Business and Business Environment: Analysis Report - Semester 1

This report delves into the dynamic world of the business environment, examining various organizational types such as private, public, and voluntary firms, and their respective sizes and scopes. It explores the interrelationships between organizational functions like marketing, finance, production, HR, and R&D, and their impact on company objectives, using Amazon, Asda, and the NHS as examples. The report further identifies positive and negative impacts of the macro environment using PESTEL analysis, and conducts internal and external analyses to determine strengths and weaknesses. It also demonstrates how these strengths and weaknesses interact with external macro factors, providing a comprehensive understanding of business operations and strategic development. The analysis highlights the significance of adapting to environmental changes for sustainable business growth.

Business and Business
Environment

TABLE OF CONTENT
INTRODUCTION......................................................................................................................3
LO1............................................................................................................................................3
P1 Types and purposes of organisations................................................................................3
P2 size and scope of various types of organisations...............................................................5
LO2............................................................................................................................................6
P3 Interrelationships between various organisations functions and their linkage to company
objectives................................................................................................................................6
LO3............................................................................................................................................8
P4 Identifying positive and negative impacts of macro environment has upon ventures
operations...............................................................................................................................8
LO 4.........................................................................................................................................11
P5 Conducting internal and external analysis of specific companies to determine strengths
and weaknesses.....................................................................................................................11
P6-Presenting how strength and weakness interrelate with external macro factors.............14
CONCLUSION........................................................................................................................16
REFRENCES...........................................................................................................................17

INTRODUCTION
Globally business environment has specific role to play for dynamic competitive
fundamental growth, best innovative productive functional expansion and wider range of
products and services. Report will be conducting in depth working analysis towards strategic
diversity, examples of various organisations operating within global parameters. The report
will be conducting varied scale in depth analysis towards types and purposes among
organisations, with focus towards size and scope which play crucial role for commercial
competitive functional growth. Further, study will analyse how interrelationship within
various departments have strong impact on business long term parameters and goals towards
attaining best quality benchmarks. The report will also further connect research aspects
towards internal and external business factors, where business models will enable complete
research for strengthening corporate growth towards untapped scenarios. Furthermore, it can
be understood that research will also conduct focus towards competitive interrelationships
between internal and external factors for higher specific growth rise.
LO1
P1 Types and purposes of organisations
There are various types of organisations which can be divided into basis of their
fundamental purposes, size and structure for overall growth towards keeping up best
affirmed growth scenario. Today’s fast pacing competitive business word, companies are
taking shape either in form of public company, private company and voluntary firms which
can be further analysed as follows (Cohendet, Parmentier and Simon, 2017).
Private company- The private enterprises are known for varied scale functional capital
structure, with high innovative business products and services coming under business

paradigms which determine long term revenue targets profoundly. Private firm example can
be analysed where shares and capital are owned by the company shareholders, where
securities are not listed on share stock exchange market. Amazon is one of the biggest private
firm whose products and services are globally renowned for high scale competitive
infrastructure, new determinants of affirmed structural diversification. The private company
is also globally renowned for its wide scale expansion among new varied range of digital
businesses, high standards of competent services and also ranging specific functional goals
specifically. Private company are based on internal shareholders working decisions, were
they have main power to bring on new scale decisions and also bring on impactful decisions
for varied scale business targets profoundly.
Public company: The public companies on other hand are large structured firms with high
scale capital structure, where shares are published on stock exchange market for people to
invest in. However the public company do not offer any right to take qany active decisions in
specific decision making role for the shareholders, external investors are not included while
decision making aspects which is an essential point to focus on (Arko-Achemfuor, 2019).
Asda, is one of the biggest public retail company whose shares are open for people to invest
in, where the company offers wide range of products and services globally for varied scale
customer targets. The firm is also well renowned which further enables brand goodwill to
fundamentally rise, as pet varied scale functional avenues targets and string varied scale
diversity paradigms. Public companies listing on share stock exchange market makes it one
of the most essential aspect, which further enables brands to specifically boost up capital
structure actively and also conduct diversification (Mawuli. and Yala, 2019).
Voluntary company: The voluntary firms are charity companies, non for profits and global
social welfare organisation who are formed with strong purpose to bring on varied scale
functional change, higher social standards within society NHS is National Health service is
the publicly funded healthcare system in Uk, which is second largest voluntary healthcare
organisations known for wide range of social well fare services. The purpose behind
voluntary companies are not based on profits, to gain capital expansion and revenue rise but
to welcome new change within living standards of people. There are no shareholders
involved in this type of organisations, as compared to public or private companies where size
and scope is also fundamentally limited for keeping up competent scale working goals
towards services.

From the above analysis it can be concluded that public companies are based on open
investments from wide range of shareholders, who come in for bringing on effective rise
within brand value development. Private companies on other hand have limited capital and
are operated by internal shareholders, where voluntary companies on other hand have limited
functional scope (Crowley and Jordan,2017).
P2 size and scope of various types of organisations
Sixe and scope of various organisations further bring on in depth focus towards
business scale competencies, strategies for workforce expansion and also to bring on wide
range of overall productive growth. Further, analysis of private and public companies,
voluntary companies will enable us to get functional diversified knowledge of effective
business strategies (10 Differences Between a Public Company and a Private Company,
2020).
The size and scope of various types of organisations can be understood as one of the
most essential aspect which further enables business framework to be analysed, specifically
bring on diversification within its effectiveness. Private company Amazon is worlds largest
retailer offering varied best quality ecommerce services and products, to all people globally
where the brand is known for best innovation. Amazon size and scope explains it has build
huge brand value in global market within competitive e commerce market, where there are
varied scale functional parameters focused on. The company owns 47% of market share
which makes e commerce giant as one of the most successful repudiated brand, and its recent
revenue generation shows around 1,400 billion$ within year of 2020. Amazon market of is of
around 1.7 trillion $ which makes it one of the top ranked ecommerce company, and also one
of the most diversified innovative brand within global parameters. Company has been
successful in bringing new range of competent productive services for wide range of
customers globally, also private retailer is known for its best yielding competitive functional
leadership.
The size and scope of another example in public company, Asda enables us to explain
that purpose of public company within business operational domains are variedly different
from private companies. Asda is one of the biggest oldest retailer company involved in
grocery items, general financial services and is known as Britain lowest priced supermarket
which is main promotional activity. There are around 632 locations stores, In UK and various
other international countries, where it employs 1,65,000 people making it one of the largest e

commerce company having high scale commercial functional scope. Revenue is around 22,
899.2 million till year 2020 which shows high scale competent working efficacy parameters
towards working domains. Asda is also one of the best known because of varied scale
business targets within commercial business arenas, where investments are further
synchronised towards attaining competitive functional scope. Asda as public retailer is also
known for shares being open for trading among people, where company has been effectively
expanding among working parameters to functionally bring on competent scale functional
innovation (Devine, Molina‐Sieiro and Terjesen, 2019).
The NHS, voluntary organisation scope is based on charity services for supporting
disabled people and families within society and creating specific scale transformation by
varied scale not for profit services. The aim is to create society awareness, changes in attitude
and influence government policy aspects by further leveraging advanced scale parameters.
The organisation has around 112,031 doctors and ar 311,380 qualified nursing staff where
NHS total workforce makes it one of the most widely large voluntary organisation. Scope of
NHS, England is main body that oversees healthcare which is an independent body, where it
is responsible for effective system of CCGs and must provide support for commissioning.
The wide range of diverse services offered by NHS in healthcare makes it one of the widely
analysed globally renowned healthcare voluntary organisation, having competent scope and
determined scale functional targets. The NHS core values are based on working with patients
with high scale respect, dignity, commitment for quality standards and improving lives where
there is not bias done. It can be analysed that voluntary organisation productive services are
based on communicative scale services functionally, higher range of diversified competent
domains which has enhanced vision oriented expansion (Massaro , Moro and Fink, 2019).
LO2
P3 Interrelationships between various organisations functions and their linkage to company
objectives
The interrelationship between various organisations functions has strong impact on
fundamental scale operations within linkage to company long term business objectives and
long term parameters (Gaskins, 2019). Interrelationship of various functions can be further
diversified for bringing on in depth analysis, growth fundamentally towards untapped
domains and to imperatively bring on expansion profoundly.

 Marketing and sales department: Amazon marketing and sales department are
widely correlated with each other based on specific scale competent diversity, for
higher effective best promotional factors. The sales and marketing department, are
based on varied scale expertise for higher scale connective business goals which
further connects towards best marketing domains. Marketing, sales department
correlation has been informatively expanding to bring on dynamic working growth
competencies fundamentally towards shaping long term attained goals.
 Finance and production department: The company both finance and production
department are widely interrelated to each other, based on finance operative
functional goals and stronger range of performance rise. Amazon production
department in correlation with finance departments , aims to bring on best competent
scale products and technologies resources for varied scale performance rise. Finance
department has role to further bring on production tools shape, new scale working
innovation and higher scale expertise as per performance quality benchmarks towards
gaining best production. Amazon uses best competent diversification within finance,
production department within business scenarios towards imperative scope for
keeping up best functional targets active.
 Production and Research & development department: Interrelationship between
production, research and development department is to bring on best latest innovative
technologies under business standards at Amazon (Kgoroeadira, Burke and van Stel,
2019 ). The functional scale growth towards new production standards are suggested
by R&D department to bring on new scale functional scope for bringing higher
revenue competence. Amazon is known for best productive research within E
commerce services, to encompass varied high range of innovation and also to promote
new diversity paradigms profoundly. Interrelationship heads on specific focus for
bringing long term profitability goals in shape, best revenue benchmarks and also to
avail wider determinants actively.
 HR and marketing department: The correlation and higher specific interrelationship
between HR and marketing functions department is to bring on best skilled employees
who are trained, competitively towards best marketing aspects. HR at Amazon mainly
focus to empower best talented skilled employees within business services for varied
scale functional domains, under marketing department. The marketing and HR
departments are also widely correlated to bring on varied scale functional rapid
growth, bring on best promotion skills within digital platforms. Further also Amazon

has best digital networks where HR makes it optimum priority to recruit best talented
skilled employees and also bring on diversified determinants.
From the above analysis, it can be concluded that interrelationship with various
functional departments plays strong crucial role for gaining stronger range of performance
rise, technical innovation profoundly. Amazon has best e-commerce online services where
customers have been served with best commercial scale functional business strategies for
imperative innovation. The brand overall value rise is widely connected to well interrelated
growth towards productive diversification within business roles, trained workforce and
strategic resources implementation (Guy, 2019).
LO3
P4 Identifying positive and negative impacts of macro environment has upon ventures
operations
In order to determine the factors that has impacted business operations in negative and
positive manner, here PESTEL analysis model is utilized in the context of ASDA as public
company and Amazon as private organization.
Macro environmental
factors
ASDA Amazon
Political factors Political stability in the UK put
positive impact on business
operations of this company as it
allows firm to expand their
venture into profitable market,
which in return increase sales
and enhance operational
efficiency (What is PESTLE
Analysis? An Important
Business Analysis Tool, 2021).
While Fluctuation in any kind
of political factors may impact
negatively upon business
operations that company has
As Amazon has operated their
business across many nations, it
may be affected by political
storms in each destination. For
example, it has criticized by
Bernie Sanders, Archbishop of
Canterbury and Donald trump.
Its operations also affected when
fluctuations occurs in any
political factor, which affect
overall venture into negative
manner.

been conducted in varied
nations.
Economic factors In recent time due to pandemic,
economic growth within every
nation has lower down, which
in return put negative impact on
ASDA operations as it
decreases sales. Many people
lose their jobs that made them
unable to purchase good
products from well-known
brands. Low economic growth
is not a good sign for company
as it affects its productivity and
profitability.
Low economic stability in
nations where Amazon has
operated has impacted upon its
business operations, in term of
decreasing sales, less product
supply and minimum orders from
customer’s side. Because of
COVID-19, frequent financial
crises emerge that affect
economic stability, which
directly impact organizations
operations such as Amazon that
is not acceptable at all.
Social factors Market trend put positive
impact on operations of ASDA.
For example, due to pandemic
instead of taking steps out of
home, people prefer to shop
online especially in grocery
matters, which is quite safe for
them and allow to stay away
from many people. This factor
affect positively because firm
has provided home delivery
services to each buyer, which
increase sales and manage
productivity.
Changing behavior of consumers
drives the sales of Amazon
higher, as they prefer to buy
everything from grocery to
clothing via online, which impact
positively upon operations of its
business. It allows company to
operate in more areas where
people demand related to online
delivery get emerge and their
buying habits has changed.
Technology factors Digital revolution as a
technology factor, put positive
impact on production and
consumption of company, it
allows firm to use different
Cyber security as an advanced
technology put positive impact
on supply chain and other
operations of Amazon. It helps
organization to protect their data

technologies in the context of
product production or supply,
which in return increase
productivity, profitability and
revenues, more than its rivals.
Along with this, emerging
digital marketing tools put
positive impact on marketing
operation of supermarket, as it
make marketing team able to
reach at international buyers by
using the most influencing
social media site or channel.
and essential information about
workers and employees as well
from malicious attacks. It permit
firm to secure personal
information of their buyers and
suppliers, which build strong
relation between both of them as
it impact product delivery
process positively.
Environmental
factors
Environmental issues as an
external factor put positive
impact on operations of ASDA,
in term of driving its attention
towards conducting CSR
practices which in return
increase sales and profits
margin. When company
conduct corporate social
responsibility, it may grab the
attention of profitable buyers
who seek to buy goods from
those companies who attempts
to reduce their carbon footprint.
Increasing popularity of low
carbon lifestyles, also put
positive impact on business
operations of Amazon. It makes
company able to build its strong
brand image in market, by
reducing their carbon footprint
and taking initiative to protect
environment from air, land and
water pollution.
Legal factors Fluctuation in national and
international regulations related
to marketing, employees’
wages and consumer safety, put
negative impact on current
management practices of
ASDA as it put a lot of pressure
Changing import and export
regulations affecting positively
upon business operations of
Amazon, as it gives new high to
company which they grab as an
opportunity.

of administration to re-plane
their tactics in the context of
marketing, customer service
and other operations.
LO 4
P5 Conducting internal and external analysis of specific companies to determine
strengths and weaknesses
SWOT analysis ASDA Amazon
Strengths  The biggest strength of
supermarket is its wide
range of items that it has
been offered to customers
(SWOT Analysis, 2021).
Just because of this force,
company has increased its
consumer base and
profitability.
 Excellent brand image of
ASDA allow company to
grab the attention of
profitable buyers and
investors, who are
interesting to retain with
brand forever.
 Differentiation and
innovation is the key
strength of Amazon,
which drives its sales
better than rivals, which is
quite beneficial for the
company. It is capable to
frequently bring
innovative ideas and
creative additions to its
items line and services
offerings such as
ambitious drone delivery
process.
 Biggest merchandise
selection is another
strength of company,
because firm owns
extensive item mix that
help to gain the attention
of online buyers.
Weaknesses  The biggest weakness of
ASDA that affect its
 One of the biggest
opportunities of Amazon

venture into negative
manner, is it limited global
presence as compared to
certain rivals that has
operated in same sector to
gain competitive edge in
retail sector.
 Another weakness of
ASDA is its ability to sell
prices that have usually
restricted its entrance in
some nations as they fear a
powerful competition from
local businesses.
that impact decision
making and business
operations in negative
manner is it that firm
operates in near zero
margin venture models
that have mostly dented its
profits margin and even
tough organization has
high volumes revenues.
 Amazon have another
weak point, which also put
negative impact on its
sales and brand. For
example, free shipping
services to consumer may
one reason that expose
risks of losing profits
margin in certain markets.
Opportunities  The company can expand
the business into new sector
i.e. Pharmacy, jewelry etc.
It is so because having
string financial
performance will add a
business to grow its
business at different areas.
 The company also acquires
the smaller companies in
order to expand business at
further level. This helps
ASDA to leave a good
impression upon customers
and also attain further
 Amazon might expand its
business into physical
stores and this in turn
improves the competition
against the big box
retailers to engage with
customers.
 In the changing
competitive era, company
should focused upon
advance technology
because it is considered as
an opportunity for the
company in order to
improve the brand image