Business and Business Environment Analysis of ARCADIA Group

This report offers a comprehensive analysis of ARCADIA Group's business and its environment. It begins by examining different types of organizations, including private, public, and volunteer organizations, and their roles in international business. The report compares ARCADIA Group with NHS and Cancer Research, analyzing their market size, scope, and objectives. It then delves into ARCADIA's organizational chart and interrelates its key functions – production, research and development, purchasing, human resource management, and accounting – highlighting their advantages and disadvantages. The report further applies PESTLE and SWOT analyses to ARCADIA Group, evaluating their interrelationships and impact on decision-making. The findings are critically reflected upon to assess their influence on the business's strategic direction, concluding with an overview of the key insights gained.

Business and business-
environment

Table of Contents
B INTRODUCTION........................................................................................................................1
TASK 1............................................................................................................................................1
1. Different types of organization and its growth in international business...........................1
2. Compare three organisations, market size and scope.........................................................2
3. organisation chart and interrelate between functions and an analysis of the advantages and
disadvantages of how they relate to and impact the structure of the organisation.................3
operates business and all function is inter relate with each other. .........................................3
TASK 2 ...........................................................................................................................................6
1. PESTLE analysis of organization and positive and negative effect ..................................6
[Source : PEST analysis, 2018].......................................................................................................6
2 Swot analysis and interrelationship between pestle and swot.............................................8
3 Present a critical reflection of key findings and evaluate how they influence the decision-
making Process.....................................................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business and business environment means that many internal and external factors that
affect business function of organisation as well as affect to employees, consumers, production
and demand & supply. And all these things put direct effect on decision of business. ARCADIA
group is a retail company of United Kingdom and its main business is clothing, accessories and
shoes. It founded in 2002 and it headquarters in London. This report will be cover different
types of organization and improvement of international business as well as size and objective of
business. It also covers PESTLE and SWOT analysis of ARCADIA group (Bai, Yao and Dou,
2015.)
TASK 1
1. Different types of organization and its growth in international business.
Private organization – private organization also a part of economy and it operates by a
person and group of people as company. Government put restrictions on this type of
organization. It includes partnership, corporation and one person company. It is established and
operate by people and not control by government. Its purpose is making profit with limited
liability and its also helps in reducing poverty. Its also main purpose is optimum utilization of
available resources. Its also works for beat competition and earn extra profit.
ARCADIA group is Private sectors & its improve international business because they do
international trade like export and import with other countries and increase inflow of foreign
currency. It also spread their branches at global level and helps in increase economy growth and
employment(Beloborodko, 2015).
Public organization – public organization is operates under control of state and central
government. Its includes departmental, public and government organization. Departmental
organisations has to give all revenues to treasury of the country. And its employees is Govt.
officers and civil servants. Departments likes railway, post & telegraph and telephone services.
And they operate from annual budget give by government. And its departmental revenue
increase government revenue (Bullock, Greer and O’Toole, 2018). Public corporation is
formed by parliament and finance gives to this types of corporation by government like airlines,
state bank of India and life insurance corporation etc. and its objectives and activities discussed
in parliament. Government company means that it incorporated under companies act 1956. Share
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of company held by central or state government at least 51 %. This types of company free from
political interference.
Its main purpose is provides satisfaction to needs of public and set goals by government.
NHS also provide health services to public and expand their branches in many countries for
social welfare and helps to poor. Its helps in international business through establish relationship
of government of different countries and expand their business and increase revenue of
government. Like NHS expand their business in many countries.
Volunteer organization – non profit organization and charities is includes in this type of
organization. It is made by group of people of society and trust for welfare of its members
accomplish their common goal. It is not control by any government and it is flexible and
independent. It has to registered under appropriate act and its works for common objective. this
organization helps in establish political relationship between countries. Many NGO's expand
their work in different countries and its objective is reduce poverty and welfare of poor people.
Cancer research also a very huge NGO and its establish for charity for beat cancer (Furlong,
2017).
2. Compare three organisations, market size and scope
ARCADIA group
(private organization)
NHS (public
organization)
Cancer research
(volunteer
organization)
Background It is a retailer. And its
established in 2002.
It is service provider &
provide health services.
And its founded in 1948.
It is also a service
provider to cancer
patients. & its founded
in 2002.
Product & services It sales clothing,
accessories and shoes.
Its provide free health
service to public.
It gives charity to who
suffer from cancer.
Size and scope Arcadia provide service
of clothing through
online in 107 countries
like Australia,
It is work on global level
and provide health
services in England,
Scotland, wales
Its provide services in
global level in many
countries.
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Denmark, Egypt etc.
Objectives Increase supply of
product at global level
and satisfaction of
needs of consumers of
different countries and
earn profitability.
Its aim is charitable
funds for improve
services and provide
benefits for the welfare
of patients and maintain
everyone's good
health(Gamassou,
2015).
Its main objective is
charity provide for
cancer and reduce
death from cancer.
Legal structure Its legal structure is
Sole properietors.
Its legal structure is
public organization.
Its legal structure is
charitable association.
Stakeholders CEO, creditors,
debtors, employers and
employees
Shareholders, patients,
management team
Volunteers and staffs,
management teams
Vision & mission It vision and mission is
increase standard of
living of peoples on
global and profit of
organization.
Its main vision is
provide better health
service to people in
every countries through
experienced doctors.
Its main vision is
minimize cancer and
prevent them and help
to poor developing
countries(Gil, 2016).
3. organisation chart and interrelate between functions and an analysis of the advantages and
disadvantages of how they relate to and impact the structure of the organisation
ARCADIA group has functions like production, research and development, purchasing,
marketing human resource management and accounting. These all function is important for
operates business and all function is inter relate with each other.
Production – it is part of function of ARCADIA group. It shows relationship between input and
output. It is a process of convert raw material in finished goods. Raw material like land, labour,
capital. ARCADIA group expand their business on global level for increase their productivity so
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its helps in increase employment. And it is also a process of create balance between demand and
supply of product and optimum utilization of available resources.
Advantages – production is beneficial for consumers because it provides good quality product
according to their need and fulfil need of consumer and provide satisfaction. It also increase
productivity and profitability of ARCADIA and helps in attract consumers.
Disadvantages – production has also a weakness because if marketing department of ARCADIA
don't evaluate to market accurately so its create overproduction and underproduction. And its
creates loss in competitive environment(Saborido and Mossio, 2016).
Research and development – it is also a major function of ARCADIA group because its helps
in research of markets for production. Through this they research for new product and
development of existing product because they research market like consumer behaviour, taste,
fashion, trend and competition so for getting these information only possible through research.
Through research they also check quality of product through development team and then
improve quality according to need. Research and development also helps in innovation of new
technology because competition increasing day by day so it is very important for beat
competitors and develop their production for attract customer.
Advantages – its very beneficial for improve and promote their product and beat competition
because ARCADIA research market time to time and evaluate customer taste, habits and fashion
so its helpful in develop their product and attract consumers.
Disadvantages – it consumes more cost and time and participants may not truthful because thay
can also give fake information about observation of marketing.
Purchasing – purchasing is a function of ARCADIA group and its important for purchasing all
things who use for organization like raw material and stationary etc. its decisions helpful in
increase profitability and growth of business and this department also can save cost because
through purchasing they purchase quality product in cheap rate and maximize their profits of
ARCADIA. Through this department organization handle their paperwork of purchasing and
supply of material. It also take order of purchasing and ensures timely delivery from vendors and
track order and make payments on time.
Advantages – through this function they save cost from purchase quality product on cheap rate.
Its also beneficial for reduce risk because this function ensures that what goods and services is
4

useful for ARCADIA. Its always contact with outsider so they have idea for innovation of goods
and services.
Disadvantage – it has also weakness because if purchasing manager and employees purchase
material without checking inventory so it is create loss for the organization because many
material in the expire date. So company has to throw out unused items and it consume more cost.
And if they set supplier and distributors for purchase material without evaluate of market so their
budget reach very high.
Human resource management – it is very important functions for ARCADIA because this only
department that they manages human resources. It recruit employees according to need. So they
hire skilled and efficient employees for achieve organizational goals. They also provide training
and development programme to all new and existing employees. So its main function is
motivating employees so its direct put impact on achieve organizational goals. They also conduct
appraisal for employees according to employees performance and provide protection to
employees like health and safety, equality and fair wages to employees.
Advantages – its beneficial for hire skilled and efficient workers and develop new ideas in
organization. They also evaluate employees performance and modify and motivate them so its
helpful in prevent weakness and meet objective and increase profitability and reduce supervision.
Disadvantages – they provide training to employees so its consumes more cost. And HRM also
provide less information so it create risk. And if they hire unskilled candidates so that create
difficulties and dont work in systematic and efficient manner so it put impact on productivity and
profitability.
Accounting – its play vital role in ARCADIA because it keep books and financial transaction
and business records. It also make balance sheet of every financial year and then communicate
financial information to the interested sectors like government, researchers and suppliers etc. its
also make plan about controlling financial policies and prepare budget for future activities. They
control cost and gives ideas about chances of profitability. It also helpful; in decision-making.
Advantages – its advantageous in keeping books records and preparation of financial statements.
Its also helps in control on financial policies and comparison of current year profit and loss with
last year P&L accounts. They works in taxation matters because they manage income tax,
indirect tax and GST of ARCADIA(Yang, 2017).
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Disadvantages – it only keep information about in monetary terms and not give information of
non financial transactions. This information also based on estimates so inaccuracy is possible.
They also measure in money but it is flexible so they can't show true financial statements. So its
also put effect on profitability of ARCADIA.
Functions interrelate with other functions:-
production function is inter relate with purchase, accounting and research and
development functions because for production of product in ARCADIA so purchase department
purchase raw material for production department and then convert raw material in finished
goods. Accounting department make budget for production and keep all financial transaction
and research and development department research and evaluate condition of market for improve
product and make profitability. For research and development function accounting department
make budget and provide finance and as well as they provide finance for purchasing department.
HRM also related to all functions of organization because they hire skilled and efficient
candidates for all department and accounting department provide finance for provide training to
employees. And its overall helpful for production and increase profitability and productivity.
TASK 2
1. PESTLE analysis of organization and positive and negative effect
6
Illustration 1: pestle analysis
[Source : PEST analysis, 2018]

Pestle analysis is tool and technique of measures external factors that affect organization
performance. And pestle stands for P- political factors, E- economic, S- social, T- technological,
L- legal and E- environmental.
Political factors
it means that government and political party put impact on ARCADIA. Because policy of
government, political stability, corruption, foreign trade policy, tax policy and more reasons that
effected organzations. And changes in all things affect business and demand and supply of
products. When it affected ARCADIA so that demand and supply is very affected and they paid
more cost for tax, tariffs and quota etc.
positive impact is control on import and export and demand and supply. And
government earn more revenue. And increase of foreign currencies in economy so its create
growth of economy. And balance of payment also maintain(Piotroski, Wong and Zhang, 2015).
negative effect is due to this factors it has to change their policies like employment
related and production related frequently with government. And pay high taxes on their supply
and profit. And its also create corruption in country.
Economic factors
this factors majorly affected to ARCADIA because it includes economic growth,
exchange rates, inflation rates, interest rates and unemployment rates. All these things direct
effect to performance of organization because if exchange rates is changing so its impact to
export and import of company. Recession is also include in economic factors and its impact on
ARCADIA because frequently changing in purchasing attitude of customers so its put very
major effect on organization.
positive effect is increase growth of economy and increase profitability and productivity.
If inflation rates decrease so its create demand of highly so it put positive effects.
negative effects that if exchange rate frequently fluctuate so export and import is
influence and it has to give more tariffs and taxes.
its majorly affected to ARCADIA. Its include population growth, age, income, lifestyle
and culture. It means that these all things is very flexible. So its frequently changing so this
impact performance of organization (Business environment, 2017).
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Positive impact of social factor is increase standard of living and as well as increase
sales and profits of ARCADIA. And it is a opportunity to attract customer through satisfy their
needs.
Its negative effect is consumes more cost and time and frequently changing in product.
And expand their size of business.
Technological factors
Now a days innovation of technology increase so organization has to adopt technologies
for improve and promote their product. It consumes more cost because if ARCADIA adopt new
technology so it gives training to their staff.
Its positive effect is make easy to research market condition and improve their quality of
product so its helpful in increase sales and attract customers through provide satisfaction to needs
of the customer.
Its negative effects is consume more money and time also provide training to employees
so its effected to performance of ARCADIA.
Legal factors
it includes different types of laws like discrimination law, consumer protection law and
health and safety law. So ARCADIA has to follow all these laws for meet objectives of
organization. So for do business on global level they have to follow laws of different countries so
it creates complexity.
It positive impact is establish good relationship between consumer and employees with
ARCADIA. So increase believe and increase sales and profitability(Shafritz, 2016.).
Its negative impact is that changes in laws and rules is consumes more cost and time so
that they impact to performance of ARCADIA.
Environmental factors
this is also effect to performance of ARCADIA and its includes climate, CSR and
sustainability etc. so changing in climates also affect business. its positive effect is create
goodwill and adopt CSR but its negative is consume more expenses of organization.
2 Swot analysis and interrelationship between pestle and swot
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Swot stands for S- strength, W- weakness, O- opportunities, T- threats. Strength and
weakness are internal factors of company and opportunity and threats are external factors of
company. ARCADIA use swot analysis for analyse all these things and it is very useful
techniques for evaluate competitive position, risk of company.
Strength – this shows positions of ARCADIA for competition with others, strong brand, strong
balance sheets, technology and customers. So through this internal factors observe easily so
quality of product of ARCADIA is well. Its customer base is very strong and supply in global
level. And it increase profit day by day.
Weakness – ARCADIA's production process is time and cost consuming. Its consume more cost
and time because they supply product in different countries so labour and capital also consume
more(Chao, Hua and Chang-Cui, 2017).
Opportunities – ARCADIA has opportunities to increase number of employees and business
expand in different countries. It also focus on sell into retail and purchase and adopt new
technology for reduce production time and labor.
Threats – ARCADIA has threat of competitors because in markets many competitors increase
and they has to increase technology and increase market research. Consumers are also conscious
about fashion, trend etc.
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Illustration 2: swot analysis
[Source : SWOT Analysis, 2017

SWOT of M&S:-
Strength :-
their is High recognition of brand for marks
and spencer's has a heavy and popular brand
and customer is also high.
It has Wide variety of product M&S has many
variety of products so it has benefit.
Weakness :-
M&S uses technologies so it consume more
cost so its products is also expensive. Thus,
Manual working increases cost
Opportunities :-
Internationalization is the opportunity of M&S
so it has opportunity to expand their business.
Threats:-
competitors is the main threats for M&S
because it put direct effect of their production
and sales.
Interrelationship of swot with pestle :-
pestle and swot analysis is tool and techniques of evaluate factors who affect to
performance of ARCADIA. Both are used for evaluation but pestle is use for external
environment and swot is used for internal environment. But both are helpful in making good
environment and helps in growth of companies. Both analysis market like fashion, trend, culture
etc and change them for promote their product. Its both evaluate all environment and prepare for
adopt changing in performance for increase productivity and profitability of ARCADIA. Swot
shows strength of companies it means advantages. Weakness shows problem in organization that
effect process and opportunities that company has opportunity to increase their profit and expand
their business and threats shows external things that create difficulties for ARCADIA as well as
petle also give direction for expand their business and increase productivity.
Strength and weakness of marks& spencer and ARCADIA:-
Strength :- M&S is a retailer of clothing it is famous for quality product in global level. They
have their own branded labels and 1000+ stores in 40 countries. It gives employment to above
80000.
ARCADIA is also a retailer of clothing and it has customers in global level. It gives
employment to 22000 employees. It provide their services in 107 countries.
Weakness - M&S has face competition with similar retailer and adopt more and more
innovation for improve product for beat competition so it consume more cost and labour.
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ARCADIA has to
consume more cost for production in huge level so that they have consume more cost and time.
3. Present a critical reflection of key findings and evaluate how they influence the decision-
making Process.
ARCADIA influence through many factors like political, economic, social, technology,
legal and environmental factors so pestle is only tool and technique that evaluate market
conditions and analyze all external environment. So that helpful in prepare and give direction to
company for changing and adopting technology and ideas according to culture, fashion and
trend. Swot is also helpful in observation of company about strength, weakness, opportunities
and threats of ARCADIA. So both is helpful in increase productivity and profitability. All
functions of organization like production, accounting, research and development is important for
meet objective of ARCADIA and all is interdependent with each other(Maqueira-Marín, Bruque-
Cámara and Minguela-Rata, 2017).
CONCLUSION
From above study it has been summarized that business environment effect to functions
of organization like production, research and development and accounting all are helpful in meet
objective and interrelate with each other. It also summarized about environment of business like
internal and external factors who affect to performance of organization in positive and negative
way. So pestle and swot analysis is important tool and techniques for measures effect external
and internal factors and then give directions for prepare and adopt changes for increses
profitability and achieve organizational goals.
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SWOT Analysis. 2017.[ONLINE] Available through :< https://www.investopedia.com ›
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1.
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