Business Environment Analysis: Iceland Food Ltd. Report (BUS101)

This report provides a detailed analysis of the business environment surrounding Iceland Food Ltd., a supermarket chain specializing in frozen foods. The report begins with an introduction to the concept of the business environment, differentiating between internal and external factors and their impact on organizational operations. It then delves into the specific functions within Iceland Food Ltd., such as finance, human resources, research and development, operations, and marketing, detailing their roles and contributions to the company's objectives. The report also examines the positive and negative impacts of the macro environment, including political, economic, social, technological, legal, and environmental factors, on Iceland Food Ltd.'s operations. Furthermore, it conducts an internal and external analysis, employing a SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats, ultimately providing a comprehensive overview of the company's strategic position and challenges within its competitive landscape.

BUSINESS AND THE
BUSINESS ENVIRONMENT

Table of contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Covered in PPT.......................................................................................................................3
P2 Covered in PPT.......................................................................................................................3
TASK 2.......................................................................................................................................................5
P4 Positive and negative impact of macro environment..............................................................5
P5 Internal and external analysis of organization........................................................................7
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9
INTRODUCTION

Business environment can involve several factors which impacts on working conditions
of an organization. It has two sections such as internal and external having their different
elements that affects operational activities of an enterprise. These are customers, competitors,
suppliers, owners, technology, market, social and economic trends. It is important for each and
every organization to take care of various kinds of elements relevant to business environment. It
impacts on organizational operations in both positive as well as negative manner. It is flexible in
nature as that it may change or modified as per requirements due to legal norms and market
trends. This report is based on Iceland Food Ltd. which is known as super market chain and
provides frozen food including prepared meals or vegetables. This assignment will discuss about
different types of organization such as private, public and voluntary along with their legal
structures. Size and scope of various companies and relation of organization function to goals
and objectives will also described. Different types of internal and external factors to determine
strengths and weaknesses of company are given below.
TASK 1
P1 Covered in PPT
P2 Covered in PPT
P3 Relation between organizational functions and their link with goals and objectives
There are various kinds of functions which are carrying out by each and very
organizations to complete their desired targets or objectives. It is essential for companies to make
effective as well as efficient strategies or policies to conduct several tasks to generate better
outputs. Changing trends of market facilitates rapid increase in competition of because many
different firms are established in current scenario. Due to facing certain modification in present
situation, it is necessary to implement several changes into organizational context to compete
with several competitive enterprises and make a strong brand image in front of customers. This
may results to attract new clients along with retaining the current ones to enhance productivity as
well as profitability. There are different departments such as human resource; marketing, finance
and many more which are established by Iceland to conduct essential activities and procedures to
create desirable outcomes. Some of function relevant too these sections are described below.

Department of finance: - The term finance simply means of money and funds which are an
essential asset for each and every company to carrying out its operational activities and events. It
is mandatory for business concern to implement a suitable and desired capital amount into their
enterprise to fulfill expected targets of benefits in particular period of time. It basically includes
debits, credits, bank loans, angel investors from which owners can create compulsory amount of
capital to invest in business. Iceland has to make records of all kinds of financial statements for
future purpose to make correct decisions. They have to appoint an experienced and we’ll
qualified manager who is capable to prepare appropriate budgets of separately of different
sections of company along with master budget properly.
Department of human resource: - Human resources department is important to manage work
force of an organization in such a manner so that work can be done properly. It is important to
allocate various tasks and projects too staff members as per their field of expertise. This will
facilitate them to perform more effectively as well as efficiently to generate better outputs. This
may possible due to the fact they have appropriate knowledge specific specialization. It may
reduce stress of employee which reflects into daily outcomes of an individual worker. Iceland
provides better learning and training programs to employees to develop their skills as well as
capabilities so that they can render proper service to their clients. These developments are
essential in organization and facilitate to boost up growth of professional and personal career.
Department of research and development: - This section of company deals with carrying out
mandatory surveys and search about various types of needs, wants and demands of customers to
make innovative or creative changes in to their products or services. It is necessary to render best
quality product to gain satisfaction of people which results in increasing number of customers.
Iceland also required ensuring about changing preferences and desires of people to apply
necessary unique features into services provided to citizens by them.
Department of operations and marketing: - Manufacturing of products and services are
important in appropriate manner to sell them at desired price. Company has to implement several
compulsory changes in strategies to prepare better design of production and operations to
enhance regular productivity as well as profitability. After this, marketing department required
conducting several promotional events to improve number of sales and profits. Iceland has to
introduce various innovative recipes to provide more satisfactory good to people. They prefer to

conduct certain attractive campaigns and advertisement to render proper information brand and
relevant products along with improving benefits for company.
TASK 2
P4 Positive and negative impact of macro environment
There are different kind of kind of elements which affects the operational activities as well as
procedures of an organisation. The factors of relevant to business environment impacts directly
or indirectly on projects and tasks of an enterprise. Macro environmental components are
considered as external factors of business environment. Iceland have to analyse and evaluate
these constituents so that they can reduce negative impacts and enhance benefits by grabbing
opportunities at correct time. Some of them are given below:
Political factors:- There are number of various factors that are created by the
government and has to be adopted by the business organisation so that final vision and mission in
set time period. It include import, export laws, taxation rules and regulations that have to be
implemented into the system so that all work process could be completed in effective and
efficient manner. Iceland Food Limited have to evaluate such elements and then take decision
accordingly. Its positive and negative impacts are described below:
 Positive impact:- If the company would comply all the norms and rules in accordance to
set procedure than it will result in carrying out the overall work process in adequate way.
It become easy for Iceland Food Limited to perform all transactions and agreements in
order to expand their existing business in international market.
 Negative impact:- Non- compliance of these set rules will pose negative impact for the
company. For instance, If British Government formed various rules and guidelines that
have to be comply by them in proper and accurate manner. It has direct impact on sale
volume, market share.
Economic factors:- This element consists of number of factors that include poverty,
inflation and deflation rates, unemployment ratio present in particular nation. Iceland Food
Limited have to consider all these constituents in making economic decisions.

 Positive impact:- UK government, have influential power and have created effective
market condition so that company can easily able to establish their business.
 Negative impact:- During, 2008 UK have faced recession period, this impact the overall
exchange rates. Thus, Iceland Food Limited have to bear all these modifications and
alterations.
Social factors:- It involve all factors that impact the people of society in terms of their
living, customs, beliefs and norms that are framed for them.
 Positive impact:- The major positive impact of this factor is that Iceland Food Limited
have to draft all their activities that will contribute n fulfilling social duties and benefits.
 Negative impact:- There are number of factors that can hinder the food business in UK.
Thus, Iceland Food limited have to drat steps in order to minimize the performance of
business.
Technological factors:-There are number of tools and techniques that has to be adopted by the
company in order to introduce new and innovative methods.
 Positive impact:- In order to introduce modern and innovative ways in working process
so that technological advancement would lead to working in adequate way.
 Negative impact:- It is not possible for Iceland Food Limited, to implement all the
modern technological factor into their company system.
Legal factors:-
 Positive impact:- There are certain rules and regulations that are formulated by
government and has to be realized by the company.
 Negative impact:- Non- compliance of these legal rules will cause negative impact on
their transactions and operations.
Environmental factors:-
 Positive impact:- Company have to conduct all their work transactions by adopting
environmental protection techniques.
 Negative impact:- If company does not fulfil their environmental regulations, they could
not lead to achievement of set goal and objectives in particular time period.

P5 Internal and external analysis of organization
There are various kinds of factors which are necessary which are included into internal
and external environment of an organization. This can be done through carrying out SWOT
analysis of the company. It consist several components such as strengths, weaknesses,
opportunities and threats. Determining strong points of a company are essential because they can
utilize them in effective manner to generate better outcomes. Weaknesses must be identifies to
put appropriate efforts to overcome with it. Opportunities are important to analyze so that
Iceland can grab them at correct time for improving their productivity as well as profitability.
Threats should be reduce necessarily because they can results into small or large loss for an
enterprise. SWOT analysis is to make accurate mission and vision of organization for better
future productivity.
SWOT analysis of Iceland food ltd is described below:
Strengths: - There are various kinds of strengths bear by organizations as per their effectiveness
of techniques and methods used by them for carrying out their desired activities. Every firm has
some of strong points through which they can improve their performance and profitability of the
company. Iceland Food Ltd has several efficient strong factors such as existing distribution and
sales networks through which they are become capable to supply bulk of products in accurate
way as per demand of customers. This firm has an effective as well as efficient techniques to
provide their good or services to desired clients for attaining better profits for organization in
order to enhance productivity.
Weaknesses: - There are different types of weaknesses of every organization according to their
negative or weak points regarding tools and techniques they are using. It is important observe
and analyses these weaknesses on regular basis so that it becomes easy to put appropriate actions
to overcome from them. These will results into supportive aspects through which company can
easily cope up with negative belongings. Iceland Food Ltd is facing possibility of high loan rates
which is a strong barrier in the way of expanding business to improve brand image as well as
profitability. It is important to sort out several issues and problems within company that also
impacts on productivity in negative manner.

Opportunities: - In current scenario, there are various changes and modifications are
observed in trends according to which organizations have to adopt them. It is necessary for
companies to follow fashion of market by preparing different types of strategies or policies.
These modified techniques are helpful to carrying out desired manufacturing procedures more
effectively as well as efficiently. Unique and innovative pricing methods or special offers can
attract fresh customers along with retaining the current ones. Iceland may apply several creative
techniques into their products or services to gain more sales and profits.
Threats: - Rapid increase in competitors can be considered as major threat for
organizations in present scenario of flexible trends of market. People want themselves up to date
as per current fashion so that their needs and demands also become changed after particular
period of time. Besides of this various external factors impacts on organizational operations and
production. Iceland Food Ltd has to determine and evaluate effects of various elements that may
affect company directly as well as indirectly. Rising cost of raw material is and rapidly growing
competition is crucial threat for Iceland Food Ltd due to launch of many different small, medium
and large enterprises in market
CONCLUSION
Business environment can involve several factors which impacts on working conditions of an
organization. There are various kinds of functions which are carrying out by each and very
organizations to complete their desired targets or objectives. The factors of relevant to business
environment impacts directly or indirectly on projects and tasks of an enterprise. SWOT analysis
is to make accurate mission and vision of organization for better future productivity.
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