Business Environment Analysis: Comparing Brake Bros and Greggs PLC

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This report provides a detailed analysis of the business environments of Brake Bros and Greggs PLC, two prominent UK-based companies. It begins with an introduction to the business environment, emphasizing its importance in understanding the relationship between businesses and external factors, and how it influences operational strategies and growth. The report is divided into two parts. Part 1 covers the organizational functions, objectives, and structures of both companies, highlighting the differences and complexities inherent in their operations. Part 2 delves into the macro environment, examining its positive and negative impacts through sections on internal and external analysis, core strengths and weaknesses, and the application of PESTLE and SWOT analyses. The analysis explores how the companies' structures and market positions affect their responses to external factors, including political, economic, and technological influences. The report concludes with a reflective statement and references, providing a comprehensive overview of the business environments and strategic considerations for both companies.
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Business And Business
Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................4
A) Covered in PPT......................................................................................................................4
B) Link between organisational functions, objectives and structure (P3, M2)...........................9
P3.................................................................................................................................................9
M2.............................................................................................................................................10
C) Difference and complexities in both the businesses............................................................10
PART 2 .........................................................................................................................................12
A) Section 1 Positive and negative impacts of the macro environment...................................12
Section 2 Internal and external analysis to identify its core strengths and weaknesses............13
Section 3 Strengths and weaknesses are linked to the external macro factors.........................14
Section 4 PESTLE Analysis and SWOT..................................................................................15
B) Reflective statement ............................................................................................................17
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20
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INTRODUCTION
Business environment considers the relationship between the businesses and the external
factors. It helps in examining the external factors which having a impact on the businesses and
responses which may take. It is the fundamental sense which helps in doing the appropriate
operations in the today's trend of the business and it is necessary which helps in doing the
establishments to make the primary scrutinisation which helps in formulating the operational
strategies (Raza and Hanif, 2013). Business environment helps in determining the growth along
with the development of the business entity. Further, it includes legal, political, technology
factors and company have to use these factors which helps in attaining the goals and objectives
and by that they can attain the maximum revenue. The aim of every business in the economy is
to increase the profits along with this it is operated in the environment. Business environment
helps in understanding the sustainability challenges which assist in across a company's complete
a supply chain. Along with this they are having the innovation as well as sustainability. This
assignment is focused on Brake Bros which is the private company in UK and supply food,
drink and other products which is related to catering business. Greggs PLC is the public business
entity in UK and this company provide the sandwiches, pastries etc. to the consumers. This
report is focused on the structure, size, purposes along with the scope of the corporation (Jung,
Kim and An, 2011). Moreover, strength and weakness are also identified of both the companies.
Further, prime assessment of the existent factors of the business together which makes a
appropriate contribution in the expansion programs of the companies.
PART 1
A) Covered in PPT
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B) Link between organisational functions, objectives and structure (P3, M2)
P3
Company have to provide the best and qualitative products to the consumers by using the
different functions which helps in attaining the targets.
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Carrying out CSR activities- It helps in defending the environment by using the reusable bags.
Along with this they have to maintain the sustainable tact which they are serving to the clients
(Boons and Lüdeke-Freund, 2013). It helps in achieving the objectives of the Brake Bros.
An optimistic environment of their stores- It assist in building the positive surrounding so that
they can do best work and by that consumers will purchase more products and company improve
the sales. For encouraging the employees Brake Bros have to provide the positive work
environment which helps in attaining the targets (Chesbrough, Vanhaverbeke and West, 2014) .
Preserving cash reserves- This function is used by the business entity to make the optimum use
of funds along with the resources for making the product according to the needs of consumers
(Milner and Tingley, 2011). To build the proper fiscal records to handle the cash balance by
together which helps in managing the business operations.
Undertaking proper measures of health and safety- The staff members of Brake Bros have to
use the proper functions that postulates them which involve the measures of proper security at
their stores and workplace. They have to use the another defensive tact which includes the exit
gates to help the individual person at any serious situation (Kuratko, Hornsby and Covin, 2014).
Delivering quality services to the users- It is having a fundamental sense of enhancing the
measures so that they can do the proper serving of the services to the consumers so that they can
raise the level of sales as well as profitability in the market (Pizam, 2010). The staff members of
Brake Bros have to provide the better services to the consumers which helps in enhancing the
satisfaction level to the consumers.
M2
This section contain the functions of Brake Bros which is directly related to their goals
and objectives. The company members have to adopt the proper structure which having the
evident to aid them in a due completion in attaining the business objectives. The staff members
have to do the proper analysis of the business environment which helps in underlying the factual
requisition of the market. They are having the substantial need of rising the undertaken functions
which helps in enhancing the profitability index of the business (Bryman and Bell, 2015). The
administrative bodies of the business entity have to do the proper operations as well as functions
which assist in maintaining and recording the data which support the business entity for the
future. Sustainable approach helps in maintaining the integrative relationship with the consumers
which aid in improving the efficiency of the workers by which entity can do together work which
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assist in overcoming with the problematic concern of the environmental degradation so that they
can improve the performance in the competitive market (Crane and Matten, 2016).
Brake Bros having the high distribution market in the world which helps in doing the
operation for the public sector organisation. The staff members having the wide range of the
stakeholders with the proper accountability which assist in fulfilling the needs and wants of the
consumers. In enhancing the brand image in the competitive market they attain some benefits but
sometime they are having the limitation that are involved with the interconnectivity of the
business operations. The advantage of this strategy is to support Brake Bros so that they can
attain the leading position by gaining the large number of shares (Miller, Yablonovitch and
Kurtz, 2012). Disadvantage is that they are having the factors which are interrelated with the
establishment so that they can conduct with the various activities which assist in increasing the
expenditure.
C) Difference and complexities in both the businesses
Both the business entity whether it is Brake Bros or Greggs PLC having their own
organizational structure which assist in attaining the goals and objectives. Brake Bros is using
the divisional structure because it serves their merchandise to its consumers in the whole world
(Grimpe and Kaiser, 2010). The firm having the different outlets in the different countries in the
economy which is important and they can manage all food chains which helps in improving the
productivity as well as proficiency. Greggs PLC having the functional structure because they
serves their products in the whole country so this structure is perfect for the company. The
industry which is related to food having so many departments like marketing, human resources,
finance, sales and so on. So, according to their functional units the company members have to
manage their business outlets in the same countries. Brake Bros provide the merchandise like
bakery products, French fries etc. and Greggs PLC provides the products such as sandwiches,
baked goods and pastries (Wang, Wang and Yang, 2010).
In both the two business they are facing so many complexities in regards to the structure
of the organisation. Brake Bros is having the business in the whole world so the structure of the
business entity is huge and big and for the company it is difficult to maintain. Greggs PLC have
to maintain the structure which they are using within its own departments whether it is finance,
sales or marketing and that is not easy for the firms to maintain the structure which creates the
difficulty (Business and the environment. 2017). If the corporation have to open the new outlets
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in the market of another country then the members of the business entity have to deal with the
culture and it is difficult for the company to identify the demand of the consumers. When Brake
Bros open another outlet in the different country then they have to provide the new product so
that consumers easily attain that which helps in attaining the targets. Greggs PLC have to provide
the product according to the needs and wants along with the demand of the consumer which
affect the sales department of the business unit and by that company members can not attain the
maximum profits (Demil and Lecocq, 2010).
Further, in the company all the functions of the organisation are interrelated with each
other. Some functions in both the companies are same like marketing, finance, human resource
and the sales. If the department of human resources does not doing the better performance then
for that whole business entity have to suffer and it affect the firms productivity as well as growth.
The main role of this department is to satisfy the employees of the business units and when this
department does not perform well then they will not satisfy. Likewise if marketing department of
the business units did not conduct the market research then by this sales will not increase and by
that company can not suffer in the profits (Barnett and Salomon, 2012). Finance department is
the main and essential unit of Brake Bros and Greggs PLC. In this if accountant of the company
does not perform well then the firm have to suffer in their capital and profits (Yeoh and
Koronios, 2010). So, the departments in both the business entities have to perform best in their
own functions so that they can attain the maximum profits and also helps in expanding the
growth.
PART 2
A) Section 1 Positive and negative impacts of the macro environment
In the market, every business entity having different type of structure along with the
different type of ownership. Further, the company members have to follow the different culture
which assist in attaining the targets and the objectives. The manager and higher authority of
Brake Bros have to provide the positive business environment which helps in doing the
qualitative work and also in the proper manner (Borio, Drehmann and Tsatsaronis, 2014) .
Business environment is the combination of the two factors whether it is internal or external and
these factors having the impact whether it is positive or negative. It assist in reflecting the
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positive and negative aspects which are having the impact on the different factors of macro
environment in Brake Bros.
Elements Positive Impact Negative Impact
Political factors This factor having the impact
on the margins of profit of the
business entity and for that
impact they have to make the
policies so that they can attain
the targets (Sainsbury and
Benton, 2011). The regulatory
bodies of UK have to provide
the proper subsidies which
help Brake Bros in expanding
the growth in the market. They
have to use the appropriate
policies which includes that
the policies which is related to
tax along with the trade so that
they can do the improvements.
This factor having the negative
impact also on the business
organisation. It implies that
they are having the restrictions
on the entity and for that they
have to make the strategies
according to the situation.
Economical factors Economic factor having the
positive affect on the business.
This factor having the impact
on the different nations in the
economy. Along with this it
includes the domestic market,
inflation rate along with the
employment rate. Further, they
have to make the appropriate
plans and strategies so that
they can attain the success.
Negative impact of this factor
in the business entity is that
they have to make the
adjustments for the different
factors on the different
conditions (Molly, Laveren
and Deloof, 2010).
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Technological factors Brake Bros have to use the
new and advance technology
so that they can make the
products according to the
requirements of the consumers
(Auzair, 2011). New
technology has driven the cost
of data processing which will
increase the large volume of
data.
Negative impact of this is that
the staff members of the
business entity not using the
proper and new technology
that's why they can not obtain
the success.
Environmental factors The managers and higher
authorities of Brake Bros have
to provide the proper working
environment so that they can
provide the best products as
well as services to the
consumers.
This will create a impact on
the health of the consumers
and by that they can not do the
work properly (Ahmed, Aamir
and Ijaz, 2011).
Section 2 Internal and external analysis to identify its core strengths and weaknesses
The staff members of Brake Bros have to do the proper analysis by using the SWOT
model. They have to analyse the both internals as well as external environment which helps in
improving the performance of the business entity in the marketplace. This assist in analysing the
strength and weakness of Brake Bros and the external analysis which includes the opportunities
and threats so that they can do the appropriate improvements as well as developments and by that
they can attain the goals and objectives (Macro environmental forces, 2017). The manager of
the business entity have to do the proper analysis so that the employees can do the qualitative
work which helps in attaining the targets and by that they can obtain the success in the
competitive market. The company members have to use the proper policies so that workers can
not face any problem and do the qualitative work. They can use the different elements which
helps in doing the research to make the best product which is based on the demand of consumers.
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