Business Environment Analysis Report: [University Name], [Semester]

This report provides a detailed analysis of the business environment, encompassing various organizational types (public, private, voluntary) and their respective purposes. It examines the size and scope of different organizations, including micro, small, medium, and large enterprises, highlighting examples like Virgin Money, Tesco, and UK Cancer Research. The report explores the interrelationships between different organizational functions, such as marketing, finance, human resources, and operations, and their crucial roles in achieving organizational objectives. It also assesses the positive and negative impacts of the macro environment on business operations. Furthermore, the report undertakes internal and external analyses of specific organizations to identify strengths and weaknesses and examines the interplay between these factors and external macro factors. The report concludes by summarizing the key findings and offering insights into the complex dynamics of the business environment.

Business and the Business
Environment

Table of Contents
INTRODUCTION................................................................................................................................3
P1 The different types & purposes of the organization...................................................................3
P2 Size & scope of different type of organization...........................................................................5
P3 Relationships between different organizational functions & their linkage to organisational
objectives & structure......................................................................................................................6
P4 Positive & negative impacts of macro environment upon the business operations....................7
P5 Internal & external analysis of the specific organisation in order to identify the strengths &
weaknesses.......................................................................................................................................9
P6: Interrelation of strengths and weaknesses with external macro factors....................................9
CONCLUSION...................................................................................................................................11
REFERENCES...................................................................................................................................12

INTRODUCTION
Business environment is related to both the factors internal as well as external that
influences the business. The report has focused on the various type, sizes & scopes to the
organization. The report has also focused on the various organizational functions along with the
interrelation between these various organizational functions (Wirtz and Daiser, 2017). Moreover,
the report has also described the various positive & negative impacts of macro environment on the
business operations followed by the internal & external analysis of the organization for identifying
their various strengths & weaknesses. Lastly, the report laid focus on the interrelation of strengths &
weaknesses with external macro factors.
P1 The different types & purposes of the organization
Public Private Voluntary
definition These organizations solely
works for social purpose.
Thus, such organization
works which does not
involved for profit
government owned
organization.
These organizations
mainly works for earning
profit. Such organization
could be both government
owned and private owned
companies. These
companies can be owned
by groups or individual.
Organization belongs to
this group are non-
governmental bodies.
Such organization works
for not for profit and
works to carry out social
activities of the society.
purpose These public sector
organization
Mainly works for the delivery
of goods & services for
public as well as for the
government (Laudon and
Traver, 2016). Such public
sector organization includes
public traits, public
infrastructures, police,
military & various other such
as services which are for the
betterment of the economy
These private sector
organization mainly
works for earning the
profits. These
organizations work for
the growth of the
countries economic
system. Such organization
is the one who plays a
very important role in
increasing the growth &
development of the
country along with the
generation of per capita
income of the countries
Organization belongs to
such group mainly works
for providing benefits &
for the enrichment of the
society without the hope
of earning profits. These
organizations work for
creating social wealth &
for the betterment of the
society.

GDP
Product
Service
For instance, virgin money
works with the purpose to
provide the best value to the
customer along with
delivering positive
contributions towards the
society
For instance a British
multinational retail
corporation Tesco is
mainly working for
earning huge profit by
selling various goods &
services worldwide. They
are working to seek
various competitive of
their own.
For instance UK cancer
research which is
specially working for the
social purpose to prevent
the society from cancer.
This organization is
spreading awareness
among the people of the
society to take
measurable steps to
prevent society from
cancer disease.
Examples BBC is the best example and
it is the oldest public
organization and also
established by a royal charter
and is funded by a
government-approved licence
fee. It offers training to the
graduates, journalism and
production via new talent
schemes.
Swire group is the world's
leading privately owned
organization across Asia-
pacific region and also the
range of shipping,
property and agriculture
to cold storage and
airlines including minority
stake and Cathay pacific.
Transparent hands are the
best known NGOs in
which the medical
surgeries and surgical
care for deserving
patients using the global
crowdfunding platform.
The platform provides
visibility of poor patients
and builds a personal and
trusted bond between
patients and donors while
ensuring complete
transparency.
Virgin money legal structure.
This organization has mainly focused on the residential mortgage, credit & saving cards along with
the insurance & investment. These organizations provided the positive contribution to the society
along with building a positive relation with people of the society for earning sustainable profits for
their shareholders (Apetrei, Kureshi and Horodnic, 2015).
Tesco legal structure.

This organization is a retail sector industry which mainly focused on their key markets, convenience
shops, superstores, hypermarkets & supermarkets by selling of varies general purpose products,
these key structures enables the Tesco to open up large number of outlets to serve internally
UK's cancer research legal structure
This organization include 9 clinics as trial unit, 17 experimental cancer medical centre 7 graduate
training centre & many more. This organization is mainly focused on fighting against the cancer
disease & for strengthening their progress & infrastructure they are taking help of doctors, nurses &
various social activists.
P2 Size & scope of different type of organization
Micro enterprises Small enterprises Medium & large
enterprises
Size This group includes
small sector businesses
whose level of
employment is very
low along with the very
low capital of
investment.
Thus, micro enterprises
are the enterprises
which makes low
revenue as well as it
has small profit of
margins.
The size micro business
have 0-9 employees
This group includes
independent
enterprises which has
some small numbers of
employees working for
the company & for the
betterment of the
company by increasing
the sale value of the
company & also
enhancing the business
for long run.
These are the
organizations that
makes slightly greater
revenue than that of
micro enterprise.
The size of medium
one are more than 9
ans less than 250
employees
These enterprises
include employee work
as voluntary
membership & majorly
involves the
multinational body that
has the possibility to
increase the growth of
the enterprise at a very
fast pace.
Revenue generated by
such enterprises has a
great influence on the
overall GDP of the
country.
The size of medium one
are more than 250.
scope The countries that One of example for Virgin mobile is one of

comes under
developing countries
are constituted of such
organizations in large
number, these
organizations compiled
by the necessities of the
micro entrepreneurs.
UK's cancer research is
the example of such
type of enterprise.
These organizations
add values to the
countries' economy by
widening the scope of
better growth & income
opportunities for the
country's population.
These are the small
sector companies that
tends to do business for
fulfilling their self
needs.
Micro enterprises have
vast scope covering
activities like
manufacturing,
servicing, financing,
retailing, construction,
infrastructure etc.
such type is Tesco.
Enterprises belonging
to such group are
private bodies which
are owned by sole
proprietors.
(Kljucnikov and et.al,
2016). this businesses
sector consisting of
large industries whose
revenue generation
affects the GDP of the
country.
These proprietors
working in
partnerships might
have chance of varying
in their revenue
structures & size
accordingly
the example for this
category. Enterprises
belonging to such group
includes multinational
companies which works
as contributor to
government sector.
These enterprises earn
huge capital, & this
earned capital they kept
aside for the future
development of the
internal aspect of the
society. Thus, these
organizations basically
works for the
betterment of the
society.
Scope of large
companies are to have
completion to the
resources' development
ion more signifiant
order.
From these three types of organizational structure and their types. The enterprises belonging to the
micro sector are generally present in the huge number in the country. These small enterprises help in
the enhancement of growth & income opportunities of the countries which are developing. The
organization UK cancer research is voluntarily required low investment costs, but the organization
is working with the much wider goal to eradicate the cancer globally in all the areas of social cause.

The advantages associated with this organization is the freedom & fulfilment of the employees.
Here the need of the customer helps the organization to grow. The disadvantages associated with the
enterprise of this group is financial risks & presence of competition which results in a big problem
in the way company develops. Small enterprise such as Tesco mainly focus to enhance their
business & increases their sale volumes by having partnerships with the other companies. The
advantages associated with this enterprise of the small enterprise group is to get a strong hold over
management & thus controlled by owners adapting quick to meet the needs of the customers. The
enterprise belonging to medium & large enterprise group such as Virgin money, UK is a
government bank working solely non-profitable organization, which helps customer providing the
facility of loan & advances thereby working for the benefits for all. The organization close relation
with the customers & their flexibility prove to be its strength, while possesses in maintaining their
loyalty among customers & funding difficulties are the weaknesses associated with this Virgin
Money company (Hillary, 2017).
P3 Relationships between different organizational functions & their linkage to organizational
objectives & structure
There is existence of varsity of structure. The company have the development of flat structure
which s centurion out be beneficial for various department in order to have the improvement in
decision-making to achieve the aims and objectives.Different organizational departments works
together in order to cope up with the increasing risks & competition of the market. These different
departments work together in the organization to help the business maintaining their suitable
position in the market. In development of company in more level of signifiant order which have the
major level of constituency in developing the aims and objective in signifiant order.
Marketing
This department performs the most essential role in the organization, as this department helps in
interacting of the customer with the business. This department find out the need of the customer and
ways to fulfil the needs of the customer. This department is further responsible for delivering the
image of the brand, participating actively to interact with the customers with some effective
methods & tools. The marketing department of the organization is responsible for recognizing the
need of the customers. For such recognizance, the organization establishes a marketing team which
find the latest need of the consumer by using various research techniques and tactics. The marketing
department of the organization is also responsible for promoting the finished good and delivering
the finished good to the targeted customer (Oriesek and Schwarz, 2016).
Finance

This department of the organization is responsible for organizing & controlling the various
expenditure of the company. Moreover, this department is responsible for arranging the funds for
the company, how to invest & mainly how to make profits from the invested money. Finance
department keeps the track of flow of money in and out of the organization along with
responsibility to pay salaries to the employees. The finance department of the organization is also
responsible for all the findings, flow of money within the organization and outside the organization.
For any organization to make money, it is essential to invest money. Thus, this department is
responsible all fund related issues of the organization.
HR
The HR department of the organization is responsible for caring out the effective & strategic
management of the internal work processes. Company achieve these objectives by efficiently
utilizing all the available business resources. The HR department is responsible for recruiting and
hiring of the best employees which add to the organizational benefits by helping the organization to
increase in their overall productivity. The human resource or the HR department of the organization
is responsible for planning, Planning in organization by HR means how the process will work out
by imputing the available resources to get back the final product as a result. This department is also
responsible for one of the most important function of the organization i.e. employee-employee
relationship. Maintaining a good employee relationship will automatically result in increase in the
productivity of the employee. Which finally results in the overall betterment of the organization
(Deasy and et.al, 2016).
Operations / Production
This department of the organization oversees the entire process of production, along with it, this
department keeps the check on the various process that are carried out in the organization. For
meeting up the expectations & needs of the consumers, the operations department of the
organization carries out processes which eventually brings out the smooth & efficient services. The
production department of the organization has the responsibility to use the resources as the raw
material & finally convert it into the finished good or service.
P4 Positive & negative impacts of macro environment upon the business operations
Political
The virgin money bank is been operated in UK, Australia, South Africa etc. under several polices,
regulations & rules and the company has adopted these rule to operate successfully & efficiently in
their financial system.
Positive
The organization virgin mobile is been provided with several protection strategies against
restrictions of the government & several limitations to safeguard the company's position.

Negative
The various political factors the affects the virgin money are ; labelling of product & other
requirements, regulations related to industrial safety, essential employee benefits, wage laws, anti
trust laws, regulations and tariffs related to trade & political stability of the country's economy
(Fabuš, 2017).
Economical
Due to several foreign exchange rates & stock market on the global scales the company virgin
money have experienced a recognizable growth in the terms of economic & stability factors.
Positive
The change in the economy of the company has brought several developments in the operations of
the company, which was acclaimed by the director of the company. This necessary change in the
economy of the company helped the company to cope up with the financial crises of 2008.
Negative
The various economic factors that affects the Virgin money are : interest rates, inflation rates,
unemployment rates, discretionary income, economic growth rate, cost of labour & their
productivity in the economy, level of education in the economy, quality of infrastructure of the
bank, financial market efficiencies, exchange rates & stability of the country currency.
Social
With the change in the social trends, the need of the customer changes.
Positive
Thus, for satisfy such changing customer needs, the company virgin money has to make satisfactory
changes in the social aspects of the company, therefore, to become successful in the business the
company has made several attempts to meet the customers need.
Negative
Social factors that affects the virgin money company are : leisure interests, attitudes towards health
& environmental consciousness, culture includes general roles social conventions, structure of class,
hierarchy & power in the society & populations skill level.
Technological
To stay protected from the cyber crimes & cyber attracts, the company virgin money has taken
several steps to protect itself to be attacked from such unwanted situations.
Positive
Moreover, the company has taken several steps to protect the data of the customers by implying
several technological management teams, these technical management teams are also implied for
the smooth functionality of the virgin money company thus by safeguarding the company as well as
its customers.

Negative
The various technological issues related to Virgin money are : technological diffusion rate, impact
of technology on product offerings & development of recent technologies (Prajogo, 2016).
Environmental
Positive
Reduction of the carbon emission is the set goal of the virgin money company. Therefore, the
company has developed several procedures to improve their technology which further add on to the
collaboration of sustainable engagement & supply chain of the company.
Negative
Issues related to environment for virgin money are : waste management in finance sector, recycling,
laws related to environment pollution, climate & weather change.
Legal
The company has been governed by various regulations & rules, and thus it has laid focus on
adoption of insurance of payment protection.
Positive
The company virgin money has adopted the FCA act to handle claim related to PPI. This enabled
the company to develop their further operations.
Negative
The various legal factors that could affects are : data protection, health & safety laws, employment
laws etc.
P5 Internal & external analysis of the specific organisation in order to identify the strengths &
weaknesses.
Strength weaknesses Opportunities Threats
The company virgin
money has become
master in building the
brand name popular.
The company virgin
money has provided its
customers with the
wide range of choice to
choose the best for the
customers accordingly.
Virgin money gives its
services at global level.
The company has
become the
monopolistic company
whose expansion has
now situated in a
critical position.
The management of the
company has suffered
from weak bond &
minimum management
layer.
The company virgin
money has various
growth opportunities,
as the company is
providing the old
services using the new
modes, this itself make
the company unique.
Thus, innovative
approaches could be
applied to increase the
company's
Global competition has
proved to be the
biggest threat to the
virgin money company.
Due to the increase in
cyber crime all across
the globe, the company
virgin money has
suffered from the
financial crimes or the
cyber crimes. The legal
factor had been termed

So the political factor
The change in the
economy of the
company has brought
several developments
in the operations of the
company, which was
acclaimed by the
director of the
company.
The employee-
employee relationship
seems to be very low in
the organization.
opportunities.
By applying effective
strategies the company
virgin money is able to
reduce their cost of
operations.
Can provide the
services like credit card
and debit card.
as the there is level of
data protections along
with safety.
P6: Interrelation of strengths and weaknesses with external macro factors
The analysis of strength and weakness of an organization which relates with the external
environment by using TOWS matrix model and the TOWS model focuses on generating, comparing
and selecting the strategies. Virgin money is the most trusted and leading bank of UK but it is
having the several competitors such as HSBC holding, Lloyds banking group, Barclays and also
Standard etc. The TOWS analysis of Virgin money is as follows-
 Threats
◦ The presence of competitors in between the success of Virgin money i.e., HSBC
holdings, Lloyds and Barclays which creates the barriers and it also reduces the strength
of the company (Kouretas and Tsoumas, 2016).
◦ The regular increase of the pawn shops attracts the customers and this reduces the
working loan rate of the company and also weaken the growth rate of an organization.
◦ There is a big chance of failure for the Virgin Money and also fails the ion investment
transaction which affects the company's development and also affect the decision-
making process that affects the company in meeting the future goal.
◦ The biggest threat for the Virgin Money is the additional taxes placed on the process of
the company which adversely affect the sell of the business.
 Opportunities
◦ The company is expanding its business in the other countries like Asia and Europe, to
increase the sell and profit.
◦ Launch the Initial Public offer (IPO) which increases the capital and also used for the
expansion to achieve the long term-goal and the other business oriented goal.
◦ Acquire a new and innovative plans or the strategy's alliance that helps in increasing the
business of this renowned bank.

 Weakness
◦ The biggest weakness of Virgin Money is the very little presence in few countries other
than UK so that the people know very less about this bank.
◦ The second weakness of Virgin Money is that it is not a listed bank and not gaining the
name as the other banks are famous and this would become difficult for the bank to raise
the capital.
◦ Another weakness of the Virgin bank is the regular use of absolute technologies and
slow updation in the technologies which is still the biggest weakness of the organization
and also the unskilled and unproductive employees which reduces the productivity and
also the growth of an organization.
 Strengths
◦ The Virgin money is the highly capable and the efficient parent company of Virgin
Group.
◦ Provide the wide and different range of financial products such as IPO which attracts
more and more customers every year and this helps in increasing the capital of an
organization.
◦ The biggest advantage of Virgin money is the part of famous company and having the
renowned combination of the different products.
◦ Virgin Money also supervised the Prudential Regulation Authority and offers the
services like finance, Banking and Mortgages.
◦ Possess effective, efficient and excellent management system which helps in making the
effective decision-making.
◦ Clear and transparent policies which helps in developing relationship between clients
and the organization.
CONCLUSION
The report can be concluded as business environment is related to both the factors internal
and external that influences the business. The report has focused on the various type, sizes & scopes
to the organization. This report has also focused on the various organizational functions along with
the interrelation between these various organizational functions. Moreover, the report has also
described the various positive & negative impacts of macro environment on the business operations
followed by the internal & external analysis of the organization for identifying their various
strengths & weaknesses. Lastly, the report laid focus on the interrelation of strengths & weaknesses
with external macro factors. Therefore, this report infers to understand various business function &
interrelated by focusing on example of Virgin Money, UK.