Business Environment Analysis Report - Module BBE, Semester 1

This report provides a comprehensive analysis of the business environment, focusing on three organizational types: public (Network Rail), private (JCB), and voluntary (Age UK). It explores their goals, objectives, missions, visions, and values, as well as their size, scope, and adopted organizational structures (hierarchical, functional, and divisional). The report examines the interrelationship between different organizational functions, such as human resources, research and development, finance, and IT. Furthermore, it delves into the positive and negative impacts of the macro environment on business operations, utilizing the PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors. The analysis also includes an examination of how internal strengths and weaknesses relate to external macro factors, offering insights into the strategic challenges and opportunities faced by these organizations.

BBE

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Types and purposes of organisations..........................................................................................1
Size and scope of organisations..................................................................................................3
Relationship between different organisational functions............................................................5
Positive and negative impacts the macro environment has upon business operations...............5
Internal and external analysis of organisations...........................................................................7
How strengths and weaknesses interrelate with external macro factors.....................................8
CONCLUSION................................................................................................................................9
References:.....................................................................................................................................10

INTRODUCTION
Business environment is defined as the factors of the external and internal environment
associated with the business which affects the operations of the company. Organizations chosen
here are from the three main sectional heads. First is public sector, it is a type of organization
which is controlled by the government of the country providing similar services to the private
one but at low prices. Second is private sector, it is a type of organization which is controlled by
the non-government people and manufactures their own products and services accordingly and
offers the same at high prices as compared to public sector. Third is voluntary sector, it is a type
of organization whose motive is to only serve people without charging any fee from them, these
are the non-profit organizations related to charities and NGOs (Bini, Bellucci and Giunta, 2018).
The following discussions are made on the types, purposes, size and scope of these
organizations, relationship between their internal functions and operations, analysing macro
environmental factor of organizations with the internal factors as well and creating the
interrelationship between the both of the factors in context of such organizations.
MAIN BODY
Types and purposes of organisations
Public Sector
Organization chosen here is Network Rail, it is one of the leading international public
sector company. It was founded in 2002 in UK. It mainly offers transport services to the people.
It is responsible for operations and development of infrastructure of the railways. Till now they
have build up the 20,000 track miles, bridges of approximately 30,000 including viaducts,
tunnels and 1000s of stations, crossings and signals.
Goals and Objectives
They are aiming for the people to travel safely, reliably and efficiently. Their goals are to
grow and develop their railway functions in order to serve people with the best of their abilities.
Moreover, they are aiming to develop each route with the systems operator and services with
developing plans so that improvement can be made accordingly (Charter, 2017).
Mission ad Vision
Mission and vision statement includes that they are to become the company who puts
their passengers first, their priority and satisfaction level with their services. They want to engage
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their employees with good efficiency and effectiveness so that external and internal stakeholders
can be proud of working with the company. Moreover, they want to be recognised as a leader in
their respective industry.
Values
They did commitment that they are following the business ethics in a highly standardised
manner with appropriate and proper etiquettes and behaviour followed by their performance
regarding the safety. People who are working with them also follows the same (Cotton, 2017).
Private Sector
Organization chosen here is JCB, it is one of the leading international manufacturing
company. It is founded in 1945 in UK. It mainly deals with the manufacturing of various types of
equipment used in construction, demolition, waste handling and agriculture. It also deals with the
spare parts of various machined used in the industries.
Goals and Objectives
It's goals and objectives is to operate their functions responsibly. They are aiming to
provide healthy and safe environment to their employees and customers so that they use and
work for the company in a very satisfying manner. Moreover, they are aiming to use the
sustainable modes of solutions to their operational environment.
Mission ad Vision
It's mission and vision statement includes that they want to grow and develop their
company by providing innovative, new ideas and good performing products to their international
customers across the world so they they satisfy their needs and requirements of their external and
internal stakeholders. Moreover, they want to provide the customer care services to the best of
their abilities and knowledge which can be expended to the society as well the environment
(Falkner, 2017).
Values
They are committed to serve their global customers and their employees to treat them
with respect, honesty and all that society expect to be receiving from the company. They also
states that their production and raw materials includes the environment sustainability which
cannot harm the environment in any way with the safety of their people who are working with
them as well.
Voluntary Sector
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Organization chosen here is Age UK, it is one of the leading international charity
company. It is founded in 2009 in UK. It mainly serves the old age people who don't have their
homes or are disabled and cannot afford their treatment. This organization is based on the
collecting funds from the rich society who can easily give charity for the NGOs so that they can
give the better life to the needy people.
Goals and Objectives
Their objectives is to enhance the life of the people especially old age groups. They are
aiming to support the people with all their facilities, basic needs and requirements. Collecting as
much funds as they can so that they can provide better services to the people with at least their
basic satisfaction level (Gornicka, 2018).
Mission ad Vision
It's mission and vision statement involves that they want to provide positive environment
for the people by creating relationship with them and engaging them with several activities so
that they feel motivated towards their life and can live happily with the surroundings and people
by maintaining better relationships with them.
Values
Their values include that they treat all the people with equality and respect either they are
their staff or society people living there. They try to give freedom to the people because
independence is considered as the most lovable thing that every person wants. They are
compassionate with the people y giving warmth. Moreover, they are collaborative with the
people or organizations who are like minded and can understand the situations or problems of the
people (Hamilton and Webster, 2018).
Size and scope of organisations
JCB
It is top equipment manufacturer company in Rocester, United Kingdom. JCB produce
300 different types of machines. They sold products in different countries across the world, their
products are include waste handling machinery,agricultural machinery, construction machinery
and many more. They generate more than £3.35 billions in every year and net income is more
then £341 millions every year. JCB have huge numbers of employees.
Network Rail
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It is infrastructure of railway network in Great Britain. They provide transport services
and they generate revenue more then £6.6 billions every year. Company have 42099 employees,
they currently undertaking a £38 billions program of upgrades to network. It includes lines
electrification, cross-rail and Thameslink upgrading. Network Rail provide career options with
training to people in own company.
Age UK
It is charity organisation in United kingdom found in 25 February 2009 and lunched in
1st April 2009. Age UK is largest charity organisation for older people in united kingdom. They
creating common income of £160 millions every year and £47 millions from fundraising.
Company have 520 charity outlets and generating income through commercial services. The new
CEO of company is Steph Harland and they also have new seats for trustees (Hillary, 2017).
Organisational structures adopted by the firms
Hierarchical structure
This structure refers to the employees ranked at different levels in internal organisation
except the positions at top level management like owners, board of directors. In JCB, they ranked
every employees at different positions like in sales department they set employee's different
position according to rank. In Network rail , they ranked each employee according to their skills
and education that employees has like engineer, management employees, accounting employees.
In context of Age UK, they ranked employees according to age group and experience to manage
older peoples in organisation.
Functional structure
This structure divide business based on common job functions in organisation. Like the
team of marketers in one management and sales man is in another and customer services group is
in another department. In JCB, they divide different departments according to the job role such
as sales teams, promotions and marketing teams , customers handling teams, dealing with clients
teams and many other teams also. In Network rail, they divide departments according to their
functions such as sales management team, marketing teams other groups also. In context of Age
UK, they ranked employees according to their functions such as funding handling teams,
communicating teams who communicate with other organisations (Hunt and Wheeler, 2017).
Divisional structure
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This structure used in larger organisation that manage huge area or have individual small
firms with union group, it covers various markets and products. In this structure every division
mange their own organisation, managing the resources and amount spend on various projects or
prospect within division. In JCB, it is larger organisation in UK they manufacture all the
essential machinery according to every countries needs and requirements. JCB 's machinery
available in world wide and they divide projects according to country requirements such as for
agricultural sectors, construction companies. In context of Network rail they use this structure
for manage small departments in better way so every department focus on individual job role. In
Age UK, they use this structure for manage different work and every charity outlet of this
organisation. They focus on various companies for funding (Kim, Jang and Yang, 2017).
Relationship between different organisational functions
There is an interrelationship between the different organizational functions like for
example human resource function is linked with other departments of an organization because if
they not hire the skilled person for their respective roles and responsibilities then it would be
difficult to manage the operations of the company. Research and development are linked with the
other departments as until the innovation and new ideas are generated then it cannot be possible
for the marketing and production department to execute such things for the betterment of the
organizations. Moreover, finance department is also linked with the other departments because
they sets the budget of each and every department so that they can spend within that limit
according to the funds generated by the firm. At last, information technology department holds
all the other functions because without the advancements of technology in the firm, it can be
difficult for the company to handle HR software, finance decision making, R&D innovation,
production records and marketing online channels. Therefore, it is important to link the
organizational functions in order to maintain the smooth functioning of an organization
(Newman, 2020).
Positive and negative impacts the macro environment has upon business operations
PESTLE Analysis
PESTLE Analysis is defined as the analysis of external environment for the business
which includes various factors that affects the operations of the business. It can be negative or
threats and it can also be positive or opportunities for the company. It stand for political,
economical, social, technological, legal and environmental factors.
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Political Factors
Network Rail is at the threat side in it's political factors because of Brexit issue. There is
the political instability in UK like there is an increase in crises of potential resources for the
company and moreover, there is the decrease in demand which was forecasted by the company to
grow and develop. But this issue is hampering the development of the company.
JCB has a threat because most of the documentations, paper work and formalities are
excessively imposed on the firm with strict regulations by the government. That is why it is
considered as threat for the firm to grow and develop in an industry (Núñez-Cacho, Molina-
Moreno, Corpas-Iglesias and Cortés-García, 2018).
Economical Factors
Network rail is at the opportunities side because the charges which is asked by the people
to pay is low and providing more and more employment to the unemployed people so therefore,
company can grow and develop in economical factors because they are in favour of it means
opportunist.
JCB has a threat because of rise in prices of the raw materials results in inflation which
affects the firm operations in several ways. This changes in demand and supply of the products
and services as well. That is why it is considered as threat for the firm to grow and develop in an
industry.
Social Factors
Network Rail is at the opportunity for the firm because of the trend that is increasing in
favour of it, expansion of urban areas horizontally, encouragement of services like night tube and
moreover due to the increment of population who uses public transport mostly. Therefore, firm
can grow and develop in it's social factors.
JCB has an opportunity for the firm because of trends in construction are increasing day
be day, people demands are based on their status and image that what type of material they want
in their services and how it can be implemented. That is why it is considered as an opportunity
for the firm to grow and develop in an industry (Retamal, 2017).
Technological Factors
Network Rail is at the opportunity side because they are building up the systems who can
track the failures in any transport areas for the safety of the people and moreover they are also
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focusing on the improvement of signalling in their areas which their transport conveyance
covers. Therefore, the company can grow and develop in technological factors.
JCB has an opportunity for the firm because adopting the advance technology can help
the firm in various ways like E-commerce, automation and many other technologies which can
improve the operations of the business. That is why it is considered as an opportunities for the
firm to grow and develop in an industry (Roxas, Ashill and Chadee, 2017).
Legal Factors
Network Rail is at the opportunity side because they support disabled access, signage,
lifts, supplies of upgraded power and many more which are legally good and can benefit the
company in it's operations as well. Moreover, they are up for the assessment to against the noise,
vibration and risks. Therefore, the company can grow and develop in it's legal factors.
JCB has a threat for the firm because of the various laws, rules, regulations and laws are
imposed on the company which are strict to follow. That is why it is considered as threat for the
firm to grow and develop in an industry.
Environmental Factors
Network Rail is at the side of opportunity because they are aiming to electrifying the rail
infrastructure of UK, they have adopted the various policies regarding the management of
wastes, and moreover they are doing reduction against the various pollutions like water, noise,
air, dust and many more. Therefore, it can grow and develop in it's environmental factors.
JCB has an opportunity for the firm because they are not restricted by the climate or
whether conditions associated with their operations part. That is why it is considered as an
opportunity for the firm to grow and develop in an industry (Schaltegger and Wagner, 2017).
Internal and external analysis of organisations
SWOT Analysis
It is defined as the framework which analyses the internal business environment of the
business in order to improve it's operations accordingly. It stands for strengths, weaknesses,
opportunities and threats.
Strengths
Network Rails strengths includes that they are expanded on a very large area in UK, their
communication is only with the train department and they are not at all affected by the traffic on
road congestion.
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JCB Strengths includes range of products and services they offer, they have large
network of dealers, internationally working and remarkable customer services.
Weaknesses
Network Rails weaknesses includes that there is an increase in demand in terms of
capacities, they are challenged by civil work due to bank holidays and many more and moreover,
engagement of employees are less than the people who are actually working there.
JCB weaknesses includes that they are highly dependent on Europe, they have to bear
high cost of maintenance and diversification lacking.
Opportunities
Network Rails opportunities includes in technical world, they can improve their facilities
by updating their technologies and can provide online trainings to the people in the most isolated
areas (Souza-Monteiro and Hooker, 2017).
JCB opportunities includes that the markets are emerging, they are getting the leverage
on products and factories are also expanding.
Threats
Network Rails threats includes the delays and cancellations of the trains and transport
services. This hinders the people of using such transport when they are in hurry to go in some
where.
JCB threats includes that there are headwinds which are heavy for the company and
moreover they are depending on other sectors for their growth and development.
How strengths and weaknesses interrelate with external macro factors
Network Rail
There is an relationship between the internal and external factors which affects the
operations in an organizations. Threats are only in political factor of Network Rail. So it can be
connected with the threats and weaknesses in SWOT analysis. Similarly, opportunities are in rest
of the factors of PESTLE analysis of the company so it can be related with the strengths and
opportunities in SWOT analysis. By observing such things, company would be able to interpret
that where they have to improve and where they can maintain consistency in a market (Tang and
Demeritt, 2018).
JCB
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There is an relationship between the internal and external factors which affects the
operations in an organizations. Threats are in political, economical and legal factors of JCB. So it
can be connected with the threats and weaknesses in SWOT analysis. Similarly, opportunities are
in rest of the factors of PESTLE analysis of the company so it can be related with the strengths
and opportunities in SWOT analysis. By examining such things, company would be able to
understand that where they have to modify and where they can hold back stability in a market.
CONCLUSION
It is concluded that business environment analysis is important to every organization
either it is private, public or voluntary organizations. Because these analysis helps the
organization to perform their internal functions or business operations in an effective and
efficient manner. It improves the performance of an organization by observing and interpreting
several factors that are related with the company, they assist in knowing that where the company
is lacking and where it can get benefit. Therefore, in order to study about all such things of a
business then it is essential to analyse deeply about the types, purpose, size and scope of the
organization, their connection and links between the functions or operations, by applying
PESTLE and SWOT analysis and creating the relationship between them. Hence, by observing
and examining all such topics related with the business can give the entrepreneur a great idea of
growing and developing their business.
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References:
Books and Journals
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disclosure: Evidence from the UK mining industry. Journal of cleaner production, 171,
pp.1161-1170.
Charter, M. ed., 2017. Greener marketing: A responsible approach to business. Routledge.
Cotton, M., 2017. Fair fracking? Ethics and environmental justice in United Kingdom shale gas
policy and planning. Local Environment. 22(2). pp.185-202.
Falkner, R., 2017. Business power and conflict in international environmental politics. Springer.
Gornicka, L., 2018. Brexit referendum and business investment in the UK. International
Monetary Fund.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Hunt, A. and Wheeler, B., 2017. Brexit: All you need to know about the UK leaving the
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Kim, S.H., Jang, S.Y. and Yang, K.H., 2017. Analysis of the determinants of software‐as‐a‐
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Núñez-Cacho, P., Molina-Moreno, V., Corpas-Iglesias, F.A. and Cortés-García, F.J., 2018.
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Retamal, M., 2017. Product-service systems in Southeast Asia: Business practices and factors
influencing environmental sustainability. Journal of Cleaner Production, 143, pp.894-
903.
Roxas, B., Ashill, N. and Chadee, D., 2017. Effects of entrepreneurial and environmental
sustainability orientations on firm performance: A study of small businesses in the
Philippines. Journal of Small Business Management. 55(sup1). pp.163-178.
Schaltegger, S. and Wagner, M. eds., 2017. Managing the business case for sustainability: The
integration of social, environmental and economic performance. Routledge.
Souza-Monteiro, D. and Hooker, N., 2017. Comparing UK food retailers corporate social
responsibility strategies. British Food Journal.
Tang, S. and Demeritt, D., 2018. Climate change and mandatory carbon reporting: Impacts on
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pp.437-455.
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