Report on Business Environment Analysis: Oxfam, Emirates, Apple

This report provides a comprehensive business environment analysis, examining various organizational types (public, private, voluntary) and their purposes, with examples including Fly Emirates, Apple, and Oxfam. The analysis extends to organizational structures (flat, tall, matrix) and their interrelationships with different functional departments like HR, Marketing, Operations, and Finance. The report then delves into the macro environment using PESTLE analysis for Fly Emirates and Apple, assessing the positive and negative impacts of political, economic, social, technological, legal, and environmental factors. Finally, it explores internal analysis and concludes with critical reflections on key findings, offering a detailed understanding of the business environment and its influences on these three diverse organizations.

Project

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1 Explain different types and purpose of organization...........................................................1
2 Explanation of each organization........................................................................................2
3 Relationship with different organizational function............................................................3
PART 2............................................................................................................................................6
1 Presenting positive and negative impact of macro environment.........................................6
2 Presenting internal analysis.................................................................................................9
3. Critical reflection on key finding.....................................................................................10
CONCLUSION..............................................................................................................................10
References......................................................................................................................................11

INTRODUCTION
In the modern era, company faces different internal and external factor and in the same
way, the report main aim is to understand the knowledge of business environment. The report is
based upon three different company such as Oxfam, Fly Emirates and Apple which is operated in
different sector. The study will explain different types, size and scope of organization and it also
demonstrates the interrelationship with various functions within a firm. Further, by using
PESTLE and SWOT, report will describe positive and negative impact of macro environment
and then describe the relationship of internal micro factor with macro factors.
PART 1
1 Explain different types and purpose of organization
Public sector: The sector is comprised those firms which are owned and operated by
government and their main aim is to serve for the public (Stiglitz and Rosengard, 2015). The
sector mainly focus on providing the service to provide benefit to entire society.
Purpose: Its main purpose is to provide the best facility to the public without motive of earning
profit.
Example: Fly Emirates
Private sector: the sector is consisted of a company which is run by individual and group
who are seek to generate more profit. The sector has its own rules and regulation and there is no
interference of public sector.
Purpose: The main purpose of private sector is to earn profit and maximize their business.
Example: Apple
Voluntary sector: Also known as not for profit organization and it is consisted of those
firm whose purpose is to benefit or enrich a society without aim to earn profit without any
government intervention (Ho and Su, 2019).
Purpose: The main purpose of this sector of provide the best facility to their customers and
enrich the society as well.
Example: Oxfam.
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2 Explanation of each organization
Fly Emirates: Fly Emirates which is the largest airline who operates more than 3600
flights and it operates in more than 150 cities and in 80 countries. It is wholly owned by the
government and thus, it is run in Public sector.
 Product and service:Offer airline services.
 Size and scope: the size and scope of public sector is wide but the motive Is to serve for
the public.
 Vision: to make polite collection risk-free, leading and property.
 Mission: It provides world's best flight experience service to their customers.
 Business objectives: to reach on the top by providing best services to the customers.
 Legal structure: It must have 2 stakeholders and issue at least £50000 shares to public.
 Size strategy: The Fly emirates is large company because it has its unit at world level
and it is of international company because it have no investment outside its home
country.
 Inorganic Growth: the firm is considering an joining star alliance but also opted to
remain independent.
 Stakeholders: Passengers, suppliers, employees. BOD, CEO.
Oxfam: It is the not profit organization and in UK, the firm is tackle poverty wherever
the company finds. Further, the company also works to find practical and innovative ways so that
people will lift out of poverty. It has20 charitable organization whose main aim is to relief the
global poverty.
 Product and service: provide ways to lift people from poverty.
 Size and scope: Its size is small as compared to private company and the scope is wide.
 Vision: Make the world without poverty.
 Mission: to create long-lasting solutions to remove poverty and make the world free from
It.
 Business objectives: safeguard global food suppliers, provide equal right to women.
 Legal structure: it used unincorporated Association and its structure is ideal for small
groups with short term goals and low income.
 Size strategy: It is the global company which have operations and trading in many
country across different world.
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 Inorganic Growth: the company can be used franchising in order to expand its business
firm in other country. Therefore, the firm can sustain its brand image at international
level.
 Stakeholders: partners, staff, volunteers, donors, supporters, alliances, government,
academic institution etc.
Apple: The firm is multinational technology company which sells electronic, computer
and online services. The firm is considered Big Four technology in world and it has more than
500 retail store and also serve at worldwide (Ferreira, 2019).
 Product and service: Offer iPod, iPhone, Apple watch and Apple TV and many more
electronic items in its store as well as online service.
 Size and scope: the size and scope of private sector is wide and there is a huge scope as
well.
 Vision:To make the world full of technology by innovating new products.
 Mission: To provide the best personal computer and also emphasis digital distribution
service through Internet.
 Business objectives: To produce trouble free products and service to customers.
 Legal structure: The firm must have limited 50 or few shareholders and the shares are
prohibited from being publicly traded.
 Size strategy: It is the Transnational company in which it is consider as a mixture of
global multinational and international company.
 Inorganic Growth: Apple is using alliance with Hewlett Packard Enterprise In order to
find out the opportunity for expanding it s business with new partner.
 Stakeholders: employees, customers, BOD, CEO.
3 Relationship with different organizational function
The organization structure is divided into many types such as:
Flat Organizational structure: In this structure, the decision-making occurs at staff
level and the employees are given superiority with little to no supervision. In this type o
structure, there are no level of middle management between staff and executives.
Advantages: In flat structure, it lower down the operational cost and also helps to improve the
communication. Through this, the employee are motivated and satisfied which helps to increases
the production level.
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Disadvantages: By following this, the employees lack specific boss to report to and thus it leads
to create a confusion and mismanagement among employees.
Tall Organizational structure: This structure allow the leaders of a firm to make major
decision with regard to operational strategy and then communicate with other as well.
Advantages: It helps to maintain a long chain of command and trough this employees are easily
understand the role and responsibility by their own.
Disadvantages: Due to so many layers of management, it takes long time to reach to workers
and as employees are also involve in decision then it takes weeks and affect efficiency as well.
Matrix organization structure: In this type of structure, reporting relationship is set up
as a rigid and even the employee are also have a dual reporting relationship with functional nd
product managers.
Advantages: Resources are used in effective way and the information also flows both across and
up within an organization. Staff members of the company are work autonomously and it enhance
motivation and decision-making of employees.
Disadvantages:
Apple, follow hierarchical organizational structure in which it follows the layout of
pyramid and the layout is also consisted of multiple entities. Through this structure, the
employees can easily recognized defined level of leadership and also get the opportunity for
promotion that helps to motivate the employees to perform well (Ellig and Konieczny, 2019).
The main aim of opting this organizational structure is such that it promote or develop an
employee as specialist. Therefore, organization chart is as mention below:
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Interrelationship between Organization Functions:
Human Resource department & Marketing department: the main function of HR s to
recruit the best candidate for the company and then, these employees sell the product to their
customers through marketing. There is a close interrelationship between HR and marketing
because as the market changes, expectation of employees also changes (Su, Chen and Wang,
2019). At that time, HR of Apple, develop strategy to cope up with this situation and thus, they
attain the aim as well.
Operational department & Finance department: There is a close relationship between
these two department such that whenever new service Is produce by Apple, the operational
department checks the quality, whether it meet with customer expectation and then finance
section evaluates, whether the products help to raise company financial performance (Huber and
et.al., 2019).
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Illustration 1: Organization structure of Apple
(Source: Organization structure of Apple, 2018)

Research department and Marketing department: This department are also
interlinked with each other such that, R&D innovate strategies to improve the existing services
and these new products are sale by the marketing department (Yamasaki and et.al., 2019).
Through this, they both work together in order to accomplish the aim of company and meet the
customer expectations as well.
Operational department and Finance department: Both the department are interlinked
such as operational department minimize the errors in a product and then finance department
checks how much income the firm is received through that particular product. Such that both
departments mainly work in order to attain the mission of the firm.
Finance department and marketing department: Marketing department sell the
products to market and uses effective marketing strategies in order increase sales. While on the
other side, finance department mainly work to determine the expenses incurred during the
product marketing and then determine what is the exact income earn by the firm.
PART 2
1 Presenting positive and negative impact of macro environment
Macro environment is that condition which mainly exist in economy rather than a
particular sector, it also includes GDP, inflation, spending, employment and monetary policy.
Pestle analysis of Fly Emirates:
Political factor:
Negative impact: The factor mainly deals with tax a political situation of a country and as Fly
Emirates operating at global level, therefore, the security concern and recent terror attack in
Europe are considered negative impact upon a firm and as a result, it reduces the demand for air
travel.
Positive impact: Another side, quoted firm emerging in new country (Africa, Iraq) who has
stable political environment, this creates positive impact and increase the sales as well (PESTLE
analysis of Fly Emirates, 2019).
Economic factor: This factor deals with currency and economic condition.
Negative impact: such that Fly Emirates collect the revenue in different currencies. But when
there is any sudden fluctuation in currency rates creates negative impact upon company's
financial performance.
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Positive impact: While on the other side, the declining oil price is considered a positive
development for an airline.
Social Factor:It involves the taste of people and their demands.
Negative impact: But due to change in market saturation, the company's sales are decline and at
that time, the company has to adopt new pricing strategy.
Positive impact:the company is well aware of all demographic changes and that is why it
provides the services as per the needs of customers, so that it will create positive impact upon
firm.
Technological Factor:
Positive impact: The emergent of Internet and It creates positive impact upon Emirates such that
people now book tickets by Internet that saves time and this increases the efficiency and gain
high competitive advantage as well.
Negative impact: On the other side, security breaches is considered an issue for Fly Emirates and
also creates negative impact.
Legal factor:It deals with laws and regulations which is prescribed by country
Negative impact: sudden change in the government policy affects generated revenue and image,
which leads to creates negative impact (Xu and Koivumäki, 2019).
Positive impact: On the other side, by complying with employment laws, consumer protection
act will allow the customers to enjoy safe and secure flight.
Environmental factor:
Negative impact: The airline industry is mainly responsible for more than 10% of total carbon
emission and recently company introduce recyclable cutlery that attract customers and leaves
positive impact.
Positive impact: On the other side, eco- friendly gadgets also help to prevent environment from
any pollution.
Pestle analysis of Apple:
Political factor:
Negative impact:Sudden change in political system of country affect the business such that
sudden increase in tax rate of the country affect the financial position of the company In negative
way.
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Positive impact:On the other side, the company also develop a strategy that helps to minimize
the risk of a terrorist attack and this will help to create positive impact upon business.
Economic factor:
Negative impact:Sudden increase in inflation rate in UK creates negative impact upon the
business such that it force company to increase the price of products and thus, customers are not
spent extra amount for products, this will creates negative impact.
Positive impact: On the other side, by adopting the strategy to overcome the problem will leave
positive impact (Klepac and Berg, 2019).
Social Factor:
Negative impact: Customers also shift towards other firm whenever they find more reasonable
products, this will creates a negative impact upon company's overall product.
Positive impact:Sudden change in the lifestyle of people do affect the company's performance
such that to meet the customer demand, Apple should provide innovative products so that it will
help to create positive impact.
Technological Factor: The factor has both positive and negative impact such that
Negative impact:by adopting new technique, company lost its position in personal computer,
which creates negative impression.
Positive impact:While using cloud computing that helps to create positive impact and thus, apple
has a great opportunity to exploit it by offering services related to cloud.
Legal factor:
Negative impact:Sometimes it creates threat for Apple because compliance is mandatory but
Apple can face lawsuit or fines that will lead to bad brand image.
Positive impact: Beside this, as Apple depends on IP laws also affect in positive way, as this
leaves a firm highly vulnerable in the term of piracy.
Environmental factor: this factor also creates positive and negative impact upon
company such that
Negative impact: global warming also creating climate change that also affect the supply chain
in negative way.
Positive impact: as company uses new technology solution by providing energy efficient
products such as batteries and processor so that it produce less heat emission
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2 Presenting internal analysis
SWOT analysis of Fly Emirates:
Strength: The company operates more than 70 countries in which it flies over 150
destinations and Dubai is one of the leading tourist destination in a world. It also has a brand
image and has more than 50000 employees as well. The firm has good advertisement and
branding with the best customer services (Aydiner and et.al., 2019).
Weaknesses:The firm rely heavily on moving traffic on an international level and it also
faces intense and strong competition with competitor airlines. Even for maintaining benchmark
standards is highly costly for a firm and thus it leads to has a limited market share.
Opportunities: By enhancing the quality of service, the company get new opportunity of
introducing its brand in other country. It should be leverage of a swift of airplane. By using new
and advance technology into the working place, the company can easily build confidence of the
customers.
Threats: Other international flights which operating their flight in Middle East create
great threat and also increase in cost of fuel creates great threat.
SWOT analysis of Apple:
Strength: The company has brand image and high customer loyalty. It is famous for its
innovative product and simplicity. The company also has a brand reputation and good
advertising technique that helps to reach wide range of customers.
Weaknesses: Sudden decreases the sales of iPhones and lack of competition consider as a
weakness. Apart from this, the company offer high price products its software do not support
other software which make it incompatible with other device (Mugurel-Alin, 2019).
Opportunities: It has qualifies professionals and strong research and development
department that provides new opportunities, further, firm also launch products which includes
green technology and eco- friendly. Even by using artificial intelligence also helps a firm to
establish the brand image.
Threats: Market penetration and increasing competition is considered another a threat for
Apple. Even the patent infringement and iCloudy security concern with no more innovation is
another threat for Apple.
These internal factors are directly interrelate with external macro factor such that as
Political factor is directly link with Apple's strength. For instance, due to stable political
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