Business Environment Report: Analysis of Organizations and Strategies

This report provides a comprehensive analysis of the business environment, focusing on the public (BBC), private (Amazon), and voluntary (Oxfam) sectors. It begins with an introduction to the concept of business environments, highlighting the impact of internal and external forces on organizational functioning. The report then delves into the different types and purposes of these organizations, examining their visions, missions, sizes, scopes, legal structures, objectives, and stakeholders. The analysis includes a detailed examination of Amazon's operations, products, services, organizational structure, and stakeholders. The report also explores the application of PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) and SWOT (Strengths, Weaknesses, Opportunities, and Threats) analyses to formulate effective strategies. Furthermore, it examines the interrelationship between various organizational functions, such as marketing, sales, finance, and human resources, and how these functions influence the overall structure and success of the organizations. The report concludes by summarizing the key findings and emphasizing the importance of understanding and adapting to the business environment for achieving competitive advantages.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different Types and Purposes of Organisations...............................................................1
P2. Size and Scope of range of different types of organisations............................................3
TASK 2............................................................................................................................................6
P3. Relationship Between Different Organisational Functions..............................................6
..........................................................................................................................................................8
TASK 3............................................................................................................................................9
P4. Identification of impacts of macro environment..............................................................9
TASK 4..........................................................................................................................................10
P5. Internal and External Analysis.......................................................................................10
P6. Interrelation of Strengths and Weaknesses with External Macro Factors.....................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business environment can be defined as combination of all internal (employees, suppliers
etc.) and external forces (government policies, supply and demand etc.) which are directly or
indirectly affecting the smooth functioning of the enterprise. All this factors are studied so that
competitive advantages can be accomplished against rivalry in the intense competitive world. By
carrying out business environment forces effectively best results can be attained and huge profits
can be maximized. In order to survive for longer time period every small or big administration
evaluate this factors on continuous basis. As per the given scenario for public (BBC), private
(Amazon) and voluntary organization (Oxfam) are taken. This assignment covers vision,
mission, size, scope, legal structure, objectives, stakeholders etc. for each enterprise (Ciambrone,
2018). However, Pestle (Political, economical, social, technological, legal and environmental
etc.) analysis are studied in order to frame unique strategies accordingly. Moreover, SWOT
(Strengths, weaknesses, opportunities and threats) analysis are examined in order to grab the
loop holes as opportunities and designing policies for opportunities prevailing in the global
market. Whereas, for a choose administration discuss business functions and their benefits and
drawbacks. Additionally, how business functions inter-connected with each other affect the
structure of the enterprise is explained.
TASK 1
P1. Different Types and Purposes of Organisations
The differences between private (Amazon), public (Marks and Spencer) and voluntary
(Oxfam) organization by including vision, mission, scope, size, stakeholders targeted customers
etc. are explained as follows:
Basis Public organization
(BBC)
Private organization
(Amazon)
Voluntary
organization (Oxfam)
Meaning Those administration
which are under the
control of government
are known as public
organization. In this
Here, the owner has
complete control on
business operations
from maximization of
profits to issuing of
In case of voluntary
enterprise individual
with their keen interest
come up to be a part of
the firm and enter into
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case fifty one percent
more of shares are
hold by central or state
government.
shares in the market.
This type of firm is
known as private
organization. There is
no control of
government bodies on
their working.
a agreement. They do
not issue shares in the
market and does not
aim in making huge
revenue from the
people (Crowther,
2018).
Aim To provide job
opportunities to the
citizen of the nation is
the aim of public
administration.
In order to maximize
huge profit from their
goods and services is
the main motive of
private firm in the
global market.
Voluntary organization
main aim to serve best
services to the society
so that from every
aspects up-graduation
can be done.
Advantages to people
working in the firm
People working in
public enterprise are
given gratuity, pension
etc.
Good salary package,
career growth,
competitive
environment etc. are
provided to the
employees of the
private organization.
Honour, respects
gratitude is received
from the people living
in the community or
society.
Minimum number of
members need to form
a enterprise.
Seven members are
needed in Public firm
which is under the
supervision of
government bodies.
In private firm two
members are required
to form a company.
At-least seven
members are
mandatory in order to
open a NGO or
voluntary firm.
Issue of prospectus Those business whose
operations are under
the control of central
and state are not
allowed to issue shares
As and when required
private business
concern issue shares in
the open market as
they are free enough to
Here, no issue of
prospectus is done.
They collect funds or
receive monetary
amount from
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in the market (Falkner,
2017).
invite public for
subscription of their
shares.
donations, charity
clubs, voluntary
contributions etc.
Sources to raise
monetary value
Penalty, tax duty etc.
are the distinguished
sources from which
funds can be gathered
for growth and
development of the
business.
By issuing shares and
debentures in private
administration they are
able to collect huge
funds.
Through donations,
charity, contributions
from multinational
companies etc. are the
various sources by
which money can be
accumulated.
The growth of international business environment such as tax, legal and taxation issues,
exchange risks, cultural differences, political risk etc. are affecting private (Amazon), public
(BBC) and voluntary(Oxfam) organization at a large scale. The continuous fluctuation in this
external forces directly impact the growth and development of the business in the cut throat
competitive world. In order to overcome this business concern make effective tactics so that
smoothly business operations can be carried out across the boundaries. Neglecting this
international business environment can turn out to be a big loss in the open market place.
Competitors can easily through the business from the market if international business
environment are not scanned properly before formulating the business strategy.
P2. Size and Scope of range of different types of organisations
AMAZON:
Background of Amazon:
Jeff Bezos is the CEO of Amazon which came into existence in the year 5th July 1994.
Amazon is the largest online store which deals in every kind of product and are able to satisfy the
emerging needs, demands and preferences of the customers. This successful online business is
situated in Washington, United Kingdom (Hillary, 2017). It is a American multinational
technology company whose main focus is on digital streaming, artificial intelligence, cloud
computing and e-commerce. Here, are some of the products which sold by the organization are,
consumers electronics, Amazon prime, retail goods, Amazon Art, Amazon Drive etc. This
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particular business associates sell their own good along with other companies product. It
provides a large platform where other enterprises can sell their goods and can earn huge profit.
Product and services offered to the consumers: The numerous products which are sold
by Amazon for their potential customers are, Amazon music unlimited, toys, electronics, luxury
beauty products, sports, Amazon drive, Amazon Art, women clothes, kids wear, men cloths etc.
Company is able to satisfy the emerging needs of the consumers on regular basis due to which
Amazon is able to generate huge profit in the neck to neck competitive world.
Size: Amazon is serving it's services across the globe and round 647,500 employees are
working day and night to come up with innovative idea. In the cut throat competitive world this
online store is able to generate revenue of US$232.887 billion which is a positive sign for the
company.
Scope: The scope of Amazon is to provide wider platform to other business so that they
can easily sell out their products on online websites.
Vision: To become the global first consumer centric enterprise is the vision statement of
Amazon. The advantage of setting up vision statement is that company and staff members come
with innovative thought to full-fill the vision.
Mission: To provide potential customers with best quality product at affordable price in
utmost convenience manner. This statement motivates the employees to perform better every day
in the competitive market place.
Administration objectives: To sustain in the intance competitive world Amazon need to
draw realistic objectives so that they can be achieved. By setting this strategies are designed
accordingly so that employees of the administration can easily attain them in the open market
place (Kolk, 2016). Set standards encourage the staff members to use the resources appropriately
as well as push them to increase their workforce efficiency. The formulated objectives are as
follows:
 Amazon is adopting of modern tools and techniques through which amount of non-
renewable energy can be reduced or decreased.
 To open large job opportunities for unemployed people so that living standard of the
people can be raised respectively.
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 The priority of Amazon and their objective is to satisfy the customers demand as well as
to investigate their emerging preferences. By doing so more and more customer base can
be raised for the companies goods and services.
Organizational structure: Hierarchical structure is carried in Amazon working
premises. By adopting this company is benefited at a large scale and skilled and capable staff
members are retained for longer time period. Proper information is carried out through this
organizational structure which results to attainment of set objectives. Also, this structure helps in
maintaining managerial integrity which is a positive sign for the enterprise.
Information related to stakeholders: In every organization stakeholders plays a
significant role as they are the real investors in the administration. In case of Amazon the
stakeholders are, strategic partners, customers, staff members, directors, contractors, etc. They
are the key people who actually support the business in the cut throat competitive world in terms
of monetary terms. Moreover, the power of stakeholders affect the administration success and
failure of the business. This in effective nature aid the company to gain competitive advantages
against rivalry while ineffective stakeholders close the door of success in the global market
place.
BBC:
Vision and Mission: Vision of the firm is to take effective and appropriate pride through
delivering enhanced, advanced and quality services which provide customers with value for
money. Moreover, it includes appropriate collaboration to achieve greater results. In addition to
this, mission of BBC is to effectively provide its customers with impartial information and news
which helps in engaging people globally and support learning for individuals of every age.
Size and Scope: In terms of size and scope, the firm has a huge quantity of staff, whose
number goes beyond 35,000. In addition to this, all the staff members are hired on contractual
basis, which helps the firm in governing a high range of skilled talent.
Organisational Structure: The hierarchy of BBC starts with its trust, which is the most
respected and authoritative group within the company, which plays an appropriate role of
evaluating performance of the executive board. The executives are responsible towards
accomplishing the objectives and functions of the organisation. This includes the directors of
news, finance and strategy. Furthermore, the management board follows the executives which
play the role of appropriately solving any issue within the organisation.
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OXFAM:
Vision and Mission: Vision of Oxfam is to appropriately fulfil each and every need of
people within the country and provide them opportunity to bring change in their lives.
Size and Scope: Its size and scope is quite vast as the firm as almost 20 branches that are
operating in more than 90 nations. In addition to this, the aims and objectives of the organisation
have been quite effectively achieved by these branches across these nations.
Organisational Structure: Oxfam operates within a council of individuals and each of
these associations have trustees that are responsible towards governing activities, operations and
functions of the organisation.
TASK 2
P3. Relationship Between Different Organisational Functions
In every organization there are various business functions depending upon their type of
business. Every business functions are interdependent on each other so that smooth functioning
of the business can be carried out easily. For the growth of the business in the neck to neck
competitive world there should be strong and transparent relation among the various departments
(Laudon and Traver, 2016). Here, are some of the examples of business functions which are,
sales, marketing. Information technology, finance, human resource, customer support service etc.
Here, in this case the numerous business functions of Amazon are explained as follows:
Marketing and sales department: In Amazon this two sections are interrelated with each other
in the working premises. Marketing and sales department build strong connections so that sales
sector gets a rough idea about their targeted customers through marketing. By carrying out
marketing effectively in the cut throat competitive world sales ratio can be raised at a
tremendous scale. Amazon keep eye on this two business functions so that set goals can be
achieved easily in the cut throat competitive world. This sector impact the Amazon structure of
the firm in a positive manner. Healthy relations among them helps to carry out firm structure
activities effectively.
Advantages:
1. Emerging needs of the customers can be achieved easily.
2. Set standards are accomplished in the intance competitive world (Silvestre, 2015).
Disadvantages:
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1. Loss of capital takes place when there is mismanagement among sales and marketing
departments.
2. Chaos and conflict take place on every now and then due to which employees turnout
ratio is raised .
Finance and Human resource department: It is very important to have faith among the
departments in the working premises. In Amazon finance and human resource departments are
inter-connected with each other so that business related activities can be carried out easily. The
finance and human resource department are a part of business function which need to be
performed effectively in the competitive market place. Amazon finance sector provides adequate
amount of funds then only human resource activities can be carried out smoothly. Whereas,
human resources provide a rough idea to the finance department about the necessary funds so
that available sources of funds can be investigated. By doing so insufficiency of monetary
amount does not take place (Raziq and Maulabakhsh, 2015). The organization structure is
affected by this departments in positive aspects. Having effective connections within this
departments helps firm's structure to carry out all other act easily.
Advantages:
1. Administration does not face lack of funds and human resource activities are performed
accordingly.
2. Amazon is able to create tough competition for others in the competitive market place as
they financially stable in nature.
Disadvantages:
1. Imbalance in finance and human resource departments slows down the operation
activities due to which production and profits decreases.
2. Due to miscommunication or unhealthy relation among the departments set goals are not
achieved.
3. The level of conflict raises to a large extent which directly leads to unhealthy working
environment is created (Business function, 2019).
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Illustration 1: Business functions
Source: Business Functions, 2019
Information technology and finance departments:This two departments are inter-connected
with each other as to conduct information technology activities funds are needs. So it is very
important to build balanced relations with each other sections (Schaltegger and Burritt, 2017).
Amazon keep on monitoring this two divisions on regular basis so that mismanagement does not
occur. Information technology provides relevant information regarding the market scenario and
accordingly monetary amount is accumulated. The organizational structure is hampered when
irregularity take palace in this divisions. The profit gets reduced to a large scale as well as set
objective are not achieved.
Advantages:
1. Amazon is able to create tough competition for others in the neck to neck competition.
2. The success rate of growth and development of business uplifted.
3. Amazon is able to bit competitors as they are monetary strong.
Disadvantages:
1. Imbalance in information technology and finance department bring huge loss to the firm
as they are unable to access opportunities and threat prevailing in the market.
2. Desired goals are not meet on time and organizational structure working is hampered to a
large extent.
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TASK 3
P4. Identification of impacts of macro environment
Pestel analysis is conducted by private(Amazon) and public (BBC) firm so that better
market scenario can be understood. Organization carry out this external forces so that tactics can
be framed accordingly. Here the Pestel analysis of Amazon are explained as follows:
Political factor: This factor is related to the political stability within the country and its
impact on the organisation. Tax policy, foreign trade policy, funding grants and initiatives etc.
comes under political factor (Schaltegger and Wagner,2017). Within the United Kingdom, there
has been an ongoing instability in relation to political terms due to the likely events of Brexit. In
addition to this, it has caused a major issue for the organisation in dealing its products within EU
regulations. Hence this factor has a negative impact on the organisation.
Economical factor: This factor undertakes the economic performance of the nation.
With respect to the United Kingdom and Amazon, the country is witnessing a massive downfall
in terms of economy. In addition, while the rate of pound has decreased substantially, there is a
heavy inflation within the country along with high Interest rates. These are economical forces
which need to considered before expanding the online business. However, in context of the
organisation, this factor has a negative impact over the company as the firm is forced to provide
its products on a lower rate to keep its sales consistent.
Social factor: Society taboos, traditions etc. come under social forces. Currently, within
the United Kingdom, the online trend has been positively driving amongst the customers. This is
a positive factor for the company and impose effective and contributing impacts on its operations
to appropriately and essentially provide its products online.
Technological factor: This factor is inclusive of appropriate and effective technological
advancements within the industry and its influence on the operations and functions of the
organisation. To meet the emerging needs to the client modern tools need to be adopted by
Amazon, such as Artificial Intelligence and Automation. By doing so competitive advantages
can be attained against competitors. Using old plant and machinery act as a drawback as it does
not aid in achieving goals. Hence, a positive impact could very well be witnessed upon Amazon.
Environmental factor: pH level of water, climate etc. comes under environmental
factor. Within the UK, the government and communities have been highly inclined towards the
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environmental protection and lower carbon footprint emission. Amazon, in order to survive for
longer time period come up with unique strategies so that environment does not get depleted
much. However, the company is already on the track through its sustainable practices by
indulging into smart delivery practices. Hence, this factor has also a positive impact on the
organisation.
Legal factor: Consumer law, copyright law etc. are examples of legal forces. There are
several legislation such as Equality Act, 2010 and Customer Protection Act, 1987, which are
essential to appropriately and effectively complied by the company to ensure government
support. Moreover, to retain skilled and capable staff in the premises it is important to follow
legal factor. By doing so assurance can be given to the Amazon staff that they are not exploited.
Hence, this factor has a positive impact on the organisation.
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Illustration 2: PESTEL Analysis
Source: PESTEL Analysis, 2018
TASK 4
P5. Internal and External Analysis
SWOT ANALYSIS OF AMAZON
STRENGTHS
As a global e- commerce giant, Amazon has the
strong brand image in the market.
Amazon Marketplace, Amazon Web Services
and Amazon Prime are 3 key businesses of
WEAKNESSES
 Tax avoidance in UK and US has
sparked negative publicity for Amazon.
 Online retail businesses have quite
common in digital world. Thus, imitating
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Amazon which generate massive profits.
Amazon is the largest online retailer in the
world.
Amazon has an outclass logistics and
distribution network to deliver its products
around the globe.
the Amazon's business model is quite
easy. For Example : Netflix , eBay.
 Building popularity for new product
categories is currently a slow process by
Amazon.
 Amazon has not been able to compete
with the leading players in terms of
innovation (Wehrmeyer, 2017).
OPPORTUNITIES
 Amazon may invest in physical stores
outside US to increase their market
share.
 Amazon can do backward integration by
bringing in house products in distinct
product categories to differentiate its
offerings.
 Diversifying into new technological
areas can help Amazon to achieve higher
growth (SWOT analysis, 2017).
THREATS
 The demand of highly profitable
products is seasonal in nature which
impacts the profitability of the business
in short to medium term.
 Aggressive competition with big retail
firms like Walmart , Ebay can give
Amazon a tough time in future.
 Government regulation can also threaten
the business proceedings of Amazon. For
example: Amazon cannot ship to North
Korea , Cuba , and Iran.
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Illustration 3: SWOT Analysis
Source: Jodie Shaw, 2017
How SWOT Analysis affects the HR Manager - HR Manager can use SWOT Analysis as a
strategic plan. Strengths and weaknesses may be attributable to individual team members, which
helps to identify top performers and also those who need training. Managers can add team
members strengths and weaknesses to individual performance appraisals with specific goals and
plans. Opportunities can become budget and staffing items. They can take greatest possible
advantage of available opportunities. They can find ways of how they can grab those
opportunities in near future and tries to convert them into strengths. SWOT analysis can also
helped the managers to determine how to minimise or eliminate threats.
P6. Interrelation of Strengths and Weaknesses with External Macro Factors
Political factor: SWOT analysis is interrelated with external forces. Firm uses their
strengths to over the political conditions in order to raise the business in the market (Sadgrove,
2016).
Economical factor: This is a part of external forces prevailing in the market. There is a
strong interrelation of SWOT analysis with external forces. This is the weak point of the
company for this policies are framed to overcome it in the working premises.
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Social factor: This external factors build strong relation with SWOT analysis so that
emotions of society people does not get hamper. It act as a opportunities in the open market
scenario. For this research is conducted to convert loop holes as their opportunities so that tough
competition can be created for others.
Technological factor: Here, in this case, SWOT analysis build interrelation with external
forces so that emerging needs of the customers can be full-filled. And future threat can be
evaluated and strategies can be formulated respectively.
Critical reflection of key findings as well as examine impact the decision making
process.
According to me Pestel analysis is conducted by the firm in order to better understand the
current market trends. The critical reflection of above key findings is carried effectively and
efficiently in the market place (Andersson and Holm, 2015). By examining political, economical,
social, technological factors etc. consumers needs and preferences can be examined and market
value is raised in the eyes of the customers. If firm does not conduct pestel before entering into
the market there is less chances of success. Also set objectives are not meet on time. I think that
as much pestel is important same way Swot is necessary to conduct. By this strength and
weaknesses of the firm is focused as well as opportunities and threat are highlighted so that
tactics can be framed accordingly. By this huge market share is captured and more consumer
base is raised. But if Swot is not performed business can not sustain for longer time period and
will not be able to gain competitive advantages against rivalry (Bocken and Short, 2015).
CONCLUSION
From the above it can be summarized that Pestle analysis is carried out in an organization
so that strategies can be framed accordingly. By studying this competitive advantages can be
attained against rivalry. However, SWOT analysis is effectively performed so that firm's strength
and weaknesses can be examined properly and also opportunities and threats prevailing in the
open market can be measured. By doing business work effectively and efficiently to survive in
the market for longer time period. The legal structure, size, scope etc. are focused more in order
to realistic goals can be formulated. Along with this it also throw-light on strengths and
weaknesses of the firm and their interrelations so that chances of error can be reduced and
improvements can be done respectively. The stakeholders, scope, vision, mission, set standards
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etc. of Private, public and voluntary organization are individually studied so that more
information can be gathered about them at a large scale.
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Wehrmeyer, W., 2017. Greening people: Human resources and environmental management.
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might-be-the-best-thing-for-your-business-apps//>
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