Comprehensive Analysis of Business Environment: IBE Report

This report provides an in-depth analysis of the business environment, exploring various business types including private limited companies (e.g., John Lewis Partnership), public limited companies (e.g., Tesco), and voluntary organizations (e.g., Wellcome Trust). The report utilizes the Gibbs reflective cycle to examine personal experiences and employs Porter's Five Forces model to assess competitive advantages. A company resource audit is also conducted, outlining both the benefits and limitations of the chosen resources. The analysis covers aspects such as bargaining power, threats of competition, and the threat of new entrants and substitutes. The report concludes with an action plan and references, providing a comprehensive overview of the business environment and its influencing factors.

Introduction to Business
Environment (IBE)

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Gibbs reflective cycle.............................................................................................................1
DESCRIPTION......................................................................................................................2
FEELINGS.............................................................................................................................4
ANALYSIS............................................................................................................................5
EVALUATION......................................................................................................................6
ACTION PLAN......................................................................................................................7
Company resource audit.........................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment is defined as a combination of both internal and external factors
that basically influence operating situation of a particular company (Belz and Peattie, 2014). this
report also highlights on various competitors of the companies in United Kingdom and Gibbs
reflective cycle has been used in order to identify own experience while conducting this report.
There include many factors and also dimensions that affects environment of a business. In this
report, three type of business has been taken into consideration as public, private and voluntary.
Thus, their overview and purpose will be explained which will aid in gaining understanding over
its business operations of different company. Further, porter 5 forces model has been used in
order to analyse competitive advantage of organisations. Company resource audit has also been
conducted along with its benefits and also limitations.
MAIN BODY
Gibbs reflective cycle
This cycle leads in encouraging in order to think in systematic manner about the phases
of experience and also about activity (Lopatkova and Belyaeva, 2016). Thus, it has been
discussed as per below context-
1
Illustration 1: Illustration 1: Gibbs Reflective Cycle
(Source: The reflective cycle, 2018)

Various types of business
DESCRIPTION
Business is termed as an activity in order to make living of an individual or to make
money with a way of producing goods or buying and selling products (Dangelico and Vocalelli,
2017). It is that activity to which everyone enters so that they can earn profit. Thus, various types
of business and its purpose has been discussed as per below context-
1. Private Limited Company-
Private limited company is that type of business entity in which there is private
ownership that is therefore used in number of jurisdictions in contrast to public ownership
(Davari and Strutton, 2014). Thus, they are also termed as having their own assets, liabilities and
also profits and also personal finances of shareholders that are further protected with help of
limited liability.
For example- John Lewis partnership is a private limited company
Overview
It is the largest company in terms of employees. It is a visionary and successful way in
terms of doing business as they try to put happiness of partners at centre of everything that they
do. It basically operates in retail business in United Kingdom. They offer home furnishing like
pillows, fabrics, curtains along with nursery advisory. This company also operates store named
as Wait-rose that offers customers with range of products that comprise of home cooked meals,
gourmet food, etc.
Purpose
The main purpose of this company is to provide maximum happiness to all workers that
are involved in terms of worthwhile and also in satisfying employment in a successful business
environment. As it is a partnership firm, responsibilities in terms of ownership and rewards like
profit, knowledge and power are shared equally.
Partners that are involved must know and comply with all legal requirements that has to
be apply in their fields of having responsibility.
2. Public Limited Company
Public limited company is that which has limited number of liabilities and their shares are
sold or traded in free manner to public (Geels, McMeekin, Mylan and Southerton, 2015).
Further, they are termed as legal designations of limited liability and those that have offered their
2

shares to public. Therefore, this can be acquired by anyone. They can be offered either in private
manner, during an initial public offering or through trades on stock market.
For example- Tesco is a leading Public Limited Company in UK.
Overview
It has been started at beginning of 2000 and still operating. They mainly continue in order
to bring diversified products into its list of products that has been offered that includes to sell bio
products and also advocating of healthy lifestyle. It is one of the largest giants in grocery
retailing in UK and is standing as third largest retailer in the whole world. Tesco is specialised
in selling of foods products and also in groceries.
Purpose
The main aim of this leading company of UK is to provide high quality goods and create
value for customers so that they can earn their loyalty base for lifetime. They want to be a
champion for customers and helping them in such way that they enjoy better quality of life and
smooth way of living.
The opportunities in terms of business presented by forthcoming Big Bang deregulation
of market of UK in legal services.
3. Voluntary organisation
This is that group or union that enters into agreement as a volunteer in order to form a
body so that they can easily accomplish the objectives (Kaufmann, Czinkota and Zakrzewski,
2015). It is a combination of that organisations whose basic aim is to benefit and also enhance
society. Providing help and support becomes main motive rather than earning profit.
For example- Well-come Trust in UK is one of the leading voluntary organisations in UK
having high expenditure of 728.1 million dollar.
Overview
It is a biomedical research centre that is based in London, United Kingdom. It has been
described as largest provider of non-governmental funding in terms of scientific research and
also one of the largest providers in whole world.
Purpose
The main purpose of this charity trust is to achieve improvements in in health with help
of supporting brightest minds. It also aims in supporting understanding of public in terms of
science.
3

They have to ensure that Grant activities has been carried out in accordance with
guidelines and principles in ethical manner.
I was conducting a research on various types of business that are available. I took deep
research on public, private and voluntary organisation of UK. From which I analysed that John
lewis partnership is the leading private sector organisation, Tesco is public sector organisation
having huge revenue and Well come trust as a voluntary association. In addition to this,
Wellcome trust operate in order to provide help and support to people rather than profit as
compared to other two companies.
FEELINGS
I was feeling very good while conducting this research on organisations. This helped me
in analysing the actual picture or image of enterprises that are involved in this report.
ANALYSIS
While researching on various topics, I analysed that it is a very difficult task to make a
huge reputation and attract potential customers towards the brand. All the three enterprises has to
operate in appropriate way in order to maintain and build their brand image. This was such a
unique experience for me to know actual things of all company and also about market of UK.
Porters 5 forces and its benefits and limitations.
Company Bargaining
power of
buyer
Bargaining
power of
supplier
Threat of
competition
Threat of
entrants
Threat of
substitution
John lewis
partnership
Bargaining
power of
buyer is
HIGH.
The switching
costly is low
and there are
number of
alternatives for
a particular
Bargaining
power of
supplier is
LOW.
It is a large
company that
is been listed
with having
huge turnover
and suppliers
Treat of
competition is
Fierce.
They are
exposed to
competition as
it also sells
apparel and
household
goods along
Threat of
entrants is
LOW.
Because to set
up a
successful
chain store,
there is a
requirement of
massive
Threat of
substitutes is
relatively
LOW.
There are no
major
substitutes
related to
foods and
clothes.
4

products and
services.
desire their
products on
retailer shelves
so that they
can reach high
volume of
customer base
like John
lewis.
with foods and
drinks. This
leaves them
vulnerable to
competition.
capital
investments.
Tesco PLC Bargaining
power of
buyer is quite
HIGH.
It is more
standarised so
the cost of
change is very
low, so this
leads buyer to
easily change
from one mark
to another.
Bargaining
power of
suppliers is
LOW.
Tesco is
leadng
supermarket
retailer, so
there is a fear
for suppliers
to lose their
commercial
contracts with
such a huge
supermarket.
Threat of
competition is
HIGH.
They have to
face intense
competition of
their direct
competitors
that includes
Asda,
Sainsbury and
Morrison.
Threat of
entrants is
LOW.
There is
requirement of
huge capital
investments in
order to make
a mark of
competitive
advantage.
Threat of
substitute is
also LOW.
Because
someone will
have to
produce
something
with low price
and high
quality in
order to
establish value
of market
which leads to
great loss.
Wellcome
Trust
Bargaining
power is
HIGH.
There are
variety of
Bargaining
power of
supplier is
LOW.
They have
Threat of
Competition is
HIGH.
There are high
number of
Threat of new
entrants in
HIGH.
There is lack
of requirement
Threat of
substitute is
HIGH.
There are huge
number of
5

customers
involved.
maintained
and build good
relationship
with many
suppliers
which
becomes easy
for them to
switch among
them.
charities
available in
market that
work in order
to provide
better life to
society.
of formalities
and
investments in
this market.
charities
available in
United
Kingdom.
EVALUATION
It was good that I don't had to suffer more while conducting research on John lewis
partnership and Tesco. But it was a bad feeling that I required maximum time for Wellcome
trust. It was too difficult to gather information of that association. It has been evaluated that there
are various benefits and limitations of this model.
Benefits of model
 It helps in shaping out competition that is available in industry.
 It also leads in helping to adjust the strategy so that company can easily suit competitive
environment. That later leads in improving profit and long term success.
 It is the best known model and is used commonly in strategic management.
 It is easy to use and provides with such way that is easily understandable of market forces
analysis.
Limitations of model
 Lack of empirical evidence of importance of industry environment for profitability of a
company that has been taken into consideration.
 Forces change in constant manner, therefore moves could be more rapid in analysing
competition in market for different types of business.
 It is of static character.
6

ACTION PLAN
I learned very unique and true things about business world from this research. It was
really a great experience for me. If I would get an opportunity of researching on this, I would
have used some other technique which will not be time consuming and will help me in giving
correct and fast information regarding various companies.
Company resource audit
Company Resources Benefits Limitations
John lewis partnership Employees involved
are skilled and trained
in positive manner.
Skilled employees Lack of customer
loyalty base
Tesco Plc Government subsidies
and high level
reputation.
Support of government Lack of skilled
employees
Wellcome Trust High level of capital
and infrastructure
Large number of
donors and exempted
from all taxes.
High competition
Identifying and analysing competitors.
John lewis partnership
Harrods is considered as one of the top competitors of John Lewis. It is from a retail
distributor field headquartered in London. Thus, Soraya Interiors is also considered as tough
competitors of this company. It is in home furnishing retail industry (Krajnakova, Navikaite, and
Navickas, 2015). the three main competitors of John Lewis are Marks and Spencer, ASDA and
Tesco.
Tesco PLC
Asda is a huge competitor of Tesco that operates in larger format superstores. They sell
items such as clothing and furnishings in addition to groceries. They are also working in order to
improve nutritional value of private label products.
Wellcome Trust
7

Cancer research UK is one of the top competitors of Wellcome trust having expenditure
of 498.3 million dollars. The main aim of this centre is to bring out that day when there is no
patient having this disease. Increase in expenses regardless of funds availability is the major
factor which denotes increasing efforts of business.
CONCLUSION
From the above report, it has been concluded that, there are various types of business in
the world. The overall purpose of this business is to provide better services to customers and
enjoy long term profit. Further, this report also helps in analysing competitors of various
organisations and also resource audit has been considered. In addition to this, Gibbs reflective
cycle helps in analysing own experience about conducting research. Thus, porters five model
frameworks have been used in identifying competition to enter into a particular market.
I must have done surveys with employees or members that are involved with them. This
would have helped me in gathering all information regarding different types of business in easy
and smooth way. But it was quite a difficult and time-consuming task. So, I tried to search on
internet which gave me all data regarding business.
8

REFERENCES
Books and Journal
Belz, F. M. and Peattie, K., 2014. Sustainability marketing: A global perspective. Chichester:
John Wiley and Sons
Dangelico, R. M., and Vocalelli, D., 2017. Green marketing: An analysis of definitions, strategy
steps, and tools through a systematic review of the literature. Journal of Cleaner
Production. 165(1). 1263–1279.
Davari, A., and Strutton, D., 2014. Marketing mix strategies for closing the gap between green
consumers’ pro-environmental beliefs and behaviors. Journal of Strategic Marketing.
22(7). 563–586.
Geels, F. W., McMeekin, A., Mylan, J., and Southerton, D., 2015. A critical appraisal of
sustainable consumption and production research: The reformist, revolutionary and
reconfiguration positions. Global Environmental Change. 34. 1–12.
Kaufmann, H. R., Czinkota, M. R., and Zakrzewski, M., 2015. B2B and internal relationships
and curative international marketing: A polish case study. Industrial Marketing
Management. 51. 69–78.
Krajnakova, E., Navikaite, A., and Navickas, V., 2015. Paradigm shift of small and medium-
sized enterprises competitive advantage to management of customer satisfaction.
Inzinerine Ekonomika – Engineering Economics. 26(3). 327–332.
Lopatkova, Ya. A., and Belyaeva, Zh. S., 2016. SME’s perception of social responsibility in the
Sverdlovsk region. Bulletin of Ural Federal University. Series Economics and
Management. 15(1). 46–61.
Online
The reflective cycle. 2018. [Online] Available through:
<https://www.brookes.ac.uk/students/upgrade/study-skills/reflective-writing-gibbs/>
9