Business Environment Analysis Report: Ensoft Ltd. Operations

This report provides a comprehensive analysis of the business environment of Ensoft Ltd. It begins with an introduction to the concept of the business environment and its impact on organizations. The report then delves into the correlation between different organizational functions, such as production and operations, human resource management, sales and marketing, research and development, and accounts and finance, highlighting their interdependence and contribution to achieving organizational objectives. The report further employs a PESTEL analysis to examine the macro-environmental factors (political, economic, social, technological, environmental, and legal) affecting Ensoft Ltd. It also includes a SWOT analysis to assess the company's internal strengths and weaknesses and external opportunities and threats, emphasizing their impact on decision-making processes. The analysis explores the interlinked nature of weaknesses and strengths within external factors. The report concludes by summarizing the key findings and insights gained from the analysis, providing a holistic view of Ensoft Ltd.'s business environment and strategic considerations.

Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
Covered in ppt........................................................................................................................1
TASK2.............................................................................................................................................1
P3. Correlation among different organisation function and objectives..................................1
TASK4.............................................................................................................................................3
P4 ...........................................................................................................................................3
TASK4.............................................................................................................................................5
P5 SWOT analysis of an organisation and its impact on decision making process...............5
P6 Interlinked weakness and strength within external factors...............................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business is the process of exchange of goods or services. This exchange process is
known as business environment which affects the functioning of the business. Sometimes it
supports the business and sometime it creates difficulties for the organisation. There are many
factors in the environment which affect the business. Some factors are controllable and some
factors are uncontrollable. This project is based on Ensoft Ltd., which is a private sector
organisation which has multiple departments? The project would also cover the techniques which
are helpful in balancing the external and internal factors (Al-Swidi and Al-Hosam, 2012). Apart
from this the project is also helpful in understanding the concept of internal strength, weakness
and external opportunity & weakness. It also described in this project that how nature of business
creates a distinct structure for the firm. Why coordination is required among different department
in the organisation. These all topics are covered in this project.
TASK1
Covered in ppt
TASK2
P3. Correlation among different organisation function and objectives
There are various functions in the organisation who contribute in the smooth running of
the operation of organisation as well as achievement of the overall growth of the organisation.
These functions are not independent in nature and hence affect each other in the process of
achieving objectives. These function needs to work in the coordination as the function are
dependent and somewhere they overlap each other. These functions are Production and
operation, Human resources management, sales and marketing, research and development,
accounts and finance.
Relationship among these functions: Production and operation department is
responsible to produce quality goods at right time. So that the demand for the product could me
meet on time. The organisation exists to meet the demand for the product (Bryman and Bell,
2015). To produce these goods and to deliver it to consumer there is need of coordination among
various departments. The production department does not work independent. It receives the data
from the sale and marketing department. Sales and marketing department with their efforts
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receives market feedback. Marketing department boots the demand for the product and receives
feedback from customer. Sales department sale the product and estimates the demand for the
product in near future. Sales and marketing department give the estimates to the production
department. With this data production department make an estimates of expenditure incurred in
products of product. This estimate is given to finance department for the approval of the budget.
Finance department as per the financial condition approves the budget. Sales and marketing
department also work with the finance department. As to create a brand/ product awareness and
boots sales the marketing department need funds to run programs and campaigning. Production
and operation department also work with the human resource department as they intimate the HR
department about the skill set required to produce quality goods.
Sales and marketing department also intimate HR department about the skills set required
in new hiring to face the contemporary issues of the industries. HR department work with
finance department as the finance department allocate the budget for the hiring and
remuneration. To conduct training, seminar and other motivational activities HR department gets
the approval from the HR department. Research development work with finance, sales and
marketing and operation department (Christopher and Holweg, 2011). Marketing team receives
the feedback from customer about the product. These feedbacks are sometimes complementary
and some are with suggestion and complaint. These suggestions and complaints are forwarded to
research and development department for the improvement in the current product. To facilitate
this improvement research and development department get funds from finance department as
improvement in the product is a time consuming process. Production and operation department
also suggests improvement to the research and development department. All these activities
need to be coordinated as the each and every functional area is dependent on the other functional
department. Some functional department like sales and marketing department overlap each other.
Contribution of this relationship in the objective of the organisation: No functional
department can run independent. Each department know the organisation objectives and try to
give it best. The coordination among these functional departments creates a synergy in the
organisation. This synergy helps to create more output from less input. The processes become
smooth and efficient and a department understands and respect the responsibilities and
boundaries of each other (Cross, and Miller, 2011). By this conflict are minimized hence
employees are more focused in the work. It creates a healthy and motivational work
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environment. This saves the organisation resources and contributes in the productivity and profit
of the firms.
TASK4
P4
In an organisation various kind of factor may affect operations activities with in work
place. So that, management of the company has develop strategies, plan in order to achieve goals
and objective in limited period of time. There are two kind of business environmental internal as
well as external which affect enterprises performance in long period of time. It consist some
factors like political, technology, economical, legal, government etc. these all are macro element
of environment (Dibrell, Craig and Hansen, 2011). Administration of firm has manage all these
component to operate all business activities in appropriate manner. Ensoft ltd has various brand,
so that they are offer several product in order to gain high market position in same industry. They
make their system function to achieve success and growth in long period of time. For analyse
impact of macro environment on organisation, PESTEL analysis strategies are used, that are
explain as follows:
Political Factors: This components specifies which executive needs for making a
policies as per their countries which organise operations. By acknowledging rules as well as
regulations of government for trade, taxation and many others laws. Ensoft ltd is having their
enterprise all over the world. So, management need to make their systems work as per their
bodies of regulatory. Firms help in increasing operations because having a positive influence on
these factors. Most of the countries, components of political are stable. Authorities remove all
trade restrictions for stimulating export as well as import. As organisation face various
challenges as manager have to make modifications in their systems as per legislations bodies of
regulatory which gave negative influence on them. It gave influence in changing the demand of
buyers as they provide different options (Gharajedaghi, 2011).
Economical factors: This components includes exchange rate, inflation and interest
which impact on its operations as well as companies. Ensoft ltd enterprise depends upon
economic situations prevailing within the whole world. Organisation determine their profits by
availability of income of the persons. Country development are having higher economic as well
as growth stability as it gave a positive influence for company as well as aid in getting proper
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revenues and sales for enterprise. At a same time this factors are negative a a wages of labour are
raising, so managers have to set cost accordingly. This will influence upon business sales
because of income availability of persons.
Social Factors: This elements involve culture, lifestyle, education and populations which
executive involves services along with its products to persons. In this, survey of market is an
methods used to analyse trends as well as their demands of consumers. Ensoft ltd organisation
give refreshment, food and personal care for their bases of consumers (Kolk, 2016). As know a
days peoples are very health conscious which is positive for enterprise. But, negative point is that
they need to use different devices of promotional to sustain their share and reputation within a
place of market.
Technological factors: In current business environment technology has rapidly change so
that firm want to used latest technology to achieve competitive benefits as compare to their
competitors at market. Through this, company has capable gain higher profitability as well as
position. Ensoft ltd is a provide higher quality technology to their clients to enhance satisfaction
in long period of time effectively. Management of the company has develop strategies to
implementing innovative process of work at working place which help to develop new ideas of
completing task in an effective manner. It has provide positive impact on firm performance as
well as productivity in long period of time.
Environmental factors: Various kind of factor many affect nature like and all are used
by several organisation. It create pollution in environment, in resulted natural place are reduce
their benefits and human face different kind of health issues. Government of United kingdom has
make rule and regulation to protect environment and each one of organisation want to follow
these policies to operate business activities in an appropriate ways. It is a management
responsibilities to manage all recycling as well as wast appropriately, so that they contribute their
effort in development of society as well as whole nation. Ensoft ltd is produce software so they
have digital wast but the company can not effectively disposed wast thus create negative impact
firm market image (Li and et. al., 2011). So that, they want to focus on this point in order to run
their whole business activities effectively.
Legal factors: Government of United Kingdom has make law related to operating
business task as well as save right of employees at work place. Some important legislations are
discrimination act, maternity leave, equal wages rights, working hour and many more. All these
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law are implementing by management of organisation that help to motivate employees and
enhance its performance. Ensoft ltd has follow all legislations at work place improve
productivity of workers in long period of time. Thus affect operation task with in firm positively
as well as negatively.
TASK4
P5 SWOT analysis of an organisation and its impact on decision making process
There are several internal and external factor which are affect organisation performance
as well as productivity positively and negatively at market place. Some important element of
environmental factor are employees, suppliers, technology, economy, political, social cultural,
legal and many more. It is a management responsibilities to analyse the negative points of these
components in order to run their business activities in an effective ways. Through this,
enterprises are capable to achieve their aim, objectives, goals, mission in limited period of time
in appropriate manner (López-Gamero, Molina-Azorín and Claver-Cortés, 2011). Manager of
Ensoft ltd has develop strategies to gain high market share as compare to their competitors in
same industry. For this, they want to know own strength and weakness to run enterprise
effectively. In order to know firm internal or external opportunities to threat SWTO analyse
method has used that is detail below:
Strength: Marketing manager of the company has identify clients needs and want
accordingly they produce goods that are able to full fill customer's demand. Through this kind of
market research firm has build some core competences which help to achieve competitive benefit
in industry. So that, manager of Ensoft ltd has make strategies to develop strength in order to
achieve goals effectively. They are some capability like high customer's satisfaction, low
employee turnover, quality software, positive brand image in consumer mind and many more.
Weaknesses: It is create negative impact on firm performance, so that, it is management
responsibility to know their weaknesses and develop plan to overcome these affect on the
company. Ensoft ltd has some weakness like low market share, less advertisement and
promotional activities (Meiners, Ringleb and Edwards, 2014).
Opportunities: With time, persons preferences as well as taste are dynamically changing
so making of Ensoft Ltd needs to innovate as well as make alternative goods by which they can
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able to provide offerings. As, organisation is running globally so they are able to increase their
base of consumers by giving healthy items to persons.
Threats: Ensoft Ltd need to provide quality products to consumers by which managers
are able to retain their customers for a long period of time. As Ensoft Ltd, are having various
competitor which are giving similar goods. So it is 8important to execute the functions of
systems as well as set the competitive cost of their products.
P6 Interlinked weakness and strength within external factors
In companies, managers need that functions of systems properly by which they can
provide services and products according to the needs of persons. By organising the survey of
market to acknowledge consumers demand as well as also get information about rivals offerings.
In this case of Ensoft Ltd, management need to evaluate components which are presented
external to companies. Hence, ascertain advantages and disadvantages of system by which they
can deal with external surroundings factors. So management acknowledge merits and demerits of
system as well as organise analysis of PEST. Thus, correlating for computing the operations of
organisation take place according to market situations (Onetti, Zucchella, Jones, and
McDougall-Covin, 2012). Their are some of factors which are explained below in detail are as
follows:
 Political factors: It is important that the system of companies functions as per
government taxation policies as well as trade. Managers should make different
alternatives in techniques as well as tactics as per regulatory bodies of nation in
which enterprise is being executed. This advantages Ensoft Ltd to compete with
competitors organisations as they are able to increase the share of market by
carrying out functions according to laws. If companies will not work according to
laws of government then it will damage companies image within a marketplace
will get affected.
 Economical factors: This components is important as organisation functionally
depends on exchange rates, inflation and interest of country in which enterprise
functions are being organised. As mangers of Ensoft Ltd will aid in increasing
profits and sales. If consumers have enough income by which they can buy
according to their wants and needs. This factors aid in executing to enhance
operations by having loans from the institutions of financial. But because of
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having a fluctuation situstion in exchanging rates have influence in companies
techniques as they affect system functionality.
 Social factors: Companies needs which can provide services and goods according
to people needs. as Ensoft Ltd organisation give food, personal care, home care
and refreshment products to consumers. So, it is important that mangers are using
a tools of promotional to advertise offering informations. This aid company to
attract customers as well as retain them for a longer time period. As they are
giving quality products (Palo and Tähtinen, 2011). Management needs to make
offerings improvements so that they can able to accomplished with others brands.
As if organisations will not add innovative or favours things in their products.
This will influence on revenue and sales of enterprise.
 Technological factors: Management need to utilized proper techniques and tools
within their systems by which they can provide accurate offerings to employees.
They even require to take care about poses of workers skills by which they can
work properly. If companies are providing latest technologies then this
advantages executive to use resources effectively as well as give offerings quality
to their consumers. As in Ensoft Ltd, management have system by which they
keep proper records of suppliers. They will assist organisation to provide products
globally as well as take care at proper time of delivering take place. But if
companies do not make techniques improvements then it will influence on sales
as well as will low the image of brand within a place of market.
Therefore, it has been concluded that external macro environment factors like as
technological, economic, economical and political are considered by executing their designing
systems. They need that organisation work as per market situations and government laws. For
this survey of market is orgtanised to enquire about the demand of customers as well as
competitors offerings. Hence, applying latest techniques and tools so that functions of workers
can be accomplished properly. So this assist companies to enhance resources properly as well as
provide proper goods of persons (Pham, Segers and Gijselaers, 2013). This aid organisation to
attract customers and retain their workers for a long time so that accurate profits are generated by
managers.
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CONCLUSION
Above assignment has been concluded that markets are of various kinds as well as
organisation size which involve diverse purposes and scope. Voluntary, public and private are
different forms of companies which are vary with one others in terms of functionality and
operations. Executive making of objectives as well as goals, thereby taking care of resources are
used properly. Therefore, they need to conduct members in different departments like as human
resources, production, finance as well as marketing. Therefore, management need to organise
internal and external analysis to acknowledge their influence on the operations of enterprise. By
analysing SWOT managers get information about advantages and disadvantages of companies.
Threats and opportunities present within a place of market. In this PESTEL analysis which
involve legal, environmental, political, technological, social and economical factors. Which are
executed needs to consider while organising operations of business. By correlating environments
components with its advantages and disadvantages. Therefore, making of policies as well as
techniques so that system activities properly. Thus, it aid in retain customers for long period of
time by providing goods and services. This advantages to company for generating proper profits
as well as goals and targets accomplished on a limited period of time.
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