Comprehensive Analysis of Business and Environment: John Lewis Report

This report provides a comprehensive analysis of John Lewis's business environment, starting with an introduction to business organizations and their environments. It examines various organizational types, including public, private, and voluntary sectors, along with their legal structures and stakeholders, using NICE, John Lewis, and Oxfam as examples. The report delves into the size and scope of these organizations, linking them to their business objectives. It explores the relationships among organizational functions, discussing their advantages and disadvantages. The report also analyzes the impact of the macro environment using the PESTLE model and conducts internal and external analyses, including a SWOT analysis, to evaluate the influence of macro and micro factors on business objectives and decision-making. The conclusion summarizes the key findings and insights gained from the analysis.

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Organisational types with purposes, legal structure as well as stakeholders.........................1
P2. Size and scope of different organisations..............................................................................3
M1. Structure, size addition to scope of organisations linked with business objectives............4
TASK 2............................................................................................................................................5
P3. Relationship among organisational functions........................................................................5
M2. Advantages together with disadvantages of interrelationships among functions of
organisation..................................................................................................................................7
D1. Analysis of complexities.......................................................................................................7
TASK 3............................................................................................................................................8
P4. Impacts of macro environment..............................................................................................8
M3. Application of PESTLE model...........................................................................................11
TASK 4...........................................................................................................................................11
P5.Internal and external analysis...............................................................................................11
P6. Interrelation of strengths and weaknesses with external macro factors..............................12
M4. Application of SWOT analysis...........................................................................................14
D2. Evaluation of impacts of macro and micro factors on business objectives and decision
making........................................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business organization is a enterprise which is commercial and deals with goods and
services in order to meet the needs as well as wants of the customers. Business environment
comprises of an individual, organisation addition to other forces that are controllable or
uncontrollable by business enterprises (Ambler, Witzel and Xi, 2016). Such environment
constitutes economic conditions, technologies, suppliers, trends, media, market conditions,
consumer groups together with multiple other institutions. All these presents opportunities
including threats for the business. It helps in dealing with ongoing changes, tapping useful
resources, improving performances and assists in planning for future. This report is based on
John Lewis which is located at Leeds, England, United Kingdom. Such company performs its
key operations in retail industry. The report further discusses different organizational types along
with structure, size, scope addition to stakeholders. It also discusses relationship among
organizational functions along with their linkage to structure and objectives of organization. It
also includes internal addition to external analysis along with interrelation between strength and
weaknesses with macro factors.
TASK 1
P1. Organisational types with purposes, legal structure as well as stakeholders.
Organisations are the groups addition to structure that were set as well as managed by an
individual with the aim to achieve certain objectives. In the competitive world, there are
numerous types of organisations which performs activities to maximise profits. Organisations are
categorised into different types having distinct size and scope. The categorisation are the
following
Classification by sector
Public Sector
Companies that are controlled and accountable to local or central government authorities
are termed as public sector organisations. Range of public sector organisations are British Army,
NICE, Crown Prosecution service and so on that perform numerous activities across UK
(Becker, 2018). The selected organisation among all is NICE which is National Institute for
Health and Care Excellence located at London, United Kingdom. It publishes guidelines for
health technologies, medicines, clinical practices and social care services.

Private Sector
Such organisations are launched, managed, controlled together with run by single person
or majority of individuals (Brown, 2018). They generates profits through delivering goods at
better prices as well as quality other than competitors. In context to report, John Lewis,
Sainsbury's, Caterpillar, Tesco, John Lewis and Apple are some of the range of business working
as private sector organisation across UK. Among all, John Lewis is selected. Such company is a
private entity that performs activities to supply grocery items.
Voluntary Sector
Such associations comprises variety of institutions such as charitable, religious, educational,
healthcare, advocacy, recreational and satellite organisations. Wide range of voluntary
organisations within UK are British Heart Foundation, National Trust, Oxfam and many more. In
relevance with present scenario, Oxfam is chosen (Cullen, 2017).
Primary
This sector of business have the extraction of raw material as per more of finishing, mining and
respective agriculture development
Secondary
The next sector is more concerned with more of producing finished product along with more
known as manufacturing sector .
Tertiary
This is sector which is more concerned with major level of offering of intangible good and
services to there respective customer. This ave inclusion of retail, tourism, banking,
entertainment and I.T. services.
Classification by purpose
Profit
The companies services related to financial services to survive and grow in order to maximise
profits and attain satisfaction. Core purpose of profit making business are such as John Lewis
existence is to cater great services at fair prices to enhance customer satisfaction along with
maximise revenues by delivering demanded products by targetted audiences on appropriate time.
Non Profit
Trustee is considered to the contribution of an individual which is considered in major ways of
welfarism the common people. This helps in leading major way of development in more

respective manner. Charity is major level of contribution in order to have the proper level of
serving the in way of welfare of suffering and needy people.
Classification by legal structure
Sole Trader
It is considered to be the business which have the requirement of small financial amount by
bearing all level of risk at all. The company have the no existence of boss and attaining
maximum level of privacy. The company tends to bear audibility without any level of restriction
on legal level.
Partnership
This business firm has been developed to overcome the various problem of sole traders. The
company have the association in 2 to 20 partners which is benefited as the way of establishment.
On other hand the partner have the major audibility of in limited liability of debt which is
considerer as risky in firm.
Privates And Public Companies are new kind of business which has been characterized as the
dual set of company and partnership firm. The member of company have the limited share of
liabilities with having the development of respective share by there respective share holding
limit. The other feature in to have development in perspective order. Stakeholders that are part of
public sector organisation are financial institutions, employees, government and so on. Key
stakeholders of NICE are local authority, trustees, investors and employees.
Advantages: This organization main aim is to work for public and provide them with job
opportunities.
Dis-advantage: These type of company is mostly difficult to be managed.
Cooperatives
As per the suggestion of name there are proper formations of the purpose which leads to have
development of community along with social welfare along with all profits and capital which is
Marley being suggested to be used for community development. They are not for profit
organizations.
Advantage: They bring out new and innovative products and services in order to satisfy
consumers.
Disadvantage: There can be a risk of producing ineffective products, it can also be expensive.
Classification by size and scope

Micro
The business micro business based on the above would be a business with less than 10
employees. There were 5.4 million micro- businesses in the UK in 2018, accounting for 96% of
all businesses.
Sme
The usual definition of small and medium sized enterprises (SMEs) is any business with fewer
than 250 employees.
Large
The large companies are such as the NICE to redistribute income along with wealth in all
regions or sectors, provide capital formation sources, developing infrastructure facilities and
attaining planned resource allocation. There is more level of existence of the of NICE is to
provide guidances and advices, setting quality standards together with managing database to
make improvements in health along with social care systems.
Classifications by UK standard
Transnational
International companies are having mainly the level of consistency of exposure along with
importers as there is nor large level of requirement of investment in their outside there respective
level of home country development
Multinational
on the other hand with subdevelopment of multinational companies have the requirement of level
of investment has been required in different countries, but they are not allowed to have major
level of contribution in ways of offering the products in more effective and developing ways.
Global
With more proper level of understanding of the companionship which are existential at global
level have the investment which is being required in different countries which is having the leads
in several levels of development.
P2. Size and scope of different organisations.
In the competing world, distinct organisations run businesses with the motive to attain
great heights. Different organisations posses distinct sizes and accordingly set procedures or
plans to reach towards objectives. In context to present report, three organisations together with
scope and size are as mentioned:
Particulars Public organisation Private organisation (John Voluntary

(NICE) Lewis) organisation (Oxfam)
purpose Purpose of NICE is to
redistribute income
along with wealth in all
regions or sectors,
provide capital
formation sources,
developing
infrastructure facilities
and attaining planned
resource allocation.
NICE is to provide
guidances and advices,
setting quality standards
together with managing
database to make
improvements in health
along with social care
systems.
Purpose of John Lewis
existence is to cater great
services at fair prices to
enhance customer
satisfaction along with
maximise revenues by
delivering demanded
products by targetted
audiences on appropriate
time. they generates profits
through delivering goods at
better prices as well as
quality other than
competitors.
Oxfam is entity
federation of more
than 20 charitable
organisations that
emphasis on global
poverty alleviation.
The purpose behind
Oxfam working are to
empower society
members so that they
are capable to tackle
poverty issues through
social services.
Size: NICE has hired large
employee size which
consists of more than
600 personnels working
across England along
with Northern Ireland,
Wales and Scotland to
deliver services that
results in increasing
customer satisfaction
(Size of NICE. 2019).
John Lewis has size of 32
super centres, 33 living
stores, 61 Gateway
Supermarket, 341
superstores, 319 petrol
filling stations, few pilot
George stores, 209
supermarkets and many
more where approx
165000 employees are
performing distinct
Oxfam has opened
diverse shops
including 650
speciality shops related
with bridal wear,
books, music, furniture
and many more that
has more than 10000
items and are managed
by approx 23000
volunteers across the

They offers services
related with health,
education, social care
and many more.
operations to deliver
products such as clothing,
home wares, electronics,
beauty products and toys
together with services
related to financial services
(Size of John Lewis. 2019).
world (Size of Oxfam.
2018).
Scope: Such organisation has
scope for operations
expansion by adopting
digitalisation techniques
to cater faster services
to people living within
and outside the national
boundaries. It provides
services across globe.
Management team hires
skilled and unskilled
individuals those who have
capability to perform
activities as well as
learning new things by
using advanced techniques
which expands business
scope to perform activities
globally. It provides
services related with
delivery and financial
services.
Such company renders
humanitarian services
in around 14 nations. It
can expand the scope
through adding new
service or products in
their wide locations
that can expand
satisfaction of
potential customers. It
provides services in
order to reduce
poverty addition to
saving people from
disastrous conditions.
Objectives: The objectives of NICE
is to eliminate
discrimination by
building strong
relations. The company
has other objective to
provide healthy
guidances to general
Core objectives of John
Lewis is to satisfy customer
expectations for grocery
items together with non
grocery items. It aims to
provide products and
services in affordable prices
so to attract new audiences
Objective of Oxfam is
to eradicate
discriminations
between poor or rich
individuals together
with supplying
safeguard global
services.

public by creating more
values through
recognizing
innovations.
while retaining existing
ones.
M1. Structure, size addition to scope of organisations linked with business objectives.
In context to public organisations, the business objective of NICE is to deliver guidances,
helping to attain quality and sustainable services as well as contributing towards thriving science
industry. Such objective was set after considering available employee size which is enormous
that helps in researching market and investing money so to set big targets and attain them
effectively. In context to private organisation, John Lewis being a large private organisation with
diverse range of employees, products, services and scope which follows divisional along with
functional structure by communicating all informations to serve international customers,
managers set objectives accordingly and attain them effectively. In context to voluntary
organisation, Oxfam objective is to organise civil societies, empowering women, safeguarding
food supplies, reducing poverty together with injustice. By having huge shops, they provide
employment opportunities and empowering women so to attain objectives. Hence, having vast
scope, structure together with large size employees helps an organisation to formulate massive
size with diverse scope, otherwise small sized organisations with limited objectives are build.
The non profit organizations are more focused towards the welfare of the society, and
they are small and the contribution in the economy is small. Whereas the non NGOs are more
focused towards making profits and earning money. They are large and the contribution in the
economy is also large. There are various legal structures such as partnership in which two or
more partners conduct business by sharing profit as well as losses. They are separate from the
entity if the partnership is of limited liability. Sole trader is a trader which is having unlimited
liability, and they are solely responsible for the profits as well as for the losses. Corporations are
huge and the liability of the organization is also unlimited. The advantage of sole trader is there
is low risk. The advantage of partnership is there is distribution of investment and advantage of
corporation is there is a huge investment. Whereas disadvantage of sole trader is liability is

unlimited. The disadvantage of partnership is there is sharing of profits and for the corporation
the disadvantage is the equity holders shares the maximum risk.
Role of technology, globalization and legal trade agreements in growth of global multinational
corporations
The industrial revolution was earmarked by the development of technology and workforce
machinery to allow the mass production of goods. This technology included items such as the:
cotton gin, steam engine driven machinery.
The international companies are termed as the exporter and importer who is not havering the
investment out the country in order to have the development in more significant way t achieve its
desired level of gaol and organization in more specific way. On the other hand multinational
companies have the major level of investment in different countries in order to have the
coordinated level of development regrading the products . At last the global companies have the
major level of investment which is having there presences in may of forgiven counterfeits for
signifiant level of expansion
TASK 2
P3. Relationship among organisational functions.
Organisations functions consists of main activities which are performed by personnels in
different areas. Distinct types of functions are finance, market research, managing human
resource, customer relationship management, operation management and many more.
Organisational structures are changed with changes in market conditions, distribution channels,
competitors actions and so on. John Lewis is a retailer organisation which plans objectives
addition to utilising structures that are interrelated with various functions of the company
(Organizational chart. 2019). Three organisational structures are as described below:
Interrelationship of functions of John Lewis with linkage to objectives addition to structure
as as mentioned:
Marketing function with human resource function: Marketing function have the role
in formation of different business strategies as well as plans to promote brand image in the
multinational market. They analyses market situations related with customer demands, prevalent

trends and accordingly communicates information to other department. Marketing function of
John Lewis organises activities with the help of human resource function. Human resources
collects information related with demands of customer and accordingly plans activities that are to
be performed. They also help in the marketing department by providence the sense of skilled
employee to company in order to gains the level of competitive advantage in market
development strategy. Marketing department coordinated activities with human resource
department so to attain the objectives in effective manner. Activities related with marketing
function are closely linked with structure and objective or organization in numerous ways such
as they cater directions to perform actions.
Operation function with marketing function: Operation function comprises
warehouses, distribution, production and packaging. Such function of John Lewis is related with
supervising, and redesigning operations so that production activities are carried out in smooth
manner without any barriers. Such function of John Lewis collects information related with
demand or supply of goods and synchronize undertakings with marketing function
(Hillary,2017).
Research and development function with production function :The research is having
the analysis of all activities as per the tends in market inn order to make the business department
of production one to produce activities at in order to increase in demands. All the activities are
set by considering structure as well as objectives so that activities are performed to attain them.
They have the attainment of the close relationship in developing the radiosity level of ideas in
order to have achievement of gaol and organization in more respective manner.
M2. Advantages together with disadvantages of interrelationships among functions of
organisation.
Organisational structure plays important character at workplace as such structure is used
to make critical decisions through exchanging thoughts, views addition to information.
Functional interrelationship benefits managers of John Lewis to assist activities by maintaining
cooperation, up surges associations, escalate profit level and increases business effectiveness that
results in impacting in positive aspects on business structure. One of the disadvantage of such
relationship is that there are chances or risks associated with sharing of confidential information
by employees to competitors. Some employees for their own benefit builds trusted relationships
with other functions and shares confidential information through informal communication that

results in negative impacts as employees can use such information in wrong ways which can
impacts on serious manner on business structure (Lloyd-Jones and Lewis, 2017).
D1. Analysis of complexities.
The management of John Lewis have embraced different structures at different
workplaces. For instance, in functional structure, distinct functional groups faces complexities
while communicating and grabbing attention of international market which diminishes
performance flexibility this causes complexities related with miscommunication as well as
misconduct of operations between functions such as marketing and human resource. While
considering divisional structure, employees faces complexities associated with operational
inefficiency among particular functions like marketing function in which they fails to
communicate specific information to operation function or which enhances implications on
marketing practices.
Illustrat
ion 1: Organisational chart. 2019