Business Environment Analysis: Lidl vs. Save the Children Report

This report provides a comprehensive analysis of the business environments of Lidl and Save the Children, two contrasting organizations. It begins by defining the types of businesses, ownership structures, and purposes of each entity, followed by an examination of their respective stakeholders and the impact they have on the organizations' objectives. The report then delves into the organizational structures of Lidl and Save the Children, comparing their approaches and how strategic planning assists them in fulfilling their purposes. Furthermore, the influence of economic, legal, political, and social factors on their activities is discussed, offering a holistic view of the challenges and opportunities they face. The analysis covers the role of stakeholders such as employees, consumers, suppliers, and managers. The report uses examples and contrasts to show the difference between a for-profit grocery chain and a non-profit NGO.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Type of business, ownership and purpose of two contrasting businesses............................1
P2 Different stakeholders who impacts on the purpose of two contrasting businesses..............3
TASK 2............................................................................................................................................4
P3 The way in which two businesses are organised...................................................................4
P4 The way strategic planning and organisational structure assists businesses to fulfil their
purposes.......................................................................................................................................5
TASK 3............................................................................................................................................6
P5 Influence of two contrasting economic environments on activities of business within firm.6
P6 The way legal, political and social factors are impacting on business activities of firm and
its Stakeholders...........................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment involves the combination of external and internal forces that
impacts on operating situation to company. It consist of factors like suppliers, customers,
competitors, owners, government activities, laws, improvement in technology, market, economic
and social trends. Managers of an organisation needs to keep in mind all those factors that can
influence operations and functioning of business. Consideration of these assists in formulating
effective strategies and policies that leads the firm towards growth & success (Cantwell,
Dunning and Lundan, 2010). In the present report, given organisation is Lidl which is a grocery
store of Germany and Save the Children which is an independent NGO. The report covers types
of business, ownership of two contrasting firms and its purpose. It also includes different
stakeholders who impact purpose of businesses and how these are organised. Apart from this, the
way in which style of organisation assist to fulfil its purposes and influence of 2 contrasting
economic environments on activities of business are defined. At last, the manner in which
political, social and legal factors influence activities of firm and its stakeholders are discussed in
this report.

TASK 1
P1 Type of business, ownership and purpose of two contrasting businesses
In current scenario, different types of businesses are there and each one have its distinct
ownership and purposes. Two firms which is selected are Lidl and Save for Children & both of
these are working in distinct areas. One is a leading grocery store of Germany and the another
one is an NGO which works for saving lives of children. Ownership, types and purposes of 2
different organisation are defined below:
Lidl
Lidl is the largest grocery retailer of Germany which was established in 1973. During
1990's, firm started to open its stores outside the country and today, its stores can be found in
every country in Europe (Cavalcante, Kesting and Ulhøi, 2011). Currently, the company has
around 10,000 outlets all across the Europe as well as United states. Lidl was established by
Dieter Schwarz who owns hyper market and Handelshof Kaufland stores chain. There are
approximately 3,15,000 employees are working with firm and offer high quality goods and
services to its customers. Today, the firm found in every country and is well established as major
European food retailer. The company takes pride in administering superior quality goods at
lowest possible prices to its potential customers across Europe. Their sales outlet are operated
through network of dedicated staff which helps in development and success of firm. Lidl will
constantly play main role in expedition of new markets place in Europe and beyond.
Purpose of Lidl:
 One of the major purpose of company is to earn high profits by offering high quality of
goods and services to its potential customers.
 To develop strong market position and acquire large portion of market share. To create large consumer base by maintaining good relation with them and retain them.
Ownership of Lidl:
Lidl is one of privately owned firm as it falls in category of private organisation. Dieter
Schwarz is the founder of company. It provides products to its target audience on reasonable
rates so that they can keep them for longer term (Chesbrough, 2010).
Save the Children
The company perform its activities and operations in around 120 countries. Its main objective is
to save lives of children and fight for their rights. It is a non profit organisation which was

formed in year 1919. Today, the firm comes under leading independent non governmental
organisation of children. Company works for children welfare and helps them in getting their
rights. The firm recruited and retained around 650,000 supporters and securing long standing
commitment of government to spend 0.7% of income on aid. It works to search practical and
innovative methods to get over from safety and thrive of children.
Purpose of Save the Children:
 To promotes children's rights, administers relief and assists support children in
developing nation. To improve lives of children by providing them better education, economic opportunities
and health care as well as rendering emergency aid to them in war, natural disaster and
other conflicts (Child and Möllering, 2013).
Ownership of Save the Children:
The firm comes under voluntary organisation and run for the major purpose of saving
lives of children. Many people of various countries works with Save the Children. These
countries administers healthy beginning to children of their life and also render opportunity to
them to learn and grow. A global network of NPO's supporting Save the Children International
and local partners in over 120 countries all over the world.
P2 Different stakeholders who impacts on the purpose of two contrasting businesses
Stakeholder are the persons (includes association of persons, body of individuals, any
other artificial person) that affect the organisation by participating in the business activities. They
have an interest in the organisation (Kaplan and Norton 2015). Apart from this there are various
kind of stakeholders are there like internal and external. Internal means employees, owner etc.
where as external includes suppliers, government entity, consumers, national and local
communities etc.. Stakeholders are the key elements of the organisations and they are
interconnected with each other. There are various stakeholders mention below:
Employees:They plays a very important role in the company. They are the key personnel
of the organisation without it the company would not able to stand. in LIDL focus on employees
benefits and training & development so, they can achieve their target effectively and efficiently.
And the main objective of the employees is to achieve the organisations goal to the individual
one.

Consumers: They want to purchase from the LIDL organisation because they provide
better quality of goods and services from other organisations. Interested consumer give their
suggestion regarding the new product which they demand from them and consumer also want
that the company make more better quality of product in exchange of money.
Suppliers:They love to provide the service to the LIDL because they give payment on
time so that the suppliers can easily earn profit. They are affect to the organisation because in
case if suppliers move out from organisation than they need to search another one and it will be
the difficult task for the organisation because they are the outsiders of the company and another
problem is that if in case they can't match with first one than firm get into the loss (Kian Chong,
Shafaghi and Leing Tan, 2011).
Managers: These are also the stakeholder because they are managing the entire thinks of
LIDL like salary of the employees, books of accounts, staff of the organisation etc..
Responsibility of the LIDL manager is that , they are conducting the training and development
programme to improve the skills of the employees. On other hand the manager of Save the
Children wants to improve the standard of the employees so they can achieve their targets easily.
The main objective of the business is to protect the children from harm.
The structure of both the organisation like LIDL and Save the Children is different and
both run their businesses very effectively. LIDL organisation work in super market and in other
hand Save the Children is work for non profit organisation but both need stakeholders because
without these we can't even imagine the business (Klapper, Lewin and Delgado, 2011).
TASK 2
P3 The way in which two businesses are organised
Every business has its own unique structure that is different from others and it is the
responsibility of top management to organise business activities in an systematic way. Each firm
has some goals and objective that make business grow.
Organisational Structure can be defined as how activities like coordination, supervision,
and task allocation are directed towards the goal of the organisation to achieve the desired result.
It determines how information flow from one level to another in an organisation.
Various type of organisational structure are:
Line organisational structure:-

Line organisation have only one directional flow of order i.e. vertical relationship
between different levels. Authority moves downward from top manger to its employee along
with chain of command (Klapper and Love, 2010).
Matrix organisational structure:-
In this structure the reporting relationship are set up in the form of matrix instead of
traditional hierarchy that means employees of the organisation have more than one boss and they
have to report to functional manager as well as product manager.
Functional organisational structure:-
In this structure organisation group its employees according to their area of
specialisation such as marketing, human resource, finance, IT and all the managers of these
group report directly to the CEO of company.
Project organisation structure:-
In project organisational structure groups of specialists from different functional area are
formed for specific period of time to achieve an specific goal or task and after the completion of
task they move back to their group.
Organisational structure of LIDL
LIDL follows hierarchical organisational structure in which peoples of top management
manages lower or middle level employees in an effective manner. Company allows its managing
directors to contribute toward the decision making process of firm. LIDL is an discounted
supermarket based in Germany (Lewis and Gates, 2015). Its main aim is to earn maximum profit
by providing better quality product to its consumer. Decisions are very crucial part for
organisational operations hence should be made through top management who are expertise and
having experience in that field of operation that help organisation to deal with several issues.
Save For Children Organisational Structure:-This company follows functional organisational
structure in which organisation divide group according to their specialised functional area.
Functional area of company are Finance and corporate services, Children and Family services,
Fundraising, publication, Human Resource department etc. Save For Children is spread
geographical to various countries which aid minimum fortunate. In addition to this, charity is run
by an Chair woman.
Functional area of LIDL

This firm includes various department of organisation like Human Resource Department
manages functions like organising training and development programs for the employees of other
department, hiring new peoples, payroll etc. Finance department which manages balance sheet,
P&L, invoices etc.
Functional area of Save For Children
In this Human resource manager handles invoices, performance management and
manages information necessary for businesses, fundraising department manages the fund that
have been raise from different regional area (Machuki and Aosa, 2011). The existing employees
tries to perform business operations using new methods to improve performance and provide
training to new employees.
P4 The way strategic planning and organisational structure assists businesses to fulfil their
purposes
Purposes and objectives of an organisation depend on type of business. LIDL is one of
the private firm and has around 10000 stores located everywhere throughout the world. It offers
numerous products and services to its target audience worldwide. It is essential that objectives
and aims of business should be clear and communicate to stakeholders in well manner. The
mission statement of company is to administer high quality of products to customers at
reasonable cost or price lower than their competitors. Authoritative structure of LIDL is
hierarchical as there are less people at top level of firm in order to manager lower level
individuals. It is more effective business firm and biggest grocery store chain. The administrators
of this association knows very well that how to oversee things in better way. Moreover, area
supervisor has more control on each individual. Store manager has composed charge bind that
licenses them to give particular requests to isolate exercise. It is necessary for management to
take decisions with their intelligence and right decision (Mahmood and Hanafi, 2013). It assists
manpower in performing activities and operations of firm in better manner as well as attaining
predetermined targets and objectives of company.
In case of Save the Children organization, it is organised and manage by group of
people. In this, all members of staff individuals can organised and also controlled with a specific
end goal to guarantee about the expected work to be controlled in a productive and powerful
way. The structure followed by firm is functional. It is compliment as correlation with the LIDL
association. All volunteers & funders speak with the general population in better way, offer

training to oversee and control exercises of firm viably. It is fundamental goal is to spare the
privileges of all kids in everywhere throughout the world. It is non-benefit association and works
for welfare of children. The people of this organization helps being developed of inspiration,
constructive culture and team spirit within company. It will be useful in make change in
efficiency alongside gainfulness of staff individuals and firms which is fundamental at any stage.
Under Save the Children association, there are substantial number of individuals who work with
the firm.
TASK 3
P5 Influence of two contrasting economic environments on activities of business within firm
There are some economic conditions that affects operations and activities of business
organisation (Tapscott and Caston, 2013). For all the companies, it is necessary for managers to
consider such economic factors in order to manage operations of firm in an effective and
efficient manner. Under this, to accomplish objectives and goals, there is a necessity to look
towards financial condition and furthermore different components which can influence Save the
Children & LIDL organizations. From a wide range of changes in economic condition, LIDL
organization is affected. It will come about in advancement, ripple effect and furthermore
recession. Likewise, there are different financial condition factors which can effect on business
exercises and these are employment, income, interest rate and numerous others (Teece, 2010).
Key impacts of causation of all these fundamental variables are employment, government and
suppliers. Some economic variables that affect activities of business are defined below:
Decrease cost of house: It is associated with credit crunch which caused deficiency of
the home loans being the paid need and furthermore be loaned.
Inflation: It made pay limited and furthermore restrict spending of people.
Customer confident: Under this, with the base salary and furthermore work less in an
economy can decrease certainty of shoppers. It influence contrarily on spending intensity of
workers in a superior way.
Recession in United Kingdom:
Recession is absolutely inverse of inflation in an economy of UK. At the season 2008 to
2013, the country United Kingdom is endured by more subsidence. So from this, banks could
offer advance to individuals. At that, joblessness rate was increasingly and the spending capacity

to customers was least. In United Kingdom nation, there are more than the 200000 of private
venture firms are shut and furthermore in excess of 8.7 million individuals lost their occupations.
It is weakness to organization. Also, it is essential that economy ought to be steady and in
business steadiness is the point at which the general population can make any sort of forecasts
for medium and here and now, in regards to requests of administrations alongside the items.
Business of Save for Children and Lidl was affected if on the off chance that there are changes in
a financial situation and furthermore these are subsidence, ripple effect and advancement. Also,
improvement is the point at which the vast number of products and services are produced and
consumed. If the economy of country is good then for this situation the spending intensity of
customers will be upgraded and individuals will ready to buy more items (Ullah and Lai, 2011).
P6 The way legal, political and social factors are impacting on business activities of firm and its
Stakeholders
Political, legal and social factors are included in external surroundings of business that influence
operations and activities as well as stakeholders of firm.
Factors Influence on business activities Influence on stakeholders
Legal: It is external
variable and under
this work and
customer enactment
influence in which the
LIDL association
work its business.
Likewise, there are a
portion of alternate
things which impact
through lawful
components like
legitimacy, net
revenue and so on.
Employment law-It demonstrates
that in what way staff individuals
ought to be dealt with. At work put
all representatives ought to be dealt
with in better way. On the off chance
that all workforce will be dealt with
similarly through director then it will
create positive effect on business.
Copyright: It is differed from
organization to organization. The
copyright is a privilege that are given
by government to inventor and no
other individual can utilize any
administration, item with of consent
of proprietor of organization.
Employment law- As per this,
rights of stakeholders are
protected in order to protect their
interest in firm.
Copyright-There is a necessity to
LIDL and Save the Children
associations to guarantee that
there won't insect copyright for
plan for anything.

Political The strategies and policies of each
nation are not the same as the each
other. Amid lead business in a
portion of alternate nations, it is
important for firms to think about
that specific nation other savvy it
will influence adversely on business
exercises.
Stakeholders should mindful
about the directions and political
steadiness of different nations. It
is an obligation of firms to work
as indicated by them other astute
it will create negative effect and
gainfulness will be decrease.
From this partners won't
appreciate business.
Social The tastes and inclinations of buyers
are changing information by day. It
is the duty of firm to deliver items
based on buyers requests. Other
insightful they won't buy results of
firm.
The firm ought not expand cost
of its administrations and items.
Cost ought to be more reasonable
through individuals. It will be
useful in pull in more individuals
and create positive picture in the
psyche of customers.
CONCLUSION
As per the above mentioned report, it has been concluded that business condition assumes
a fundamental part in accomplishing targets and in procedure of basic leadership. In given report
learned about the effect of two diverse monetary situations of associations on exercises alongside
tasks of firm. It is a duty of administrator of firm to dissect inside and outer the two factors
previously creating powerful hierarchical procedures. Legitimate, social and political elements
which are influencing on exercises of business and furthermore their partners has been talked
about in introduce report.