Business and Business Environment: A Report on Bayer AG's Analysis

This report provides a comprehensive analysis of the business and business environment, focusing on the German pharmaceutical company Bayer AG. The report begins by defining the business environment and exploring different organizational types, including public, private, voluntary, and legal structures, along with their respective sizes and scopes. It then delves into the interrelationships between various organizational functions, such as marketing, HR, finance, and production, and their impact on company structure. A significant portion of the report is dedicated to the discussion of macro environmental factors, including political, economic, social, technological, environmental, and legal aspects (PESTLE analysis), and their positive and negative impacts on Bayer AG. Furthermore, the report conducts an internal and external analysis of Bayer AG to identify its strengths and weaknesses, followed by an examination of how these internal factors interact with external macro factors. The report concludes by summarizing the key findings and providing a holistic view of Bayer AG's operational environment and strategic considerations.

Business and business
environment

Table of Content
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1- Different types and purpose of the organization...................................................................3
P2- Size and scope of the organizations......................................................................................4
P3- interrelationship between the organizational functions and their impact upon companies
structure.......................................................................................................................................5
P4- Positive and negative impact of macro environmental factors............................................6
P5 Discuss about the internal and external analysis of Bayers AG Company in order to
identify strengths and weaknesses...............................................................................................7
P6 Explain how strengths and weaknesses interrelate with external macro factors....................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business and Business environment means all the internal and external factors that affect
the companies function such as customers, employees, management and supply and demand and
business environment. It is necessary for the leaders and managers of the company to be aware
of those factors create opportunities and take competitive advantages.
This report will cover case study of Bayer AG is an German pharmaceutical and life
sciences related company, and they are having huge reputation and presence in all around the
world (Anderson and et.al., 2017). This business area of this company include the Veterinary and
human Pharmaceutical, customers healthcare products and agriculturalist chemicals, seeds and
some other biomechanical products.
This report will explain types, size and scope of the different organizations. It will also
demonstrate the various function within the workplace of Bayer AG and report will provide
explanation that they are interlinked with each other. This report will conclude Pestle analysis to
identify factors that are affecting the companies operation and their strength and weakness. In the
end of this report will determine that how micro factors are interlinked with strength and
weakness of Bayers AG Company.
LO1
P1- Different types and purpose of the organization
There are 4 types of the organizations such as private, public, voluntary and legal
structure. It is refers to the act of putting things into a the logical order or the act of taking an
efficient and orderly approach to tasks within their workplace, or a group of people who have
formally come together and work to earn and help company to be successful in their business
(Bedianashvili., 2016). A group of persons organized for a particular purpose an association or
business.
Types of organization
Public
The public sector is a part of the country’s economy where they are composed of both
Public enterprise and the public related services. This sector consist of the government and the
all publicly controlled or they are also funded by the public agencies, entities and the enterprises
that deliver the public services, goods and program. Bayers AG is also a public company

because it is also controlled by the state government and provide public related healthcare
services and medicines for the treatment of human disease.
Private
Private companies are owned by the single owners or the companies themselves.
Owner’s f the company share all the profit, and they give dividend to the investors. It is a
corporation that not publicly trade on the open market, but they are held internally by some of
the individuals. There are many companies within United Kingdom that are privately owned.
Pundland is Retailer Company who are privet owned, and they are operating their business in
more than 850 locations.
Voluntary
The Voluntary sector is a wide sector where organizations primary purpose is to create a
social impact rather than earning a profits through their business. They are specially designed for
helping the people and collecting the funds to help people financially and psychophysically both.
For example- Save the Children international is a Voluntary company who are focused to help
children.
Legal
A legal entity is any company or organization that has legal rights and responsibilities,
including tax filings. This kind of institutes are government bodies who work legally and
controlled by the government workers. For examples- Law society of England and Wales is a
Legal government body that is responsible to implement the law for the society.
P2- Size and scope of the organizations
Every organization or the sector have their own way to do their work and follow the
polices and rules made by the government (Chang, Wang and Arnett., 2018). Government have
provided different size that is a limit for the all types of company, and they cannot give
employment to the people more than that or cross the limits.
Public company scope and size- when the government bodies create the public
companies then they are quite similar to the privet non- profitable organization but some of them
work to earn profit, but they are listed as a public companies. The main purpose of this kind of
companies to help public and make available product and services to stratify the needs and
demand of the public. Bayers AG is a public company who provide Pharmaceutical products
and biomechanical products to satisfy the needs and demand of the sociality but their main

objective is to earn profitability. There are more than 20,735 employees are working but it can
each to more than 2,50000.
Private company scope and Size- Purpose of the privet owned firms is to grow and
expand their business by selling their goods and disservice to their customers. Their main motive
is to satisfy the needs and demand of the customers and earn profitability. Pundland is an
Variety stores who provide varieties of the product in their physical and online stores such as
Home Furnishing, hardware, automotive parts and grocery products etc. they are expanding their
business rapidly and 20000 employees are working for this company and it can reach to more
than 200000.
Voluntary company size and scope- Scope of the voluntary companies is very high and
it can also reach to the international level to help people in all around the world, and they get the
funds from the various institutes and government bodies. Save the Children international is
operating their business on the international level where they are working to improve the life of
the children by proving the education, heath care etc.
Legal organizations size and scope- Legal organization have huge scope because this
bodies are owned by the government and funded by the governmental and public. They create
legal rule and help the sociality thorough the laws (Flanigan and Obermier., 2016). Government
decides the size of the people in this kind of organizations.
P3- interrelationship between the organizational functions and their impact upon companies
structure
There are different functions and operation take place within the workplace of Bayers
AG and departments like HR, Finance, marketing and production are responsible to control this
function. All the function are also interrelated with each other and depended on each other.
Marketing functions
Marketing is one of the most important part of the Bayers AG because they are
responsible to aware people about the Pharmaceutical products sell by the company. Marketing
is not only work outside of the company, but they also interlinked with the other function like
HR, operations, finance etc. For example- They collect the necessary information of the market
such as customer’s need that is useful for production department and finance source availability
information to finance manager.

HR function
HR department is responsible to create string workforce for the Bayers AG company
where they provide skill full and talented employees to each and every department such as
finance, marketing, production and finance etc (Kasemsap., 2016).
Finance
Finance manager of the company responsible to identify the source of finance for the
Bayers AG Company so company can run smoothly. They also provide financial budget to every
department within the organizational, so they can run their day to day activities.
Production department
Production department most important part of the company where they take information
from the marketing team, employees from the HR and fund from the Finance department to
products medicines and agricultural product to satisfy the needs and demand of the customers.
P4- Positive and negative impact of macro environmental factors
There are some micro environmental factors that has huge impact on the strategies and
operations of the Bayers AG company (Penttinen and et.al., 2018). This factors affect both
positively and negatively so it is necessary for the leaders and mangers of the Bayers AG
Company to be aware of macro factors, so they can take competitive advantages.
Political
Political factors has huge impact on the Bayers AG because they are operating their
business in different companies some of the government does not allow their medicines to be
sold in their countries. On the other side they also get the huge support from the government to
sell products in large scale because their medicines and chemical products are properly tested.
Economical
Economic crises such as spread in the deceases among the people affect the companies
because demand of the product increase the pressure on the company. Bayers AG have support
from the government, so they get discount the Pharmacy product which is beneficial for the
Bayers AG Company.
Social
Bayers AG is adding the value in the society life by providing the health care treatment
and products. It helps them to overcome from the various decease. Products sell by Bayers AG
can also have side effect and it can lead various problems such as energy, fever and serious

issues like death. it is necessary for the Bayers AG to give limitedly distributors otherwise they
can misuse and create problems for the Bayers AG company.
Technological
Development in the Technological is also creating opportunities for the Bayers AG where
they can sell their Pharma products and Agriculture products online. This will help this company
to take competitive advantages (Kasemsap., 2016). On the other side there are many companies
who are selling fake prof duct on the online sides that can affect the image of Bayers AG
company within the market so it is necessary for the company to be aware their customers and
create some Symonds that can help customers to identify the real and fake products.
Environmental
It is necessary for the Bayers AG to give their support toward the environment because it
is one of the important issues. There are many medicines that are tested on the animals so it is
necessary for the Bayers AG to avoid drug testing on the animals to save environment. it will
also have positive impact if they will support to save animals and environment that they can able
to create good image in their customers mind.
Legal
Bayers AG Company has all the licence and permission to sell their product in the
various country.
P5 Discuss about the internal and external analysis of Bayers AG Company in order to identify
strengths and weaknesses.
External and internal environment factors affecting the overall business organization
before they are taking a suitable decision regarding growth or development of Bayer AG as
pharmaceutical enterprise. Basically internal as well as external analysis should be conducted
because of identifying the current situation or condition of enterprise. It is to be considered as
important aspect of planning.
By using internal analysis, it can be identified the strength and weakness of Bayer
company afterwards, it will be executing the plan to perform different actions accordingly. Bayer
AG Company will be performing the internal analysis that need to represent the organization
activities (Indris and Primiana, 2015). In order to identify the enterprise vision, mission and
strategic objective. It must ensure that all resources for carrying with working activities,
processes. Pharmaceutical company is always focused on the implementing all essential

resources such as plant, machinery, cultural aspects, intangible assets. This will help for Bayer
AG Company to fulfil all necessary demand.
By using external analysis, it is mainly focused on the current event and market trends of
pharmaceutical enterprise where it directly affecting the strategic decision of enterprise.
Strength
The strength of Bayer AG Company is to analysis internal components that are providing
the best quality of medicine facilities of consumers. The advantage of this company is reduced
the staff turnover, low operating overhead and high return of investment. Company will focus on
the world class laboratory and available all kind of equipment that providing the better testing
series. There are experienced staff members develop or produce best medication services.
Weakness
Bayer AG as pharmaceutical company is mainly focused on the price regulation. Over a
period of time, rules and regulation has been decreased the price ability. In this way, it will
automatic decrease the profitability in marketplace (Herold and Lee, 2019). Another weakness is
that when low barriers to entry, which makes increasing competition level in global marketplace.
Threat
There are certain kind of threat occurs within Pharmaceutical Company regarding the
patent regime of current enterprise structure. Sometimes, it might possible that government will
change the certain provision in term of patent act. Short-term threat of Pharma Company is to
develop uncertainty in term of implementation of VAT.
Opportunities
Opening up of health insurance services that will help for Bayer AG company is increasing
growth or business as per capital income. in order to achieve long term growth and development.
P6 Explain how strengths and weaknesses interrelate with external macro factors.
In above analysis, it has been identified the strength and weakness of Pharmaceutical
company which are related with both micro as well as macro environment factors. These are
supporting the entire business to compare with strength of enterprise with giving more privilege
in context of macro environment factors such as political, economic, social, and cultural and
technology (Adeleke and et.al., 2019). These are helping to formulate the Bayer Strategic as well
an operational policies. A sudden change in macro environment factors will be affecting the
decision of Bayer AG firm and important action taken by management.

Here, it can be identified the interrelationship between macro environment factors and
strength or weakness of Pharmaceutical Bayer AG company.
Economic Factor- this type of factor include change in the interest rate, inflation exchange
rate in the global marketplace. Pharmaceutical Company is looking to manage all kind of
financial viable and sufficient to fulfil all need or requirement of enterprise. Sometimes, it will
be changing the marketing strategy and directly affecting on the business processes.
Political and Legal Factor- these type of factor will include political as well as legal
aspects so that Bayer AG Company will follow all legal policies and procedures. It also changing
the policies and procedures on the basis of demand. Changes in legal policies affecting on the
company to face challenges regarding lack of expertise, mismanagement within operational
activities.
Social and Cultural- Bayer AG Company will face the challenging due to change the
cultural and social demand of people in marketplace. A company should be hired talented staff
members so that they can use all financial resources to handle complex situation. The strength of
Bayer AG firm is to identify the client preferences and taste as per demand.
Technological factor- The greatest strength of pharmaceutical company is to upgrade
their existing modern technology. This will help for adopting the changes which comes under
technological factors.
Environmental Factor- Bayer firm needs to adopt natural resource in term of product
development. It has to follow natural items that help to protect environment, follows
environmental law to reduce misuse of natural items.
CONCLUSION
As per the report has been explained types, size and scope of the different organizations.
It also has been demonstrated the various function within the workplace of Bayer AG and report
has been provided explanation that they are interlinked with each other. This report will conclude
Pestle analysis to identify factors that are affecting the companies operation and their strength
and weakness. In the end of this report has been determined that how micro factors are
interlinked with strength and weakness of Bayers Company. Pharmaceutical

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