Business and Business Environment: Organisational Analysis Report

This report provides a comprehensive analysis of the business environment, examining various organisational types including public, private, and voluntary entities, with specific examples such as John Lewis Partnership, National Health Service, and British Heart Foundation. The report delves into the scope, legal basis, and size of these organisations, exploring their structures, functions, and interdepartmental relationships. Furthermore, it investigates the positive and negative impacts of macro-environmental factors, including political, economic, and social influences, on businesses. The report also includes a SWOT analysis of John Lewis and discusses the interrelation of strengths and weaknesses with macro factors, offering a detailed understanding of how businesses operate within their environment.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................4
LO 1.................................................................................................................................................4
P1 Assess the scope and legal basis of various types of organisation, including governmental,
private and voluntary..............................................................................................................4
................................................................................................................................................4
P2 Determine the scope and size of private, public and voluntary organisation....................5
LO 2.................................................................................................................................................7
P3 Explain the organisational structure and their functions in various department...............7
PART 2............................................................................................................................................8
LO 3.................................................................................................................................................8
P4 Positive and negative impact that affect the macro environment......................................8
LO 4...............................................................................................................................................10
P5 SWOT analysis of John Lewis........................................................................................10
P6 Interrelation of strength & weakness with macro factors..............................................11
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................14

INTRODUCTION
Business environment is defined as a sum of element such as internal and external
factors. This include customer, suppliers, change in technology, owners, fluctuation in demand
and supply and many more. These all elements have direct or indirect impact in organisation
which influence the business environment and situation in company (Rachidi and El Mohajir,
2021). In the report it include three types of organisation such as public, private and voluntary.
The public organisation include National Health Services where they have to provide better
service to their patients and British Health Foundation is taken as base company for voluntary
organisation and the main objective is to decline the death rate due to the heart and circulatory
disease. Moreover, John Lewis Partnership is taken as private organisation and they have
headquarter in United kingdom. There main aim is to provide high quality products or services
which help them to increase their profitability ratio and increase the productivity level in
organisation. This report also include organisation structure with functions interrelated to other
department and also the external and internal factors.

PART 1
LO 1
P1 Assess the scope and legal basis of various types of organisation, including governmental,
private and voluntary.
Private organisation: John Lewis Partnership is a private organisation and involves partnership
whereas head office is located in London, UK and so on. The company operate in retail industry
and deal in diversified products.
Purpose: The main purpose is to provide high quality products to customers at low rate
so they can satisfy and fulfil the requirement or demand and earn revenue. The second purpose
of John Lewis organisation is to motivate employees as they can enhance productivity level and
can maintain the position in retail industry(Nithya and Kiruthika, 2021).
Product and Services: They provide different types of product in market such as
clothing,furniture, banking services, financial services and other retail industry product.
Legal Structure: With reference to private organisation, the legal structure is followed by
higher authorities such as CEO and managing director. They take decision related to the
activities and rules or regulation which should be adopted by organisation and they communicate
all laws to employees because the decision taken by authorities impact the performance in
organisation.
Voluntary organisation: It is defined as an organisation where a group of individual
enter into an agreement and is not controlled by government whereas they have objective to
accomplish a common goal (Nielsen and Aagaard, 2021). British Health Foundation is taken as
voluntary organisation and located in United Kingdom.
Purpose: The purpose of selected organisation is to collect funds for research because
they are concern about circulatory and heart disease with risk factors involved in it.
Product and services: The company tries to collect fund to prevent and diagnosis for the
cause of heart and circulatory diseases. Due to this the charitable organisation are working on to
decrease the death rate from cardiovascular disease.
Legal structure: British Heart Foundation have to take decision relate to the laws and
regulation and this is taken by trustee of that charitable organisation. They take those decision
which are beneficial for patients, society and employees (Nehrey and Hnot, 2021).

Public organisation: This type of organisation is provide services to public and they are
operated and controlled by government (Nam and Bao Tram, 2021). National Health Service is
selected as organisation in this report. It is a public organisation for healthcare system and
situated in United Kingdom. Since from the year 1948 they are providing free health services to
those people who do not have ability to pay.
Purpose: The main purpose of the selected organisation is to give free delivery related to
the clinical need and health service except the service of dental care to the people who are
resident in UK. They give treatment and diagnosis them and ensure that they can improve the
health condition of their patient.
Product and services: They provide different services to individual resident in UK and
give free services to those people whose health and mental condition is not good.
Legal structure: In public organisation the decision is taken by both central and state
government and then those decision are adopted by the authority of National Health Service so
that it help employees to perform their activities in a systematic manner.
Legal structure
• Partnership: This strategy involves companies that include two or more employees so which
they include enough resources and expertise in the successful course of research. This firms with
which managing directors report and sign legal relationship agreements. Any shareholder
therefore defined organisational responsibilities, profits, roles and obligations.
• Sole ownership: another common type of private organisation with a wide range of activities
such as electricity, plumbing, cafeteria etc. They are companies that are started and managed by
individual persons to make adequate profit margin. This helps entrepreneurs to protect
themselves and keep their livelihoods adequately (Kim and Park, 2021). In this respect, quick
decision-making and individuals are ultimately responsible for any benefit or loss.
• Private Limited: This strategy includes an organisation where business people are liable for
organization and they operate and have decision-making authority for the corporation. Two types
of ownership are restricted by share or pledge. Thus, shareholders who are limited by share must
be obliged to pay interest in respect of their capital stock. In addition to this, citizens are obliged
to pay in accordance with guarantee.
P2 Determine the scope and size of private, public and voluntary organisation
Private organisation- John Lewis Partnership

Size and Scope: John Lewis Partnership offers various product and large in size and
produce high quality goods and services to customers. It is a retail industry and operate
worldwide and they are making their brand reputation by recruiting more talented candidates in
their stores whereas they have 83,000 employees working in their organisation. Recently in
2020, JLP has earn there revenue of 10.15 billion pound and net income of 146 million pound.
Vision and Mission: The vision of the selected organisation is to to motivate their staff
members so they produce the quality product. The mission of John lewis partnership is to inspire
and delight their customers by outstanding services and better quality food items as well as non-
food items (James, 2021).
Voluntary organisation: British Heart Foundation
Size and Scope: The British Heart Foundation scope is to improve the health of patients
which are suffered from diseases. They are many medical professionals that research to decrease
with death rate due to heart disease and this is the major concern for the organisation (Elali,
2021).
Vision and Mission: The vision is that they want that people do not die prematurely of
cardiovascular disease or heart disease. As they only develop strategies to do diagnosis,
treatment to cure their patients. The mission of British Health foundation is to fight against the
heart and circulatory disease problem so that people will not suffer from premature death of heart
disease and will not be a major problem in United Kingdom.
Public organisation- National Health Service
Size and Scope: The selected public organisation is operating in more than 7 countries
and recently they have stated that they are planning to provide their services in other countries.
Recently, they are 18,000 employees working in National Health Services and earn a revenue of
$540 billion in last year. They are now developing their strategies to employing the medical
professionals from 7000 to 14,000 employees till the year 2030.
Vision and Mission: The National Health Services aims to promote people's health, and
its goal is to provide customers with the best possible services.

LO 2
P3 Explain the organisational structure and their functions in various department
John Lewis follow the organisational structure where the activities are followed in
different department to achieve the objectives of organisation. In the activities it involve the roles
and responsibilities assign to employees according to skills and capabilities. Every organisation
have different department and from that perform their work effectively. In this structure the
information flow from top level to middle level, this help to delegate each employee work as per
their skills (DiMatteo, 2021). In context to John Lewis Partnership, is a British company and
provide various product and different services to customers. They are interrelated to with
different department to achieve the organisation objectives. The functions of organisation with
the interrelate of each department are mentioned below:
 Marketing and finance department: Marketing department of John Lewis Partnership
advertise their products to attract different customers in market to increase the sales and
profit. In the financial department they focus that there are fund available in organisation.
They ensure that there is cordial relation with other department so employees can put

their efforts to increase sales and earn high revenue (Laskari, Saxton-Fox and McKeon,
2020). Sales and marketing department: The sales department of John Lewis Partnership sell
the products to customers and then take feedback from that so they can improve the
product according to the need and demand of customers. This is main strategy of
company to enhance their productivity level and can provide satisfaction to customers.
On the other hand, marketing department develop the awareness for the goods or
services.
 Human resource and IT department: Human resource department is very important
department in organisation as they select and recruit the talented candidates. To enhance
the productivity level, for this they give training and development sessions to employees
and this also increases the motivation level of each employee in the company. The IT
department of John Lewis Partnership to maintain their records of goods or services they
check and update their software.
PART 2
LO 3
P4 Positive and negative impact that affect the macro environment
The organisation's positive and negative effects have a number of external factors: The
following:
Political Factor: It is the factor where there are many changes in rules and regulation, labour
laws and so on (Christa and Kristinae, 2021). In context to John Lewis, they operate in many
countries so if there is any changes in government policies or there any uncertainty in import or
export in any country where they operate so this will impact the sales and profit of organisation.
Positive impact: If the condition of politic is stable then John Lewis can gain profit and
have positive impact.
Negative impact: If there is varying in trade policies then there will negative impact and
affect the sales of organisation and performance of employees. Economic factor: There is inflation and deflation in rates then it lead to impact in profit
and sales of organisation. With reference to John Lewis, the economic factor of UK is
strong so company can earn more revenue and can remain competitive in market.

Positive impact: The positive to company is that there economic position is strong so they
can create job opportunities which will help organisation to produce goods or services.
Negative impact: In context to John Lewis, there is increase in cost and due to this
customer are shifting to their competitor then it will impact the sales and revenue of company.
Social factor:This factor includes the age, income and many other factors that directly impact
the profit of organisation (Cherunilam, 2021). The selected organisation have to sell product
according to the need and requirement of consumer in the market. They produce or manufacture
those goods which satisfy the consumer.
Positive factor: The positive impact is that they are producing the product as demanded
by customers and help them to build brand image.
Negative factor: Negative impact is when they are utilising the corporate social
responsibility activities. Technological factor: According to John Lewis, they adopt the changes in technology
which will positively impact the organisation and can gain competitive market.
Positive impact: The selected organisation provide the latest product by using the
changing technology which help them to attract customer.
Negative impact: If they have adopted the technology which produces high cost and
increase the inventory cost and impact the sales of company. Legal Factor:In context to John Lewis, they adopt the laws, rules and regulation so they
can take care the safety of employees in organisation.
Positive impact: The positive impact as they can motivate employees that leads to greater
efficiency in organisation.
Negative impact: They create problem because there are some legal restriction such as
regulatory actions or environment regulation and many more.
Environmental Factor:This factor explain that there are some responsibility of company
towards the society (Ābeltiņa and Rizhamadze, 2021). With the reference to John Lewis, they
produce those product which are safe for customers and fulfil the need of society.
Positive impact: They create positive environment which help them to attract their
customers for buying their products.

LO 4
P5 SWOT analysis of John Lewis
Strength Weaknesses
 One of the major strength of John
Lewis is it offer wide variety of
offerings that help company to attract
large number of customers and enhance
profitability as well.
 In addition to this, the company has
more than 35,000 skilled and talented
staff members who perform activities in
a proper manner and is one of the
reason of John Lewis higher growth as
well as success.
 It is determined that the price charge by
respective organisation is high as
compare to other supermarket that
might limit the target group and is
consider as weakness of company.
 Along with this, John Lewis lack
international presence that impact
negatively on its market share and
profitability as well.
Opportunities Threats
 The respective organisation has the
opportunity to offer healthy and organic
food as the demand of such products is
increase day by day that assist company
to attract large number of customers
and enhance its profitability level.
 John Lewis has the opportunity to enter
into new market and enhance its
international presence which impact
directly on its market share and
performance as well.
 It is analysed that respective company
is facing some legal issues that impact
negatively on its brand image.
 There are large number of competitors
such as TESCO, Sainsbury's and many
more that impact on its performance
and profitability level in a negative
manner.

P6 Interrelation of strength & weakness with macro factors
Basis Political Economical Social
Strength The administrator of
John Lewis follow all
the policies developed
by government as it
help in carrying out
activities smoothly and
properly as well.
The top management
of John Lewis pay fair
wages and
compensation to its
employees that
improve productivity
level of the company.
The respective
organisation focuses
on providing those
products as well as
services to customer
which fulfil the need of
customers prevailing
within the society.
Weakness It is analysed that
change within the
policies arose cost to
organisation and affect
on its performance in a
negative manner.
In the present time
period, economic
condition of UK is not
stable and impact on
the overall
performance of
respective
organisation.
It is analysed that
people nowadays is
highly concerned
towards their health
which is undertaken as
weakness for John
Lewis.
Basis Technological Environmental Legal
Strength John Lewis make use
of innovative and new
technologies that help
in attracting large
number of customers
and enhance
profitability of
company.
John Lewis make use
of eco-friendly
products that for
protecting the
environment in an
effective manner.
Organisation follow all
the policies and laws
that help in smooth
functioning of
activities without any
legal issues.
Weakness Change in technology
rapidly and implement
It is determined that
the company is facing
Change in the laws and
legislation arise

it arise a high cost to
company that leads to
decline in revenue of
company.
some environmental
issues that affect on its
brand image in a
negative manner.
problem within the
company and also
impact on its
performance level.

CONCLUSION
From the above discussion, it is concluded that business environment help the
organisation to enhance their performance and productivity level. Scope, purpose and size of
organisation is different from each other. The organisation uses PESTLE and SWOT analysis for
internal and external factors which can affect the organisation either directly or indirectly.
SWOT is used to identify the strength and weakness of organisation.

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