Business and Business Environment Analysis for London EV Company

This report provides a comprehensive analysis of the business environment, focusing on the London EV Company. It begins with an introduction to the business environment and then delves into the organizational structure, purpose, and legal structures of various types of organizations, including public, voluntary, and private entities. The report examines the scope and size of different organizations, using the BBC and VSO as examples. It then explores the relationship between organizational functions and their link to the organizational structure and objectives. The positive and negative impacts of the macro environment, analyzed using PESTLE analysis, are discussed, along with the identification of strengths and weaknesses through internal and external analysis. Finally, the interrelation of strengths and weaknesses with external factors is examined, providing a holistic view of the company's position within its operating environment.

BUSINESS
AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 : Various types of organisation and their purpose &legal structure..................................3
P2. Scope & size of different organisations. .........................................................................5
TASK 2............................................................................................................................................7
P3 Relationship between organisational functions & their link with structure of organisation
& its objectives.......................................................................................................................7
TASK 3............................................................................................................................................8
P4 Positive & negative impact of macro environment on business operations......................8
TASK 4............................................................................................................................................9
P5 Internal & external analysis used in identification of strength & weakness.....................9
P6 Interrelation of strength & weakness with external factors.............................................10
CONCLUSION..............................................................................................................................13
REFERNCE...................................................................................................................................14

INTRODUCTION
Business environment consists of external & internal environment factor which is having
affect on organisation and its functions. It consist of various factors such as technology,
suppliers, society, trends of market and so on. It is very helpful in enhancing various
opportunities of business. In this report London EV company has been considered which was
established in 2013 (Schaltegger, Lüdeke-Freund and Hansen, 2016). they are willing to expand
their operations in other parts of UK. For those objective various external factors are being
analysed which is having impact on profitability and productivity of the company. Types of
companies, scope and their legal structures are discussed in this report with this interrelatedness
of organisation function is considered and lastly strength & weakness with various macro
environmental factors are studied.
TASK 1
P1 : Various types of organisation and their purpose &legal structure.
The size of the organization depends on their objectives as well as goals. Below are the
types of organisation with their purpose and scope:
Public organisation- An organization is termed as public when more than 50 percent of its
shares owned by the government. The main funding of this organisations are take place by
government and are non- profitable. This organisation has three forms which includes public
corporations, government company & departmental undertaking. For example, A public
company in UK which is funded by Government is BBC (Dahles and Susilowati, 2015).
Purpose: The primary motive of this organisation is to being equality in nation and increase
lining standards of people of society.
Legal Structure of Public Organisation : Central : A body who controls and give authority to organisation to work for
improvement in society. The profit earned by public organisations were used in
development & welfare of societies. State : They give authority to those organisation who is come under a state supervision.
 Local : it consist of municipal communities who control a particular locality. Their
primary goal is to make life of people of society easier.

Voluntary Organisation- It consist incorporated ad unincorporated organisation as well.
In this type of organisation, the group of people assemble together and work towards for a
common purpose (Upward and Jones, 2016). The group develop projects as well as programmes
for a specific purpose . Voluntary organisation give service to an individual, cities, countries and
groups. For instance, A UK based company “ Voluntary service overseas” aims to reduce the
level of poverty from the economy.
Purpose : They are non for profit organisation which motive is to upgrade societies and
make environment better for people.
Legal structure of Voluntary organisation : Trust - Voluntary organisation funded by people and use this amount optimally for
welfare of poor people.
 Unincorporated Association- These organisation projects are of short period as they
work on a particular issues.
 Private Organisation- Those organisation which have more than 51 percent of share is
not gain by government. It is an individual, corporation, agency or partnership as well.
These organisation works to gain high profits from the public. They take loans or are
funded personally by the people (Turner and Endres, 2017). London EV company
Limited, a private car manufacturing company in United Kingdom is operating to earn
profit .
 Purpose : Their main motive is to raise market share & earn high profits within the
market.
Legal Structure of Private Organisation : Sole Proprietorship- In this the company is owned by a single person. The profit and loss
is not to be share by any other individual. The private organisation have limited liability
and have minimum laws to follow. Partnerships : An agreement which took place between two person or more than it. In
partnership, the profit is divided in equal ratio or as per written in partnership deed. The
loss and risk is also divided equally among the partners of the company (Gallemoreand
Labro, 2015).

 Limited Companies : In this, the subscriber is act as a separate legal entity. The capital is
generated by shares. In addition to this, it is both private as well as public and they face
issues for the sake of public interest.
P2. Scope & size of different organisations.
The possibility of dealing with a subject or instances is scope. When the operations is
declared outside from national level it refer as global scope. On contrary, Local scope is when
functions is performed inside or at national level.
British Broadcasting Company: It is a public organisation and give services to customer with
a motive to provide impartial service to its customers and public. It is one of the oldest
organisation which is certified by Royal Charter (De Villa, Rajwani, and Lawton, 2015). The
company has news, sports, entertainment channels through which gives information to the public
and increase their knowledge. They charge an Annual fee from public which act as a funding for
them. It deals in media channels of sports, news and culture. The company have more than
35,000 employees and give information to people in more than 31 languages so that they can
reach to large audiences and increases its uses and profit.
Voluntary service overseas- It is a charity whose main motive is to decline the level of poverty
from the country. VSO have international, national and community volunteers who helps them to
work effectively and achieve goals. The organisation have more than 71,000 skilled and talented
volunteers. Its main project consist of education, health & livelihood (Trad and Kalpić, 201).
VSO is operating in greater than 25 countries and emphasise on young people to work with them
and improve the condition of societies.
London Electric Vehicle company- The company head office is in United Kingdom and deals
in manufacturing of cars and its parts. The company is renowned as Black cabs in UK. The

manager of London EV wants to expand its business operations in other cities so that they can
raise customer base and profitability level.
Compan
y
Vision Mission Size Scope Stakeholders
London
EV
The vision
statement of
company is “
To gain the
leading
position in the
industry of
cars”.
The mission of
the company is
“To
manufacture
those vehicles
which defines
their class and
upgrade
standard of
people”.
The company
was formulated
in year 2013 and
have greater
than 550
employees in
the company.
The company
wants to
expand its
business in
other cities of
United
Kingdom and
increase their
presence in
market.
It is a joint
venture and is
based on
manufacturing
of china.
BBC The vision is
to provide
unique service
and data to
customers and
gain high
profits.
The mission
statement of
BBC is “ To
educate people
by giving
proper
information
and give high
quality service
to customers”.
The staff
members of
company is
greater than
35000 and
functions in 33
countries.
The company is
planning to add
more channels
which educate
young people
and brings
changes in
society.
The company
have external as
well as internal
stakeholders
which includes
customers, tele
partners, media
partners and
many more.
VSO The vision
statement of
VSO is “to
remove
To address
marginalisation
and remove
poverty is the
The company
has around
76000 skilled
and talented
VSO wants to
attain more
people by
expanding its
Beneficiaries,
Volunteers are
the stakeholders
of VSO who

poverty from
the nation”
mission of the
company.
volunteers and
function in
greater than 16
countries.
function at
global level.
With this, they
reach to large
audiences and
remove poverty
from all over
the world.
provide service
to public.
TASK 2
P3 Relationship between organisational functions & their link with structure of organisation &
its objectives
Every organisations has to perform necessary activities which are performed by various
functional departments (Vij and Bedi, 2016). For all activities to be carried on in an effective
manner it is necessary to utilize resources available with a company. Relationship between
different functional departments are described below:
 Sales & Marketing: Marketing department of company is involved in making strategies
of how to sell various goods & services and main objective of sales department is to
maximize sales so both these department impact each other and help each other in
achieving objectives laid by both of these department.
 HR & Operation department: Operations department has the responsibility of
performing all major functions of company and HR department has responsibility of
hiring people according to requirements in organisation so both these department
coordinate with each other so that there is high effectiveness and efficiency in overall
functions of organisation (Saebi, Lien, and Foss, 2017).
Organisational structure: This is defined as a structure which helps organisation and their
employees to understand how to perform various organisational functions. This structure helps in

understanding of roles, responsibility which have to be understood by employees in company.
There are various different structures which are present in any organisation such as:
 Divisional structure: This is a structure which is divided according to various products
and service lines which are present in organisation (Hansen, 2018).
 Matrix structure: In this type of structure there is reporting which has to be done to
more than two managers in organisation. This relationship is there between managers
and subordinates in form of a grid or a matrix.
TASK 3
P4 Positive & negative impact of macro environment on business operations
Micro factors: These consists of these factors which are affecting the strategy of a
business when they are making decision and their performance level. This also has impact on
individual business as there are different strategies, resources and capacities which are affected
by the changes which are take place in macro environment . Different micro environment factor
are employees, competitors which are helping in achieving various business objectives
Internal factors: These are factors which have impact on operations of a company and
also its overall culture such as structure, leadership etc. employee support is a factor which is
also having impact on achievement of laid objectives (Wood and Logsdon, 2017).
Macro environment factors: These are factors which are having both positive &
negative effect on organisation and are beyond the control of organisation. For analysis of such
factor it is necessary for understanding various trends prevailing in the macro environment.
PESTLE analysis is a tool used for understanding various macro environment factors.
 Political: These are those factors which are having a relation with intervention of the
government on functioning of business . London EV company Limited is dealing with
some legislations which are having relation with policies and vehicles with low emission
of harmful gases.
Positive: London EV company has to form strategies so that negative impact can be minimized.
Negative: There are large number of changes which are taking place in the external environment
and are concerned with changing rules of government.

 Economical: There are various economic forces which also affects functioning of a
company.
Positive: This is related with the purchasing power of customers and increase in this will lead to
increase of sales in company .
Negative: If the economic factors are not in favour of company then this will lead to reduction in
overall sales and wastage of resources which have been invested by this company.
 Social: This is related to the changing patters of individual behaviour. There are many
socio cultural factors which are having an affect on sales of company (Kopnina and
Blewitt, 2018).
Positive: If there is a sudden change in preference of customers and they develop liking for
vehicles then this will have a positive impact in form of increase in sales of company .
Negative: Consumer behaviour is very unpredictable and this leads to negative impact by
reduction of sales in London EV company.
 Technological: This factor is related with technology advancements which may have
positive or negative impact on a company.
Positive: Innovation will help in attracting more customers as if a technology is developed where
vehicles are environment friendly then this will help in sustainable advantage by the company.
Negative: There may be situations where competitors may adopt the technology faster and this
may lead to difficult survival for London EV company in market.
 Legal: Laws of a country have to necessarily followed and whenever any new Strategy is
being adopted by the company such as expansion, merger or acquisition.
Positive: This leads to more safety of their customers (Aithal, 2017).
Negative: Large number of laws and regulation leads to rigid policies in a company.
 Environmental: every business is operating in a external environment and this is having
both positive & negative impact on a company .
Positive:If London EV will be having vehicles which are having low consumption of fuel then
this will help in conservation of environment.
Negative: Various pollution laws have become very strict which leads to compulsory adherence
and if not followed then high penalties are imposed.

TASK 4
P5 Internal & external analysis used in identification of strength & weakness
Internal analysis helps in analysing competencies, competitiveness and viability which is
related to opportunities and threats which are present in macro environment. This is very
necessary for all organisations based on SWOT:
 Strength: London EV company so engaged in engineering services . They are offering
various facilities like distribution of various parts of vehicles, designing of structure of
body of cars. Having presence across world is also big strength of this company.
 Weakness: It becomes very difficult for them to approach a new market or enter a new
country as such countries already have presence of many established car manufacture
companies which leads to a lot of investment and resources which have to be invested by
company.
 Opportunities: There are many opportunities in year 1950 UK was a country which was
at second position in terms of manufacturing of cars. Hence, there is a great opportunity
for this company that they can expand their market operation's across various parts of UK
which can help London EV company in expanding their market share.
 Threats: There are many threats which are present in external environment such as
presence of many competitive brands such as Morgan, Land Roverm Bnetley, Rolls-
Royce which is imposing huge threat on London EV company and because of presence of
such competitors there is a need for continuous modification for survival in the external
environment.
P6 Interrelation of strength & weakness with external factors
In every organisation there is a necessity that analysis has to be done both internal and
also externally this is very important for identifying various opportunities which can be availed
and understand the impact of threats present in market (Brown, 2018). Such threats must be
minimized by usage of core strengths of of the company. There is always a relationship internal
& external factors.
Impact of external environment factors on London EV Company Limited:
Political impact:

 Strength: UK Government is helping various companies in their expansion plans.
Government is helping the companies in having a market so that they can do expansion.
This has created many opportunities for London EV company limited.
 Weakness: There are many political barriers which have a negative impact on companies
operating in manufacturing industry like increased taxation regulations, political barriers
which leads to rigidity.
Economical impact
 Strength: This is very helpful for London EV company as they can implement their
expansion plans which can lead to overall development of company.
 Weakness: There is a decrease in sales of companies which are existing because of
recession and other environmental issues this has also impacted London EV company as
its sales have also been reduced (Chiadamrong and Sophonsaritsook, 2015).
Social Impact
 Strengths: With the increase in personal disposable income of people they started
spending their money on purchase of luxurious items this leads to increase in their status.
This will be having a benefit for London EV company as their sales will also increase.
 Weakness: There are different requirements of very customer and this has to be
continuously monitored by London EV company which leads to continual modification
by this brand.
Technological impact
 Strength: Advancements in technology has created a situation where there is demand for
electric cars which is using minimum fuel (Boda and Zsolnai, 2016). This will be
beneficial for London EV company Limited.
 Weakness: Technological advancements may lead to adoption of latest technology faster
by various competitors this can negatively impact sales of London EV Company Limited.
Legal impact
 Strengths: If all legal requirements and compliance is done by company then this will
lead to effective brand image in market.
 Weakness: Every country has different legal laws which leads to lot of modifications
which has to be taken care of by London EV Company.
Environmental

 Strength: Various resources such as sustainable energy resource will help in
establishment of effectiveness in functioning of company (Dirican, 2015).
 Weakness: Each country has their own set of rules in relation with protection of
environment which has to be implemented by London EV company Limited.

CONCLUSION
It is being concluded that macro environmental factors posses a impact on achievement
of goals in every organisation. Various tools such as PESTLE analysis, SWOT analysis are taken
in use which help in making a analysis of various environmental factors. Overall mission &
vision of company is also understood with help of services which are being provided to
customers. Environmental analysis plays a very important part in assessment of all the factors
which are affecting a organisation's internal functioning.

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