Regent College: Business Environment Analysis of BT Group Plc.

This report provides a detailed analysis of the business environment, focusing on BT Group Plc. It begins by exploring different types of business organizations, their purposes, and their scope, with BT Group as a case study. The report then examines the relationship between organizational functions and objectives, including organizational structures like functional, divisional, and matrix structures. The analysis further delves into the impact of macro-environmental factors on BT Group's operations, utilizing tools like PESTLE analysis. Finally, the report conducts an internal and external analysis of BT Group, applying a SWOT analysis to identify its strengths, weaknesses, opportunities, and threats, and examining the interrelationships with external macro factors. The report provides a comprehensive overview of the company's environment and strategic positioning.

BUSINESS ENVIRONMENT

INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Types and purposes of different business organization.......................................................................3
P2 Size and scope of different types of organization...............................................................................5
TASK 2.......................................................................................................................................................7
P3 Relationship between organizational function and objectives............................................................7
TASK 3.......................................................................................................................................................9
P4 Impact of macro effect on organization’s business operations...........................................................9
TASK 4.....................................................................................................................................................12
P5 Internal and external analysis of BT to identify strength and weakness...........................................12
P6 Apply SWOT analysis in BT groups and their interrelationships with external macro factors.........13
CONCLUSION.........................................................................................................................................14
REFERENCES..............................................................................................................................................15

INTRODUCTION
A business contain both internal and external factor of an organization and how these
factors impact functioning of organization in business market place. Elements that are included
in business environment are consumers, competitors, geographical market place, employees,
organizational culture, decision making and role of managers. An organization can grow
effectively by making efficient planning and challenges in environment. BT Group Plc. formerly
known as British telecom was founded in 1969 (Borio, 2014). It is a multinational
telecommunication company in UK dealing with products like broadband services, television
subscriptions mobiles, broadband, fixed line broadband. The company has increased their roots
in across 180 countries and planning to penetrate market in other geographical areas. This
assessment will discuss different types of organization and their purposes, ways through which
company is focusing on different organizational function and their links to objectives and at the
end negative and positive impact macro environment in business activities, they can be analyzed
by different analytical tools like PESTLE and SWOT for better evaluation and learning .
TASK 1
P1 Types and purposes of different business organization
In business world there are majorly four types of organization, who play different roles in
business activities according to their characteristics. They are mentioned below
Sole trader- This is a time of business activities where only one person is responsible for
development of their business activities from marketing, promoting, dealing to decision making
related to their business activities (Chavis, 2011).. As a sole trader person is vulnerable to risk
and uncertainty in competitive environment and solely accountable for all profit and losses he
gain in business activities. Many small scale business and startups are considered as a sole trader
e.g. Anite is a small scale business is a sole trader.
Scope – They have small capitals, less risk involvement, liability is not much, size of
business is very small and it is limited in particular geographical region.
Partnership – It is recorded as collaboration of two or more that two people sharing their
business plan and resources and do business activities. For success of their joint venture they
share their skills, values, knowledge, inventory and plan with each other for gaining better profit

from market place. Government of UK have formulated and enacted a legal act for bare
regulation of joint ventures called Partnership act 2002
Scope- Partners sell and buy on partnership’s behalf in credit or cash, partners mostly
avoid donating and lending money from capital of their partnership ventures, and partners cannot
take lines or lent money without taking advice from their partners.
Company - It is a legal body that has their own existence and right to exist and business
in business market. Most of the investment for a company is mainly due to shareholders as they
can give suggestions and inputs for creating values for organization.
Scope – company mainly focus on increasing their customer base in different market to
earn more revenue for their products, expanding and creating brand image are some of the
important aspect of their growth policy.
Charity organization- These organizations are basically termed as non- profit
organization can exist in public or private sectors. Creation of charities may be for a social cause,
philanthropic activity, education, community, religion etc. Different country has defended types
of charity organization in their countries’ therefore tax exemption will also be different
according to geographical boundaries. Welcome trust, British Red Cross is some of the renewed
charity organization tends to invest in health and wealth of country
Scope – Expect no return for their charity programmer, their main aim is to donate in
social cause and upliftemt of society.
LTD. – These are limited companies where liabilities and rest of members are limited.
They only have risks and uncertainties in accordance to investment and share values. Many
limited companies are limited to guarantees and shares. These companies can be found in public
sector and private sectors. BT group, Marks and Spencer are some of the renewed LTD.
Company doing good business across UK.
Scope – limited company are mostly large organization as they perform philanthropist
activity across country by donating some amount for growth and prosperity of country, through
these activity they generate goodwill and faith about company that help them exceptionally in
sales and marketing activities.
Classification of companies on the basis of different sectors.
Private sector Company – These are some the company majorly concentrates on
expanding their business and earn more revenue from profit market. They can be large and small
scale organization depending of their growth, size and stability in market. Apple ink, Arcades
Group, Best way, John Lewis Partnership are some of the major organization earning large sum
of revenue.

Public sector Company – These are the type of company that are owned by government
and are formed for the motive of serving common people in country. BT Group is recorded as a
one of the largest private sector company across UK. Other example of public sector
organization in UK are Audit commission, AWE (Atomic Weapon Establishment) etc.
Voluntary organization – A voluntary organization is a group of people who come
together and organize them to serve people by providing basic resources to them. They are many
NGO working round the clock to serve needy people. Some of the top most voluntary
organization across UK is Cancer Research UK, National Trust, Oxfam etc.
P2 Size and scope of different types of organization
There are different types of organization performing their business in market. They have
been separated into different categories according to their work in business market. Considering
case of BT Group Plc. In business organization it has their own background, policies and values
for performing their business activities (Hoang, 2010). As they are public sector organization
they have different way of performing their business activities for organization of other
categories.
Background- BT Group Plc. has a long history it was established in 1846and initially
named as Electric Telegraph Company and considered as the first telecommunication company
of Britain (Jung, 2011). It has started its journey by providing telephone service and added
innovative ideas and features in their business activities. At the end of 2017 they are having
around 106400 employees working in all across the offices of organization.
Product and services - Currently they are dealing in wireless telecommunication
network, broadband services, mobiles and wired networking, Digital television, Home Security,
Telecommunication equipment’s, Supply chain management and are able to expand their
business in across 80% of the countries of the world.
Size and scope of BT Group Plc. - Company has made their mark in almost 180
countries. It has a strong base of skillful employees across different division of survive of
organization across globe. The company is divided into different divisions like Business and
Public Sector, Open reach, TS&O , Global services etc. They have a scope of introducing
creativity in their business, implementation of innovative ideas and serve most number of people
across the world.
Vision, mission and business objective of BT Group Plc. - Company is having defined
mission, visions have certain objectives to carry forward their organization and plan and perform
better in competitive business market.
 Vision – Their main vision is to make different planning and invest in different market all
round the world. They want to put the whole world under one connectivity with their
variety of services.

 Mission- Their main aim to put dedication in their services and enhance experience of
customers, they try to have distribution of business being customer- centric to increase
their shareholders. They try to engage their employees put values in their products
 Objectives – their main objective in business is to increase their potential in competitive
business market. By increasing productivity and increasing sales they can increase their
revenue base. Apart from concentrating on enhancing money for their organization they
have also concentrated on adopting ethical way of doing business to generate trust and
faith about the product among their customers.
Legal structure about stakeholders of BT Group Plc.
Company is having different types of stakeholders investing in business activities of BT
Group Plc. Stakeholders in enterprise are divided into internal and external category on the basis
of their existence in business market.
Meaning of stakeholders- They are group of people shows interest and contributes in
activities in business of an organization. These people can be employees, mangers or propel of
any designated post in organization, these people are regarded as internal factors and of an
organization
Approach of BT Group Plc. towards their stakeholder- They believe in concentrating
ethical approach of activities of stakeholders and plan to maintain long term relationship with
them. The plus point of this approach is they treat their stakeholders as prominent partners
(Auzair, 2011)..
 Internal stakeholders – These are people in organization of different designation and
work. Having more internal stakeholders shows strength of organization in business their
business structure.
 External stakeholders- These are the people that are attached to company in one or other
form. These elements includes government bodies, suppliers, customers and business
partners (Bryman, 2015).
Potential stakeholders of organization – It is crucial for organization to judge potential
stakeholders and their activeness in business of organization. For that BT Group plc. Have given
priority to their customer according by scaling their approaches and investments.

Figure 1 Classification of different stakeholders
From above mention data it is being concluded it is important to understand potential of
stakeholders in internal and external business environment that help them in better planning and
decision making in utilizing their financial base (Boons, 2013).
TASK 2
P3 Relationship between organizational function and objectives
Company has different objectives and strategies for functioning of their business in
different competitive market. BT Group Plc. deals in varieties of instruments so they must have a
well-defined business structure according to organizational function in achieving their goals and
objectives (Jung, 2011).
Relationship between organization and their structure.
Company focus on increasing their business activity, sales, marketing, researches etc. for that
they need a better functioning organization (Demil, 2010). They make structure according to
need and wants in market. Classification of organizational structure
 Functional structure – Most company tend adopt functional structure for their
organization that follows a systematic chain of instruction (Chang, 2011). This helps
following better process as it will provide clear and leaner line of authority and better
decision making for different departments in an organization. It is use to allocate task
and responsibilities easily and monitor their proceedings.

 Divisional structure – it is used to spread different functions among different department
across the organization. A company has different product and functioning like research
and development wing, marketing, accounting section etc. (Barnett, 2012). Division of
different department according to work aid in proper functioning of organization. This
structure is having drawback that many employees have to do only one type of activity or
function, this may create redundancy in workplace and ultimately loss of money.
 Matrix structure – it gives better flexibility to business activity and functioning. In this
employees works in department according to functions and activities but they can be
promoted to other projects and activities of organization, this will increase develop
skillset of employee and will make them multitasking (Crane, 2016).
 Organizational chart – An organization use organizational chart to understand
complexity in organization in a graphical representation.
BT Group Plc. is using functional structure for their business for gaining better
productivity 2016 company has announced a new and modified organizational structure after
acquiring EE. In this functional structure they have made 6 linear structures according to
different roles in business activity
 2 channels focuses on serving customers for organization
 Two on public sector ( one in UK another in Ireland )
 2 lines are providing wholesale services to other companies.
Functional structure of organization
Consumer EE Public sector Global service Wholesale Openreach
Consumer – BT Group Plc. is regarded as largest ISP provider in all over UK. They are
able to serve around 10 million houses with combination of services of broadband, TV, mobile
services and TV and also in new business planning John Peter will continue to be served as CEO
(Edquist, 2010).
EE- It majorly focuses on retaining brand and consumers. They have increased high
street stores for providing better assistances and advanced services to customer as quickly as
possible. They have also started Emergency service network. CEO of this division is Marc
Allera.

Public sector- This division is earning maximum revenue for company. They focus on
investing in large and small scale business in all over UK and Ireland. CEO of that division is
Graham Sutherland (Jung, 2011).
Global services- As it are a multinational telecommunication organization. Company
has aim to serve common people all over the world and also increasing their base to serve
companies of private and public sector of different countries’.
Wholesale and Ventures- this section of business is giving wholesale business to more
than 1400 network service providers in all over the world (Auzair, 2011). They have expanded
their business to some renewed organization like Gerry McQuade, Payphones, and Fleets. Chief
sales officer of EE is the CEO of this section.
Openreach platform- This is not affected by change in structure of organization. Main
task of this organization is to provide access to Local network of telecommunication services of
BT Group.
The above mentioned structure of organization is the new structure that seems to be very
effective as it has outlined most of the factors and activities that has been used to increase brand
value and production by increasing their brand values and productivity in business market
(Chavis, 2011).
TASK 3
P4 Impact of macro effect on organization’s business operations
Macro environment are also called external business environment of an organization. It is
a strategic tool that gives detailed analysis by analyzing different factors in organizational
structure. The company is well aware about frequent changes that are happening in external
business environment (Hoang, 2010). PESTLE stands for Political, Economic, Social,
Technological, and Legal and Environmental factor. Pestle analysis of company is discussed
below
PESTLE Analysis
Political
 Politically stable
business as demand of
telecommunication
sector is very high in
UK
 Chances if military
Social
 Skill and knowledge
level id different in
geographical and
demographic region
 Better power structure,
hierarchy and class
Environmental
 Weather condition of a
certain place
 Change in climatic
condition
 Different laws are
present that help I n

inversion
 Corruption can
increase in regulation
od telecommunication
business
 It is a legally
contradicted
organization
 Protecting and
safeguarding
intellectual property
 Smooth trade relation
and better regulation
authority.
 Easing policy of
trading practices with
trading partners
 Legal antitrust law is
being enacted
 Better pricing
regulation authority
 Minimal tax rates
imposed on
telecommunication
services hence give
more opportunity to
grow in business
market.
 Formulation of wage
regulation for better
distribution of wages
and management of
working hours
 Compulsory benefits
for employees
 Maintaining strict
regulation and safety
measures
 Better product labeling
that is essential in
telecommunication
industry.
structure
 Better organizational
culture. Flow of
positive vibes in
different department
insider the organization
 Entrepreneurial spirit
are encouraged and
supported in society
 Social responsibilities
are taught to
employees
 Interests and moral
values are respected in
organization (Grimpe,
2010).
 Company is dealing in
public sector so their
main aim is to serve
mankind
regulating climatic
condition
 Water and air pollution
may harm
telecommunication
equipment’s that are
very costly.
 Recycling of products
 Waste and inventory
management.
 Attitude and focus
towards making green
environment.
 Implementation and
planning for use of
renewable resources

Economical
 Before investing in
other country they
analyses economic
condition of that region
this will aid in better
planning of resources.
 Government disrupts
growth of organization
in free market.
 Different exchange rate
in different host
country
 BT Group Plc. is
having financial
stability
 They have better
infrastructure required
for telecom industry
 Company is having
gained corporative
advantages in different
countries over the
years.
 Labors are highly
skillful
 Cost of labor and
resources is less as
compared to other
competitors in market
 They have a systematic
business cycle stage
i.e. prosperity,
recession and recovery
 Optional sources of
income
 Providing employment
to different sectors of
organization
 Low interest rates none
their services.
Technological
 BT Group Plc. always
tries to put innovative
idea in their products.
Vodafone is the bigger
competitor of
company , so they try
to overpower the
company with latest
technologies
 Technology
advancement is the key
feature of their
products.
 With effective use of
technology they have
able to reduce cost of
infrastructure and
inventory of their
product.
 It has also helped in
better supply chain
management and value
chain management.
 They have a better
flow of technological
diffusion.
Legal factors
 Formation of antitrust
law in
telecommunication
industry and their
impact in dig rent
geographical area in all
over the country.
 Implementation of
discrimination law for
protecting rights of
employees
 Patent, copyright,
trademark and
intellectual property
laws.
 E- commerce services
and protection of
customers
 Health and safety law
for employees
 Protection of data, as
company is dealing in
networking, there are
chances that data can
be leaked and misused.
By detailed analysis of macro environment of organization it is being studied that
company is having both positive and negative factor in dealing in business activities. They are
dealing in variety of networking products that are used to make life of people easier (Ahmed,

2011). Terry must put more effort on putting innovative ideas in their products for better
understanding and analysis
TASK 4
P5 Internal and external analysis of BT to identify strength and weakness
Internal and external environment factors affect the enterprise. Before decision making of
an organization they should analyses extrinsic and intrinsic surrounding because it is an
important part of planning. By this analysis business can find out their strength and weakness
and they can plan their functions or activities accordingly (Demil and Lecocq, 2010).
Internal analysis: It helps in evaluating and identifying BT groups particular
characteristics such as its capabilities, availability of resources and core competences.it shows
that all functions of an company is performing a following criteria of firms mission, objectives,
strategies and vision. In order to analyses business make sure that proper utilization of resources
should carry out in process and working activities. Resources like as physical resources, financial
resource, plant and machinery, cultural, human resources etc. with all these resources capabilities
of BT groups can easily recognized.
External analysis: It is a process which analyzed environment of which companies
operates. They use to find out events and current trends which effect their strategies decisions of
BT groups. It is done by SWOT analysis method. It includes analysis of economic such as
changes in interest rate, inflation rate etc. Legal environment aid in finding out changes in legal
regulations linked with duties changes, taxation policies and special act. Social and cultural
factors help in analyzing lifestyles, fashions, current trends and many other elements of culture.
Analysis of internal and external factors may find out weakness and strength which are
discussed in detail below:
 Strength: It contains unique features and characteristics of BT groups enterprise. Largest
and most necessary strength of a company is its vision clarity which satisfies consumers
and earns profits in the context of market situations. Organization can measure its
advantages by spread on performance indicators (Dong and Hou, 2009.
 Weakness: These are those factors which firm has to do more work for improving their
capabilities and capacity i.e. BT groups operates its enterprise in various countries and its
limitations are that it is difficult to operate a business they have to follow standards of
control within all locations.
Influence in decision making process

External and internal give impact on decision making process as by extrinsic analysis
consumers perception and preferences are changed accordingly. Organization also changes their
decisions for satisfying their customers’ needs and wants. On other side, intrinsic analysis also
have to change their decisions because of external changes it also take place internally within an
organization. So, these all are interrelated with each other if changes made in one factors will
change another factor automatically
P6 Apply SWOT analysis in BT groups and their interrelationships with external macro factors
SWOT method is used in British telecommunication plc. Tools which help in analyzing
external and internal factors of a company. SWOT stands for strength, weakness, opportunities
and treats are discussed in detail below: Strengths: It stands for S which is strengths analysis. It means resources and capabilities
of British telecommunications plc. by which organization can make its competitive
advantages and economic value (Edquist, 2010). Weakness: W stands for weaknesses which analyzed organizations limitations. It means
having a lack of resources issues or its capabilities which prevent firm in making values
of economic as well as gain a benefits of competitive. Opportunities: O stands for opportunities which analyzed its different possibilities of a
company. It means having chances for eliminating organization weaknesses and its
performance which lead to make economic value within an enterprise. Threats: Its stand from T which analyzed issues of a firm. It means purpose of forces is
to decrease British telecommunication performance and decline its economic value as
well. It includes government, group and individual.
Therefore, all tools of analyzed effect macro environment on BT decision making. Their
strengths and weaknesses of BT are linked with macro external factors. Managers of
company compare their strengths with macro factors such as economic, social, technology,
cultural, political, operational policies etc. Suddenly change in external environment affect
decisions making of British telecommunication. Interrelationship between BT strength and
weaknesses as well as macro external factors are explained below:
 Economic factors: It contains inflation rate, interest rate in market. If BT is
having an enough resources of finance then change in interest rate will not affect
its marketing and pricing strategy of the firm. Organization should always ready
to face a challenge which is raised due to changes in economy factors.

 Legal and political factors: These factors contain various policies as well as rules
and regulations. Policies changes also affect a company. As they have to face a
challenge of legal. They should have a specialized and expertise staff member.
 Cultural and Social: Companies are facing a challenge of changing cultural and
social factors. Enterprise should have best staff members, possible natural
resources etc. BT is having strength of satisfying their consumers’ needs and
demands which are based on value and beliefs.
 Technological factors: Organization is having advantages of using a latest
technology replacing with existing once. They have to adopt changing factors of
technology. For this, firm needs good resources of finance.
 Environment factors: Each enterprise use natural resources for giving services
and product. They have to follow laws of environmental along with that firm
cannot waste natural resources.
Advantages and disadvantages are the factors of macro surroundings which are related
with one other. If BT get fail to find out its strength and weakness then it will cause a difficulty
in analyzing macro factors. Along with that, it also fails in making plans of tactical and strategic.
Disadvantages will affect a firm which will not able to satisfy their needs and demands by
providing them services as per their customers which will help in increasing profit of an
organization. So, BT has to keep improving their services weaknesses.
CONCLUSION
Through analyzing this assessment one can conclude that organization in different sector
have different objectives and structure. BT Group Plc. is a large telecommunication company
deals in telecommunication networking products. For doing business an organization must have
concentrate negative and positive effects in macro environment by analyzing their strength and
weaknesses through different analytical tools like SWOT and PESTEL for better evaluation of
their productivity. Business environment has a bigger sector of exploring and finding different
facts about business in external business environment. There is larger area that is left to be
explored in future researches.

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