Business Environment: Scope, Analysis and Impact Report

This report delves into the intricacies of the business environment, providing an in-depth analysis of various organizational types, including private, public, and voluntary entities. It examines the scope and legal basis of these organizations, using examples like the John Lewis Partnership, the National Health Service, and the British Heart Foundation. The report explores organizational structures, departmental functions, and their interrelationships, while also assessing the positive and negative impacts of the macro environment, including political, economic, and social factors. Furthermore, the report applies strategic tools such as PESTLE and SWOT analyses to evaluate the external environment and internal strengths and weaknesses, providing insights into how these factors influence decision-making within organizations. The report concludes with a comprehensive overview of the key findings and implications for businesses operating in dynamic environments.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................4
LO 1.................................................................................................................................................4
P1 Assess the scope and legal basis of various types of organisation, including governmental,
private and voluntary..............................................................................................................4
P2/ M1 Determine the scope and size of private, public and voluntary organisation ?.........5
P3 Explain the organisational structure and their functions in various department...............6
M2 Analyze the advantages and disadvantages of interrelationships between organizational
functions and the impact that can have upon organizational structure...................................7
LO 3.................................................................................................................................................8
P4 Positive and negative impact that affect the macro environment......................................8
M3: Apply appropriately the PESTLE model to support a detailed analysis of the macro
environment within an organisation?.....................................................................................9
P5 SWOT analysis of John Lewis..........................................................................................9
P6 Interrelation of strength & weakness with macro factors..............................................10
M4 Apply appropriately SWOT/TWOS analysis & justify how they influence decision
making..................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................14

INTRODUCTION
The term "business environment" refers to a combination of internal and external
influences. Technological variation, suppliers, Customers, change in demand & supply and so
forth are all examples of this. All of these components have a direct as well as indirect affect
to business situation that are exist in the organisation(Fabuš, 2017) . Following covers various
topic on which discussion is made are different examples of forms of organisation like
voluntary, private , public. The public organisation involves National Health Services whose
main objective is to offer better service as compare to their competitor to their patients and on
the other hand British Health Foundation consider as base company with regards to voluntary
organisation as their main purpose to establish is to decline ratio of death rate due to circulatory
& heart issues. Moreover, suitable example of partnership organisation is John Lewis
partnership concern as it has their headquartered in the country UK. The main targets of
partnership are to provide products as well as services which posses high quality. It also tends to
improve profitability ratio of the firm and also tends to raise productivity level. In the a
assignment organisation structure are also explain along with functions which are tends to be
interrelated with other units/department along with the factors which are external & internal
based.

PART 1
LO 1
P1 Assess the scope and legal basis of various types of organisation, including governmental,
private and voluntary
Private organisation: The John Lewis Partnership is a private company with a partnership
structure, and its headquarters are in London, United Kingdom. The company works in the retail
market and sells a variety of goods (Lee, 2017.)
.
Purpose: The major goal is to give high-quality products to customers at a low cost so
that they can satisfy and fulfil customer demand while also earning money.
Product and Services: They sell a variety of products on the market, including apparel,
furniture, banking, and financial services, as well as other products in the retail industry.
Legal Structure: In context to private organisation, the legal structure in the organisation
is tends to be followed by top management authorities like CFO, CEO , managing director , as
they are the people who are responsible to do important decision making.
Voluntary organisation: It is such type of organisation in which individuals groups
tends to be form an agreement which tends to be not governed by the government and has the
goal of achieving a common goal. The suitable example of such type of organisation is The
British Health Foundation which is established in U.K. (Pikhart, 2017)
Purpose: The goal of the chosen organisation is to raise funds for research because they
tends to be so concerned regarding circulatory as well as heart illness, along with the risk
factors that contribute to these diseases.
Product and services: The company seeks to raise money to help prevent and diagnose
heart and circulation problems. As a result, the nonprofit organisation is aiming to reduce the
number of people who die from cardiovascular disease.
Legal structure: The trustees of the British Heart Foundation must make legal and
regulatory decisions, which are made by the trustees of such charitable organisation. They make
decisions that are in the best interests of society, patients and employees.

Public organisation: This sort of organisation provides public services and is run and
controlled by the government. In this report, the National Health Service is chosen as an
organisation. It is a government-run healthcare system based in the the country UK. They have
been giving free health care to those who cannot afford them since 1948 (Akpan, 2020)
Purpose: The major goal of the chosen organisation is to provide free delivery of clinical
needs and health services to those who live in the United Kingdom, with the exception of dental
care. They provide therapy and diagnostics, as well as ensuring that their patient's health
improves.
Product and services: They offer a variety of services to those residing in the United Kingdom,
including free treatment to those whose health & mental health are in poor condition.
Legal structure: In a public organisation, decisions are made by both the federal as well
as by state governments, and then the authority of the National Health Service adopts them so
that personnel can do their tasks in a methodical manner.
Legal structure
• Sole proprietorship: Sole ownership is a common sort of private company that performs a
wide range of services such as electricity, plumbing, and food. Individuals develop and
run these businesses in order to generate a sufficient profit margin. This enables
entrepreneurs to effectively safeguard themselves and maintain their livelihoods.
• Partnership: This method is used by businesses with two or more partners to ensure that
they have enough resources and experience to conduct successful research. This is the
firm to which tends to managing directors report and with whom they execute legal
agreements. As a result, any stakeholder determined the organization's profits, roles
& responsibilities.
• Private Limited: This technique entails forming an organisation in which businesspeople
are responsible for the organization's operation and decision-making authority. By share
or promise, two types of ownership are regulated. As a result, stockholders who are
restricted by share must pay interest on their capital stock. Furthermore, citizens are
required to pay in line with the guarantee.
P2/ M1 Determine the scope and size of private, public and voluntary organisation ?
Private organisation- John Lewis Partnership

Size and Scope: Customers may get a wide range of products and services from John
Lewis Partnership, which is vast in size and produces high-quality goods and services. It is a
retail industry that operates globally, and they are building their brand recognition by recruiting
more competent individuals in their stores, despite the fact that they employ approx eighty three
thousand people. JLP earned a revenue of ten point one five billion pounds and a net profit of
around one hundred and forty six million pounds in the year 2020.
Vision and Mission: The chosen organization's aim is to motivate their employees to
generate a high-quality product. John Lewis Partnership's purpose is to excite and satisfy its
clients with exceptional service and higher-quality food and non-food goods (World Bank, 2019)
Voluntary organisation: British Heart Foundation
Size and Scope: The mission of the British Heart Foundation is to improve the health of
patients suffering from illnesses. Many medical specialists are working to reduce the death rate
from heart disease, which is a major issue for the organisation.
Vision and Mission: People should not die early from cardiovascular disease or heart
disease, according to their vision. They only devise tactics for diagnosing and treating their
patients in order to cure them.
The objective of the British Health Foundation is to combat the problem of heart and circulatory
illness so that people do not die prematurely from heart disease and it does not become a major
concern in the UK (Cravo, 2019)
Public organisation- National Health Service
Size and Scope: The chosen public organisation operates in more than seven nations and
has recently declared that it intends to expand its services to other countries. In the last year,
National Health Services employed 18,000 people and generated $540 billion in revenue. They
are now researching initiatives to increase the number of medical professionals employed from
7000 to 14,000 by 2030.
Vision and Mission: The National Health Services aspires to improve people's health by
providing the finest available services to clients.
LO 2

P3 Explain the organisational structure and their functions in various department
John Lewis follows an organisational structure in which activities are carried out in
various departments in order to meet the company's goals. The following are the organisational
functions and how they connect to each department:
Sales and marketing department: The John Lewis Partnership's sales section sells products to
customers and then collects time to time feedback so that the product can be improved to meet
the demands as well as requirements of the customers. It is known as the company's major
strategy that are formulate for the purpose of increasing customer base as well as productivity.
The marketing department, on the other hand, raises awareness of the goods or services (moon,
2019)
Marketing and finance department: John Lewis Partnership's marketing department advertises
their products by using various promotional tools so that they become capable to attract a variety
of customers in order to increase sales and profit. The financial department focuses on ensuring
that funds are available in the organisation. They ensure that there is cordial interaction with
other department so employees can put their efforts to improve sales and make high revenue
(Agarwal, 2017)
Human resource and IT department: The human resource department is a vital aspect of any
company since it selects and hires competent employees. They provide training and development
programme to their workforce so their productivity tends to be increase , and this alsotends to
improve the level of motivation of every worker in the organisation. The John Lewis
Partnership's IT department maintains their data related to goods & services by checking as well
as updating its software (Slagmulder, 2018)
M2 Analyze the advantages and disadvantages of interrelationships between organizational
functions and the impact that can have upon organizational structure
It is critical for every business to collaborate through establishing effective relationships
amongst the various divisions of the company in order to get a better outcome and meet

the organization's goals in a timely manner. When a department has a healthy working
relationship, it eliminates ineffective debates and disagreements, allowing employees to
focus on their goals and objectives. Inter-departmental relationships also aid in
functioning within the organization's structure, which helps to retain high-performing
individuals.
PART 2
LO 3
P4 Positive and negative impact that affect the macro environment
The organisation's positive and negative effects have a number of external factors: The
following:
Political Factor: It is a factor in which there are many changes in rules and regulations, labour
laws, and so on. In the case of John Lewis, they run their business globally, thus any variation in
policies of government or any uncertainty on import and export in any of the countries where
they operate will have an impact on the company's sales & profits.
Positive impact Negative impact
If the condition of politic is stable then John
Lewis can gain profit and have positive impact.
If there is existence of rapidly change in trade
policies then tends to make impact negatively
and affect organisation sales and employees
performance.
 Economic factor: Inflation as well as deflation in the rates have an impact on an
organization's profit and sales. With regard to John Lewis, the UK's economic aspect is
strong, allowing the corporation to gain more income while remaining competitive in
the market (Sousa, 2019)
Positive impact Negative impact
The company's economic situation is solid,
allowing them to create work chances that will
In the case of John Lewis, there has been a rise
in cost, and as a result, customers are

aid in the production of goods or services. transferring to their competitors, affecting the
company's sales and revenue.
Social factor: This element covers age, income, and a variety of other factors which puts direct
impact on an organization's profit. The chosen organisation must sell products that meet the
needs and requirements of customers in the marketplace. They create or manufacture goods that
meet the needs of customers.
Positive affect Negative affect
The positive impact is that they are
manufacture the goods that customers want and
assisting them in establishing a brand image.
When they use corporate social responsibility
efforts, they have a negative influence.
 Technological factor: According to John Lewis, the company is implementing
technological advances that will benefit the company and allow it to compete in the
competitive market (Rong, 2018)
Positive affect Negative affect
The chosen organisation offers the most up-to-
date product while utilising evolving
technology, that supports to attract customers.
If they have embraced technology that
generates high costs, raise inventory costs, and
has an influence on the company's sales.
M3: Apply appropriately the PESTLE model to support a detailed analysis of the macro
environment within an organisation?
As a marketer, we call the PESTEL analysis a technique that can be used to analyse and screen
for the organization's external marketing environment, management framework gauges, and
macro environmental elements. Different macro environmental aspects can also effect business
strategies. also PESTEL analysis and SWOT analysis are business tools that are used to identify
a company's strengths, weaknesses, opportunities, and threats. Companies and organisations
utilise the PESTLE analysis tool to track and analyse the macro environment in which they
operate in PESTLE analysis

LO 4
P5 SWOT analysis of John Lewis
Strength Weakness
 One of John Lewis' greatest assets is its
vast range of products, which helps the
company attract a huge number of
customers while also increasing
profitability.
 It has been discovered that the price
charged by the relevant organisation is
more than other supermarkets, which
may limit the target demographic and
be considered a company weakness.
Opportunity Threat
 The particular organisation has the
potential to offer healthy and organic
food, as the demand for such items is
growing every day, assisting the
company in attracting a big number of
clients and increasing profitability.
 It has been determined that the
company in question is dealing with
some legal challenges that are having a
detrimental influence on its brand
image.
P6 Interrelation of strength & weakness with macro factors
Basis Political Economical Social
Strength The administrator of
John Lewis adheres to
all government
policies because they
aid in the seamless and
proper execution of
activities.
John Lewis' senior
management pays
fair compesation &
wages to their
workforce which
boosts the company's
production.
Customers' needs are
met by the particular
organization's products
and services, which are
tailored to the needs of
customers in the
society.
Weakness It was discovered that
policy changes cost
The economic
situation in the United
People nowadays are
very concerned about

the organisation
money and had a
detrimental impact on
its performance.
Kingdom is now
unstable, which has an
impact on the overall
functioning of the
organisation.
their health, which has
been identified as a
weakness for John
Lewis.
Basis Technological Environmental Legal
Strength John Lewis makes use
of innovative and new
technology to attract a
big number of
customers and increase
the company's
profitability.
John Lewis uses
environmentally
friendly products to
effectively safeguard
the environment
(Delpechitre, 2018)
All policies, acts and
laws are followed by
the organisation to
ensure that activities
run smoothly and
without any legal
difficulties.
Weakness Rapid technological
change and
implementation result
in a large cost to the
organisation, which
leads to a decrease in
revenue (Buckley,2018)
. It has been
established that the
corporation is dealing
with some
environmental
challenges that are
having a detrimental
impact on its brand
image.
Variation in
regulations cause
problems for
businesses and have an
impact on their
performance
(Hanafizadeh, 2018)
M4 Apply appropriately SWOT/TWOS analysis & justify how they influence decision making.
 Following the discussion of the SWOT analysis, it was determined that the
chosen organization has a number of flaws and strengths. It's also helpful for determining
the positive and negative effects of their strengths and weaknesses on their business's
operations. John Lewis makes good use of their capabilities in order for the company to
make informed decisions that will help them reach even more future growth
opportunities. It is constantly seeking to mitigate their flaws through the application of

their strong assets, which can help them fully transform their flaws into assets, allowing
them to make the finest judgments possible while generating countless alternatives. One
of the most major hazards that a company faces is competition; as a result, the company
must use its strengths to neutralise these threats and develop a strategic strategy that will
enable the company to gain a competitive advantage (Temelkova, 2017)

CONCLUSION
On the basis of deep study and analysis it tends to be conclude that the business
environment aids the organization's performance and productivity. The scope, purpose, and size
of each organisation are distinct. For internal and external elements that can directly or indirectly
affect the organisation, the organisation uses PESTLE and SWOT analysis. The SWOT analysis
is used to determine an organization's strengths and weaknesses.

REFERENCE
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