational working and will impact on business objectives as well as decision making.
CONCLUSION
From the above report, it has been concluded that business is influenced by internal
addition to external environment which affects functionality and operations in different manners.
There are different types of organisations such as public, private and voluntary that have
different objectives such as profit maximisation, reducing poverty and delivering various
services to large customer segment. In order to analyse external and internal environment,
different tools are selected such as PESTLE framework and SWOT analysis that helps in
understanding the impacts on business operations together with decision making.

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