Business and Business Environment Analysis Report - [Course Name]

This report offers a comprehensive analysis of the business environment, focusing on John Lewis & Partners. It begins by differentiating between public, private, and voluntary sector organizations, providing examples like the BBC (public), John Lewis (private), and the Red Cross (voluntary). The report then delves into the specifics of John Lewis, covering its background, products, services, legal structure, and business functions, including marketing, production, human resources, finance, accounting, and purchasing. The report explores the positive and negative impacts of the macro environment on business operations, utilizing a PESTEL analysis to examine political and economic factors. Furthermore, it assesses the internal and external strengths and weaknesses of John Lewis, providing a holistic view of the company's position in the market and the factors influencing its performance.

Business and Business
Environment

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1 Types of organization.............................................................................................................3
P2 Explanation of British Broadcasting Corporation (Public organization), John Lewis
(Private organization) and Red Cross (Social organization)......................................................4
P3 Business functions of John Lewis & Partners........................................................................6
P4 The positive and negative impacts the macro environment has upon business operations....7
P5 Internal and external analysis of strengths and weaknesses of John Lewis & Partners.........9
P6.Internal Factors affecting company......................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment includes all the internal and external factors. Internal and external
elements such as customer’s needs or requirements, employees and consumer's expectations.,
management, supply or demand, innovation in technology, suppliers, clients, government
actions, social trends and economic changes. This report will include the various types of
business organization such as public, private and voluntary sector. This report will also highlight
the British Broadcasting Corporation (BBC) organization (Public company), John Lewis
(private organization) and Red Cross (Voluntary sector) in the UK. Report also include the
background details, size and scope, vision and mission, products and services and legal structure
of John Lewis. This report will highlight the many business functions of John Lewis and its
interrelate connections and also their advantages or disadvantages on the structure of the
organization. The positive and negative impacts of macro environment on business's operations.
This report will also include the strength and weaknesses of John Lewis in the marketplace.
MAIN BODY
P1 Types of organization
There are different types of organization situated in the global world such as public, private and
voluntary sector. Public organisation is wholly operated and owned by the government.
The Public Sector will includes that organizations which are totally closely-held and run by the
government. Their major aim is to provide services to its citizens. Public organizations do not
want to generate profit. Public organisations are raised their funding from government fees, taxes
and many financial transfers. In various countries different funding method for a public
organisation. Examples of Public sectors includes educations, emergency services, gas and oil,
electricity, healthcare, fire service, infrastructure, police service, social services, postal services
and waste management service. Their major objective is to provide great services rather than to
generate profit (Prajogo, 2016).
Private organisation means partnership, association, agency and corporation which is not
public organisation. Their major aim is to generate profit in the business. Private organization's
ownership is held by non-governmental company or by company’s small members or
shareholders. There are most famous private organisations in the world are Facebook, candy
maker Mars, Ikea agriculture giant Cargill etc. Private sectors includes various organisation such
as small and medium business, partnership and sole proprietors.

Voluntary sector organization are known as non-profit sector, community sector or non-
governmental non-profit company. Voluntary organization have a duty of social services,
education, environment and takes necessary actions to meet society needs. Non-profit
organization focused on society health and their well-being (Kolk, 2016). In the UK British
Broadcasting Corporation (BBC) organization working as Public organisation, John Lewis
working as private organization and Red Cross as voluntary organization. Voluntary sector also
called as social sector or civic sector.
British Broadcasting corporation have various purpose such as to provides fast ad
impartial information and news to the public for help them to understand. They also want to help
the public engage with the entire world. BBC also want to support all ages of people according to
their requirements in education, religion, and social news. The main aim of BBC is to offer most
creative, distinctive and high quality of services and output. They also want to serve and
represent diverse communities of all the UK's region and nation. They also want to reflect many
cultures and values of the UK in the world. (Hillary, 2017). John lewis's main purpose is to
provide great pleasure to all its customers. They also want to satisfy their employees for a
successful business. Red cross has a major aim to serve human beings in a great way. They also
want to prevent or reducing human suffering.
P2 Explanation of British Broadcasting Corporation (Public organization), John Lewis
(Private organization) and Red Cross (Social organization)
British Broadcasting
Corporation
John Lewis Red Cross
Background
details of the
organization
The British Broadcasting
Corporation established
on 1st January 1927. Its
first director general was
Reith newly knighted.
British Broadcasting
Corporation and John
Reith initially determined
the needs of British
John Lewis & partners is
a big chain of
departmental store in
UK. Its first store was
established on 1864. the
Oxford street store was
rewarded by Queen
Elizabeth on 1 January
2008. John Lewis has 52
Red Cross was officially
established in 1863. It is
a private humanitarian
institution. It has
approximately 97 million
staff, volunteers and
members. It has many
movement's parts such as
the international

people and broad content
according to their
standards (Papilaya,
Soisa and Akib, 2015).
department stores
throughout Britain.
committee of Red Cross,
the international
federation of Red Cross
and Red Crescent
Societies and national
Red Cross and Red
Crescent Societies.
Products and
Services
British Broadcasting
corporation provides
broadcasting services to
British public. It is the
biggest international
broadcaster. They
broadcast news,
discussions and speech in
more or above 40
languages. They offer
their services on digital
software platforms,
podcasting, internet,
satellite and FM.
John Lewis & Partners
offered home design,
personal lifestyle,
electrical installation, ,
lighting installation
services etc. They
provide John Lewis's
own brand home
furnishing products such
as pillows and furnishing
fabrics.
Red Cross provides their
services after or during
natural disaster. Their
main mission is to
provide immediate help
during or after disaster
like serving food, clothes,
water and shelter. They
also provide HIV
training, first aid, disaster
response training for
team and automatic
electric defibrillator.
Purpose BBC has main purpose is
to develop and research
all the activities. These
activities are conducted
for achieving the mission
and the enhancement of
the public purposes.
BBC's major mission is to
act for increment in
They fully focused on
happiness of its all
members. They share the
ownership and
responsibilities to its
members with rewards
such as power,
knowledge and profit
(Erasmus, Strydom, and
The major aim Red cross
is to protect health and
human life. They also
ensure great respect for
human beings. Red cross
takes initiative actions to
alleviate and prevent
human suffering.

public interest. They also
focus on serving high
quality and unique output
which educate, entertain
and inform people.
Rudansky-Kloppers,
2016).
Size and Scope British Broadcasting
corporation has 22401
employees.
It has 83000 number of
employees in their
organization. John lewis
have two subsidiaries-
Partners Opun home
improvements and
Waitrose & Partners John
Lewis.
Red cross has 3500 staff
in its organization
(Bashir and Verma,
2017). Red cross is
becomes a worldwide
organisation.
Legal structure It is a statutory
corporation.
John Lewis is a public
unquoted organization.
Legal structure is
designed to secure future
partnership.
Red cross have national
societies as organizations
that are regulated by
international
humanitarian law.
P3 Business functions of John Lewis & Partners
John Lewis has flat organizational structure where all the people can communicate with
each other effectively.
Marketing and production:
John Lewis & Partners has a great marketing and production team. By analysis of market
scenario, marketing team can analysis all the needs of the people in UK. It will help the
production team to manufactures their products or produce services accordingly. Marketing helps
the company to promote their product and services in a very effective way. If the marketing is
proper than the production will increase automatically. Marketing helps the organization to
provide all the major information or data for the exceptional use of John Lewis (Bah and Fang,

2015). All the analysis of marketers can directly affect the production. It can help in the
production that organization only produce customer's usable products. It will reduce the
unnecessary expenses and also save the lots of time of production team. But it has also
disadvantages, if the marketing generates misinformation about the organization's products or
services than it directly affects the production in the organization and it can also reduce the profit
and long term margin. Effective Organisation functions will create a proper organisational
structure. Perfectness in the functions will help in achieving organisation's goal and objective in
a very efficient way.
Human resource and finance function:
Human resource can directly affects the finance structure of an organization. Proper
human resource management will help in improving the financial functions or an organisation.
Human resource plays a essential role in John Lewis. They manage all the employee's role or
their activities in a very efficient way. They recruit skilled and talented employees for the
development and growth of the productions. That can directly enlarge the financing base in the
company. All the functions of human resource will positively promote the financing structure of
the company. Human resource manage the staff activities and provide a job role according to
their ability that will inspire the employee to become more productive.
Accounting and purchasing function:
Accounting is a very essential function in any company. John Lewis hired skilled
accounting managers to supervises professional services. Accounting department conducts
accounting, financing, costing and budgeting activities (Stott, Stone and Fae, 2016). They can
affect the purchasing functions in an organization because all the purchasing decisions in the
organization depends on the proper budget (Virglerová, Dobeš and Vojtovič, 2016). Budgeting
facility provided by accounting department. Purchase department in the company takes necessary
actions before purchasing the materials than it enhance budget improvement or balanced
accounts. But it has also major disadvantages that if even small mistake is created in the
accounting than it will directly affects purchasing activities of the company. A managed
organisational functions can directly influence the organisational function. It can also assist in
developing their business in a next level.
P4 The positive and negative impacts the macro environment has upon business operations
PESTEL analysis

Political Factor in UK affects John Lewis & Partners-
Political factors play an important role to identify the element that affects the John
Lewis's business operations. John Lewis is operating in various home furnishing products,
household and personal goods in many countries. By expanding their business in several
countries they are affected by various political system risks and changing political environment
(Quinton and Wilson, 2016). UK also set trade regulations and tariffs for these types of
industries. UK's rules and regulation for personal and household goods industries and level of
corruption affects the company's security. It also supports product labelling in personal and
household goods that will enhance trust of consumers. Anti-trust law in the UK also assist the
personal and household goods. UK's government takes essential actions for industrial safety
regulations. UK Taxation laws in personal and household good's industry influence the
production and growth rate of John Lewis.
political factor also make diverse impact on the organisation. Many corruption activities
in the country can demotivate the organisation's employees.
Economic factors-
Economic factors in the UK contains long term trends of economy with market
fluctuations, customer or end user drivers, interest rates, inflation rates, technology costs etc.
John Lewis use UK's economy inflation rate to predict the improvement of a company. Ratio of
financial markets in UK can reflect the necessarily of personal and household Good's industry to
increase capital in market (Tian, Sigamani and Malhotra, 2018).
Exchange rates in UK and instability of its currency also affecting the company's margin.
Infrastructure quality in personal and household Goods industry also draws a huge consumer.
Social factors-
The behaviour and attitudes of people in UK will have a big impact on John Lewis. It
plays an major role in creating great marketing strategies for John lewis. Education level in the
country will determine the requirements of this household goods. Various types of Cultures in
the society mostly give its impact on arrangement production process. Attitudes towards health
and environment awareness will boost organisation's health safety regulations.
Populations age gaps also moves company's demand and supply. Company have to notice on the
requirements according to different ages and it is a very lengthy process.
Technological factors-

Technology in personal and household Goods industry is plays an important role. Various
industries are speedily moving towards the brand technologies in their processing. Technology
can differ the cost structure in personal and household goods industry. Technological diffusion's
rate majorly affects John lewis's management activities. Some technologies can discontinue
company's performances. It can generate negative impact as well. Technology can directly
improve the product offering.
Environmental factors-
Environmental standards have impact on the organization's profits. Rules and regulations
regarding environment protection in UK are immensely followed by all the industries. UK used
environmental and liability laws that affects huge area of its industries and market. UK's climate
and weather influence these industries operational activities (Saleem, 2015). UK are fully
focused towards ecological products than all industry have to comply it for development in the
market. Personal and household goods industry have to comply these regulations for the
sustainable growth. UK in their area also takes necessary actions for water and air pollution
control on industries.
Legal factors-
UK follows anti-trust law related to household and personal goods industry. Intellectual
property right law for Patent, copyright, trade mark also can affect the John Lewis (Eling and
Schaper, 2017). UK used e-commerce facility, consumer protection, data protection and
discrimination law, employment law, Health and safety law can also influence the operational
activities of organization. UK has a specified legal institutions and framework that will impact
on the legal proceedings of company..
P5 Internal and external analysis of strengths and weaknesses of John Lewis & Partners
Strengths- John Lewis organization has a huge brand image and a large customer base
that can help the organization to become the UK's most favourite retailer. John Lewis has a big
goodwill the will improve its development in a very next level. John Lewis generates essential
tasks to promote environment and eco-friendly products that will attracts the huge consumers
from the marketplace.
Weakness- John Lewis has minimum flexibility for their employees. They function only
in UK and they have limited market and limited customers and not comply the expansion policy
in their business.

Opportunities- John lewis will establish its new stores in Dublin that will increase its
customers in another cities as well. John lewis also enhancing online sales that will a best
opportunity of it.
Threats- more New competitors in the retail market will a huge threat for an
organisation. John lewis is a British brand so it is not necessary that all customers will recognise
and accept its product.
P6 Internal Factors affecting company
Culture: it is a process which shows that on what belief, idea and on what customers
organization follow in business is called as culture.
Manager of company use power culture, role culture where in power culture they use the
tall structure where they determine by the individual who have power to designate, delegate the
authority and all power lies to one only.
According to role culture they give individual to give their suggestions to them and give
participative role in decision making. manager bring some creativity to build a good
communication between different culture employees. In UK some of are working which they
have originally on different countries so there is barrier of language and tradition and culture so
they maintain the decorum of culture behaviour of employees.
Ethics- Company must also be engage in following ethics, they must adhere to knowing
or making decision between what is good or what is bad is ethics which company follows for
good reputation in market and for moral philosophy, where company ethics are to provide such
great quality, healthy, cost effective and tasty food.
With no harm animals is an plus in ethics and ethical retailing by no frauds and no mall
practices will be followed in production or with customer.
Company will bring first and the best for the customers. Manager provide Aid to society
and help of environment. Manager and leader run the whole manufacturing process in an ethical
way with faith an belief of company major products.
Values- Firm must also be engage in maintain the values of organization. They need to
bring up those laws and policies which lays emphasis on attitude, belief and thoughts of
organization. This can help them firm in growing. It will also help them in achieving their goals
and objectives.

Corporate social responsibility- Company is also engage in following corporate social
responsibility. This can help them in maintaining goodwill in market. This will also help them in
achieving goals and objectives, it will also help them in establishing their market in market
where they have not been established..
CONCLUSION
From the above report, it is concluded that in every organization all the business
functions are linked with each other. All functions affect another functions and its success is also
depended on each other. For fulfilling the organization objectives, all the business functions are
very important such as human resource, accounting, purchasing, financing, marketing and
production. It is also concluded that the business is affected by macro environment and all the
internal and external factors affects the organization's growth and development. Today,
Company has also faces many threats in the market such as high bargaining power of suppliers
or buyers and also threat of substitute products or services. These all treats are very harmful for
an organisation but organisation also take it as a opportunities.

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