Formal Report: Business Environment Analysis for Next PLC and NHS

This report provides a comprehensive analysis of the business environment, focusing on Next PLC, a multinational private company. It begins with an introduction to business environments and then explores the purpose and types of companies, including private, public (NHS), and voluntary (Oxfam) sectors. The report examines the size and scope of each company, their vision and mission, and the interrelationship of different departments within Next PLC. Section 2 critically analyzes the macro-environment factors using the PESTEL framework to identify market opportunities for Next PLC. The report also assesses the strengths and weaknesses of the company, and the interrelation of strengths, weaknesses, and macro factors. The report concludes with a summary of findings and references.

Formal Repory

Table of Contents
INTRODUCTION ..........................................................................................................................3
SECTION 1......................................................................................................................................3
Purpose and types of company...............................................................................................3
Size and scope of company....................................................................................................5
Organisational structure and function with interrelationship.................................................7
SECTION 2......................................................................................................................................8
Critically analysed the macro-environment factor in order to organisation grape market
opportunities...........................................................................................................................8
Strength and weaknesses of company..................................................................................10
Interrelation of strength and weakness with macro factors..................................................11
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Business environment includes all those factors which posses power to influence function
and operation of company. In which it includes both internal and external factors considering
customers, employees, supply, demands and management for effective business regulations. So it
is essential to considered all factors before running any business unit (Mrkajic, 2017). In order to
carry forward this report, Next Plc. is selected which is a multinational private company of UK
which deals in clothings, footwear, home products and so on. This company operates its business
around 700 stores across globally after overtaking Marks and Spencer in 2012. Along with this a
public sector NHS is also chosen which offers health care services. Further, Oxfam in undertaken
as voluntary company and the main of of this company is to offer better life to people by
eliminating poverty. This report tends to cover comparison between public, private and voluntary
sector along with structure and objectives. As well as the size, scope and inter relation is covered
with prominent analysis of internal and external environment.
SECTION 1
Purpose and types of company
Private company: It includes partnership, sole trader and corporations. All these firm
have same motive to earn profit by increasing sales of company (Nwaiwu, 2018). In context of
this, Next plc is a private organisation that offers good quality products to consumers. It comes
under large company and offers products at global level.
Purpose: company develops various products for meeting the demands of consumers so
that they will able to increase their sales by offering variety of products at lower cost rate. In
relation to Next plc, their aims is to gain competitive advantage as well as to become the leader
within same industry.
Legal structure: It depends on the top level management of company. Who bears ability
to take right and proper decision by considering all laws and regulations. The BOD of Next Plc
company take effective decision with the help of effectual communication to their employees
and this influence the operation of firm.
Sole proprietorship: Theses types of business are operated by a single individual at small
scale within small areas that required only a little fund and capital to establish business. It has
been seen that it is easy and effective as it does not required any kind of documentation and

paper work. Further, the owner itself is responsible for any loss or profit as they do not have any
prominent approval from government for establishing business.
Partnership: These types of business is run by two or more than two peoples. This is
followed by next plc in order to make effective deal and it is carried out in presence of lawyer for
neglecting conflicts between partnership.
Incorporate a limited liability company (Ltd): These types of firm are incorporated and
limited by shares that shoes the company have its own stakeholders and liabilities towards
creditors of firm as it is limited in terms of money which is invested initially (Sadler-Smith,
2016).
Public: Public company are controlled by government and public bodies, in context of
this NHS is undertaken which provides health care services to people.
Purpose : The main motive of running these firm is to provide welfare to individuals. In
context of NHS, they offers excellent health care services to peoples for improving health,
wealth by taking small charges.
Legal structure: As these companies are controlled and operated by central and state
bodies so all decision will also be taken by them only. In order to carry out all function of
company in effectual way, top level management of NHS company need to follow all decision
that makes of government.
Central government: It tends to undertaken essential actions that are connected and
controlled by central government as well as have effective control on business conditions. For
which government posses power to develop business by considering all laws and regulations.
State government: State government needs to share its obligation and duties with central
government as well as other concerning services that are significantly controlled by state
government. In which there are various product/ services that is only offered by state
government.
Voluntary : In this, company need to collect peoples in terms of attaining goal of
company. These types of firm are not managed and controlled by the public entities. Foe this
Oxfam is chosen that has around more than 20 independent charitable trust (Prajogo and Oke,
2016).

Purpose: The overall aim of these company is to remove poverty and scarcity for the
well fare of society and also supports needy peoples for increasing their living standards and
status.
Legal structure: Oxfam lies under voluntary company for this all decision is taken by the
trusties of company by considering well being of company and workers.
Trust: This types of charity is established by group of peoples, namely trustees. This is
flexible because of its statutory framework. Foe this case they are nit selected by BOD for the
development of trust.
CIO( Charitable incorporated organisation): this is incorporated and regulated solely
under charity commissions that neglected the duplicate fillings of company. Oxfam needs to opt
and follow this legal structure for the beneficial of employees.
Size and scope of company
Private company: Next plc.
Scope and size: The selected firm operates its business at larger scale and due to this
scope of company is also wider as they are offering various products / serves to buyers. In
relation to this, the main reason of their success is talented, skilled workforce and profitability of
company. This leads to provide effective products at lower price for attracting huge peoples.
vision and mission: Vision of firm is to render the trendy products to consumer for
accomplishing competitive edge. However, the mission of company is to provide best quality
products / services for increasing prominent experience of consumers.
Public company: NHS
Size and scope: Similarly, NHS company is also operates its business at global level for
providing health care services. This company has around 1900 workers related to global revenue
since last year which was approximately $540 billion (Brown, 2018). Company has wider scope
as they are offering best services as well as making plan for expanding its business at other
locations.
Vision and mission : Vision of company is to improve healthcare of individual by
offering hygiene and environment. Meanwhile, mission of company is to provide better quality
services to each patient at very minimum charges.
Voluntary company : Oxfam

Size and scope: In term of welfare of individual, the selected voluntary firm posses wide
scope for working. This is connected with more than 20 charitable trust. The top level
management of company devised effective strategies for the healthful of citizens.
Mission and vision : To provide equal justification by treating equally to all individuals
is the mission of company and the vision is to make better world by eliminating scarcity and
poverty of nation.
Comparison among Micro, small and large company.
Basis Medium Small Large
Objective To enhance the living
statues of peoples on
ground of basic profit.
To full fill basic needs
of employees along
with consumers by
taking care of them is
the main aim of small
business unit.
For making profit,
expansion and
diversification of
operations is primary
objective of large firm.
Number of employees It consist 50 -250
number of employees
for operating
bushiness functions.
It holds less than 10
number of employees
for performing all task
of enterprise.
It involves more than
250 members of staff
within a firm
Decision making All decision are taken
by the top level
management of
company (Saleh and
Watson, 2017).
In small size company
the decision will be
taken by the managers
of company and they
would not take too
much time.
BOD, senior
executives, managers
are included in large
firm and all decisions
are made by them as
per requirements.
They take too much
time to take critical
decision.
Scope These types of firm are
owned and managed
by the their virtue size.
Small scale business
operators posses
opportunity to deal
Large scale business
posses complexity in
nature as well as have

They are very complex
entities as they have
separated ownership
from management.
and serve their
services at urban areas
by considering some
sectors like telecom,
food, media and so on.
great number of
operations. In which
they are defined by
consumers, voulme of
business
communication etc.
Organisational structure and function with interrelationship
A company consist several department in order to perform various function and activities.
Such as Marketing, Finance, Human Resource, and so on. In context of Next PLC., they operates
their business at global level that tends to opt effective and desired results by undertaking
interrelationship which are mentioned below:
Sales and marketing: Marketing departments leads to spread awareness among
consumers related to products or services. In context to this, next plc sell their products and take
review from their consumers (Eling and Schaper, 2017). As it aids them in devising marketing

strategies for the development of sales and profit. Hence, inter relationship among these unit is
important for accomplishment of competitive edge.
HR and IT department: In an organisation HR plays vital role in managing the
workforce of company. As they recruit, select and their employees for improving their skills and
knowledge. Moreover, IT will update all methods of HR in order to track and identity the
performance of employees. Hence this inter relational become vital in company for improving
profit.
SECTION 2
Critically analysed the macro-environment factor in order to organisation grape market
opportunities.
PESTEL is framework which helps to analysed the external environment because it
includes various external factor such as political, economical, social, technological, legal and
environmental. It includes all these factors which puts impact on business model as well as
profitability of business (Aithal, 2017). In context of Next PLC, it analysed this tool because it
helps to developed new strategies in order to gain competitive advantages.
Political-: It includes government policy, rules, regulations and legislation which affect
the profitability and revenue of company. They are involves various circumstances which
influencing business operations. In relevance of company, they dealing in clothing segment so
government proposed such norms and conditions due to essential for organisation to followed
and these helps to easily expand business operations.
Positive impact-: The political condition of UK is good so it shows the positive impact on
business and makes favourable condition to easily run their business operations.
Negative impact-: When organisation changes their policy so it faces lot of problem and
it directly impact profitability of business .
Economical-: These is the second element of PESTEL model which includes inflation
rate, interest rate, tax rate and deflation and many more. In relevance of organisation, the
economic factor affect the sales revenue and profitability of company due to inflation rate, tax
rate and interest rate. Organisation expand their business operations so affect the exchange rate
of other country as well as tax rate.

Positive impact-: The economic condition of United Kingdom is strong and table which
impact on business because favourable condition so easily gaining competitive advantages.
Negative impact-: Economic factors are uncontrollable which impact their business
operations and accordingly make significant changes.
Social-: It includes those factor such as tradition, value, belief and attitude of customer
towards the products and services. Organisation established the business in another country so all
these factors essential to analysed and then set up business operations. Customer are valuable
assets of the organisation so aware about the taste, preferences and market trends. Next PLC
conducting market research and and then evaluate market trend , taste and preferences.
Positive impact-: Organisation know the needs and wants of customer on that basis fulfil
the requirement so it developing brand image in the mind of customer.
Negative impact-: Organisation doesn't aware about the taste, preference of customers so
it impact on goodwill of company.
Technological-: Most of the organisation utilised the advanced technology in order to
developing new innovation in products and services which enhancing the productivity of
company (Čirjevskis, 2016). In present context, internet is one of the strong medium to spread
regarding smart phones and rapidly growth in rural areas. In relevance of organisation, they used
these technology which impact on the business and developing new avenues in order to targeting
new market segment.
Positive impact-: Organisation investing huge amount in order to developing new
innovation in product and services so it increasing performance of company.
Negative impact-: Organisation used outdated technology which leads to negative impact
on the businesses.
Legal-: These factors plays important role in order to legislation, labour law, employment
contract law and many other laws are included which organisations adhered to followed and
impact on business functions (Dave, 2017). In reference of Next PLC, it includes various aspect
which essential to followed by company in order to expand their products and services.
Positive impact-: It includes UK government imposed various laws which essential to
followed so government support business model.
Negative impact-: Organisation not followed such rules so it difficult to achieving the
organisation goal and objective.

Environmental-: These factors mainly depends on the organisation used the quality
products and services which doesn't harm the environment. In relevance of organisation, they
used those products which easily recycled and biodegradable which not impact on environment
and enhancing sustainability of company.
Positive impact-: Organisation provide eco-friendly products so the build the brand
image in the market.
Negative impact-: Organisation used the chemical in order to developing products and
services which directly negative impact on their business.
Therefore, it is essential tool which organisation necessary to developed and analysed in
order to increasing profitability of company and productivity which leads to increasing sales
revenues along with attained the organisation goal and objectives (Ershova, 2017).
Strength and weaknesses of company
Swot analysis of Next PLC.
Strength Weaknesses
 Next PLC used advanced technology in
order to enhancing their profitability
and improve the performance of
company.
 It is one of the biggest strength in order
to fulfil the requirement of customer
because they developing innovative
products and services.
 It includes their products and services
is costly so customers not prefer so
much it directly impact the business
operations.
 Organisation necessary to investing
more amount in order to expansion
their business operation which leads to
not capturing market share.
Opportunities Threats
 One of the greatest opportunity they
easily expand their business operation
in another country so gaining
competitive advantages. In relevance
of organisation, it developing new
strategies which leads to create brand
image in the mind of customers as well
 There are ample numbers of
competitors are available in clothing
segment which affect the their business
profitability and productivity of
company (Igino, 2018).
 Organisation conduct the effectively
market research in order to fulfil the

as enhancing goodwill in the market.
 It includes also increasing sales
through online medium such as
corporate website as well as promotes
their products and services like what's
app, Instagram, Facebook, twitter and
many more.
needs and wants of customers and
accordingly produce products due to
market trend, taste and preferences of
customers change drastically so
organisation not improve or changes in
products so it affect the brand image at
marketplace.
SWOT analysis of NHS :
Strength Weakness
 It has been found that there are various
hospital and other firm that offers
health care services in UK but at the
time of emergency and accident NHS is
very useful.
 This firm is continuously overlooking
for waiting with respect to getting
appointment as the services are in
demand.
 Due to increment in population NHS
would not able to meet demand and that
acts as barrier for success and growth
of company.
 As per resources analysis it has been
found that NHS links to management in
terms of connecting chain (Hamilton
and Webster, 2018).
Opportunity Threats
 Effective use of marketing strategies
leads them towards increment of image
of company along with private
investment.
 NHS has opportunity to develop culture
that can increase the performance of
company according to the expectation
of peoples towards healthy employee
relations
 Image and reputation of company got
effected along with staff members
because of contractor.
 NHS needs to have clarity about
behaviour of peoples as well as need to
considered effective maintenance of
both quality and speed.

Interrelation of strength and weakness with macro factors.
Basis Political Economical Social
Strength The senior executives
of Next plc company
always make sure to
considered al rules and
law that are proposed
by government so that
their function will not
effected.
In term of chosen
private company they
provides equal and fair
wages to each
individuals for
maintaining health and
positive workforce
environment.
Next plc provides
products at market
after analysis of
consumer demands so
that they make them
happy by offering
products as per their
needs.
Weakness Changes in policies
trends to occur high
investment cost in
adoption. Which
adversely affects the
function (Akhtar and
Sushil, 2018).
It comprise basic
economic condition
which can puts
negative impact too
and after Brexit, next
plc faces so many
problem that affects
their productivity and
profitability of
company.
In present time
peoples are more
concern about their
skin and in context of
this Next plc. Would
not considered
organic ingredients
into their products that
can behave as
weakness of company
towards success and
growth.
Basis Technological Legal Environmental

Strength Next plc is well
successful in adopting
new technologies for
delivering best quality
products to consumers
within small period of
time.
Company tends to
follow different rules
and regulations foe
expanding their
business in order to
maintain the position
at marketplace.
For the sustainability
of environment and for
reducing pollution,
company needs to
choose eco friendly
techniques.
Weakness Adoption of new
technologies leads to
decrement in revenue
criteria of Next plc.
Changes in laws and
norms tends to face
legal issues by which
company faces so
many penalties that
can influence the
profitability of
company.
Higher-up of Next plc
are not following all
norms related to eco-
friendly that puts
negative affects on
operation of company.
CONCLUSION
From above discussed report it has been analysed that business environment majorly
impacts the smoothing running operation of company along with this, it plays essential role in
enhancing the productivity and profitability of company. Further, size, scope of different
company is studied and all these posses different properties with each others. PESTLE and
SWOT analysis are conducted for assessing the influence of both internal and external forces by
considering strength and weakness for overall profitability of company.

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