Business and Business Environment Report: London EV Company

This report provides a comprehensive analysis of the business environment, focusing on both internal and external factors that influence organizational objectives. It begins with an introduction to the business environment, highlighting its impact on companies like the London EV Company Limited. The report then delves into different types of organizations, including public, voluntary, and private entities, along with their respective legal structures, purposes, and scopes. It explores the relationship between various organizational functions such as sales & marketing, HR & operations, and IT & finance, emphasizing the importance of coordination. The report further examines the positive and negative impacts of the macro environment on business operations, including the company's internal strengths and weaknesses in relation to external factors. The report concludes with a summary of the key findings and provides references to support the analysis.

Business
and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 : Different types,its purpose & legal structures of organization.......................................3
P2 : Scope and size of this types of organisation..................................................................5
LO 2.................................................................................................................................................7
P3 : Relationship between different organisational function.................................................7
LO3..................................................................................................................................................9
P4 Positive and negative impact of macro environment on business operations. .................9
LO 4 ..............................................................................................................................................11
P5 : Internal Analysis of organisation to identify strengths & weaknesses.........................11
P6: Interrelation between weaknesses and strengths with various external factors: ...........12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment consist of bothy internal and external factors which impacts the
objectives of the organisation. It includes factors such as market trends, technology, government
rules, suppliers, society and so on. It helps in enhancing business opportunities by making proper
utilization of resources and improve the performance of the organisation. In this present report,
London EV Company Limited is taking into consideration which is a UK based company and
established in year 2013(Zaharia and Zaharia, 2015). The company wants to expand its
operations of car manufacturing in other parts of UK . For this purpose they analyse the external
factors that impact its productivity and profit while expansion of its business. In this report we
are going to discuss about the external factors that affect the businesses objectives. The types,
scope and legal structures will be discuss. In addition to this, the interrelatedness between the
organisation function will be covered. Later, it covers the strength and weaknesses in relation to
the macro environmental factors that directly impact on the organisational goals.
LO 1
P1 : Different types,its purpose & legal structures of organization
Organisation are categorized into different types that is based on their objectives which is
profit, society welfare and so on. The different types, purpose and its scope is described in detail
which are as follows:
Public organisation: pubic sector organisations are those which are operated and owned by
government. Its main aim is to give services to the public and welfare of the society(Wetherly,
2014). These organisation are non- profitable and funded by the government. Public
organisations brings equality and improves the standard of society. public organization is divided
into three forms that is government company, departmental undertakings, and public
corporations. For instance, BBC a public company in UK is managed & funded by the UK
government.
Purpose: The main objective of public organisations is to upgrade the standard of living of
citizens & brings equality in the society.

Legal Structure of Public Organisation : Central : An apex body that regulates & control the economy by giving rights to various
departments which is working for the improvement of society. They earn profits which is
used for the welfare and improvement of societies. State : They are accountable for a specific state or zone, the rights and authority has
assigned to them. They perform and monitor those organisation which are under state
supervision.
Local : These are municipal communities that monitors a specific locality. Its main aim is to
uplift the society and make their life easier and comfortable.
Voluntary Organisation :These organisations initiate programmes and project for the
particular purpose. The group of individuals came into the contract to achieve a purpose. These
organisation are both incorporated & unincorporated. They can provide services to individuals,
groups or countries. For example, Voluntary service overseas is a charity organisation which
aims to remove poverty in the country(Spieth and Schneider, 2016) .
Purpose : the main aim is to give assistance so that issues can be solved. Voluntary
organisation are NPO which purpose is to uplift the people.
Legal structure of Voluntary organisation : Trust : These organisations are trusted by the people and make the use of funds properly
that is received.
 Unincorporated Association :These organisation initiate projects for a specific issue and
are made for a short time period.
 Private Organisation : private organisation is basically a corporation, partnership,
individual or agency. The primary objective of this organisation is to gain profit by the
public. Private organisation are estimated and funded by their own personal sources. For
example, London EV Company Limited is a private company of car manufacturing in UK
which operates its function to earn high profits.
 Purpose : The primary objective of private organisation is to increase its market share
and gain high profit from the market. In addition to this, they want to increase their
customer base so that they can make monopoly in the market and gain competitive edge
at marketplace through their effective strategies.

Legal Structure of Private Organisation : Sole Proprietorship : The business that is owned and managed by a single entity is sole
proprietorship. The person is liable to all the risk and losses and did not share its profit
with anyone. The liability of a person is limited and have a minimum laws & policies to
be follow. Partnerships : partnership is an agreement between two or more than two individuals.
The profit sharing is equal or according to the ratios that is mentioned in partnership
deed. If it is not mentioned in the law then the profit is divided according to the laws.
They mutually take the decisions of the company.
Limited Companies : in this the liability of a subscriber is limited and is considered as a separate
legal entity. The capital is generated and procured by the shares who have limited extend of
shares. A limited company can be public and private both. They face compliances so that the
public interest is protected(Shenkar, Luo and Chi, 2014) .
Growth of global & International business environment :
 Due to change in technology, preferences and taste of customers, international business
is easily expanding and changing rapidly in order to sustain in the market. Easy
availability of funds, labour, resources, it is easy for the organisation to expand the
business at global or international level. In developing countries the opportunities is
more so that domestic markets turns up their business in foreign market. In order to
increase the competition and market share it is important for the organisation to execute
its operations at international level.
P2 : Scope and size of this types of organisation
Scope is the possibility to deal with the subject or with something. It defines the range of a
particular project. When the functions is declared globally or outside, then it is global scope.
Whereas when something is declared inside it is local scope(Saebi, 2014) .
BBC : British Broadcasting Company, a public sector company which main aim is to give
impartial service to the public. It is the oldest company and certified under Royal charter. Annual
license fee is charged by the public which act as a fund for BBC. It entertains people by sports,
news, entertainment channels. It builds awareness of the public by giving them the information
about the things happened globally. It is the department for media, culture and sports. The
company is broadcast in 30 languages and have around 36,000 employees.

Voluntary service overseas: It is an international NPO which main purpose is to remove the
poverty. VSO consist of 77,000 volunteers who are national, community and international
volunteers. The company is operating in 24 countries and its main projects include livelihoods,
education and health. The company basically focus on the youth to work for the society and
bring changes in the society.
London EV Company Limited
London electric vehicle is a car manufacturing company which headquarter in united kingdom. It
is famous in London as black taxicabs. The company tries to expand its market in other countries
so that its customer base is increased which in turns increase profitability of the
company(Kasemsap, 2018) .
Compan
y
Vision Mission Size Scope Stakeholders
London
EV
London EV
vision is to
become the
biggest and
leading
company of
electric
vehicles.
The mission is
to manufacture
vehicles that
defines the
class.
The company
has more than
500 employees
and operating in
UK from the
year 2013.
The company
deals in car
manufacturing
and expand its
business in
other countries.
It is a subsidiary
company and is
china based
manufacturing
joint venture.
BBC To give
creative and
innovative
service to the
customers in
order to
increase its
sales.
To give
distinctive and
high quality
service and
educate public
by providing
correct
information is
the mission of
BBC.
The company is
operating in
more than 33
countries and
have a large
number of
employees that
is more than
37000.
BBC have to
add more
programmes
that attracts
more youth.
BBC have both
internal and
external
stakeholders
that is
customers,
media partners
and so on. so

VSO The vision of
Voluntary
service
overseas is to
make “world
without
poverty”
The mission is
to put citizens
together to
remove and
address poverty
&
marginalisation.
VSO have more
than 77000
volunteers and
is operating in
15 countries.
The company
want to expand
its operations in
order to aid
more people.
The company
have
beneficiaries,
volunteers who
can give service
to the public.
LO 2
P3 : Relationship between different organisational function
Every organisation has different activities which is performed by various departments of
the organisation. In order to perform the activities properly, save efforts, resources and time of
the employees, these departments needs to be aligned (Hillary, 2017) . The departments such as
finance, marketing, operations, HR are interrelated with each other for resources or for some
support. The relationship between departments are described in detail below:
 Sales & Marketing : Marketing department make strategies to how to sell the goods &
services and the sales department implement and execute it. The sales department helps
marketing department by giving them the customer feedback regarding the services so
that they can improve and plan their strategies according to it. This interrelationship
among the departments help organisation to increase their productivity as well as
profitability (Goss, 2015).
 HR & Operations : These departments are linked with each other. Operations
department analyse the requirement of employees in the organisation whereas HR
department recruit new workers as per the criteria set by operations department.
 IT and Finance : For the new and updated technology, IT department needs funds for it.
Finance department issue the budget to the IT department so that effective outcomes can
be generated. In context to London EV Company Limited, the company uses new
technology for which budget issue by finance department.

The mission and vision of organisations is common for every department whether it is
marketing, finance, HR and so on. These objectives can only be achieved when there is a proper
coordination among the departments. With reference to London Electric Vehicle Company
Limited, the department of sales provide customer feedback to the department of marketing, this
will help them to make strategies, promoting, advertising of goods and services according to the
preferences and choice of customers. The operations department helps them to produce
machineries for which the amount is estimated by finance department. In addition to this, HR
department recruits new employees as per the requirement which help London Electric Vehicle
Company to perform the activities in an appropriate manner(Chuang and Huang, 2015).
Organisational structure : This structure defines the activities of the organisation which
employees need to perform. The structure shows how the information will flow and whom the
employees accountable for. In addition to this, Roles , authority, responsibility and duties is
defined which help employees to carry out the task in an effective manner. Different structure is
followed by the different organisation which are as follows:
Divisional structure: In these type of structure the functions is divides according to the market,
service line and product line. There resources and operations floes independently.
Matrix structure : Employees have to report more than one manager if the organisation follows
matrix structure. The relationship among the subordinates and managers is in matrix or grids.
Functional structure : London Electric Vehicle Company Limited follows functional structure.
In these employees is reporting according to their field. The functions of the organisation is
divided into different departments such as marketing, HR, finance department and so on.

LO3
P4 Positive and negative impact of macro environment on business operations.
Micro factors: these are those factors which affect overall strategy of business in
decision making and performance level. This has a effect on on individual business as there are
different capacities, strategies, resources which get effected by changes which are taking place in
external environment. Different types of micro economic factors are competitors, employees
which help in achievement of business objectives(Botha, Kourie and Snyman, 2014) .
Internal factors: These factors are those which affect company's operations and overall
culture of organisation which influences working structure, leadership of company. Employee
support is also a factor which helps in achievement of objectives.
Macro environment factors: These are factors which are related to bot negative and
positive impact on which organisation has no control. To make analysis for understanding of
impact it is understand trends prevailing in macro environment.
For analysing macro environment PETSLE model is being used:
 Political: These refer to those factor which are concerned with government intervention
in overall functioning of business. London EV Company Limited has to deal with various
legislations which are related to policies which are related to low emission vehicles.
Those Companies which are having very low negative impact on environment also
receiving high governmental support, especially UK government is offering various
policies which can help in reducing any type of detrimental effect on environment.
Positive: London EV Company Limited will form strategies so that overall negative
impact on environment can be reduced(Kolk, 2016).

Negative: Negative aspect of this is that there are lot of changes which company has to do with
regards to rules and regulations formed by UK government.
 Economical: Various economic forces form very important part in automotive industry.
In the recent years many countries have suffered because of recession prevailing in
country.
Positive: This means that if purchasing power of consumers rise then it will lead to increase in
sale of vehicles for London EV Company Limited.
Negative: If overall economic environment is not in favour of company then this may lead to
decrease in sale sand wastage of investment which is done by London EV Company Limited on
expansion strategies.
 Social: This factor is related with changing patterns of people's preferences and trends
socio cultural which affects sales of company. This factor is related to people's
preferences, their style, culture to which they belong. All such factors are very necessary
to be considered while a company is willing to expand its operation and functions(Doh,
McGuire and Ozaki, 2015).
Positive: This means that if there is sudden change in style of people they have developed
preference for cars then this may lead to increase in sales of London EV Company Limited.
Negative: There are continuous changes in social trends of people which might lead to shifting of
the trends towards another brand.
 Technological: Technological factors are associated with advent of technology which
might lead to manufacturing of those vehicles which are environment friendly.
Positive: Technology & innovation are two most important factors which determine market
share of manufacturing company. A new technology adopt might lead to increase in market share
of London EV Company Limited in UK.
Negative: many times there can be situations in which London EV Company Limited may not
compete with already established vehicles which are having high mileage and are fuel efficient.
This may effect their sales and growth in a negative manner.
 legal: Law is a very necessary factor which has to be taken into consideration by
Companies when they are willing to expand in UK. Every country has their own set of
rules which are made by country's concerned authorities (Jovanović, 2015) .

Positive: Positive impact of this is that this will lead to increase in safety of passengers.
Negative: Increase in laws in UK might lead to lot of modification in exiting policies of London
EV Company Limited.
 Environmental: this factor relates to various factors which may have positive or
negative effect on company's operations.
Positive: This is related to vehicles having low emissions and low consumption of fuel which
will lead to conservation of environment(Ricciardi, Zardini and Rossignoli, 2016).
Negative: Pollution test have become very strict in UK which imposing heavy penalties on
company if there is lot of tests which have to be followed by company.
LO 4
P5 : Internal Analysis of organisation to identify strengths & weaknesses
Internal analysis is very helpful in making an analysis of competencies, viability and
competitiveness in relation to threats and opportunities which are prevailing in external market.
This analysis is very important for all organisation which is done based on SWOT.
SWOT analysis of London EV Company Limited is discussed below:
 Strength: London EV Company Limited is a company which is already providing
engineering services. They offer many facilities such as distribution of parts, taxi
designing, designing the stricture of aluminium body of cars. They have already
established market in various parts of world an now are willing to expand in markets of
United Kingdom.
 Weakness: London EV Company Limited is willing to expand themselves in UK. This
market is already having presence of many car manufacturers. Car manufacturing market
of UK posses huge threats for the amount of financial investment which company is
willing to make in their expansion strategy(Ledgerwood, 2017).
 Opportunities: There are many opportunities in such 1950 UK was second largest
manufacturer of cars in whole world which makes it a great market for increasing sales of
company. In the present context also it can be said that UK has a market which is of great
scope for increasing sales of company and providing a very attractive target segment of
customers as they are having major centre of engine manufacturing in automotive supply,
servicing and retailing.

 Threats: There are many threats in external environment which are many established
brands such as Bentley, Daimler, Land Rover, McLaren, Morgan, Rolls-Royce. They all
posses a huge threat for London EV Company Limited as they have to adopt
differentiation strategy so as to survive in the overall competitive environment and
increase their sales.
P6: Interrelation between weaknesses and strengths with various external factors:
For every organisation external and internal analysis is very important as it will help them
in identification of various opportunities which they can avail and impact of different threats
prevailing in the external environment. These type of threats should be minimized using strength
of company. There is a strong interrelation between external and internal factors(Saleem, 2017).
Impact of macro factors on London EV Company Limited:
Political impact:
 Strength: UK's Government is considering and helping companies in their expansion
plans. Government is providing a market for companies so that they are able to expand
their operations. Many barriers have also been minimized which has lead to a great
opportunity for London EV Company Limited.
 Weakness: There are so many political barriers which is going to impose a negative
affect on the manufacturing industry such as tax regulations and many such political
barriers.
Economical impact
 Strengths : From future prospect it is very helpful for growth of London EV Company
Limited which will help in increasing profit percentage.
 Weaknesses : There has been decrease in productivity and sales of existing companies
due to recession and many economical aspects of UK. This may also lead to reduction in
sales of London EV Company Limited .
Social impact
 Strengths : There has been a growth in disposable income of people which may lead to
spending more ion luxurious items and items which may lead to increase in status symbol