Business and Business Environment Analysis Report - University

This report provides a comprehensive analysis of the business environment, focusing on two organizations: the National Health Service (NHS), a public organization, and ASDA, a private organization. The report examines the purposes, organizational structures, and impacts of these organizations, including ASDA's function on its objectives. It further explores the advantages and disadvantages of interconnectivity within organizational functions. The second part of the report delves into the macro environment's positive and negative impacts on business operations, conducting internal and external analyses to identify core strengths and weaknesses. It links these strengths and weaknesses to external macro factors, utilizing PESTLE and TOWS analyses to assess the environment and its influence on decision-making processes. The report concludes with a detailed PEST and TOWS analysis to provide a strategic understanding of the business environment.

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BUSINESS AND BUSINESS ENVIRONMENT
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BUSINESS AND BUSINESS ENVIRONMENT
Contents
Part 1...........................................................................................................................................................3
National Health Service – Public Organization.......................................................................................3
ASDA – Private Organization.................................................................................................................5
Impact of ASDA’s function on their objectives and structures................................................................6
Advantages and disadvantages of the interconnectivity between organizational function.......................8
Part 2.........................................................................................................................................................11
Identify some positive and negative impacts of the macro environment on the business operations.........11
Conduct an internal and external analysis to identify its core strengths and weaknesses...........................14
Internal analysis.....................................................................................................................................14
External analysis....................................................................................................................................15
Explain how these strengths and weaknesses are linked to the external macro factors..............................15
PESTLE and TOWS of the macro environment and affects organization’s decision-making processes...17
PEST analysis........................................................................................................................................18
TOWS Analysis.....................................................................................................................................19
References.................................................................................................................................................23
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Part 1
Here, two organizations from the United Kingdom are considered. One of the organization is
private and the other one is public.
National Health Service – Public Organization
A publicly funded national healthcare system for England is the National Health Service or NHS.
It is one of the four National Health Services of the United Kingdom. Moreover, NHS is the
largest and the oldest healthcare system of the world (National Health Service Act 1977.
Relocation of private practice facilities at National Health Service hospitals. Proposals made by
the Health Services Board under section 71 of the National Health Service Act 1977 (c.49),
2007). NHS provides healthcare to each and every legal resident in England with most service
free at the point of use. Besides that, services such as treatment of infectious disease and other
emergency treatments are free for everyone which includes visitors. The particular public
organization provides the majority of healthcare in England which consists of long-term
healthcare, primary care, ophthalmology, dentistry as well as in-patient care. During 5th July
1948, the National Health Service Act 1946 came into effect. The organization is largely
sponsored by the general tax system with a minor amount being donated by National Insurance
payments and from fees charged in accord with the current changes in the Immigration Act.
Purpose
NHS or National Health Services has some core purposes. The National Health Services was
resulting from a long-held perfect that great medicinal services should be accessible to all who
are unable to pay huge amounts for their treatment. Aneurin Bevan who was the minister of
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health at that time made three core purposes on 5th July 1948 (The National Health Service
Corps, 2002). The three purposes are:
 It should be free for the purpose of conveyance.
 It should address the issues of everybody.
 It should be founded on clinical need, not capacity to pay.
The main purpose of National Health Service is providing a comprehensive range of services and
responding to the various requirements of different populations. NHS also has the purpose of
shaping its service around the preferences and requirements of individual patients along with
their career and families (KLEIN, 2015). The organization supports and value its staff. They also
aim to utilize public funds for healthcare devoted solely to the patients of NHS.
Organizational scale, size, and structure
NHS employs more than two million people from the corners of the world. Consequently, this
public organization has established themselves in the top five of the world’s largest workforces
together with the MC Donald’s, US Department of Defence as well as Walmart. Aside from, this
healthcare organization in England is the biggest part of the system which caters a population of
fifty-five million people. Out of these fifty-five million people, 150,300 are doctors, 40,600 are
general practitioners and 315, 968 are health visitors and nurses. NHS is an independent body in
England. The main role is to set direction and priorities of the National Health Service as well as
to enhance healthcare results for the citizens of United Kingdom (Klein, 2015). Inside NHS the
Department of Health or DH is present which is concerned with the strategic leadership and
funds for both health and social care in England. It is a ministerial department which is supported
by twenty-three public bodies and agencies.
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ASDA – Private Organization
ASDA is a British organization which is related to the groceries and foods of United Kingdom.
The organization was started with the vision of the build-up fathers to make it a one-stop retail
center for each one of the necessities of the purchasers. Besides that, the company is one of the
extraordinary supermarkets in the United Kingdom (The Asda Chesser tickled pink cake cook
book 2010, 2010). In 1999 the organization got together with Wal-Mart. ASDA has been
represented to be one of the best-known company to work for. The company provides offer to
the customers about food, general products as well as clothes. There is a markdown of ten
percent on each one of the products that are purchased by the staff from the organization. The
association attempts to make shopping at the stores a pleasing difficulty for the customers. Also,
the association has various insufficiency and family-pleasing organizations that are open at all
the stores that certification that the association can oblige the particular needs of the customers.
Purpose
ASDA has the primary objective of providing services and products that are affordable and
cheap to the public. Another key purpose of this particular organization is to reduce packaging.
The company considers every option to accomplish the objectives (Asda, 2001). The
organization proposes to enhance a number of fresh products sold loose from the boxes and
minimize its range of own label pre-packaged products sold in its stores across the nation. The
beneficiary brand name is not used to lessen the cost. Also, the smart price is utilized to give the
client a less expensive other option to brand names, it's a system used to lift deals. The net
revenues they make on their smart value items are near the edges they make on marked things,
Smart value items cost far less to produce. Moreover, the company aims to offer quality products
at low prices. ASDA aims that they buy products from the highly competitive supplier so that
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they can cover the low priced products. They also use their own brand name and packaging to
reduce the cost of packaging.
Organizational scale, size, and structure
Several ASDA shopping centers opened around the corners of United Kingdom. All the
supercenters have been solely branded as ASDA supercenter without the branding of Walmart.
During the year 2001, the first supercenter was established in Scotland with a sales area of eight
thousand and six hundred meter square. The supercenter is located in Livingston. Moreover,
ASDA superstores are also present and these are the largest supermarkets with a non-food offer
(Seyfang, 2008). It is slightly smaller than an ASDA supercenter. Currently, as of 31st December
2016, there are three hundred and thirty-nine superstores. These superstores have refreshment as
well as dining facilities. On the other hand, ASDA supermarket division was formed in the year
2009. During July 2009, the company opened twenty-six small store format supermarkets. Some
of these supermarkets were acquired from the co-operative group (Asda Stores Ltd, 2001). The
organization promotes career opportunities on its dedicated career website. Last year, the
company advertised twenty-seven thousand jobs and 1.5 million applicants were recorded who
were interested in the job.
Impact of ASDA’s function on their objectives and structures
Distinct leveled structure is the system by which an organization like ASDA passes on, courses
obligation and adjusts to change. The company that can change is better prepared to survive. As
demonstrated by the reference for business, the last structure is the course by which an
organization uses its advantages for fulfilling its objectives (Lopes and Marcus, 2007). However,
improvements can affect how the association is structured. ASDA desires to keep its structure
dynamic with the objective that it can respond to the things that impact the succeeding structure.
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People should not be in an identical room, or even a proportional working, to be capable. Apart
from these, customer service is essential in business, such a wide number of associations have
made entire divisions concentrated on customer service and support. If a particular client gives
an unending contract to ASDA, the organization may need to update certain parts of the
relationship to oblige the declaration. For representation, there should be an entire arrangements
division made just for that customer and stockpiling may need to make a sub-system to collect a
particular thing. As the necessities of the customers move, so too will the structure of the
association. Progress can make positions inside the association, and it can take out employments.
As progression continues changing the purpose of containment of occupations in the workplace,
the scene of various leveled structure changes with it (Asda Stores Limited SWOT Analysis,
2017).
The life cycle of ASDA also plays an important part in the development of an organization
structure. The performance of business reaching peak generally turn out to be more mechanical
in their organizational structure. However, it happens as the levels of leadership increments from
the entrepreneur down to cutting edge workers. These enhancements might be the repercussion
of more contenders entering the commercial marketplace (Hermalin, 2015). Matured
organizations like ASDA focus on improving and developing the structure of their company so
that profitability and efficiency can be enhanced. High-development organizations more often
than not have tinier organizational structures so they can respond to changes in the business
environment sharper than different organizations. Entrepreneurs may similarly be hesitant to
surrender administrative control in business operations. Besides that, independent companies as
yet hoping to characterize their business technique regularly delay making an organizational
structure (Zarutskie, 2016). Entrepreneurs are normally keener on setting business techniques
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instead of creating and executing an interior business structure. As ASDA grows with weak
internal structure, administrative channels, as well as communication, are stressed to the point of
inefficiency. Also, a strong corporate structure that is designed to grow with the company can
maintain corporate productivity during growth times and allow for structural developments that
will be necessary as the organization expands.
Advantages and disadvantages of the interconnectivity between organizational function
Advantages
 During the operation of ASDA on their objectives and structures, the company undergoes
through some advantages. At first, the company can offer a high level of specialization.
Each unit operates as a type of self-contained mini-company, charged with carrying out
specific roles (Ater, Givati and Rigbi, 2011). Moreover, the employees of ASDA
typically start their careers in an entry-level position within the function and improve
their specified knowledge as they move up within the hierarchy. The employees become
experts within their functional area and after that, the unit and the organization benefit
from their proficiency and become familiar as time goes on.
 Secondly, the organizational function of ASDA can lead to the efficiency and
productivity. An employee who is an expert in his functional area can perform the task
(Foster, 2009). The employee can perform the particular task with a high level of
efficiency and speed. Consequently, it leads to productivity. The workers of ASDA who
know their jobs well can continue with confidence (Gunderman, 2007). As a result, it will
reduce the chances of mistakes. The employee may be highly motivated for advancing
their careers because the career paths within the functional unit of ASDA are clear. They
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can advance by means of reaching the next rung on the ladder and after that, it will make
them more productive.
 Another benefit of the functional organization structure derives from grouping such as
joining together. In simple words, it refers to merger and acquisition. It benefits both the
organizations to save time, money and workforce. Consequently, it leads to better
competitive advantage. If two organization works in a joint venture then more productive
work can be observed leading to better productivity and efficiency of the company. For
example, ASDA and Walmart work together.
Disadvantages
 During the operation of ASDA on their objectives and structures, the company also
undergoes through some disadvantages as well. Functional organizational structures are
not deft, adaptable or effectively versatile. For sure, this sort of structure is the most
inflexible of every conceivable structure. The hierarchy makes the organization, an
obstacle to change. At the point when shifting process takes place in the market
environment, choices on the best way to respond come gradually as proposed changes are
compelled to go through different levels of leadership (Srivastava, 2008). The same
circumstance additionally smothers development. The inflexibility of the functional
organizational structure makes it a poor fit for element situations.
 Secondly, when the structure of the organization becomes large, it becomes difficult to
control the management. It is another potential disadvantage of the functional
organization structure. It can pose a challenge for top management to maintain control as
the organization expands. When organizations start to take large hierarchy structure, the
management needs to delegate more decision making responsibilities to each functional
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area. Subsequently, the degree of autonomy also increases making coordination of
activities more difficult.
 At third, when the employees of the organization start to perform with a high level of
efficiency, they start to think that they can handle of their own. As a result, lack of
teamwork is observed. If a project requires a few units to cooperate, units may get to be
distinctly regional and unwilling to participate with each other (Srivastava, 2008).
Basically, every unit may act in what it sees to be its own particular best advantages
rather than those of the association all in all. Infighting may make projects fall behind the
calendar.
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Part 2
Identify some positive and negative impacts of the macro environment on the business
operations.
There are two types of business environment located such as internal and Apart from this
business environment. Apart from that, the Apart from this business environment is also
considered as macro environment factors which includes some positive and negative impacts on
the business operations(Chandon, Wansink and Laurent, 2007). Along with that, the macro
environmental factors are political, legal, cultural technological, government, economic,
demographic and global. Each and every factor includes individual importance with positive and
negative impacts on various types of business operations. On the other hand, the macro
environmental factors are uncontrollable and beyond the direct control and influence of the
organization. Thus, there are different types of elements are involved in the macro environment
such as events, organizations, individual, agencies, groups, forces and conditions. With the help
of macro environment analysis, an organization able to formulate effective interdependent and
interaction relations in order to conduct business transitions. In order to enhance change
management, proper designing of macro environment factors influence appropriate strategy
implementation and policies for the organization(Heine and Wortsman, 2008).
Political-Legal environment
The political factor is interrelated with government and political and legal environment. On the
other hand, various types of laws conduct and regulate the operations of a business. In addition,
the political factor includes three elements such as government, legal and political.
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Positive impact: according to governmental rules and legislations, an organization conduct
policies and regulations for the business. With the help of political stability, responsibility and
political morality, an organization can become economically strong enough to operate industrial
activities. Moreover, the political environment is oriented on uncertainty including demographic
interphases of number of political parties which help an organization to expand business in a
particular nation(Heine and Wortsman, 2008).
Negative impact: high tax policies of government are critically affect to the business
organization. Due to some governmental legislation, an organization unable to implement
foreign exchange investment strategies.
Economic environment
The economic policies, economic conditions and the economic systems are included in economic
environment. Besides that, the direction and nature of the economy refers proper direction in
which a business can be operated. In the case of developing countries, business prospects are
influenced by economic value and exchange rate(Horner, 2007).
Positive impact: the economic factor determines economic strengths and weakness in the market.
Customer purchase behavior is encouraged by economic environment. Thus, high exchange rate
also influence business opportunities for future development.
Negative impact: in the case of developing countries, the economic environment is surrounded
by low exchange rate and currency value. So, an organization cannot meet customer’s
expectation in low rate of currency(Horner, 2007).
Socio-cultural environment
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