Business Environment Report: Austin Fraser Recruitment Company

This report provides a comprehensive analysis of the business environment of Austin Fraser, a UK-based recruitment company. It begins with an introduction to the company and its services, followed by an examination of the relationship between organizational functions, objectives, and structure. The report then delves into the macro-environmental factors impacting the business, utilizing PESTLE analysis to assess political, economic, social, technological, legal, and environmental influences. A SWOT analysis is conducted to evaluate the company's internal strengths and weaknesses, as well as external opportunities and threats. The interrelation between the company's strengths and weaknesses with the macro factors is also discussed. The report concludes with a summary of the key findings and recommendations for the company's strategic development. References are included to support the analysis.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between organisational functions with objectives and structure. ....................1
TASK 3............................................................................................................................................3
P4 Macro Environmental factors that have impact over business..............................................3
TASK 4............................................................................................................................................5
P5 SWOT analysis of Austin Fraser..........................................................................................5
P6 Interrelation between strength and weakness with macro factors.........................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is the essential part of every business. It covers internal and
external factors that have impact over the business. This is important for organisation to manage
all the factors so that it can not affect operation of company in negative manner. These factors
include employees, customers, management, supply, demand and business rules and regulations.
Austin Fraser is the UK based private company that provides their services in recruitment and
selection process (Commander and Svejnar, 2011). This organisation offers various kind of
services to its customers. They have main goal to provide skilled and knowledgable employees
to corporations who can work for the growth and development of organisation. At Austin Fraser,
technical recruitment in engineering , IT and Life Science sectors are generally made. Every
consultant of this company is expertise in specific market, skill set and geographical area so that
they can provide maximum assistance to its customers. Micro and macro environmental factors
have vast impact over the working of organisation. It is essential for the company to manage
these factors so that it can not affect the operation of company.
TASK 1
Covered in PPT
TASK 2
P3 Relationship between organisational functions with objectives and structure.
Austin Fraser is the company that provide their services in recruitment and selection of
employees. They have objective to recruit skilled and knowledgable personal so that they can
provide them to their business clients (Dahan and et. al, 2010). There are many departments in
cited company and it is required for this company to establish effective co-ordination among
them so that it can not affects its goal and objective in negative manner. For the achievement of
target and objective, it is required to have effective coordination among different departments so
that no issue can be faced in their operation. All the activities of these department are effectively
coordinate to the growth and development. Different departments are working in this
organisation which contribute to achieve the goals and objective of this business unit. Every
sector of business helps the company to work more effectively so that they can achieve their
target in best manner (Avramenko, 2012).
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Following are the department that are working under Austin Fraser as-
Human Resource: This is important department in organisation because they are directly
associated with man power. It is required to mange this department effectively so that it can not
cause problem in its future operation (Fernando, 2011). This department provides help to recruit
skilled and qualified personnels. This sector aids the organisation to achieve its goal and target.
The main duty of this part is to conduct interview, selection process effectively so that they can
achieve their target in effective manner.
Finance Department: Funds are required for every business. This is important for organisation
to manage their affairs so that they can face any issue in future operation of company. Austin
Fraser is business firm that provides their services in recruitment and selection and for this
operation, they require funds so that they can arrange session to recruit best suitable candidate.
So it is essential for this organisation to ensure the availability of cash so that it can not create
hurdle in their operation. For every purpose, it is required for cited organisation to arrange funds
in effective manner so that its future operation can not be affected.
Marketing: It is one of the important part so cited organisation that provides growth and
development to its business (Gebauer, Paiola and Edvardsson, 2010). This is important for this
firm to manage the affairs of marketing department so that they can attract large number of
customers toward them. There are different marketing campaign that are adopted by cited
organisation so that they can provide information about their services to market. It helps to
enhance market base of company. Through this department they can communicate to large
number of people so that they can achieve their goal.
Research and development: R & D is the essential part of Austin Fraser that provides growth to
its business. Sometime, it is required for this company to conduct research of market so that they
can identify the requirement of their business partner and clients. This department provides
assistance in formation of plan and policies because through this sector necessary and important
information can be collected (Commander and Svejnar, 2011). Development helps to implement
plans in action. This department provides assistance to recruitment best candidate so that they
can achieve their target.
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IT department: This is one of the key part of this organisation. It is important for this company
to handle the affairs of this department effectively (Halbert and Ingulli, 2011). There are many
technological factors that are adopted by this organisation so that they can recruit employees
through different medium. In present, this company conducts interview through online channels.
This helps the company to recruit best suitable candidate within time period. This department
helps the firm to achieve their objectives.
TASK 3
P4 Macro Environmental factors that have impact over business.
Austin Fraser is the company that offers their services in recruitment and selection of best
suitable candidate. There are different factors that have impact over business and it is required
for this organisation to manage these factors so that it can not create problem in their operation.
These external environmental factors have large impact over working of the company. PESTLE
analysis is the helpful tool to identify micro environmental factors. This analysis is helpful to
discover positive and negative impact (Hamilton and Webster, 2015).
These factors are described as:-
Political- This factor is based on political factors. It is required for this organisation to manage
its affairs effective so that it can not create problem in operation of business. Political factors
have great impact over on the performance of Austin Fraser. Government has vast impact over
the people because there are some changes that are created due to political norms. So it is
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Illustration 1: Organisational Chart

important for this company to formulate their plans and polities in accordance of political norms
so that it can not affect them (Aterido, Hallward-Driemeier and Pagés, 2011). Due to change of
government after specific time, there are new policies that are formulated and sometime there is
change in exiting plans that affect the business. Some the changes may be in favours of business
and sometime impose negative factors.
Positive impact: Sometime, political changes are in favour of company. When new policies came
in force then it provides assistance to them to run their business in more effective manner. Austin
Fraser is sustainable to adopt these changes that provides growth to its business (Kang, Lee and
Kim, 2010).
Negative impact: Government authority is changed so that political norms and guidelines are
also changed that have negative impact on the business operation.
Economic factors- these are the major factors of economy that have impact over the company.
Rise in the inflation rate have impact over the price of product and services that are rendered by
organisation. This results in change in purchasing power of the consumer and also affects
demand and supply ration of the company in market. These factors cover inflation rate, interest
rate, foreign exchange rate, economic growth patterns also. When there is change in these factors
then it has impact over business. It is not necessary that it always have positive impact always
but sometime cause negative impact as well (Avramenko, 2012).
Positive impact: When there is decrease in interest rate the it is beneficial for the company
because it reduces the cost and expenditure.
Negative impact: Sometime, company introduce new product with high price and people accept
it but after some time its demand get reduced sue to high price (Klapper and Love, 2010).
Social factors- These factors are derived from society. It is required for this organisation to have
effective flow with social norms so that it can not create negative impact over the business
affairs. Social factors are as cultural trends, demographic, population analytics etc. Example:
there is high graph of recruitment and selection company at the time of starting of new financial
year.
Positive impact: When there is new trend in market then it has positive impact over the business.
Negative impact: When organisation do not follow social norms then it has adverse impact over
operation.
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Technological factors- these are the factors that are created due to technological changes. It is
important for business to manage these factors so that it can not impose negative impact on the
operation of company. Austin Fraser always tries to adopt new up-gradation for better
recruitment and selection of candidate. When new technology came in force then it is required to
adopt such so that effective result can be obtained.
Positive impact: Technological changes have positive impact because it helps to achieve target
and to save time.
Negative impact: when new technology came in force then sometime, it is required for
organisation to hire new personnels that create burden over the business.
Legal factors- these are those factors that are caused due to change in legal norms and
guidelines. It has both side as internal and external. There are certain law that affect the business
in adverse manner. It is required for company to follow such rules and regulations.
Positive impact: When new guideline came in force then it is easy for the company to follow
such conditions (Mahmood and Hanafi, 2013).
Negative impact: sometime, it creates burden over the business and it is required for company
follow new guidelines and norms.
Environmental factors- these are the factors that are created die to environmental changes.
These aspects are not limited to climate, geographical location, global changes in climate,
environment offsets.
Positive impact: When new changes arise then it is easy for the business to adopt it and
formulate its plan with it.
Negative impact: Changes are not always in favour of company and it is required for corporation
to manage it.
TASK 4
P5 SWOT analysis of Austin Fraser
SWOT analysis is important factor that helps to conduct internal and external analysis to identify
strength and weakness of business (Oh, 2010). It has impact over the decision making process.
Strength (Internal)
Austin Fraser is the biggest company in UK tat offers their services in recruitment and selection
procedure. It capture the wide area of market and provides skilled and knowledgable personal.
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Its strength is its employees who have expertise knowledge in different field of market.
Highly qualified employees who devote their best effort for achieving organisational goal.
Good and effective training programmes that are organised for sharpen the skills of new
candidates.
Experience and dedicated workforce.
Senior management is committed to planning.
Human resource of this company is one of the key strength of this company who devote to
develop new recruitment idea.
50% of staff member are professional degree holder.
Weaknesses (Internal)
Around 50% of manager and senior personnels are eligible for retirement because they can not
devote full time for working (Reinhardt and Stavins, 2010).
They do not offer mentoring programmes.
Failure to adopt new technological updates.
Not taking part in promotional activity that create restriction to expand the market area of
company.
They are unable to adopt technological tools effectively.
Procedural manuals need to be upgraded.
Current workforce is not working in practical manner.
Opportunities (External)
Technological development provides strength in quicker data sharing between agency and its
clients.
Job sharing opportunity with other businesses.
Large number of retired employees are encouraged to join the organisation who can provide their
expertise knowledge for effective working (Siewiorek and et. al, 2012).
Federal and state agency have interest in merging services.
Adoption of new technological changes so that wastage of time can be reduced.
Opportunity is emerging economy as India, China and Australia.
Many universities and college are looking this organisation for internship opportunity.
Threats (External)
The demand of the skilled and knowledgable personnels are increasing day by day.
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Increase in the number of competitor in market that creates negative impact over the business.
Less fund available for training grants.
Budget and full time potions are affected.
Educational institutes are not offering these educational courses so it has negative impact over its
future performance.
It may be affected through the high recession so it is required to carefully spend the money.
Lack of opportunity for new candidates so students are moving for their business, not for jobs in
companies.
Labour rate is increasing on high rate and enforcement of new laws and act is another threat for
this business (Teece, 2010).
P6 Interrelation between strength and weakness with macro factors
It is required for the business to understand the factors that have impact over its
operation. Micro and macro environmental factors are the aspect that come under this factor.
Internal analysis is SWOT i.e. strength, weaknesses, opportunities and threats of an organisation.
External analysis is PESTLE i.e. political, economical, social, technological, environmental and
legal factors. Environmental factors are interrelated with each other and it is required for the
business to mage these factors so that it can not create problem in future. Macro factors can not
be controlled by the business but micro factors as strengths and weaknesses can be controlled.
These are relation between PESTLE and SWOT. It is required for the business to
consider both the factors so that it can not create problem in future operation. If political changes
arise in environment then there is the chance that Austin Fraser can secure the advantage in
market. When there is change in interest rate then it provides strengthen to business because
organisation expenses get reduced. It is the responsibility of company to provide assistance to
social group by way of corporate social responsibility that helps to eliminate the external factors
that have negative impact over the business.
Change in technology may have positive impact over the business because through this
they can adopt effective procedure for the recruitment and selection which resulted in time
saving. Due to technological factors, new opportunities are created which helps to run operation
in more effective manner (Ullah and Lai, 2011). When there is vast variation in legal norms and
political factors then it is possible that it may help to eliminate the weakness of business because
sometime it is easy for the organisation to adopt new procedure. Political, economical,
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technological factors have impact over the strength over the business. Strength creates new
opportunity so that company can adopt new changes in more effective manner. This is important
have effective flow among external factors as well as internal factors.
CONCLUSION
As per above study it can be concluded that business environment is one of the essential
factors that require to consider by the organisation. There are two types of factors as internal and
external which include employees, customers, management, supply, demand and business rules
and regulations. Austin Fraser is the company that is efficient to provide better services to people
but is required for this company to mange their affairs with consideration of these factors. This is
important for business to have effective flow among PESTLE factors and SWOT so that they can
achieve their target in effective manner. It is required for cited company to use updated
technology so that they can recruit effective and skilled personal that provide assistance to secure
larger area of market. There are different type of organisation that are operating in environment
as private, public and voluntary. They are not similar to each other. Some of the company that
has main motive to generate more profit but there are some of the business that are operated for
non profitable purpose.
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REFERENCES
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Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
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Online
Applying SWOT analysis to recruitment. 2016. [Online]. Available through:
<http://www.corporate-eye.com/main/applying-swot-analysis-to-recruitment/>.
[Accessed on 04th July 2017]
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