Business Environment: Organisation Analysis and External Impacts

This report provides a comprehensive analysis of the business environment, focusing on different types of organisations (public, private, and voluntary) and the impact of the external environment on their operations. It begins by explaining the purpose, characteristics, and legal structure of each organisation type, using Burberry, Dyson, and the British Red Cross Society as examples. The report then explores the relationship between various organisational functions, such as HR, marketing, production, R&D, finance, and IT, and how they link to organisational objectives and structure. Furthermore, it identifies the positive and negative impacts of the external environment on businesses, employing a PESTLE analysis to examine political, economic, social, technological, legal, and environmental factors affecting Dyson. The report also includes an internal and external analysis to identify the strengths and weaknesses of organisations and how these interrelate with macro factors, concluding with key findings and recommendations.

Business and Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Explain the different types of organisations with their purpose, characteristics and legal
structure..................................................................................................................................3
Explain the size and scope of different types of organisations..............................................5
TASK 2............................................................................................................................................7
The relationship between different organisational functions and how they link to
organisational objective and structure....................................................................................7
TASK 3............................................................................................................................................9
Identify the positive and negative impacts of the external environment upon business with
examples.................................................................................................................................9
TASK 4..........................................................................................................................................11
Conduct internal and external analysis of organisations in order to identify the strength and
weaknesses...........................................................................................................................11
How strength and weaknesses interrelate with macro factor...............................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business is the activity, which involve individual, two or more people and team with the
motive of generating profit and expand their business in the new market. It is the process of
selling goods and services and making money out of it. There are various factor which affect the
business environment, It includes the affect on consumer, supplier, government, competitors,
technology, legal environment and social culture. These all factors can be analysed by the
conducting PESTLE and SWOT analysis. (Zidar, and et. Al, 2016).It helps in measuring the
strengths, weaknesses, opportunities and threat for the business. There are three types of
business. Burberry is a public organisation taken in this report, Dyson is a private organisation
taken in this report and British red cross society is a voluntary organisation. This report will
cover the different types of organisation, characteristics and legal structure. It also explains the
relationship of various function in the organisation. Furthermore, It also explains the PESTLE
analysis of Dyson, which explain the impact of macro environment on the business.
TASK 1
Explain the different types of organisations with their purpose, characteristics and legal structure.
Business is the entity of selling goods and services in order to generate profit for the
business. It included people are engaged in doing operational activity with the motive of making
money and expand their market segment. There are different types of business that is discussed
below:
Public sector organisation
These are organisation which manufacture goods and services for general public with the
motive of contributing to the economy. These are the business which is executed and controlled
by government only. All the rules and polices are followed according to the government.
Purpose- Company is focusing providing exclusive product to their customer by follow
their four pillar product, communication, distribution and digitalization. It also focuses on
expanding their target market.
Example- Burberry.
Legal structure-

 Central government- These are the organisation which is regulated according to the
government rules and regulation. These organisation procure investment from tax, which
is paid by public.
 State government- These organisation is regulated by central and state government and
their control over an area is limited.
 Local government- These are the local communities, which regulate the organisation in
their own way and raised funds from taxes(Welsh, Kaciak and Shamah, 2018).
Private sector organisation
These are the organisation which is owned and controlled by its management only. There
is no interference of government bodies in the function and budgeting of the organisation.
Purpose- The purpose of this organisation to earn maximum profit and expand their
business to new market place. (Volberda and et. Al, 2018).The main motive is to earn money and
avail product according to current trends of the society.
Example- Dyson
Legal structure
 Sole proprietorship- The type of business, which is owned b the single owner and All
the profits and losses are managed by the owner itself. Owner is liable for their tax and
liability.
 Partnership- When two or more people come together with the motive of doing business
in fixed agreement of sharing profit and losses. All the business activities will done
according to the Partnership Act.
 Company- These are the business entities, which regulate their business with the
association of company act. This is a separate operation, which manufacture goods and
services.
Voluntary structure organisation
These are the organisation which is form a group of people or can be run by individual
for doing social welfare or contributing to the society.(Rossignoli and Lionzo, 2018).
Purpose- The main purpose of this organisation is to serve the society by doing charity and
social welfare.
Example- British red cross society
Legal structure

 Unincorporated organisation- These are the organisations, which is formed by group
of community and guarantee their services to the general public. (Puklavec, Oliveira and
Popovič, 2018).
 Trust- These are the organisation which work for social work and charity. They earn
trust of the general public for fulfilling their need.
Explain the size and scope of different types of organisations.
Different Sizes of Company
Micro: It is very small firm that includes one or two individuals who perform all the
activities of incorporation.
Small: In such type of company there are around 5 to 6 persons are involved to run the
business.
Medium : In this around 20 to 50 workers are present to perform the activity(Ngai and
et. Al, 2018).
Large: There are more than 50 employees are working in such type of organisation.
There are three types of companies are present the example of these are Public
organisation, private company and voluntary company.
Basis Burburry ( public
company)
Dyson( Private
company)
Voluntary( Oxfam )
Definition Public company is
such type of
organisation in which
government makes full
control.
As it is not listed in
any stock exchange.
The owner of the
company is individual
not government.
It is an organisation
which is established
for not for profit
making purpose.
Product & services The brand deal in
accessories, clothing,
handbags, footwear as
they serve high as well
as luxury products of
Air purifier, hair
straightener etc.
It works on gender
justice, reducing or
eliminating conflicts,
essential services
related to water &

the brand. sanitation.
Size More than 15000
peoples are engaged to
serve their service in
Burberry.
Dyson employed
around 18000
workforce all over
United Kingdom
Approximately
seventeen hundred
staff present in Oxfam
location.
Purpose The basic purpose
behind it to raise funds
from outsiders like
shareholders by
issuing equity &
preference share to the
audience. The
organisation in this
sector must be listed in
one or two stock
exchange.
To earn more & more
profit and provide
protection to personal
assets is their main
purpose. It makes
focus on tax cutting
also.
For social
development purpose
they serve their
service.
Mission To excite & inspire
huge audience at each
point of turn.
Provide aspects that
improve various
aspects for different
age of people
To inspire engineers of
new generation. With
the help of material,
money & mentorship
young generation
audience can get hands
on with problems and
also learn how to solve
them
create a future that is
secure by eliminating
injustice. The other
mission is to improve
the living standard of
poor people.
Vision To give a standard
against that its
competitor may be
measured and to care
for the community &
To provide cost
effective as well as
sustain product
responsive to the
needs of end users,
To make the world
without poverty and
treat all the citizens
equally without
making discrimination

environment. Also to
provide good working
environment to their
work force.
supporting growth of
its respective products
of consumer.
between them.
Objectives To develop sustainable
business with respect
to profitable growth,
consistency, to make
sure that act
responsibly in meeting
accountability to wider
shareholders and
stakeholder.
To design that type of
machines which runs
for long term approach
and not to get obsolete
in the near future. The
other aim is to
improve components,
shipping efficiency
and reducing energy
wastage.
Ensure to provide
equal rights and
opportunities to
women's, help people
to claim right for
better life. Another
objectives is to save
lives in future.
Scope Creative & districtive
service offer the
broader scope to
capture the large area
of market
Innovative towards
ultra efficient hand
dryers to make
promotion and sell to
around 49 countries
across the world and to
become leader in high
tech innovative
products in many
countries.
Support people to
claim their right for
better life.
Legal structure It is local government
based company
Partnership is their
structure.
It works as a Trust,
Society

TASK 2
The relationship between different organisational functions and how they link to organisational
objective and structure.
There are various function operated in the organisation for the successful running and
growth of the business. Each function have a important role in different department. All the
department is self regulated but some how is related to other department also. Dyson is global
company which offers wide range of products and for this company needs proper functioning
between the department and it explained as follows:
 Human resource and marketing- Human resources is the department which is
responsible for managing the manpower in the company by build god relationship with
the employees. HR is responsible for organising training and learning session for the
employees betterment. .(Malott, 2016).Marketing department is ,responsible for
advertising activities in the organisation. It is concern with the marketing strategies and
products and services can be reached to the potential customer. It is the department which
execute the sale of the organisation. Dyson is managing their department for the easy
flow of activities. These two department coordinate each other in such a way that HR
manager hire potential employees who can do best advertising and sale the product.
 Production and research&development- This is the department which is engaged in
production of goods and try to manufacture better quality goods at fair price. This also
engage in innovation and advance of their product to attract the target market. Research
and Development department is responsible for searching new ideas for their business to
generate higher sale by generating better production process. Dyson is manufacturing a
fine quality product and coordinating in the business. These two department come
together for the smooth running of business. Research and development department find
new ways of doing business with innovation ideas then production department implement
those ideas to manufacture modified product and expand their market segment.
 Finance and Information technology- This is the department which manages all the
money related aspects and the transaction is being made with the full control of this
department. (Keivanpour, Ait Kadi, and Mascle, 2017)The main motive of this
department is raising fund and budgeting in the organisation. IT department is
introducing a new ways of operations and It is responsible for managing technological

related task and errors in the business. Dyson is managing the financial budget and work
accordingly. These two department work together by doing budgeting according to the
new technology suggested by the Information technology for making better and advance
product for the growth of the business.
TASK 3
Identify the positive and negative impacts of the external environment upon business with
examples.
PESTLE analysis is the framework of measuring various factor (Political, Economical,
Social, Technological, Legal and Environmental) that affect the functionality of the business.
Through this analysis various aspect came to understand meet the customer demand with high
profitability of the business. The various factor that impacting the environment are follows:
 Political factor- These are the factors which includes government stability, taxation
policy, trade policy etc. (Hassan, 2016)..these are the factor in which government can
influence in the organisation . For example government may imposed tax that will affect
the entire process of the business.
 Economical factor- These are factors which includes interest rate, inflation rate, foreign
exchange , change in demand and supply These factors are determined by the economy
performance that is directly affecting the business and their operations. For example, If
thee is a inflation in the market then company have to face huge losses.
 Social factor- These are the factors which includes socio- culture aspect in the
environment. These directly impact the culture, share belied, values and religion of the
population. For example, If company is not concerning the individual values then it will
affect the business efficiency and profitability.
 Technological factor- These are the factor which in concern with the technological
changes or advancement in the business. These includes automation, technological
awareness, research and development in the organisation. For example, company is stick
to their product and not making any advancement in the product, it will affect the market
demand for the product and organisation will leads to decline.
 Legal factor- These are the factors which includes the laws and rules imposed by the
government. (Harrison, and et. Al, 2018).This includes consumer laws, labour laws and

safety in the work place. If any organisation is following strict code of conduct in rules
and regulation and doing business in a fair manner. It will help the organisation to build
strong brand image in the market and increase their market share.
 Environmental factor- These are the factors which is concern with saving the
environment. This includes pollution, global warming and using of non-renewable
sources in the production production. For example, If the organisation uses renewable
sources for production and use various medium for saving the environment that will help
in ecological factors.
PESTLE ANALYSIS OF Burberry:
Political factor
Positive Impact- this is the public organisation and It is easy for the organisation to cope
up with the government rules and regulation. (Harrington and et. al, 2019).
Negative factor- Government instability in the market due to different policies in the
different countries will effect the Burberry in their market growth and profit earning.
Economical factor-
Positive Impact- UK is the developed country and disposable income of the individual is
high, It will help in profitability of the company and increase wealth of the company.
Negative factor- There is a recession in the country and it will effect the purchase power
of the society, people are loosing their job and generate low income.
Social factor-
Positive Impact- Burberry is engaged in doing Corporate Social Responsibilities and
helping the society by providing jobs to the potential employees.
Negative factor- Different people have different choices and taste of wearing. It will
affect the sale of the organisation and also leads to shift of their customer to other brand.
Technological factor-
Positive Impact- Burberry is a leading company and It keeps on innovation and
manufacturing the product which are in demand an increase their sale.
Negative factor- these are the factors that impact the organisation by not doing
automation in their product and selling the old product in the market.
Legal factor-

Positive Impact- These are the factors which involve the legal aspects. Burberry is the
public organisation and is following all the rules and laws in order to maintain the good brand
image in the market and can increase their profitability.
Negative factor- company is working on global basis and it is very tough to follow all
the laws and rules of the different nations in order to grow in the business and leads to increase
dispute in the organisation.
Environmental factor-
Positive Impact- Company is organising various seminars and campaign for awareing
their management and the staff and company is using material by doing recycling.(Golicic, Flint
and Signori, 2017).
Negative factor- This is tough for the organisation to follow all the environmental law of
the different countries. This effect the productivity of the company and company will to decrease
its sale and profit.
TASK 4
Conduct internal and external analysis of organisations in order to identify the strength and
weaknesses.
SWOT analysis is the technique of measuring the various aspects of the business which
includes strength, weaknesses, opportunities and threat of the business and it will help in getting
proper outcome for the external factor.
SWOT analysis of Dyson:
Strength Weaknesses
1. Company is manufacturing a unique product
which can meet the customer needs and want.
It helps in building strong brand image in
market of the organisation.
2. The company is working on global basis and
having dept knowledge about the current
trends of the market and producing the product
1. Company is not opening their doors in rural
areas.
2. The price of the product is high and is not
afforded by everyone. This will leads to
decrease in sale of the company.

accordingly.
Opportunities Threats
1. company can expand their business in to
new market where there is a high of their
products.
2. Company can start online mode of business,
As people are much adopting the online
medium in the current scenario.
1. There is big competition in the market, that
is affecting the profitability of the Dyson,
which leads decrease in the growth of the
business.
2. changing trends and choices is the main
threat for the company.
How strength and weaknesses interrelate with macro factor.
Dyson is explained below:
 Political- There is a government instability in the UK and making policies in different
manner. This is the weakness for the Dyson that company is not bale to follow al the
polices.
 Economical- There is a recession in the country and of that income of the individual is
getting low and effecting the overall profitability of the business and act as the weakness
for the Dyson.
 Social- Company is doing corporate social responsibility by giving employment at large
scale and increasing the standard of living in the society. This is act as the strength of the
company.
 Technological- Dyson is manufacturing the product with the proper research of the
market. Company is offering products which in high demands and trends of the customer.
 Legal- It is the global organisation and this is very difficult to follow all the rules and
laws imposed by the government in order to increase the sale of the company.(Fan and et.
al 2016).
 Environmental- Dyson is manufacturing eco-friendly product and saving the
environment by not polluting it and organising various campaign for awaring employees
for saving environment.

CONCLUSION
This is concluded from the above report that business environment have major impact on
the business. For the smooth functioning of all the department, organisation needs complete
study on market. There are public private and voluntary organisation, which impacts the
business environment. There are different purpose of each organisation towards society. Each
department has their own importance in the running of the organization. Furthermore, Dyson is a
global organisation and working in large segment. There are various external factor which is
affecting the organisation. SWOT analysis is conducted to analysis the various uncertainties of
the environment.

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