Business Organizations and Environments: Boots Company Global Analysis

This report provides a comprehensive analysis of Boots Company, a leading international retail pharmacy organization. It begins with background information on Boots, detailing its history, ownership, financial performance, and legal structure. The report then explores the business environment, including an analysis of political, economic, social, technological, legal, and environmental factors (PESTLE analysis) impacting Boots' operations, particularly in South Korea. The analysis further examines the competitive landscape, identifying key competitors. The report also applies Porter's Five Forces to analyze the industry's competitive dynamics, assessing the threats of new entrants, bargaining power of suppliers and buyers, and the threat of substitutes, alongside industry rivalry. The assignment highlights how Boots adapts to the global market and utilizes strategic frameworks to maintain its position and expand its business operations.

Business Organizations and
Environments in a Global
Context

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Background information of Boots-.........................................................................................1
2. Background information of business environment ................................................................3
3. Analysis of business activities................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment means all the external and internal factors affect business
operations and functions such as employee, demand and supply, customer and regulations etc.
All the internal and external factors influence each other and work together to affect the business
process. Business depends on the environment because environmental friendly business use
different resources which are more effective towards minimising the environmental risk.
The assignment will discuss about the Boots company in South Korea and how they will
expand their business operations all around the world. The report will discuss about the
Background information and basic details regarding business, size and their structure, current
operations of Boots in South Korea. This report will describe the Pestle and Porter forces which
analysis the business opportunity and their factors which impact on the business environment.
1. Background information of Boots-
Boot is international retail pharmacy organization which provides different types of
beauty and health related products which are provided the best quality of product to their
customers at international level. It started in 1870 to develop their management system of Jesse
Boot. Boot is a private organization and It is one of the leading pharmacy company based on
beauty and health retail products. There are 2500 stores opened in UK. Boot is a part of Retail
pharmacy international division of Walgreens Boots Alliance. It is the fastest growing
organization to expand their business in other countries.
Ownership of Boots-
Organization is merged with the Alliance UniChem in 2006 to form Alliance Boots.
Boots operates approximation 2,500 stores across the UK and increase their range of business
operations across the world. The stores are located in the shopping centre and streets. They
provide wide range of beauty and health products which are beneficial for customers to buy the
product in the stores. They give many options to choose the best products and services in the
market place. Boot operates online retail website and further activities. They provide the loyalty
card program which is beneficial for brand to increase their value in marketplace.
The main purpose of this organization to increase their brand value in marketplace and maintain
their position in global world (BrannenPiekkari and Tietze, 2017). Boot organization always care
about the customer, communities and people to provide the best quality of product and services.
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Boot is a leading organization and there are 40,805 employee working together to expand their
business across the world. They generate $7,676,247,000 Turn over in every year. Boots provide
the best quality of goods and services to the customers. This organization has different
department to manage their business operations and functions such as production, manufacturing
etc. they encourage the technology and formula to increase business that helps to achieve their
goals and objectives. They are using innovative ideas to develop better quality of products. The
firm also control cost of their products and services in order to attract customers in the market.
Financial performance- The financial performance is very strong of Boots company and
they have recorded the strong sales, with net income rising 20.3 percent to 950 million in the
fourth month. Boots is South Korea based organization to increase their profit rate in day by day
and their overall profit is very high. Boots is expanding their business in South Korea. It will
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lustration 1: The organizational Structure of Boots
(Source: Organization Structure of Boots, 2017)

generate the 3-2 percent increases in the sales and their overall sales in the region up-to 16.9
billion.
Legal structure- Boots is using the legal practises but avoidance of illegitimate tax is
harmful for the community and society. It provides the best quality of services regarding the
health and product. It provides the environmental friendly environment of street chemist. They
will maintain the cost of services, satisfaction of customers, safety and health of employees. It
generates a risk on the health (Del Giudice and Maggioni, 2014). Evasion and tax avoidance are
common factors and most of the organization avoid paying the tax that is harmful for society.
Current international operations- Boots is the fastest growing organization and they
have many responsibilities to manage their operations and functions in proper manner. Boots
recently launch a real page turner for the children. Boots operates the combine business
operations in 26 countries. This organization is launch a new product such as medicine, cosmetic
product so that it increasing their productivity and profitability in marketplace.
2. Background information of business environment
Boot is a global organization which is creating their own innovative ideas to increase the
competition level in marketplace. They are creating many challenges for this firm and they are
using an effective strategy for growth and development. The main objective of organization to
provide the right direction to their employee for planning the best strategy. The strategy is
helping to introduced the better product. This is discussed the Pestle analysis to determine the
factors that impact on the business environment.
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Pestle Analysis- Pestle analysis is a framework which is used for the Boots organization
to track the environment and operating, planning to launch a new product and services in market.
Pestle analysis is determined the different types of opportunity for organization to plan an
effective strategy for growth and development. In this way, it will analyse the political, legal,
environmental, technological factor etc.
Political factor- Political factor is important for the organization because the political
decision can be directly impact on the business activities and their performance (Kolk, 2016).
For Example- The government is generating their own policies therefore, Boots is following the
policies and they are allowing to super market to produce the best quality of product and services
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Il
lustration 2: Pestle analysis
(Source : Pestle Analysis, 2017)

in marketplace. South Korea government is allowing the boots to expand their business but
follows all the political and legal circumstances. They believe that such rules and policy will
increase services and also improve the health care. The organization provides the product and
item in low rate and operates for long time. In this way, it will increase the competition level in
market.
Economic Factor- The global economy is affecting the business operations and functions
of Boots in South Korea. The recession is major problem that is suffered many organizations
because it will increase the price of product and health care service. Most of the customer face
many problems because of high price of product in marketplace (Lin, 2014). Customers spend
the money to the health care product as well as beauty product. The cost of fuel or oil rising and
it is affecting the supply chain the boots. The overall price is increasing. This is important factor
which is impact on the economic condition of country.
Social Factors- Social factor is affect the social culture, community and society. This
factor affects the social environment of global market such as populations, cultural; trends and
demographic etc. For example- Boots is the fastest growing organization and it is more
awareness about the exercise, body and type of food, habit etc. In South Korea, The government
is promoting their hygienic food, healthy eating because obesity is rapidly increasing in South
Korea. Such detail is boosting the boots organization to encourage the customer to eat the best
quality of healthy product. Boot is provide the best quality of food item at a reasonable price.
Technological Factors- The evolution of technology is very helping the online business
such as retail sales etc. Boots is using the modern technology to increase their popularity in
marketplace. This organization is promoting their product and service with the help of internet.
They are using their own website to provide the information regarding the new products. Internet
is powerful platform which is helping the organization to manage the information in proper
manner (Marquis and Raynard, 2015). Technological factor is impact on the business operations
and function of Boots. This organization mainly concern about the innovative new ideas and
providing the positive support to the agencies produce a new product in marketplace.
Legal factor-There are many types of legal issues that are generating in the companies.
This factor is affect the business environment in the south Korea while these policies are helping
to maintain their rules and regulations. New laws is very important for organization to maintain
their healthy product services. The government of South Korea is generating the rules and
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regulation for every business so that it is important for boots to follow all the law to manage their
business operations and functions in proper manner.
Environmental Factor- This factor is affect the surrounding environment which is
important to manage their business environment in proper manner. It is a crucial part of boots
industry to analysis climate change, locations, weather, geographical, global change etc. South
Korea is country which is more concern about the healthy environment because there is risk on
the global warming Boot is playing important role for reducing the carbon and also help to
increase the efficiency of energy.
Competitors of Boots in marketplace
There are various competitors of Boots in the global market place such as Tesco,
Morrisons, Sainsbury, Asda and Super-drug etc. these are important organizations which are the
most important competitors in marketplace. These organizations provide the best quality of
product and services in marketplace. They are required to manage their business operations and
functions in proper manner. They are giving many opportunities and options to choose the
effective product in marketplace.
3. Analysis of business activities
Porter's 5 Forces
Porter 5 Forces are analysis the strategy of management tool for boot industry to
understand the need and requirement of organization. It also identifies the different level of
profitability in this organization. In Boots, The Manager is playing important role to use this
forecloses to understand the competition level of market (Oliveira and Espadanal, 2014). These
forces are influence to develop a strategy for enhancing their business operations and increasing
the profitability and productivity in marketplace. An effective strategy and planning is helps to
the organization to maintain their long term profitability in boot.
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There are five forces impact on the organization profitability in the industry and it also analysis
the business environment. These are the important forces that are helpful for organization to
increase their profitability and productivity in marketplace.
 Threat of New Entrants
 Rivalry
 Bargaining power of supplier
 Bargaining power of Buyer
 Threats of Substitutes
Boots is a leading organization which is used the five forces strategy to analyse the current
competition level in market. This organization can be build a sustainable competition level in
boots industry. Manager is important persona to use these factors to plan the strategy according
to the need and requirement (vom Brocke and Schmiedel, 2016). This industry is exploring the
business in different countries such as South Korea. Boots is open a new store in South Korea to
expand their business because they are earning a lot of products in global marketplace.
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I
llustration 3: Porter's Five Forces
(Source : Porter's Five Forces Framework, 2017)

Porter Five Forces analysis for service industry
Threats of New Entrants- In United Kingdom, there are many small industry establish
the business and they are innovating new idea implements in their services so that the
competition level is increasing in the market. Boot is planning to provide their product in low
rate, reducing the cost in market and providing the effective product which are beneficial for
customer. They are facing many issues but it has to be manage and build the effective barriers to
provide the safety.
Bargaining Power of Supplier- boot is supply their raw material form various suppliers.
In this way, the position of supplier is decrease in the marketplace. They are earning in the
International market. Supplier has power to use the negotiating power to sell the product in high
rate and it is directly impact on the supplier because they have bargaining power to decrease the
overall profitability and productivity of stores. Boot is creating an efficient supply chain with the
help of multiple supplier.
Bargaining power of Buyer- Buyers are demanding a lot because they offering the best
quality of product in minimum price rate (Zoogah and Woldu, 2015). Boot has lot of pressure to
manage the situations because they directly affect the long term profitability. In South Korea,
they have minimum store of boots so that the customers are demanding a lot. The bargaining
power of customer is increasing and they provide the discount and offers for clients.
Threats of substitutes- This is important force which is affect the industry, if the product
and service meet the requirement of customer so that the industry suffer and decrease the rate of
profitability and sales. Threat of substitutes service and product is high and it offers the valuable
product to the customers. There are threats of substitutes services or products in Boots describe
in following:
 It will increase the switching cost of the customers.
 Boot is determine the requirement of customer and providing the services according to
their demand.
Rivalry among the Existing competitors- This is the most important force which is
determined the competition level of market. It is based on the competition between among the
prices and quality. It will decrease the price of product and minimise the overall sales and
profitability of the organization. Boots is building the scale to compete the better performance.
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The competition level is very high in market so that the manager is planing the strategy for long
term profit to manage the business operations and functions in proper manner.
CONCLUSION
The assignment is discussed about the Boots organization in South Korea and how it is
expanded their business operations all around the world. The report is discussed about the
Background information and basic details regarding business, size and their structure, current
operations of Boots in South Korea. Boot is international retail pharmacy organization which
provides different types of beauty and health related products which are provided the best quality
of product to their customers at international level.
This report will describe the Pestle and Porter forces which analysis the business
opportunity and their factors which impact on the business environment. This report describes
the financial performance, legal structure, ownership of boots and current international
operations. This report discuss about the various competitors of Boots in the global market place
such as Tesco, Morrisons, Sainsbury, Asda and Super-drug etc. these are important organizations
which are the most important competitors in marketplace. These organizations provide the best
quality of product and services in marketplace.
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REFERENCES
Books and Journals:
Brannen, M.Y., Piekkari, R. and Tietze, S., 2017. The multifaceted role of language in
international business: Unpacking the forms, functions and features of a critical challenge
to MNC theory and performance. In Language in International Business (pp. 139-162).
Palgrave Macmillan, Cham.
Del Giudice, M. and Maggioni, V., 2014. Managerial practices and operative directions of
knowledge management within inter-firm networks: a global view. Journal of Knowledge
Management, 18(5), pp.841-846.
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.
Lin, H.F., 2014. Understanding the determinants of electronic supply chain management system
adoption: Using the technology–organization–environment framework. Technological
Forecasting and Social Change, 86, pp.80-92.
Marquis, C. and Raynard, M., 2015. Institutional strategies in emerging markets. The Academy
of Management Annals, 9(1), pp.291-335.
Oliveira, T., Thomas, M. and Espadanal, M., 2014. Assessing the determinants of cloud
computing adoption: An analysis of the manufacturing and services sectors. Information
& Management, 51(5), pp.497-510.
vom Brocke, J., Zelt, S. and Schmiedel, T., 2016. On the role of context in business process
management. International Journal of Information Management, 36(3), pp.486-495.
Zoogah, D.B., Peng, M.W. and Woldu, H., 2015. Institutions, resources, and organizational
effectiveness in Africa. Academy of Management Perspectives, 29(1), pp.7-31.
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Online:
Organization Structure of Boots, 2017[Online]. Available
through:<https://aaimagestore.s3.amazonaws.com/july2017/0020786.002.jpg>
Pestle Analysis, 2017 [Online]. Available
through:<https://blog.essaycorp.com/wp-content/uploads/2017/02/Pestel-Analysis-1.png>
Porter's Five Forces Framework, 2017 [Online]. Available
through:<http://fernfortuniversity.com/images/business-pics/porter-5-forces.png>
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