Comprehensive Analysis of Business Environment and Strategic Planning

This report provides a comprehensive analysis of the business environment, focusing on the different types and purposes of organizations, including public, private, and voluntary sectors. It examines the size and scope of various organizations and their legal structures, such as H&M and Cancer Research UK, while also exploring the interrelationships between organizational functions like marketing and sales. The report delves into the positive and negative impacts of the macro environment, utilizing tools like SWOT analysis to assess internal strengths, weaknesses, and external opportunities and threats. It includes case studies of H&M and Cancer Research UK, analyzing how internal factors interact with external elements like political and economic conditions, and how these factors influence decision-making processes. The conclusion emphasizes the importance of legal compliance, departmental coordination, and environmental awareness in achieving long-term organizational goals.

Business and
Business
Environment

Content
• Introduction
• Different types and purposes of organisations with their legal structures
• Size and scope of different types of organisations
• Organisational functions and their interrelationships with each other
• Identify the positive and negative impacts of macro environment.
• Conduct internal and external analysis of organisation by analysing strength and
weaknesses.
• Explain how strength and weaknesses interrelated with external factors.
• Conclusion
• References

Introduction
The business environment consists of all the internal and external
factors and forces that influence the business efficiency and
performance. They also affect the ability of business to build string
and long-term relations with their customers. These factors can be
either internal i.e. can be controlled and changed like employees,
board of directors etc. while there are also external factors which
cannot be changed or controlled but can only be dealt with by
changing the strategies and policies of business by the management
like political, economic factors etc.

TASK 1

Different types and purposes of
organisations with their legal structures
In an economy of the country different types of organisations work and
function so as to earn profits, contribute towards the GDP of the
country, provide opportunities to general public and provide
customers with the goods and services they need and want which
helps in growing and developing the economy of the country.

Public sector
The organisations belonging this sector are generally owned and
operated by the government and work towards providing welfare
services to the citizens.
Purpose : These organisations do not seek to earn profits but they
charge reasonable fees from the citizens for their successful
functioning and maintenance.
Example :Network Rail is an example of public sector organisation in
UK and is responsible for maintaining the infrastructure of most of
the railway network in Great Britain.

Private sector
These organisations are a part of economy and are sometimes also
called citizen sector as they are owned and operated by the
individuals or groups.
Purpose : They operate in the economy for earning huge amount of
profits by providing customers with the goods and services in
relation to their demands and play an important role in bringing
innovations in the market so that the unfulfilled demands of the
customers can be met and they can be provided with quality
products.

Voluntary Sector
Organisations belonging to this sector voluntarily take up the duty of
serving the society by providing them with goods and services that
can help in dealing with the problems of the citizens if the country.
Purpose : These are non-governmental and non-profit making
organisations which contributes greatly towards saving money of
the public sector and providing them with better services.

International business environment
There is growth in the development of international markets that has
led to increase in competition globally. This is because the
companies in order to earn more profits enter those markets where
the demand of customers are unfulfilled and the local businesses of
that country are either financially or technologically backward to
produce such goods and services to the customers.

Size and scope of different types of
organisations
H&M
Vision : The business operations
are aimed to run in a way that
is socially, economically and
environmentally sustainable.
Mission : Offer their customers
with fashionable and quality
clothing at best prices.

Continue…
Network rail
Vision : To deliver safe railway
services to citizens so that
their journey can be made
enjoyable.
Mission : To increase its
railway networks all across
the UK and provide safe
railway services to citizens.

Continue…
Cancer Research UK
Vision : To reduce the deaths of cancer
patients by developing advanced
therapies and techniques.
Mission : To spread awareness of how
people can reduce their risk of
developing cancer, reduce smoking
rates and improve early detection of
the disease.

TASK 2

Organisational functions and their
interrelationships with each other
Interrelationship between marketing and sales department :
Marketing helps in attracting customers and building strong and
long-term relations with them so that sales increase for the sales
department. Sales department on the other hand increases sales
which generates revenue for the company so that appropriate funds
are available for marketing department for market research.

Advantage and disadvantages of
interrelationships of organisational
functions
All the functions of an organisation depend on each other so that the
common goals and objectives of the organisation can be achieved.
These functions need to integrate and coordinate with each other so
that the information needed by one department to complete its task
can be provided by setting a link between them.

Organisational structures of public and
private organisations
Hierarchical organisational
structure : In this structure
people are organised in
hierarchy of departments and
the authority travels from top to
bottom. Network rail follows
this structure where the
information and instructions
pass through hierarchy structure.

Complexities of different types of business
structures
Different types of business structures creates various types of
complexities in the functioning of the business as the information
needs to flow in the set format of structure that is adopted by the
organisation. This hampers the decision-making process in the areas
where quick decisions are required.

TASK 3

Identify the positive and negative impacts of
macro environment.
The company Hennes & Mauritz uses macro environmental factors to
study the external elements and their effects on internal
management. It can be considered as follows:
Political factors: There are several factors which effects company at a
great extent due to the changes in political instabilities, parties and
country's government. As a global brand operated various number
of stores across the world, monitoring the political risk in important
for H&M. Also, high taxation rates leads towards the company
demotivation form maximising their profits.

TASK 4

Conduct internal and external analysis of
organisation by analysing strength and
weaknesses
Tool to conduct internal
analysis
Tool to conduct External
analysis

Continue…
SWOT of H&M:
Strengths:
• The company have strong global presence with the good brand
value or image.
• Customers are highly satisfied from the company's products and
prices which gives strengths.
• Financial performance of Hennes & Mauritz are strong enough to
perform the financial activities.

Continue…
SWOT of Cancer Research:
Strengths:
World class research along with the researcher team strong aids in
more awareness of cancer to public by reducing it in early stage.
The informative and interactive website is a strength of Cancer
Research where all things are revealed and made one of the most
trustable cancer research organisation.

Explain how strength and weaknesses
interrelated with external factors
Hennes & Mauritz
Political: Due to the political factor a company have strengthen in their
rules and regulations but change resistance is not done timely this
effect the company's operational functions and activities.
Economic: The company experience high growth ratio due to the
economical factor and helps in growing 10% sales at a high
potentiality when currency converted into Swedish.

Continue…
Cancer Research
Political: Political factor includes the involvement of political parties
which effect the company's operations. This is a strength for Cancer
Research that the company have strong political networking to
conduct research in appropriate manner.
Economic: Assailable to economic changes or fluctuations may creates
some difficulties and treated as a weakness for the Cancer Research.
Also, it changes or impacts on the funding procedure of company.

Justify the SWOT analysis to influence
decision-making
SWOT analysis allows businesses to identify the factors which
determine the actions, strategies which are used as a support of
taking business critical decisions. This is to enhance strengths that
are identified, overcome from weaknesses, capitalised on the
opportunities and converting threats into opportunities as well as
weaknesses into strengths.

Evaluation of micro and macro factors upon
business objectives and decision-making
Business environment includes the both factors in which micro
environmental forces includes competitors, suppliers, investors,
customers and so on as well as macro factors include political,
economic, social, technological, legal etc. These factors are impacts
on the organizations decision-making policies and procedures which
have significant impact upon the business success factor at a great
extent.

Conclusion
It has been concluded from the PPT that every organization has to be
followed legal rules and compliances which dominate in country's
operations. Coordination among all departments as well as internal
and external environment assists in accomplishing the long term
goals and objectives. Internal factors are in control of a business and
changes takes place accordingly.

References
Al-Mutairi, S., Connerton, I. and Dingwall, R., 2015. Food safety
organisations in Saudi Arabia–Organisational, historical and future
analysis. Food control .47. pp.478-486.
Calabrese, M. and et. al., 2018. From mechanical to cognitive view: The
changes of decision making in business environment. In Social
Dynamics in a Systems Perspective (pp. 223-240). Springer, Cham.
Gomes, J. and Romão, M., 2015. Enhancing Organisational Maturity with
Benefits Management. International Journal of Information
Technology Project Management (IJITPM) .6(4). pp.34-47.

Thank You