Business and the Business Environment: Organisational Analysis Report

This report provides a comprehensive analysis of the business environment, focusing on various organisational types such as private and public limited companies, sole proprietorships, and voluntary organisations like NHS and John Lewis. It examines their purposes, sizes, and scopes. The report explores the relationship between different organisational functions, including marketing, finance, human resources, and sales, and how they link to organisational objectives and structures. It also delves into the positive and negative impacts of the macro environment using the PESTLE approach and assesses the internal and external strengths and weaknesses of the chosen organisations through SWOT analysis. The report concludes with an evaluation of how these strengths and weaknesses are interrelated with external macro factors, providing a holistic view of the business environment.

Business
and the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types and purposes of organisations......................................................................3
P2. Sizes and scope of a range of different types of organisation...............................................4
TASK 2............................................................................................................................................6
P3. Relationship between different organisational functions and their link to organisational
objective and structure................................................................................................................6
TASK 3............................................................................................................................................8
P4 Positive and negative impact of macro environment on businesses and operations of an
organisation.................................................................................................................................8
TASK 4...........................................................................................................................................11
P5 Analysis of strengths and weaknesses of Internal and external...........................................11
P6 Evaluate strengths and weaknesses interrelated with external macro factors......................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
The business environment is refers to combination of internal and external elements of
business organisation. The elements which affects business within organisation are called as
Internal environment. Some factors are employees, ethics, culture, structure and many more. if it is
talked about external environment, these are those factor which affect enterprise form outside
boundaries of organization. The company taken for analysis in this report is NHS which provide its
best services to the patient of United Kingdom. This assignment considers various objective of
business with considering its different scope, size, business environment as well as their
organisation structure. Along with this it focuses on both aspect i.e. positive and negative aspect of
PESTLE approach and its capability & failing with help of SWOT analysis approach of two
various organization.
TASK 1
P1. Different types and purposes of organisations.
There are different types of business organization which performs same task in a different &
effective way for achieving desired goals.
Private limited organisation: Private organization are those organization, which are hold by
private companies or non- government companies. There main aim is to earn more and more profit
from their business enterprise s to make more and more profit and liabilities of members are limited
to amount of shares as well as capital. These organization has to follow companies Act, 2013, to
commence their business and required at least 2 members and maximum 200 members to start
business. It has many features such as restricted liability to all members, minimum 2 board of
directors should be there, 1 lakh as minimum paid-up, required to fill partnership deed, not listed in
stock market, high risk and many more. Andersson and Holm,2015).
Sole Proprietorship firm: When an single person is owing and handling business
organization is known as sole trade or sole proprietorship firm. In this, only one person has
authority to make decision and to manages all operations, functional activities in business and also
responsible for profit and loss occur in their business enterprise.
Partnership firm:Partnership is an understanding where two or more people are doing
agreement, for working to gather in a cooperate field for doing business and earning profit. In this
firm every partners of this organization are responsible and susceptible for their acts and also of
other partners in business as they are liable profit and loss according to agreed partnership deed.
Public limited organisation (PLC): The public limited company are those organization, which

offers their shares to public or society. In these company maximum amount of share taken by
government or public. The company has effective and proper access of capital as it is listed in stock
exchange of country, with 5 lakh paid up capital for commencing business high capital, high risk
with proper support of government (Bah and Fang, 2015).
Central government department: Theses are those organization whose control is in hand
of state or central government of country.
Local authorities: This local authority organization are those where management and
controlling power & is in hand of public or government.
The NHS is the public funded national healthcare system for England and one of the four national
health services for each constituent country of the United kingdom. The NHS provides majority of
healthcare in England, including primary care, in patient care, long term healthcare, dentistry etc.
Voluntary Organisation: The Voluntary Organisations are those who work for welfare of society
and their companies wealth maximization. The main aim and objective is to fulfil requirements
and need of an individual and society, for fulfilment they arrange welfare action and social
programs which helps them in attaining their desired objectives. The Oxfam full name is Oxford
Committee for Famine Relief, which is founded in 1942 at Oxford, England and this focuses on
poverty obliteration, to remove to poverty & disaster which relief Advocacy and Policy research.
Oxfam is an international non-governmental organization.
Trust: The trust is non-business organization, in which profit maximization is not an aim of
organization. In these organization people invest and give some funds or capital for welfare of
society in regular basis.
Unincorporated association: The Unincorporated association organizations are
commissions and committees of different business enterprise which has authority and responsible
for managing as well as controlling their business is known as council. These organization do not
owned any of Trusts and NGO'S they build and do operations own their own.
Others: Communities, Royal charter Bodies and many more (Belás and et. al., 2015).
P2. Sizes and scope of a range of different types of organisation.
Private company: John Lewis
John Lewis deals in fashion industry across UK, which is started in 1929 by Spedan Lewis.
Background: The first store of John Lewis is opened in 1864 nearby Oxford street of
London. Now presently company has around 51 stores across all England.
Product and services: As company is dealing with fashion industry, then their product and
services are Furniture and designing services, fashion (designer clothes for men and women) and

beauty services, electrical and technological services, finance services (home insurance, foreign
exchange currency) and many more( Breckova, 2016).
Size and Scope: The John Lewis Partnership is one of biggest fashion company in England,
UK which has moreover total income of 3.78 billion pounds. It has 51 stores since 2018 and
having approximately 38,100 work force working for their business organisation.
Mission: Mission of John Lewis Partnership firm is to provide best and proper services to
their all customers.
Vision: The vision of John Lewis Partnership Company is that they wants to create different
and effective culture while breeding and dealing with their employees as well as their customers of
their organization as business of this organization is entirely depend on audience so, company put
them on their priority.
Public company : NHS
NHS is the public funded national healthcare system for England and one of the four national health
services for each constituent country of the united kingdom. NHS England provides healthcare to
all legal English residence, with more services free at the point of use. NHS is largely funded from
taxation with a small amount being contributed by national insurance payments.
Product and services: They are dealing with health and safety products and services
(Charter,2017) .
Size and Scope: The company operates it unit at UK and the scope is also high because it
tie up with Scottish government and Northern government.
Mission & Vision: The vision of NHS is to become most trustable firm, by providing best
clinical services to their customers.
Organisation structure: The management of NHS has adopted Lean organisational
structure in their business, which helps in effective functioning for their business enterprise.
Volunteer organisation : Oxfam
Volunteer organisation are those organization who work for welfare of society instead of
making more and more. Oxfam is a volunteer organization which is found in 1995 by different
several government and semi- government companies. Different prospect of company Oxfame is
further described :-
Background : The founder of this company is Cecil, Jackson – Cole, it is independent
charitable organization which have specified motive and objective of reducing poverty from
country as well as bringing equality amongst all people. It headquarter is located in Kenya.
Product and services: Oxfam organization perform for social welfare and voluntary

services and focuses on removing poverty and takes effective and profitable responses(Chetwood
and et. Al, 2014) .
Size and scope: company have wider scope and working in 90 countries over world wide.
Mission: The mission of Oxfam company is to modify or change law of poverty and helps
in providing righteousness as well as justice to helpless and poor people.
Vision: Vision of Oxfam organization is that to treat people equally weather it is poor or rich
as every single person has a equal rights
Organisation legal structure: Company have highly effective and advance legal system in
their organization as they are handling and dealing with ample of government officers.
TASK 2
P3. Relationship between different organisational functions and their link to organisational objective
and structure.
The every function of business organization are interrelated with each one, as it is essential
for each and every department or function to make proper coordination & controlling with each
other. Such as marketing & finance department, human resource & marketing department, sales &
production department, sales department & HR department, it & human resource department. Along
with this it also helps in effective operation in business organization, as it helps in attaining desired
objective. In context to NHS and John Lewis some interrelationship between different functions and
department of business are described under below (Crane and Matten, 2016).
Marketing and finance Department: The marketing and finance function of NHS are
interrelated with each other. As marketing department of NHS is responsible for analysing effective
profitable market where there is huge demand of products are available, and high number of
customers are present, as this helps manager in adopting appropriate and effective technique and
strategies in their company. It it is talked about finance department of helps in controlling finances
and managing funds, also effectively allocation of finance resource in every department as sets
budgets to carry out effective functioning of each department in NHS and John Lewis. Although
finance department supports and helps marketing department for establishing their budget for
adopting effective promotion for their products & organization.
Human resource and Sales Department: HR and sales department of NHS and John lewis
are also interrelated with each other. If sales department is required a new candidate in their team,
then sales department has to contact HR department for hiring suitable Candidate for them. As HR
department helps in recruitment, selection, training & development and management of
employees(Erasmus and Rudansky-Kloppers, 2016). Along with this, they hire candidate according

to needs & requirement of each department of business. On other hand, if it is talked about sales
department of NHS and John lewis, then it deals with sales of products and services of company
which is manufactured by production division. More over departments are interrelated with each
other, as HR team supports sales team in hiring suitable and effective, specialized for their team
which execute his task or job role in proper way and give effective productivity and performance to
business organization.
Organization Structure: The top level management of NHS and John lewis has adopted
hierarchical organization structure in their company, as this helps in effectively managing and
controlling of their employees and properly flow of information is take place in a hierarchical way
(top- middle- low level). As top level management of NHS is following functional hierarchical
structure in their business organization effectively and efficiently (Georgescu and Popescul, 2015).
Illustration 1: organizational Structure of NHS, 2019
(Source: Organizational Structure of NHS, 2019)
Organisational structure of NHS is functional hierarchical structure, which management in

effective working and operations in their business with maximum output in a effective way. This
structure helps top level management of NHS in effectively managing and controlling functions as
well as operations, department of business in efficient way. Although in this different department of
NHS do not interacts and coordinate with each other directly ans it results in low flexibility in
effective functioning which affects impermanent of profit of business organization (Gharajedaghi,
2011).
Organizational structure of John lewis
TASK 3
P4 Positive and negative impact of macro environment on businesses and operations of an
organisation.
The external environment of Sainsbury's is examine by their manager and analysis that
external environment PESTLE approach is dealing with both positive and negative impact. Here
impact of PESTLE is described under as below:
Basis Positive impact Negative Impact
Political factor
The political factor has positive impact
in United Kingdom which give great
and effective productivity as well as
performance of John Lewis. Along
with this, when modification in
political factor give lesser impact as
compare to other it leads to positive
impact.
When changes in political factor are
not in the favour of john lewis
company then it leads to negative
impact. Such as changes in political
factor, government policies, rules and
regulation and many more(Hamilton
and Webster, 2018).
The positive impact is that when
economic factors are in favour on John
When slowdown of economic factors
affect demand, cost, prices and profit

Economical
factor
lewis. As company can work on
expansion of business into emerging
market and hence, it will very
beneficial for the business organization
for success and growth.
of company it leads to negative
impact to john lewis. Along with this,
increase in unemployment as well as
inflation rates of food prices results in
decrease in prices ODF john lewis
products.
Social factor
The positive impact of social factor is
that management of john lewis is
involved in doing welfare programs for
society such as charities, raise finances
for different causes. In addition to this
increasing in female workforce,
longevity in population. results in
positive impact to business
organisation.
The negative impact is that john
lewis, can not produce products and
services according to the taste of
customers always. As it leads ti
negative impact to business
organization (Kolk, 2016).
Technological
factor
The positive impact of this factor to
this company is that, management is
using effective technology and they
upgrading their engineering's and
focuses on scanning check out
procedures, computerised stock
commanding and many more useful
technologies in their organization as it
leads to positive impact(Li and et. al.,
2011) .
The negative impact is that, company
is not using online shopping
installation for their products as it is a
great technological advantage for john
lewis. If company used effectively
with introducing good system it can
be very profitable for john lewis
company.
Legal factor
John lewis is bounded by different
legal problems such as national pay
policy, age statue law, favouritism and
innervation status law and many more.
The positive impact is that
management of john lewis is
supporting all different laws applied in
their organization.
If company starts neglecting then if
faces many effects and issues
regarding laws such as consumer law,
competitors law, employment law. It
management of john lewis do not
follow laws properly and effectively
then it leads to negative impact to
their organization.
Environmental The positive impact of environmental The negative impact is that

factor
factor to company is that management
is taken initiative and arranging and
adopting the championing for
reducing, reusing, recycling approach
which helps in effectively managing
waste material and packaging as well
as recycling and they are also working
for reducing carbon footprints in their
business operations.
management of john lewis is not
adopting effective tool and
techniques for safety of environment.
As the company has ethical issues
which are connected to retelling such
as organic nutrients, interventions and
many more(Palgrave , 2018) (Pearson,
2017).
PESTLE analysis of NHS
Political factors:- political factors affect operations at NHS. The managers at NHS are not able to
focus on the long term strategies because of the continually change in the political environment.
Managers have to take decisions according to the political environment.
Economic factors :- The NHS requires qualified staff and the cost of labour has increased if will
affect the profit of NHS. NHS can not work without qualified staff therefore they will have to
spend money on qualified staff it will affect the revenue of NHS.
Social factors:- social factors also affects NHS. Social factors may affect staff in the organisation.
Social factors can increase and decrease numbers of patients and staff associated with NHS.
Technological factors :- technology is improving fast and NHS should implement it their
organisation so that they can stay ahead in the competition. Technological factors includes surgical
equipments , machines and others equipments at NHS. Technology will help in proving better
services at NHS.
Environmental factors :- NHS plants trees in their campus and locality so that they can provide a
healthy environment for their patients. NHS uses disposable surgical equipments so that no harm is
caused to the environment.
Legal factors :- legal factors affect NHS the most. NHS has to follow rules and regulations of the

government. They have to work according to government policies. The NHS has tp produce account
every years so that the government can keep a track of the taxes that they pay and income they
earn.
TASK 4
P5 Analysis of strengths and weaknesses of Internal and external.
The top level management of both organization NHS and John Lewis Partnership has chosen
SWOT analysis approach for examining and analysing their internal & external environment of
their company. This helps in analysing effective possibility or situation with risk & threats while
doing business.
The SWOT analysis of NHS company is described as under below (Ren and et. al., 2017) (Saleem,
2017) .
NHS
STREGTHS WEAKNESSES
 NHS has loyal and committed workforce
with high level of knowledge, experience
and moral.
 NHS provides good services with new
equipments.
 (Sekaran and Bougie, 2016).
 NHS has high agency staff cost that
reduce revenue of NHS.
 NHS has to bear a lot of expensive in
proving training to new staff.
Opportunities Threats
 NHS can expand their business further
because it provides good services so it
will get success.
 NHS has income opportunities from
private patients.
 Non delivery of CCG planned reductions
in emergency activity is the biggest threat in
NHS.
 Increasing cost of qualified staff is also
threat for NHS Because it will affect
revenue of NHS.
The SWOT analysis of John Lewis Partnership company is listed under below.
John Lewis Partnership
STREGTHS WEAKNESSES

 The major strength of John Lewis
Partnerships that it has Strong brand
image with strong product portfolio as
well as Strong financial resources.
 Along with the Strong and effective
online presence, it gives all updates on
their web-sites( Türetken and et. al.,
2011).
 Employees are highly engaged which
creates effective relationship between
employee and employer.
 High operating cost and high investment
on research and development of market.
 customers are prices delicate.
 Achieving lack of competitive
advantages.
 Low of intake inventory due to lean
production system and also limited
capacity of manufacturing products
(Tayur and Magazine, 2012).
OPPORTUNITIES THERATS
 The major opportunity is expansion of
their market and networks with effective
and new product development with
adopting of new effective strategies &
technologies.
 Merger and acquisition with profitable
company can also be possibility of
growth of their business .
 The major threat to John Lewis
Partnership is that company is facing
strong competition and they faces failure
of their business in new market due to
modification in policies & laws.
 Merger and acquisition of different stores
as well as new entry of company in
competitive market (Vaiman and
Davidsson, 2011).
It is find that SWOT analysis approach is very effective and important tool for business
organization, as it helps examine environment and give direction for making profitable decision and
achieving esired goals and objective of their enterprise that is NHS
P6 Evaluate strengths and weaknesses interrelated with external macro factors.
After considering SWOT analysing of both internal as well as external environment of NHS,
the administrator analysis strength & weakness of external factor which effects both productivity &
performance of business organization. Under below, the list of strength & weakness of PESTLE
approach in context to NHS company.

Basis STREGTHS WEAKNESSES
Political Factor The strength of this factor to NHS
is that management of company is
using and adopted effective
changes & modification in this
factor such as government policies
by which company can gain
competitive advantages from
profitable market.
When company do not considers and
adopt the changes of political factor
in their business organization
effectively. Then it could be
considers as weaknesses of this
factor to the NHS (Al-Saleh and
Mahroum. 2015).
Economical Factor When the management of NHS
company is considering changes
and modifications in economical
factor in this business
organization. This leads to very
beneficial for company and leads to
strength of this factor .
The changes in economical factor
are not in favour of company. Such
as changes in inters rates, inflation &
deflation rates, rescission, GDP,
growth rates. Than it could be
considers as imperfection of this
factor to NHS.
Social Factor The strength of this factor in
context to NHS is, that company
focuses on producing their product
according to taste and preference of
customer and market which is
beneficial for both consumer and
organization. Form this NHS can
attain maximum profit form
customer and profitable
market(Bah and Fang, 2015).
When NHS is not considering
demand and need of customer and
society, then it could be weakness of
social factor to business
organization. Along with this
company has to faces many problem
and issues for regarding their
products for overcoming form this,
company has to manufacture their
products according to demand of
customers.
Technological Factor When management of NHS is
using and adopting effective
technologies in their business
organization, it leads to beneficial
and strength of this factor.
If it is talked about weaknesses of
this factor is when company is not
using the updated technology in
functions as well as operations of
their business, leads to weaknesses
of this factor to NHS

Legal Factor It it is talked about strength of this
factor in context to NHS is when
company is effectively dealing
with different laws and legislation
in their business organisation.
From this management of NHS can
attain more competitive advantage
for profitable market.
When company do not adopt proper
and effective laws and legislation in
this business organization then it
leads to weakness to this factor
(Charter,2017).
Environmental Factor If the management of NHS is
focusing on effective strategies for
saving environment such as using
paper bags instead of plastic bags,
could be considered as strength of
this factor.
The weaknesses of this factor is that
NHS is dealing with harmful and
hazardous factor which can harm
environment. Such as air pollution,
noise pollution.
CONCLUSION
From the above assignment, it is concluded that, there are different types of organization are
there who has different size, aim, structure, scope, goals and their objective. In this report NHS is
selected as a main company, which adopt functional hierarchical organizational structure in their
business enterprise. As this helps top level management in effective functioning and proper
managing of operations in business effectively and efficiently. In addition to this manager, also
examine SWOT analysis of business environment i.e. internal & external environment along with
their strengths and weakness. As well as manager of NHS has adopt PESTEL approach for
analysing external environment if business along with its critical analysis and its capability &
imperfectness in decent manner for effectively running their business.

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