Business Environment Analysis: Zara, NHS, Oxfam - Detailed Report

This report provides a comprehensive analysis of the business environment, focusing on three distinct organizations: Zara (private), NHS (public), and Oxfam (charitable). It begins by defining the business environment and its impact on business operations, then delves into the different types and purposes of organizations, including private, public, and voluntary sectors. The report further explores the size and scope of these organizations, examining their products/services, vision, mission, business objectives, legal structures, and organizational structures. It highlights the relationships between various organizational functions, such as HR and finance, and sales and marketing. Finally, the report utilizes PESTEL analysis to identify the positive and negative influences of the macro environment on business operations, providing a holistic view of the challenges and opportunities faced by these organizations.

Business & the Business
Environment

INTRODUCTION
Business environment is signified as the sum of both interior and exterior features that create
collision on the business activities and operations of the corporation. Employees, consumers and
management are some of intrinsic components whereas top management, rivals, communal,
technological aspects and many more are extrinsic aspects that create impact on business actions
(Hamilton and Webster, 2018). In current document, companies that has been included are
ZARA as private, NHS as public and Oxfam as charitable firm that will assist in considerate
diverse type and reason of the corporations in UK. In addition to this, interrelation between roles
of a business has also been considered. The assessment will explain about diverse types of
enterprises by consisting their size, scope and legal structure. This report will make focus on
both internal and external factors as well as interrelation among internal and external
environmental factors.
TASK 1
P1. Different types and purposes of organisations
There are diverse kinds of establishments which are defined as under:
Private association- This kind of organisations is managed and developed operations through
individual with the purpose of earning. They operate business and offer services so that they can
provide satisfaction to target audience’s needs. This kind of venture makes contribution in the
economic system of the nation. Zara is a private retail sector organisation that produces
garments, home appliances and several products and services to consumers.
Purpose- The key purpose of private sector firms is to fulfil customer’s demands through
providing commodities and facilities accordant to their necessities. The key objective of Zara is
to design trendy cloths so that demands of consumers can be satisfied.
Public association- It is other kind of organisation which is supported and involved by
government for improvement of nation (Čepel and et. al., 2018). A variety of collective tasks,
essential and administration are provided these sorts of firm to offer effective services to society.
NHS is being considered as public venture that offers medical services to individual of UK.
Purpose- The key objective of Public Sector Company is to provide services to local
individual and community for their improvement and wellbeing. NHS organisation is to offer
welfare administration to people crosswise the UK.
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Voluntary organisation- These kinds of venture are those firm which operate their business for
the welfare of community across the world and nation. The purpose of them to make
development within the society without taking any financial benefits, Oxfam is to improve
benchmarks for each day comforts of individual which are needed (Calabrese and et. al., 2018).
It provides significant and charitable help to mothers and young people.
Purpose- The key reason of voluntary enterprise is doing work for social wellbeing. The
key purpose of Oxfam is to assist those who are depressed and aid them in operating with the
world by developing level of living of life. The respective firm offer service to assist in the
development of formations that directly benefited people who are suffering with the pragmatism
of insufficiency and injustice.
Development in international business has been attributed of diverse aspects consisting
changes in technology, political concerns, money matters, competition, work and other costs,
learning and skills, environmental components, foreign exchange market and many more. Global
business has development fundamentally in existing year’s cause of tactical essentials and
environment changes. Strategic essentials include the demand to affect core abilities, acquire
resources, and get new market and competition the actions of rivals.
P2. Explain the size and scope of a range of diverse kinds of organisations
Public, confidential and charitable are three key types of establishments that operate
business with several motive and scope. The description of size and range of explained three
sorts of establishments are described as under:
Public organisation
NHS is a apparently financed enterprise of UK that offers health care facilities and vital
behaviour to individual.
Products and services- This heath care venture provide services like important and non-
critical medical care to individuals with payment (Belás and et. al., 2019). It also provide free
services and diverse facilities like eye tests, consult, dental care, ophthalmology, long term
healthcare and many more.
Size and scope- NHS has close to about 211 medical duty units with approx 1.4 million of
service providers. Government sector of UK is accountable for NHS and exhausted more than
€110 billion yearly for providing free service to disadvantaged and ineffective individuals. It is
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health care provider so it has a large scope in form of providing diverse type of services to
individual.
Vision and mission- Mission of NHS is to carry together those individuals that require
providing services to patients (You and et. al., 2019). In reference to this, key revelation to NHS
firm is to develop care for patients and offer cross ways limits as well.
Business objectives- NHS key objective is to offer urgent situation behaviour to patient’s
ad care facilities to old age citizens on lowest charge.
Legal structure:
 State government- It is administration that deliver supporting precise with nationwide
rank government. They have power to make determination and administrate central
authority that operate situation. For example, policy designed for schools in Vermont,
England requires to be included through each particular education institute that are
considers as domestic government.
 Local government- It is one more form of community management which consider lower
stage government in a country. They perform activities and actions of specific nation by
top authority. For example, growth of operations like “Manage pace” near gardening
regions approximately the houses that are approaching in their function and others.
 Central government- It is a great management firm of a unitary country. They frame
rules and regulations which other bodies need to consider within their work. For instance,
providing support to constructor to formulate elevated variety buildings.
Organisational structure- Health care organisation requires accuracy in the performance of
job duties and several responsibilities regarding department. NHS utilises and follows vertical
organisational organization with several coats of management.
Stakeholder- The stakeholder of NHS is consumer, workers, chief managerial officials,
director of public prosecutor and many other managers.
Private organisation
Zara is a trade industry company which operate its business in confidential sector across the
world (Ślusarczyk and UL HAQUE, 2019). It provides goods in whole globe and positioned on
30 in greatest international ventures.
Products and services- This establishment offer trendy and designer garments and bags
through online and offline mode in across the globe through online delivery and its outlets.
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Size and scope- Zara has virtually 7,475 stores that extend globally, where customers can
identify diverse fashionable clothing for both male and female (Belas and et. al., 2018). In
present time, approx 12,000 individual are employed by their firm and the estimated revenue of
the firm is 450 billion pound per annum.
Vision and mission- To become one of the greatest trader companies in the globe is key
motive of Zara. Whereas to offer appropriate design and variety of garments with high rank is
the purpose of this company.
Business objectives- The aim of the respective venture is to make development in
consumer need and surpass their fulfilment stage by providing them chance to obtain new
designs of clothing and other related products.
Legal structure:
 Sole proprietorship- The commerce that is began and administrated through individuals
to earn more profits for living are come under sole proprietorship of confidential sector.
Organisations like provisions, organisational store and many more are some examples of
sole trading enterprises.
 Partnership- It includes that confidential venture which is consisted through two or more
business proprietor after made conventionality. All links marked a lawful file to acquire
equal contribution in decision making activities and experience similar loss and profit
also.
Organizational structure- Zara operates with a turn administrative configuration which
importance great performance. The lean structure also performing to reduce the amount of
management hierarchy levels and separate decision making.
Stakeholder- The key stakeholder of Zara is CEO, administrators, workers, consumer,
suppliers, retailers, dealers, store workers and many more.
Voluntary organization
Oxfam is a non-profit enterprise of UK, also acknowledged because international non-
governmental venture (Luiz, Ganson and Wennmann, 2019).
 Products and services- It is portion of global organization to struggle for unfairness that
cause deficiency.
 Size and scope- Near about 20 NGOs are connected with this firm with some associates
in over 19 counties that assist in eliminating scarcity from entire globe.
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 Vision and mission- Fight for scarcity is task of this firm and defend rights of inhabitants
as well (Uluskan and Godfrey, 2018). In addition to this, its exposure is to develop state
of society by situation of community by mobilizing power of individual to decrease
deficiency.
 Business objectives- Oxfam aim is to assist inhabitants in starting their commerce for
living and develop their living situation.
Legal structure-
 Unincorporated association- It submits to the venture that is framed by great unit of
inhabitants without a motive to generate revenue. The funds is offered in business is for
community development.
 Trust- It refer to organization that act as an negotiator, trustee or fiduciary in the behalf of
an individual and business for the rationale of management, ultimate transmit of resouces
to a helpful party and administration. The organization is not supple in temperament so
modifies are not making in easier way.
Organizational structure- The framework of the venture that is pursued by Oxfam is
network construction as they run globally so it required arranged organizational framework.
Stakeholder- The key stakeholder of Oxfam are volunteers, sponsors, trustees and many more.
TASK 2
P3. The relationship among different organisational functions
The interrelation among different organisational functions is defined as under in reference
to Zara:
Human resource department with finance- The HR department is to observe employees of
Zara for having proper staff persons for communication of activity. Service, collection, prize,
representative relationships, arranging and growth are multiple exercises which are carried out
by administration of Zara (Fabus, 2018). This inspires them to provide and contact staff persons
in various units which are economic, retail, trading, R&D. In this form, High-ranking can
produce a competing environment in the working atmosphere and solve the query of peoples. HR
Department is also connected with the finance function as this hires employees for fulfil the
vacancy of this division. In Spite of this, the finance division also makes financial statements of
the HR department’s payment.
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Sales division with marketing- Sales division examines person who refer and contact
customers. Sales representative of Zara obligation is to give data to consumer regarding the
products, its emphasises and qualities. Moreover, they externally receive input to explain their
answers and proposals in the favour of nature items and improvement (Kokodey, Gnezdova and
Lomachenko, 2018). In this, showroom department support is to attentive open about items
which support them influence and clash properly. They help research and development team to
produce improvement in things in as mentioned by basic goal customers. Marketing department
internally connect with sale as this assist in giving promotional instruments for spreading
awareness. And sales of items and other sales related data.
Organisational structure: Actual, departmental, social and work are different type of
substructure which are utilise by organisation to scheme construction. Commercial situation,
targets, approximate, degree is unique plan of activity which control possession of workers in
office. Zara is a commercial enterprise which has sub departmental around the earth. For this
organisation, departmental enterprise structure is received by management for transferring of
trade universally. In this way, resource are utilise resourcefully and place of company is support
in the view to applicant.
TASK 3
P4. Identify the positive and negative influences the macro environment has upon business
operations
PESTEL analysis is the tool and framework which is executed by management to
determine and assess influence of external environmental factors over a business enterprise (Zara
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PESTLE Analysis. 2020). The explanation of external aspects and their impacts on company is as
under:
Political factor- Government has framed rules of excise, licensing and other for managing
organisation (Chukhray and Mrykhina, 2018). Zara is a global venture, so there presentation is
crashed by legislative and political phase of nation.
 Positive impact: Political constancy is one of the supporting factors that benefited to Zara
to operate business globally. It helps management to maintain organisation and its
operations by having large marketplace reach and number of customer.
 Negative impact: Government had enclosed employment laws that superstore should
offer mix of join opportunities that is inferior and highly rewarded, flexible. Thus, attain
requirement of diverse individuals belonging to section that are scholar, middle and lower
class people.
Economic factor: This aspect includes interest rate, development, exchange rate and inflation
that supported to financial situation of country. These are aspects that impact on finances of
venture and its profitability. Zara has outlet in developing country which is UK and other that
have efficient increase and GDP rate. Thus, company has effective range of customer to earn
profitability for their commerce.
 Positive impact: UK has embryonic GDP that advantageous Zara to form improvement in
their business.
 Negative impact: Bank alters their interest rate for managing capital outflow which
impact on seniors of Zara to develop the firm to other nation.
Social factor: This factor describes that organisation provide commodities and facilities for
offering fulfilment of society (Popescu and Popescu, 2019). Zara is retail venture which offers
variety of clothing products, personal care and many more goods for consumers.
 Positive impact: In UK, individuals like to buy merchandise from superstore where
all stuff is accessible in one store. Their buying behaviour has changes to buy quality
goods that benefited Zara to have efficient number of customer to improve sales
quantity and revenue.
 Negative impact: In UK, inhabitants are collapsing that influence on labour force and
result into their scarcity. It determines that management of Zara faces difficulties in
respect to employees.
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Technological factor: It is other constituent which concludes those technology advantages
companies in communication of processes in developed form. Positive impact: Constructive impact can be shown in Zara with the assistance of
technical components with the assistance of electronic apparatus and these may directly
get performed among stores where a customer can distribute for goods and facilities that
are being acquired in just few seconds. Negative impact: With the implementation of internet, it is being analysed that online
delivering of products can be used by ethical hackers in context of Zara (Hamilton and
Webster, 2018). It may impact on their profitability.
Environmental factor- It considers ecological aspects like weather, climate and environmental
laws etc. It can be a key aspect for a fast trend brand like Zara to come below consumer
inspection. The brand has aggressively demonstrated its obligation to environment modification
and power, biodiversity, sustainable materials, animal welfare and other green concerns in
profundity.
 Positive- The organisation inditex has also determined to link the pact to minimise their
carbon footprint. This will make positive crash over atmosphere as well as create an
effective image of the firm in market.
 Negative- The whole globe of fashion is incorrectly connected with wastefullness as the
consumers revolutionize fashion and favourites. This maximise wastage with the firm.
Legal factor- It refers to rules and legislations which are developed by the government in term
of effective running of the venture.
 Positive- The firm offers living earnings to its employees or which they have developed
split laws. This assist in offering effective pays to workers and makes transparency
regarding compensation.
 Negative- The brand has been charged of thieving designs and garments conceptions for
other brand like Adidas (Čepel and et. al., 2018).
TASK 4
P5. Conduct internal and external analysis to find out strengths and weaknesses
SWOT analysis
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Strengths- Zara is a well known trendy clothing brand which provides quality apparel at
economic rates. Brands give a range of services that particular enterprises at lower levels and
some shops than other showrooms. There are approx. 10,000 showrooms open out all over the
world which helps organisations to have huge market reach and customer base. Brand gives
products at ecumenical price and discounts that helps organisation to grow business developed
and take care for long time.
Weaknesses- Companies provide facilities at economic costs that summarise that quality of
products are not too perfect. Brands give products at an economic price , so foundation revenue
depends on sales amount (Calabrese and et. al., 2018). Organisation is not able to pay perfect
recompense to employees according to their productivity. This creates disappointment and
impact on their implementation.
Opportunities- Organisation of Zara requires creating its expenditure in promotion for
competing opponents. Establishing a showroom in other continents like Asia, Africa and so on.
The individual enterprises require relocating its brand level more important than organisations
which provide cheap products. This helps seniors to make their occupation and benefit.
Threats-There are many fights that are generated by H&M, E-Spirit and USPA and others.
Zara does not give all types of items, due to which the buyers are not able to get a full shopping
environment in one showroom. Government changes its taxation and its policies which affect
business of brands. In the present time, Because of COVID-19 economic crisis, variations
happen in administration laws and legislation which create problems for company business.
P6. Explain how strengths and weaknesses interrelate with external macro factors
Macro atmosphere aspects help administration to assess their persuade on organisation and
its processes. Zara is retail division firm that has stores globally, so top workers require
analysing macro components influence over commerce. Capability and weakness in context to
political, economical, and social and many other aspects influence over business (Belás and et.
al., 2019). Strengths and weakness in context of to PESTEL analysis components is defined as
below:
Political factor: Strengths: In UK, these are constancy in political circumstances that positively impacted
Zara in form of making commerce expansion globally. Weaknesses: In UK, national government’ make change in their rules and employment
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laws hat impacts the management of particular firm’s business.
Economic factor: Strengths: The circumstances of increase in UK assist Zara to have efficient quantity of
customer to buy goods. Weaknesses: Unemployment rate of particular firm affect profit margins, as people
command shift to shameful goods (You and et. al., 2019). For it, they will not need to buy
goods from diverse inexpensive strores.
Social factor:
 Strengths: The respective company offers a range of products within a roof which is
beneficial for the venture. Along with the Zara develop its trades and the online shopping
alternative also help in humanizing the income and amount of consumers.
 Weaknesses: Zara offer its products at high cost which outcome into individual behavior
that they may not be of effective quality.
Technological factor: Strengths: In Zara, buyers are provided high technical experiences and also use
technology in payment such as card and other that assist in making payment easy. Weaknesses: E-commerce that is reason of enhancement of internet that influence on
sales and profits of particular firm.
Environmental factor-
 Strengths- In Zara, the firm work regarding reducing and minimising its carbon
footprints which arise as the capability of the firm in term of ecological benefit.
 Weaknesses- The wastage of the material is the weakness as the firm manufacturing as
per trend because it increases the production cost which negatively affect the firm.
Legal factor-
 Strengths- The venture consider wage related legislation to offer appropriate pay to its
workers which arise as the strengths as retain workers.
 Weaknesses- In current era, the whole world is suffering with COVID 19 Pandemic and
the laws related to these issues create threats for respective firm (Ślusarczyk and UL
HAQUE, 2019).
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