Unit 01 - Business and Business Environment Report: Company Analysis

This report provides a comprehensive analysis of the business environment, focusing on organizational structures, legal frameworks, and strategic tools. It examines different types of organizations, including private (Arcadia Group), public (BBC), and voluntary (World Vision) sectors, detailing their purpose, legal structures, size, scope, and organizational structures. The report explores the interrelationships between various business functions like marketing, finance, and human resources. Furthermore, it applies PESTLE and SWOT analyses to evaluate the macro-environment and internal factors, highlighting the strengths, weaknesses, opportunities, and threats faced by businesses. The report concludes with a discussion on how internal factors interact with external influences, providing insights into strategic decision-making and sustainable business practices.

Business and Business Environment
INTRODUCTION.....................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Different types of organization and its legal structure........................................................................3
P2 Size and scope of various kinds of organization.................................................................................5
TASK 2.......................................................................................................................................................8
P3 Relationship between different organizational function.....................................................................8
TASK 3.......................................................................................................................................................9
P4 PESTLE Analysis...............................................................................................................................9
TASK 4.....................................................................................................................................................12
P5 SWOT Analysis................................................................................................................................12
P6 Strength and weakness interrelation with external factors................................................................13
CONCLUSION........................................................................................................................................14
REFERNCES...........................................................................................................................................15

INTRODUCTION
Business Environment aggregates of all forces, factors and institutions which are external
to and beyond control of an individual business firm but which exercise a significant influence
on the functioning and growth of enterprises. Additionally, it has direct impact over organization
decision making which impact positively or negatively over firm’s productivity and profitability
(Shenkar, Luo and Chi, 2014). Moreover, it enable establishment to identify or examine its
strength and weakness in order to adopt challenges or threat that helps them to attain sustainable
proficiency and growth. This report is based on Arcadia Group that is one of the leading
retaining company established in the year of 2002. It deals into clothing, accessories, and shoes
with more than 2500 outlets across UK. This report covers, different kinds of organization along
with their legal structure, size, scope, purpose, interrelationship between various business
function. Implication of PESTLE and SWOT analysis for analyzing internal and external macro
environment.
TASK 1
P1 Different types of organization and its legal structure
An enterprise is a process of dividing work into convenient tasks or duties, of grouping
such duties in the firm of posts of delegating authority to each position and of appointing
qualified manpower to be responsible that the work is carried out as planned in order to
accomplish common goal or objective. Along with this, every organization contains its own
purpose and legal structure which enable them to monitor or govern its business operation and
function for an attainment of high level of profitability in an appropriate manner. However,
setting up legal structure is one of the first decision during establishing a company as it defines
the way business is organized as well as allow them to determine legal obligation and can gain
better positioning within competitive marketplace. There are different kinds of organization with
its purpose and legal structure which are as follows:
Private
They are legally distinct entities with their own assets, profits and liabilities, along with
this personal finances of any shareholders are protected by limited liability. Moreover, its shares
are not offer to general public. For acquiring deeper understanding of this concept, Arcadia

Group is considered as it one of the branded retailing company in UK which operate across the
globe with a high and best quality of products and services.
Purpose
The core goal of Arcadia Group is to become the first and best choice of customer by
rendering high quality of products and services in an affordable price.
Legal Structure
However, Arcadia some of the legal structure of Arcadia Group are as follows:
Sole Proprietorship: It is regarded as simplest structure in which it consist an individual
personality who is responsible for entire business operation and function as well as obliged to
take all gain and loss by its own.
Partnership: Under this, business entity or ownership is divided among two parties who
come together with mentality to share all risk, responsibilities, profit and loss equally in order to
achieve organization common goal in an effective and efficient way.
Corporation: It is considered as more complex and expensive than other business
structures. However, it is an independent legal entity, separate from its owners and such, it
requires complying with more regulations and tax requirements (Prajogo, 2016).
Public
It is also similar to private limited companies, in the sense that they are legally distinct
entities with their own assets, profits and liabilities. But one difference is that they can freely
trade their shares to general audience as well as it can be listed on a stock exchange. In order to
acquire detailed information about this sector of company, BBC is more effective and suitable
firm which is a world’s oldest and leading broadcasting organization which is commenced in the
year of 1922 and it serve worldwide with a fair and transparency in trading their products or
services. Thus, BBC is governed by Executive board and BBC trust which help them to obtain
maximization of profit. The several types of legal structure and it’s in public sector are as
follows:
Purpose

Their main aim is to enrich people’s lives with programs and services that inform, educate and
entertaining by being most creative organization in the world.
Legal Structure:
Local government: It is an authority which determine and execute measures within
restricted area inside and smaller than a whole state. Along with this, this government has two
fold aspect i.e. Mixture of both deconcentration and decentralization.
State government: Under this, it seek most of its help or support from central government
and provide proper advice and guidance to local authority in order to fulfill the requirements of
general public as well as boost up firm’s productivity
Central government: It is totally responsible for national environmental policy directed to
contributed towards sustainable economic development and to health, safety of people by
maintaining or improving quality of working environment (Kljucnikov and et. Al 2014).
Voluntary
It is fully independent from local and national government and distinct from private
sector. The key function of its establishment is to serve society and improve their life standard by
fulfilling their demand and interest in an innovative manner. To acquire more knowledge
regarding voluntary, sector, World Vision is considered as one of the not for profit organization
which is highly dedicated to improve life style of a company as well as find ways to eradicate
poverty or injustice among community or societies. It follows trust legal structure. Some of other
structure are as follows:
Trust: It is governed by trust deed which set outs the objects of trust, names the trustee
and provides for an administration of trust. One of its advantages is that its formation provides
continuity in life of company even after the death of owner or trustee.
P2 Size and scope of various kinds of organization
Private – Arcadia Group

Vision: To generate a healthy relationship with customer and offer them best and
attractive products for retaining and capturing large number of audience attention towards brand.
Mission: To provide distinctively global, integrative and personal experience by
providing best quality of products.
Business objectives: To become a global force in fashion industry by fulfilling customer
demand and interest and boost up their morale which add value to its brand image as well as
enhance its market share.
Size: It encompasses of 22,000 manpower who contribute their best performance to
produce high and best quality of products in order to gain competitive advantage (Rastogi and
Trivedi, 2016).
Scope: Its contain huge scope as it deal into clothing, accessories, cosmetics, shoes with
2500 outlets across UK and has its own subsidiaries like Topshop, Topman, Burton etc.
Organizational structure: It applies hierarchical structure that help them to manage all
division work properly and can render fast solution to business conflicts for creating healthy
working atmosphere.
Stakeholders: Its stakeholders are employees, suppliers, customers, civil society, and
materiality.
Public – BBC
Vision: BBC core vision is to create a world where each and every human resource be
informed and empower people live in healthy, resilient and inclusive communities.
Mission: It’s mission is to reach millions of customer through creative mode of
communication and trusted media in order to help communities and transform their lives in a
better manner.
Business objectives: BBC core goal is to attain high level of growth by providing ethical
and accurate information in order to increase market share as well as to sustain within
competitive industry.

Size: It contains highly dedicated workforce of 35,402 who are assigned with various
shifts like part time, full time and they contribute their best into attainment of increased level of
sales growth.
Scope: It has wide range of scope as it provides 10 network television services, 10
network radio services, 46 radio service plus an extensive presence. Moreover, it offer range of
carrier in the areas of journalism, broadcasting, technology as well as corporate roles such as HR,
legal finance and administration.
Organizational structure: It follows line organizational structure allow them to make fast
decision making and maintain vertical relationship with all level of management.
Stakeholders: Its stakeholders are employees, customers, government, and general public.
Voluntary – World Vision
Vision: Its purpose is to eradicate the poverty and injustice among community or society
and enhance the life standard of people.
Mission: Their core mission is to transform human life and provide them a better life
which is filled with justice, prosperity and love (Aithal, 2016).
Business objectives: To create a world where every individual can live without fear and
poverty and can lead a life of justice, equality and abundance of richness.
Size: It has 22,500 employees who passionately work to remove scarcity and inequality
among community.
Scope: It consist great scope as it mainly centering over wellbeing of societies specially
children and offer them education, shelter, food and clothing.
Organizational structure: It implies divisional organizational structure in which each
departments are formed on the basis of function, product, geographic territory, and project.
Stakeholders: The stakeholders are government, employees, charitable trust, and
association, public.

TASK 2
P3 Relationship between different organizational function
Each and every company is consist of different departments and each of them contain
their own roles and responsibilities which make them differ from other. These business function
are interlink with each other that enable Arcadia Group to accomplish its goal in an innovative or
creative way for survive among competitive industry. The interconnection among several
Arcadia Group’s departments are given below:
Marketing and Finance Department: Both these function has huge connectivity as they
require each other support. However, for advertising the product or service within marketplace,
Arcadia require enough fund which help them to attract wide range of customer towards their
brand. Hence, in order to promote product efficiently, Arcadia marketing function demand fund
from finance department which takes an initiative to evaluate all expense and budget in order to
provide full support to marketing division for promoting firm’s products in an impressive and
productive way.
Human Resource and Marketing: These two departments plays a vital role as they
contribute towards accomplishment of goals. Moreover, every company desire for hiring highly
skilled workforce who can put its best effort in an organization. For this, they seek
encouragement from marketing function in which they conduct job fare, advertisement in
newspaper, magazine, campus recruitment etc. By this, human resource department can recruit
enormous skilled manpower with the help of marketing tools which reflect Arcadia Group to
improve its overall performance innovatively and productivity (Aithal, Shailashree and Kumar,
2016).
Although, each and every business function are interconnected likewise organizational structure
has vital role in organizational function as it enable them to accomplish their goal in an effective
and efficient manner within prescribed time limit. Moreover, it help Arcadia Group to maintain a
healthy relationship with all level of management which lead company to attain increased level
of productivity and profitability ratio. Yet, it contain various advantages and disadvantages
which are explained below:

Advantage Disadvantage
 It help them to govern or monitor each
and every function’s work easily and
can maintain a better relationship with
manpower of all level of organization.
By this firm can improve its
proficiency and can strengthen its
profit margin.
 In some cases, there will be a
possibility of arising duplication of
work as well as delay in passing the
information and receiving response
which directly impact over business
volume of sales and proficiency.
TASK 3
P4 PESTLE Analysis
It is technique which help firm to analyses its external macro environment and enable
them to make corrective course of action. By this, an organization can enhance its sales growth
and assist them to gain competitive edge effectively. However, Arcadia Group and BBC applies
this element to their business function which is explained below:
Arcadia Group
Political: It is concerned with government policies, procedures, political stability, interest
rate, tax policy etc. which has huge impact over company’s productivity. However, in UK due to
Brexit it effect negatively over Arcadia as it demands UK to leave EU that challenged company
profitability. Hence, Arcadia tackle this issue by reducing the cost of products in other country
like China, Romania etc. and expect UK that help them to maintain their volume of sales and it
directly reflect over its enhancement in proficiency ratio in a better manner (Bohari, Hin and
Fuad, 2017).
Economical: This factor includes inflation, deflation rate, economic stability, exchange
rate, and many more that effect over firm’s profit margin. In regard of Arcadia, it undergoes
through a drastic recession which took place few years ago which impacted negatively over
consumer buying behavior that became major threat for firm to attain proficiency. However,
Arcadia overcome this negative issue by putting their whole focus over digital sales which

attracted large number of audience towards firm and this activity helped Arcadia to survive
productively within competitive marketplace during huge recession period in UK economy.
Social: Under this, it covers demographic characteristics, norms, customs, values of
population and many more which influence greatly over organization potentiality to accomplish
their goal within prescribed time limit. Furthermore, there was a huge demand among UK female
population regarding recent trends and their fitting size which affected Arcadia sales growth and
development. Hence, Arcadia took this negative impact as an opportunity to enhance their
proficiency as they introduces new fashion style for clothing and manufactured for all size
women which enable Arcadia to retain huge audience and help them to expand its productivity in
impressive way.
Technological: It is regarded with latest innovation, advancement in technology etc. that
affect enterprise profit margin. In context of Arcadia, this factor impacted heavily over firm sales
growth as well as in expansion of business effectively as wide range of population were
demanding for online shopping that threat company’s proficiency. Therefore, Arcadia took this
challenge or threat as a platform for development as it produces or developed their own website
for online shopping which captured an attention of UK population towards Arcadia brand. Along
with this, it facilitate with an option of providing their reviews over company’s website
regarding quality of products so that they make corrective course of action in order to gain
competitive advantage. Due to this plan of action, Arcadia was enables to acquire sustainable
profitability in a marketplace (Scolozzi and et.al 2014).
Legal: It covers government legislation, laws, rules, regulation and legal procedure for
firm which is imposed by government which influence organization survival in an industry.
However, Arcadia always take one step ahead to build a healthy relationship with employees by
providing them fair reward, equal opportunity regardless of gender, age, religion as well as
generating healthy and safe working environment which help Arcadia to reduce its intervention
with government.
Environmental: This encompasses of ecofriendly and environmentally friendly products
etc. which effect enterprise productivity. However, Arcadia was very much careful and sensitive
regarding environmental friendly products as it tales an initiative to minimize wastage of product

with an optimum utilization of resources that benefits that assist them to obtain profit
maximization by providing high quality of products without causing any harm to environment.
BBC
Political: It is concerned with those decisions which is made by governments and it
impact within a particular environment of business in a positive or negative way. Due to Brexit,
there was a huge negative influence over company business operation and function as it modified
entire company’s laws and government legislation which became challenging atmosphere for
BBC to survive in UK market. However, BBC were greatly benefitted by political stability in
UK which help firm to adapt changes or alteration in employment laws as well as enable them to
attain higher level of productivity and profit margin.
Economical: Under this, it consist exchange rate, consumer disposal income economic
performance, inflation rate etc. which influence company’s profitability rate. However, recent
2008 recession in UK has increased inflation which challenged BBC as it reflect in decreasing
consumer spending potentiality. Thus, in order to overcome the same threat, BBC focused on
other region business and reduce the price of products well as keeping discounts, offer and all.
By this activity, BBC was benefitted by generating its volume of sales as well as assist them to
gain a long time sustainable among UK market condition.
Social: Under this, it covers trends, consumer taste and preferences, life style, income
level etc. which has direct influence over firm’s proficiency. However, BBC undergoes through a
big challenge from UK population regarding equal pay and migration that effect negatively on
BBC business operation and function. Therefore, BBC overcome this negative impact by
building a local team who is specially assigned to oversee societal norms and attitudes that help
them to serve community in an appropriate way. Along with this, in order to deal with migration
issue it acquire international talent to manage or govern business operation that strengthen BBC
profit margin and add value to firm brand image within an industry.
Technological: It relates with innovation, automation, digital world, internet trading,
latest or novel technology and many more which affect organization productivity. However,
there was huge demand among UK population regarding fast and high speed internet service in
order to carry out their business function more accurately and effectually that impact negatively

over BBC proficiency. Thus, BBC took this negative issue as an opportunity to improve its
shortcomings as it introduced 5G internet services which add value to customer as it benefitted
them by attracting large crowd towards company brand and provide them high speed and
accessibility. Moreover it improved overall performance of firm and enhanced its sales growth
(Phadermrod, Crowder and Wills, 2019).
Legal: Being a multinational and reputed brand among UK marketplace, it always insist
them to follow all guidelines, procedure and policies of governments which prevented BBC to
reduce its interference or intervention with government and helped them to gain competitive
edge.
Environmental: It covers minimizing wastage of product, less pollution practices,
introducing environmentally friendly products etc. However, BBC acquire a policy of recycling
wastage of material and make it into useful or ecofriendly product which help BBC to retain or
hold back its customer and assist them to provide higher level of profiency and sales growth.
TASK 4
P5 SWOT Analysis
In today’s competitive world, business often faced with complex situation that require an
assessment of their position and identification of innovative ways to stay head. With the correct
strategy in place, the potential of business can be improved. However, SWOT analysis is one of
the technique which can be used to identify that strategy. It help company to analyses and take
advantage of opportunity they are well placed to explore. It can be also combined with risk
analysis to examine threats facing business and ways of mitigating. However, Arcadia Group and
BBC implies this tool into business operation which is described below:
Arcadia Group
Strength
 It is well established brand that uses
successful marketing techniques and
operates in worldwide with over 2500
stores.
 They sell their products at competitive
Weakness
 Online exclusives of products are not
always in stores to try on and many of
the products from graphics don’t
appear in stores which makes
customer confusing.

pricing. According to the quality of
products customers are extremely
aware of their designer collaboration.
 Some of its clothes are similar to other
competitors like H&M which diverts
customer buying behavior and it
impact over Arcadia profitability.
Opportunity
Optimizing marketing channels by working
with a variety of people as they has an
platform of NEWGEN project which is
working with new and upcoming designers
( Abd. Wahab, Muhamad and Arbab Shirani,
2014).
Threat
 There is high level of competition
from is various competitors like Zara,
Mark and Spencer, H&M etc. which
impact Aracdia Group proficiency.
SWOT Analysis of BBC
Strength
 It is one of the largest broadcaster in
world with 23,000 employees and it
always tough competition to its
contemporaries and covers its services
globally.
Weakness
 It’s operating cost is high as well as it
got caught up in controversies that it
touched sensitive issues in world that
effect BBC productivity.
Opportunity
 They have enormous possibility of
development in entertainment zone in
order to retain high number of
population.
Threat
 It faces huge competition from CNN
that sometime impact negatively over
company and help them to get
challenged by its competencies.
P6 Strength and weakness interrelation with external factors
There is a direct connection between internal and external factor of company as it help
firm to identify current and emerging trend of marketplace and allow them to implement
corrective course of action in order to acquire sustainable profitability. Moreover, it help Arcadia
to examine their various forces like political, legal, technological, economical etc. and assist