Business and Business Environment Analysis of John Lewis Report

This report provides a comprehensive analysis of the business environment, focusing on John Lewis as a case study. It begins by examining the different types and purposes of organizations, particularly within the UK context, and explores the size and scope of various organizational structures, differentiating between for-profit, non-profit, and voluntary sectors. The report then delves into the relationships between various organizational functions such as marketing, human resources, finance, and operations, highlighting their interdependencies and their roles in achieving business objectives. Furthermore, it assesses the positive and negative impacts of the macro environment on business operations, providing an internal and external analysis of the company to identify its strengths and weaknesses and how these interrelate with external macro factors. The conclusion summarizes the key findings and offers insights into the strategic implications for John Lewis, demonstrating the importance of understanding the broader business environment for organizational success.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types and purposes of organisations......................................................................1
P2. Size and Scope of various types of organisations.................................................................3
TASK 2 .....................................................................................................................................5
P3. Relationship between different organisational functions......................................................5
P4. Positive and negative impacts of macro environment has upon business operations...........6
TASK 4............................................................................................................................................8
P5. Internal and external analysis of company to identify strengths and weaknesses................8
P6. Strengths and weaknesses interrelate with external macro factors for the chosen
organisation.................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment of modern world is filled with many internal and external factors
which can put both positive and negative impact on organisational functions (Business
Environment, 2018). Some of elements that can be mostly get affected are: employees,
customers, management, supply, demand and various business modulates. If company do not
takes care of these functions of firm then it is may be possible that business enterprise may not
hit their targets. Under this report, organisation that has been taken in order to understand the
business environment is John Lewis. It was found in 1864 and from then have introduced ample
number of products in all over world and carrying highest chain of departmental stores. This
assignment will show types, size, scope and purposes of different organisation in UK. Also,
strengths and weaknesses of macro elements which contains many pros and cons that can affect
operations of business.
TASK 1
P1. Different types and purposes of organisations
United Kingdom's business environment is carrying various sort of opportunities for
entrepreneurs and for business people who are already doing business. It has been analysed that,
after when Brexit took place where UK got evicted from European Union, government of this
nation has created various policies and these rules were carrying liberality (Bovee, 2010). This
actions influenced people to become entrepreneurs and business people so that economical
conditions can get influenced in an effective manner. On the other hand, it is being found that
there are various sort of scopes and size there organisations are carrying and some of these are
given below:
Basis of
Comparison
For Profit NPO NGO
Meaning Firms that delivers different
sort of services to
customers with the aim of
earning profit comes under
this section.
These firms deals in
different sections and
majorly delivers products
and services to customers
without keeping aim to
make profit or to earn
Organisations that
comes under this
section mostly works
as charity and provide
different things like
services and items
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money. without keeping aim to
earn money.
Area of
Operations
These firms can do business
at both large and small area.
These companies mostly
deals in different sections
and does business in a
larger area.
Firms under these does
business at both
domestic and
international level.
Objectives Aim of these companies
stays is to make high profit
through delivering products
to consumers according to
their requirements.
Promoting the art,
knowledge base
disciplines, mercantilism
stays main aim of these
firms.
Improve standards of
people of United
Kingdom.
Three major sections in which organisations have been distributed:
Public Sector- Different business bodies that are being run by government of UK comes
under this sector. British Broadcasting Corporation (BBC) is a good example of a governmental
body that deals in telecommunication section.
Purpose– There are many purpose these governmental bodies are carrying like
economical conditions, transportation system, building infrastructures, telecom in order to
improvise conditions of nation (Bryman and Bell, 2015).
Private Sector– Mostly, these firms are limited in nature and can be owned by common
people. John Lewis, which carrying good name in all over United Kingdom and have largest
chain of departmental stories can come under this section.
Purpose– Earning profit is being considered as the main aim of firms that comes under
this phase.
Voluntary Sector– Firms in this mostly deals in different sections and tries to develop
living standards of citizens of United Kingdom. Oxfam which is charitable trust which is
working in almost every city of UK. Government has also helped this firm in initial years of it.
Purpose– Improvise life of people, delivering appropriate services like health care, food
and employment to citizens of United Kingdom who are in need.
Legitimate Structure of the Sectors:
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Private Sector: Firm's owner can be anyone who is willing to open up his/her own
business. There are two type of firms that comes under this section.
Sole
Proprietorship
Single person who have owned a business firm can be known as sole
proprietors. Loss and profits are being faced and bear by this single
member only.
Partnership Business under this is being run by two or may be more partners where
ratio of profit and losses can get set through making a partnership deed.
Public Sector: Firms that are being run by governmental bodies comes in this section.
State Government Governmental body that develops policies and other rules which is for
improvising whole state of a country (Buckley and Casson, 2010). Like
developing a policy in order to deliver benefits to students of a particular
state. Health insurance policy for people of a singular state.
Neighbourhood
(local) government
Bodies of government takes orders from state government where they
does activities in order to improvise day to day life of citizens of United
Kingdom.
P2. Size and Scope of various types of organisations
After when Brexit took place it has been analysed that United Kingdom's government
have taken full of responsibility for business organisation who were carrying different size,
scopes and other things. A fresh business environment, every firm looks forward to have because
that area stays liberal for a longer period of time where any firm can earn profit as much as they
want. United Kingdom in some recent years carried the same sort of environment that influenced
many entrepreneurs and business man to do business in UK. This action developed the
economical conditions of United Kingdom in a short period of time and also it is continuously
putting positive impact as well on the same. UK's government have made a deed which clearly
showed that companies that are carrying different sizes along with scopes, mostly comes under
three major sections (Kang, Lee and Kim, 2010). These are given beneath:
Private Sector organisations– Companies in this sector can be owned by any person
(Common people). Therefore, it has been analysed that most of employment in United Kingdom
is raised by firms that are coming in this sub section. John Lewis which is a multinational
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departmental brand comes under this sector which carries an aim of developing economical
conditions along with making high range of profit as well. Government have set requirements of
this sector which a company should have in order to comes under this section and these are:
 Around two employees company should have in order to come in this section. A company can carry may employees as much as they want according to the operations
which has been done by them.
The size of John Lewis:
 More than 50 shops in all over United Kingdom and they are big in nature.
 Around 39,000 staff members are being recruited John Lewis in order to better serve to
consumers.
Public Sector companies– Under this section, both the things like scope along with size
can be stated as properties and this depends on purpose of business which is being done by
government (Kian Chong, Shafaghi and Leing Tan, 2011). Along with this, organisations that are
coming under this section carries various joint ventures as well. Under this size and scope is
given beneath:
 Company should have have at-least 7 employees. According to the operations governmental bodies decides about employees that these
companies should have.
The size of BBC:
 This firm is having around 30,000 employees.
 It is parental company of different firms and have generated £-129.1 million as net
income in the year of 2017.
Voluntary Sector– Companies who delivers products and services and other facilities
like health care, finance to needy people and other responsibilities comes under Voluntary sub
section. It has been examined that these firms mostly have support from government of United
Kingdom. Oxfam which is one of big charitable firm that delivers its services to people and
organises events in order to bring awareness among citizens of UK comes under this sub sections
(Klapper, Lewin and Delgado, 2011).
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Objectives differentiation:
Micro Small Medium Large
Firms that for the most
part creates income
keeping in mind the
end goal to survive
goes under this
segment like: little
outlets, shops etcetera.
Associations under
this segment bargains
in various zones and
endeavours to convey
items and
administrations to
clients so that to gain
cash. Like:
consultancy firm
which is having almost
10 to 50
representatives.
Organizations which is
working together at
residential level and
putting endeavours so
that to extension
should be possible and
business can get
prompt worldwide
market.
John Lewis expressed
as firms that are
working together at
worldwide level. These
organizations under
this sub segment
conveys fundamental
point and single
rationale is to win
benefit.
TASK 2
P3. Relationship between different organisational functions
In modern world, effective interrelation among different departments and functions of
business organisation plays vital role. This may lead business firms in attaining specific short
and long term goals and objectives of companies right on time. On the other hand, it has been
located that, John lewis is carrying a good name in all over world but when it comes to run
business in a successful manner it becomes vital for companies to have good relations among
managers and leaders of sub sections like financial, research and development, marketing and
production and many more (Klapper and Love, 2010). These are organisational functions and are
given beneath:
Marketing: This can be considered as one of main organisational functions that can take
company to hit their targets. On the other hand, it has also been analysed that objectives of
business firms can only be accomplished if they will take this element as major one. Because
marketing section of organisation stays connected to the ground floor and carries all the
information which is related to customers needs and trends. John Lewis is looking forward to
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enhance their sales. Therefore, marketing section will give information to operational department
which will then modify products according to their requirements.
Human resources: If this department which is a function of organisation will not stay
effective then it is may be possible that firm may not attain their goals and objectives. Apart from
this, if it will be effective in nature then sales of John Lewis can be increased. Human resource
mostly delivers training and fills vacant seats with talented candidates. This action can help in
enhancing sales of John Lewis.
Finance: John Lewis which is a multinational brand and doing in business in almost
every state of United Kingdom. It has been located that, this organisational function plays an
important role when it comes to meet desired goals and objectives. If funds will not stay
appropriate like liquidity then it is may be possible that firm may not execute plans right on time.
Operation: Another major organisational function in which modifications are being
made in products and services as per necessity in order to enhance sales. John Lewis if wants to
attain desired goals then it is required for firm to keep on looking into different aspects that can
put this function in risk. All the market trends can get affect profit margins and sales of a
company (Machuki and Aosa, 2011).
Therefore, it is much required for John Lewis to keep an appropriate interconnection
among different functions of organisation. Through this, goals and objectives of company can
easily be met in specific time of period.
P4. Positive and negative impacts of macro environment has upon business operations
Macro environment is filled with various factors that can put positive and negative
impact on business firms. In order to understand the macro environment, PESTLE analysis is
being done of John Lewis and these are given beneath:
Political factors: Policies which is being formulated by government of United Kingdom
influenced working of business firms that are coming in this nation. Positive impact: Pricing of goods and items can be done with the help of policies that has
been developed by governmental bodies of United Kingdom.
 Negative impact: Change in policies at every single month can be termed as major issues
which can be faced by business firms.
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Economic factor: Consumers pocket, economical conditions of nation, GDP and foreign
exchange rates are being considered as some major materials that are coming in this factor which
mostly affects business of different firms (Mahmood and Hanafi, 2013). Positive impact: Economical conditions of a country will stay strong then high number of
customers will purchase good and services.
 Negative impact: Recession can be termed as major issue that can mostly affect sales of
John Lewis.
Social factors: Corporate social responsibilities is an activity that can be taken under in
use by organisations in order to develop good perception of customers. Positive impact: Long term relation can be made by John Lewis through developing a
proper plan where CSR activities took place.
 Negative impact: Reputation of company is highly depends upon the products that are
manufactured by them them. Therefore, if commodities are not produced according to the
choices and preferences of customers that it can have a negative impact on company.
Technological factors: With the change in course of time, many new technologies have
evolved which are helping company and humans in performing their task in a better manner. In
context with John Lewis, they are using these new technologies for manufacturing goods in an
effective manner. Its positive and negative impact are explained below: Positive impact: In this category, it helps firm in making changes and alteration in their
existing products so that it can add value to its products (Ullah and Lai, 2011). Negative impact: Implementing new technology, can be quite expensive therefore, it is
required for John Lewis to look into different aspects in a proper way in order to reduce
unnecessary expenses.
Legal factor: Laws which has been built by Government needs to be properly understood
and applied at workplace. These can put both negative and positive impact on business of John
Lewis. Positive impact: Working with considering all laws as major ones that may help John
Lewis in hitting their targets. Negative impact: Company's reputation can be reduced, if they are not following laws.
Environmental effect: Global Warming comes under atmosphere of United Kingdom,
this element can affect profit and sales of companies (Welford, 2013).
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 Positive impact: Eco-friendly goods and services can help John Lewis in enhancing sales
of products and services.
 Negative impact: Cutting of trees in order to build up a structure is being considered as
major negative effect.
TASK 4
P5. Internal and external analysis of company to identify strengths and weaknesses
It has been analysed that, both external and internal factors are present in business world
which can put impact on business of John Lewis. This includes various things like marketing
schemes, market places, sales, brand image are some major elements of John Lewis which can
put both positive and negative impact on business organisations. SWOT analysis of John Lewis
is done below:
STRENGTHS WEAKNESS
 High brand image along with online
presences.
 Employment relations at workstation of
John Lewis is high in nature (Werther
and Chandler, 2010).
 39,000 staff members who are
delivering services 24*7 to consumers.
 Zero market presence at international
level.
 Less effective marketing policies that
has been developed by leaders of it.
 Less competitive advantages.
OPPORTUNITIES THREAT
 Expansion of business at international
market with considering globalisation
process as major part.
 Innovation of various unique selling
products and services according to
needs of customers.
 Failure in new markets because of
cultural variations.
 Cash flow issues.
 Rise in competition.
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P6. Strengths and weaknesses interrelate with external macro factors for the chosen organisation
Smaller scale and large scale condition factors are broke down by administration of John
Lewis to break down relationship of segments with each other (Wild, Wild and Han, 2014).
PESTEL investigation is fitting system utilized by better than have finish data about market
circumstances. This assistance organization to recognize qualities and shortcomings for
influencing framework to work viably.
Political: This is basic factor which effect on development of business tasks. Government
outline guidelines and directions which require to be taken after and overseen by organization of
John Lewis to set up great position and picture in UK.
Strengths: Every country have diverse lawful groups, John Lewis pays tax collection and
administration have planned arrangements to influence framework to work legitimately.
Weaknesses: John Lewis has branches in various countries which impacts on business
which require to work in regard to government. This makes administration undertakings mind
boggling and troublesome (Bovee, 2010).
Economical: Interest rate, conversion scale and expansion are different segments which
are controlled by government on premise of conditions and condition of economy. This effects
on import and fare of John Lewis, which rely upon advertise circumstance of UK with other
country.
Strengths: John Lewis has solid market reach and client base, as there is swelling in UK
which assist individuals with having satisfactory salary to buy things in regard to their taste and
inclinations.
Weaknesses: Interest rate in high in UK which decide on measure of assets accessible
with John Lewis.
Social: Demographics, hard working attitude, way of life patterns etcetera are parts which
rely on deals and benefit of John Lewis.
Strengths: Research and improvement causes John Lewis to have finish data about
market slants and give things as needs be.
Weaknesses: Customer's taste and inclinations continues changing with time, this effects
on deals and productivity of John Lewis.
Technological: John Lewis utilizes most recent apparatuses and strategies which enable
firm to convey most recent items and use assets effectively.
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Strengths: John Lewis has solid market picture and altruism which is because of popular
things gave to clients.
Weaknesses: John Lewis require to roll out improvements in apparatuses and
advancements which impacts on business and assets (Bryman and Bell, 2015).
CONCLUSION
From above mentioned report, it is being concluded that business environment contains
both internal and external elements which carries a rapid changing nature. The alterations can put
both negative and positive impact on running business in successful manner. Away from this, it
has been located that, both of these elements needs to be looked upon in a proper way. Through
this only benefits can be raised right on time. With the help of this, firms can hit their targets in
much effective and in proper way as well.
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REFERENCES
Books and Journals
Bovee, C. L., 2010. Business Communication Today, 10/e. Pearson Education India.
Bryman, A. and Bell, E., 2015.Business research methods. Oxford University Press, USA.
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Enterprise Revisited (pp. 147-176).
Kang, D., Lee, J. and Kim, K., 2010. Alignment of Business Enterprise Architectures using fact-
based ontologies.Expert Systems with Applications. 37(4). pp.3274-3283.
Kian Chong, W., Shafaghi, M. and Leing Tan, B., 2011. Development of a business-to-business
critical success factors (B2B CSFs) framework for Chinese SMEs.Marketing
Intelligence & Planning.29(5). pp.517-533.
Klapper, L., Lewin, A. and Delgado, J. M. Q., 2011. The impact of the business environment on
the business creation process. InEntrepreneurship and Economic Development(pp. 108-
123). Palgrave Macmillan UK..
Klapper, L. F. and Love, I., 2010. The impact of business environment reforms on new firm
registration.
Machuki, V. N. and Aosa, E., 2011. The influence of the external environment on the
performance of publicly quoted companies in Kenya.Prime Journals, Business
Administration and Management (BAM).1(7). pp.205-218.
Mahmood, R. and Hanafi, N., 2013. Entrepreneurial orientation and business performance of
women-owned small and medium enterprises in malaysia: competitive advantage as a
mediator.International Journal of Business and Social Science. 4(1).
Ullah, A. and Lai, R., 2011. Modeling business goal for business/IT alignment using
requirements engineering.Journal of Computer Information Systems. 51(3). pp.21-28.
Welford, R., 2013.Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
Werther Jr, W. B. and Chandler, D., 2010.Strategic corporate social responsibility: Stakeholders
in a global environment. Sage publications.
Wild, J., Wild, K. L. and Han, J. C., 2014.International business. Pearson Education Limited.
Online
Business Environment. 2018. [Online]. Available
through:<https://www.slideshare.net/NikhilSoares/business-environment-
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