Business and the Business Environment: A Comparative Analysis

This report conducts a comprehensive business analysis of Wilko, a private company, and HSBC and Amazon, both public companies. It explores organizational functions, advantages, and disadvantages of each company's structure, including detailed analyses of their size, legal structure, and scope. The report delves into the objectives and operating sectors of each organization. Furthermore, it examines organizational structures, including charts for HSBC, Amazon, and Wilko. The second part of the report focuses on macro and micro business environments, including internal and external analyses of HSBC. It interrelates internal and external factors with macro factors for all three companies and provides PESTLE and SWOT analyses for HSBC and Amazon, respectively. The report concludes with recommendations, aiming to provide insights into the companies' potential for future growth and sustainability in a competitive market.

Running head: BUSINESS AND THE BUSINESS ENVIRONMENT
Business and the Business environment
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BUSINESS AND THE BUSINESS ENVIRONMENT
Table of Contents
Introduction..........................................................................................................................2
Part 1: Organizational function and organizational structure..............................................2
Advantages and disadvantages of the selected organizations..........................................2
Size of the organizations..................................................................................................3
Legal structure of the organizations................................................................................4
Legal structure of Wilko..............................................................................................4
Legal structure of HSBC.............................................................................................4
Legal structure of Amazon..........................................................................................4
Scope of the organizations...............................................................................................4
Scope of Wilko............................................................................................................4
Scope of HSBC............................................................................................................5
Scope of Amazon.........................................................................................................5
Objectives of the organizations.......................................................................................5
Objective of Wilko......................................................................................................5
Objective of HSBC......................................................................................................5
Objective of Amazon...................................................................................................6
Operating sector of the companies..................................................................................6
Organizational structures of the company.......................................................................7

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BUSINESS AND THE BUSINESS ENVIRONMENT
Organization structure of HSBC..................................................................................7
Organizational structure of Amazon............................................................................8
Organizational structure of Wilko...............................................................................9
Part 2: Macro business environment and the various factors..............................................9
Internal and external analysis of HSBC...........................................................................9
Interrelation of the external and internal factors with external macro factors...............10
HSBC.........................................................................................................................10
Amazon......................................................................................................................10
PESTLE analysis of HSBC...........................................................................................11
SWOT analysis of Amazon...........................................................................................12
Conclusion and recommendation......................................................................................14
Reference List....................................................................................................................15

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BUSINESS AND THE BUSINESS ENVIRONMENT
Introduction
This repot has been conducted to understand the various aspect of the business which is
conducted on both private and public level. The various advantages of the public and the private
sector companies have been identified in this report. A detailed analysis in both internal as well
as external factors have been explained properly in the report. The companies which have been
selected for the conduction of the business analysis are Wilko which is a private company,
HSBC and Amazon both of which are public company. A detailed information regarding the
structure of the organization have been explained in the report in which all the different tiers and
the holdings of the company have been explained in a proper way and the various ways by the
help for which each tiers of the company contribute to each other have been explained in the
report. For the conduction of the micro environment and the micro environment of the business
environment of the companies SWOT and PESTLE analysis have been conducted in each of the
companies. The various achievements and the various factors which might harm the company
have been explained in the report in a detailed manner. The various threats and the opportunities
which have been identified after the conduction of the macro and micro analysis has been
connects and explained in a proper manner. All the three companies have the potential to reach
new heights in the future and they will be easily sustaining in the present market scenario which
is very competitive.
Part 1: Organizational function and organizational structure
Advantages and disadvantages of the selected organizations
The main advantage which is enjoyed by Wilkins for being a private limited company is
that there is great flexibility in the conduction of business affairs. The members in a private
limited company are well known to each other and there exists a clear communication among the

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employees of the company (Herrera 2015). The private limited company also has the advantages
of public corporation and also has a partnership firm. The disadvantage of a private limited
corporation is that the total number of associates in the company cannot surpass by fifty
members (Herrera 2015).
Being a public limited companies both HSBC and Amazon have the advantage of
reduction in the personal liabilities as a large number of people are associated with the
companies (Alonso, Clifton and Díaz-Fuentes 2015). The brand and the image of the companies
are also maintained being a public sector company. With huge number of partnerships in a public
limited company there are changes that the ownership of the business might be lost and there are
might be different directions and opinions for the conduction of the business (Alonso, Clifton
and Díaz-Fuentes 2015).
Size of the organizations
Wilko has a total of 372 stores across UK and it consists of a total of 23,000 employees.
A wide range of products is sold by the company which includes health and beauty products,
home ware, toys and various accessories.
At present Amazon is one of the largest e-commerce spots in the world and there are
almost everything which are available in the company. The company has an estimated number of
798,000 employees and the branches of the company are present in different parts of the world
(Ritala, Golnam and Wegmann 2014).
HSSBC is the fourth largest bank in the world in the present context and the company
holds a total of 2, 32,927 number of employees. The company is the second largest in relations of
its incomes and is the largest company in the aspect of market value (Naheem 2016).

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Legal structure of the organizations
Legal structure of Wilko
Wilko was opened by James Kemsey Wilkinson in the year of 1930 and the main aim of
the company was to sell household related goods to the customers. The company name was
initially named as Wilkinson Cash Stores and then named as Wilkinson Hardware Stores and at
present the company is coined as Wilko Retail Ltd. The company is still owned by the founding
family.
Legal structure of HSBC
HSBC was originally developed for meeting the trading needs of the traders who were
operating in the coast of China. HSBC has a strong presence in many continents including Asia,
America and Europe. The four key global business of the company are Global Banking and
Market, Commercial Banking, Personal Finance and Private Banking.
Legal structure of Amazon
Jeff Bezos is the CEO and the founder of Amazon. The company started from being a
book selling company and it evolved into one of the major e-commerce company in the world
and it provided its customers with an extensive variety of product.
Scope of the organizations
Scope of Wilko
The company has a huge scope in terms of expanding in the present market and the
various process which is followed by the company will be very helpful for the company in the
future and the company is bound to reach new heights in the coming years.

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Scope of HSBC
The main scope of the company is to expand more in foreign market and increase their
shares in the market. The company already has full scale operations of banking in the Mexico,
Hong Kong and UK. The company is bound to set new heights in the future is the company
follows the strategy it has been following in the past.
Scope of Amazon
Amazon is already one of the biggest e-commerce company in the world and the
company is looking forward to expand in the future. The main scope of the company is to
provide improved quality products to its customers with lower price and also introduce newer
and innovative products to its customers.
Objectives of the organizations
Objective of Wilko
The main objective of Wilko is to grow continuously in the present market and they are
known to respond quickly to the rapid changes which are being brought to the market. Owing
these objectives Wilkinson is still in the UK market and it is continuing to thrive.
Objective of HSBC
HSBC focuses on making local investments which acts as the main engine for the economic
growth of the company. Each of the business sector which is owned by the company aims in
adapting to the local business and economic changes and stay ahead of its competitors (Hossain
and Khan 2016).

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Objective of Amazon
The major objective which is followed by the company is that the company aims in
holding the existing customers and also attract new customers. The company divides the
customers into two parts which are the consumers, enterprises and the sellers. The strategy which
the company follows are selection of products, price and convenience of the products (Durillo
and Prodan 2014).
Operating sector of the companies
All the companies operate in the tertiary sector which is one of the major sector of the
business. In the tertiary sector there are major challenges from the various different companies
which operates there and there are many factors which aids as well as hampers the conduction of
business in the sector.

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Organizational structures of the company
Organization structure of HSBC
Figure 1: Organisational chart of HSBC
Source: (Kynaston and Roberts 2015)
A lot of the groups of the company are entitled and are regulated locally. HSBC owns
both directly and indirectly quiet a good number of subsidiaries. These subsidiaries are regulated
by the company and are generally supervised as banks. The subsidiaries are also controlled as
insurance companies as well as security firms in the various countries and the territories in which
they operate.

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Organizational structure of Amazon
Figure 2: Organisational chart of Amazon
Source: (Bittar Rodrigues and Prideaux 2018)
The organisational structure of Amazon is basically hierarchical and the Jeff Bezos is the
centre point of the company. The senior management team of the company includes a total of
three vice presidents, one controller for the world and a total of two CEOs. All these people are
accountable for operating the dynamic features of the company as all of them report directly to
Jeff Bezos who is the CEO and the founder of the company.

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BUSINESS AND THE BUSINESS ENVIRONMENT
Organizational structure of Wilko
Figure 3: Organisation chart of Wilkins
Source :( Wilko.com 2020)
Wilko is a family business which has been stated by James Wilkinson and then the
business stayed in the family of the Wilkins and over the years the company have elected many
other members who maintains and runs the various operations of the company in many other
countries.
Part 2: Macro business environment and the various factors
Internal and external analysis of HSBC
CSR strategy is used by the company to provide better service to its customers and also to
maintain a good brand image. The company is known as the biggest baking service around the

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world and there are millions of customers of the company in the whole world (Santos and
Laczniak 2015)
. The various names of the company in different country confuses the customers and this a big
weakness of the company. The company has high level of capitalization which will be helping
the company to acquire various assets which will be required by the company. The economy of
UK is getting down which might be major problem for the company and living cost is increasing
which might lead to less savings for the company (Santos and Laczniak 2015).
Interrelation of the external and internal factors with external macro factors
HSBC
The company have been thriving in the UK market owing to its stability but in the present
scenario it has been understood that the economy of UK is significantly rising down which will
have adverse effect on the company in the future. The company has opened a lot of branches in
many different parts of the world and it has succeeded in those parts which shows that the
company have been following the social and the legal laws of the country. In the present scenario
it can be said that HSBC is one of the major banking company in the world and the various
process by the help of which the company is at the position at present is the sheer strategy to
grown and not remain stagnant in the present market. The company has made high level of
capitalization and has also contributed to the environment which has helped the company in
gathering more consumers all around the world.
Amazon
In the present era of online business there is an enormous increase in cybercrimes which
poses a major threat for the company but the company is also getting increasing support from the
government regarding the battle against cyber security. The company aims to increase in foreign