Detailed Business Environment Report for Rowlinson Knitwear Analysis

This report provides a comprehensive analysis of Rowlinson Knitwear's business environment. It begins with an introduction to the business environment, encompassing internal and external factors. The report then delves into different types of organizations, including public, private, and voluntary organizations, and provides details on their purposes, legal structures, and examples like the National Health Service (NHS) and the National Trust. The report also includes an analysis of Rowlinson Knitwear itself, discussing its background, products, size, scope, mission, vision, objectives, and organizational structure. Furthermore, it examines the organizational chart of the company and the contributions of various departments such as HR, Finance, Marketing, and IT. The report concludes with a PESTLE analysis of the external factors impacting Rowlinson Knitwear and a SWOT analysis to evaluate its internal strengths, weaknesses, opportunities, and threats, providing a holistic view of the company's position in the market and its potential for future growth in the international business environment.

Business and Business
Environment

Table of Contents

From: Business Analyst
To,
General Manager, Rowlinson Knitwear
Subject: Explanation of different types of organisations and the growth of the international
business environment.
INTRODUCTION
Business environment consists of internal and external factors which can easily influence
the business activities of firms irrespective of the fact whether operating at local, national or
international level. Intrinsic factors includes workers behaviour, suppliers demand, customers
preferences etc. Whereas, extrinsic factors includes political, economical, social, technological
etc. These internal and external analysis shall be analysed by management more carefully so as
to deal with them more effectively and increase sustainability of company. The present
assignment is based on Rowlinson Knitwear which is engaged in manufacturing and selling
school and corporate wear garments to the people of UK and other countries. The project
includes the different kinds of associations in addition with their scope, size, mission, vision and
purposes. PESTLE and SWOT analysis are also conducted under this report to evaluate internal
as well as external factors.
TASK 1
P1:
There are various kinds of organisation which are operating at different level to achieve
their own different aims and objectives. It includes following:
Public Organisation:
It is an association which is controlled and operated by governmental authorities through
subscribing more than 51% share in firm. It largely impact the national income and GDP of
country in terms of public revenues such as taxation policies and composed public services.
National health service is a perfect example of Public organisation which is operating in UK by
providing health related services across worldwide (Aithal, 2016).
Purpose:
1

The primary expectation of NHS is to render wellbeing related services to overall population and
convey income and wealth by expanding the structure of society. NHS fabricate a solid financial
foundation by giving wellbeing services.
Lawful structure:
Local government: Local government is a lawful body of a little geographic region like town,
city and so forth. It controls and screens civil and nation government structure.
State government: It is a piece of government that forces laws and controls for state. It is
considered dependable to address the issues and prerequisites of a state.
Central government: It is political specialist that oversees entire country along these lines it
tends to be likewise called as incomparable of a country. It keep up national security and global
delicacy.
NHS is goes under state government as it for the most part capable to recognize the reasons for
infection and discover ideal arrangement (Cavalcante, Kesting and Ulhøi, 2011).
Private organisation:
It is privately owned by individual or group with a clear objective of earning huge profits.
There is a few restrictions imposed by government of nation such as private companies are not
allowed to invite public directly for the purpose of subscribing its shares. Rowlinson Knitwear is
a UK-based company which deals in providing school and corporate wear garments with an
objective of generating huge profits.
Purpose:
The main purpose of private company is to generate huge profits and expand its business
operations to higher level. It mainly emphasis on quality instead of price with the purpose of
enhancing healthy lifestyle of people.
Legal structure: Partnership: It is formed with an agreement between two or more individuals who are
decided to run business in market to achieve a common objective. Such agreement
includes terms and conditions related with business such as profit/loss sharing ratio,
partners capital etc. Sole proprietorship: It is the simplest form of business due to following limited rules and
regulations. It is owned and controlled by single individual with an aim of earning their
livelihood. Owner can start business by register their name and secure license.
2

 Limited company: In this legal structure, there is limited number of members carrying
limited liabilities. It means if company dissolve then members are not personally liable to
pay all debts and liabilities (Helms and Nixon, 2010). Multinational corporation: MNC operates its business functions in more than two
nations which means its headquarter is in one nation and its branches are in different
countries. Thus, it operated at large scale. Global company: It is a company which is marketed their product in many nations with
same brand name. Corporate office is responsible for global strategy.
 Transnational company: It is more complex organisations which is operated at different
nations but does not consider any particular country its national home.
Voluntary organisation:
A group of individuals which can be huge businessmen, industrialists, celebrities came
into an agreement as a volunteer to execute an objective. National trust is an example of
voluntary firm which is located at UK. It mainly focuses on preserving culture heritage of a
specific area.
Purpose:
Voluntary organisation have main purposes which includes social welfare, eliminate
issues arises in society and protect natural resources.
Legal structure: Trust: It is typically settled by a gathering that needn't bother with participation. It is a
structure type of charity (Karagiorgos, Drogalas and Giovanis, 2011).
 Affiliation: An association of individuals who consented to accomplish basic goals other
than creating benefits.
 National trust is a model who work to safeguard culture legacy and characteristic
excellence.
 Associations can extend its business task to worldwide dimension through legitimate
inspect nature and geographical territory of universal business. For this, association needs
to initially investigate objective and legitimate structure of worldwide market and in like
manner upgrade their business globally.
P2:
Public organisation: National Health Service (NHS):
3

Background details: NHS is came into existence in 5 July 1948 and its constitution was
introduced on 21 January 2009. Constitution bring informations related with what patients,
public and staff are expect from NHS. Its headquarter is located in London, England.
Services: It serves millions of people through their health related services such as patient
care, primary care, dentistry, ophthalmology and long term health care.
Size: NHS has attained over 1.5 million employees which makes them one of the world's
largest top five workforces company. In this, staff of employees includes 150273 doctors,
314,966 health visitors and nurses, 40,584 general practitioners, 111,127 dental and medical staff
and 18,862 ambulance staff. It is mainly funded through taxation system.
Scope: Such organisation is engaged in providing multiple number of health services to
UK and many other nations due to which their sustainability gets more stronger. Therefore, the
scope of NHS is much wider.
Mission and vision: The mission statement of NHS is "to serve a large number of
individuals by their powerful and productive services of social care by complying with policies
and norms that are open, impartial, reasonable and moderate. Its vision is to get brilliance
medicinal services through service conveyance and quality execution (Klapper, Lewin and
Delgado, 2011).
Objectives: Its main objective is “to support the people to live a healthy lifestyle through
maintaining their healthy diet and regular exercises”.
Organisational structure: It is an independent body, at arm's length to the government.
Private organisation:- Rowlinson Knitwear
Background details: Rowlinson Knitwear has constituted in the year 1935 by Wilfred
Rowlinson and currently it has been operated and managed by Donald Moore who is managing
director of company.
Products: It offers durable garments suitable for corporate and personalisation for
schools and clubs.
Size: It has attained almost 50 employees which is specialist in manufacturing clothing
products. Thus, the size of company in limited.
Scope: It has operated at international level by importing from Asia and North Africa,
supplying to hundred of retailers such as John Lewis. Therefore, the scope of sustaining in
market is high.
4

Mission and vision: Rowlinson Knitwear has three key aims such as gain market share,
enter new markets and investigate new products. Its vision is to capture large market share all
over the world.
Objectives: Its objective is to supply functional, durable and affordable clothing with fair
pricing (Overview of Rowlinson Knitwear, 2018).
Organisational structure: Rowlinson Knitwear adopt functional structure which assist
managers to adopt pre-planned strategies in more effective way.
Voluntary organisation:-National Trust
Background details: It came into existence in the year 1895 whose headquarter is located
at Swindon, Wiltshire. The company is based on trust.
Services: It offers welfare health services to the public.
Size: Such organisation has attained 5,899 staff and 62000 volunteers.
Scope: It is operated in different nations including England, Northern and Wales Ireland.
Mission and vision: Its mission is to advance, ensure and ration nature with adjusting human
needs. Also, its vision is giving equivalent rights, opportunity and dignity to the individual in
setting of common delights.
Goals: Its fundamental goal is "to secure regular assets with the end goal to keep up common
magnificence for the welfare of the country crosswise over Ireland and England
(Osterwalderand Pigneur, 2010).
Organisational structure: In this organisation, government are held liable to choose
trustees and support and screen the leading body of trustees execution and work.
5

TASK 2
P3:
Illustration 1: Organisational Chart of Company
Source: Organisational Chart of Company. 2013
There are huge number of staff employed in Rowlinson Knitwear at various departments
towards achievement of desired goals and objectives. It includes marketing, operational, human
resource division etc. The top authority includes Board of Directors, CEO and shareholders who
are liable to give instructions and guidance to middle and lower level management through
making suitable plans and policies. Therefore, it is very important for organisations such as
Rowlinson Knitwear to understand the contribution of different departments towards
achievement of desired goals and objectives (Organisational Chart of Company, 2013). It is
briefly described as under:
HR Department: It performs several functions such as recruitment and selection of
candidates, performance appraisal, fixation of remuneration, training and learning programs etc.
For this, HR administrator is responsible to work with marketing department about publicising
the job vacancies so that maximum number of qualified and skilled applicant took interest to
apply for the job. This will help organisation to gain skilled and knowledgeable workers which
gives more endeavour in achieving its desired target.
Finance department: It also perform crucial and important functions such as raising
funds from different sources, managing and distributing it to different department according to
their needs and requirements. Therefore, it supports other departments to execute their functions
more effectively through providing them financial help. For example, production department
6

required updated and advanced technologies and equipments that to be utilised under production
process due to which it requires lot of money to acquire and buy which can be possible through
taking support from finance department. This will enable organisation to produce quality
products and gain maximum profitability (Roederer, Nozzi and Nason, 2011).
Marketing department: It performs various functions which includes promotion of
products and company's brand, communicating and maintaining healthy relation with targeted
customers through using various marketing tools and techniques such as TV advertisement,
Brochures, Social media marketing etc. To perform such functions more effectively, it requires
support from production department to gain information about developed or new product of
company along with its unique features so that they can able to influence buying behaviour of
targeted people. Therefore, it enable company to achieve brand loyalty which indirectly makes
positive impact on their profitability.
IT department: It play an important role in securing confidential data and information
about the employees, loyal customers, annual performance of company etc. It assist organisation
to maintain its strong stability in competitive market for longer period for time. Such department
requires employees who have sufficient knowledge to work on modern systems such as MIS due
to which it requires support from HR department to recruit and select knowledgeable and skilled
candidates. This will assist company to enhance their financial position in market through
analysing financial reports maintained by employees of IT Department (Savrul, Incekara, and
Sener, 2014).
TASK 3
P4:
To sustain and compete with future uncertainties arises in business environment, it is
important for the management of Rowlinson Knitwear to analyse external factors more carefully
which can be done through conducting PESTLE analysis. It enable company to analyse the both
negative and positive impact on their business operation which makes easy for management to
make an effective decision in advance. It can be further understood as under:
Political factors: It is related with political fluctuations which can brings some changes
in existing policies such taxation policies. It affects the sales figure of Rowlinson Knitwear if
taxation rate increases on clothing products.
7

 Positive impact: Taxation or import-export policies of UK or in other nations are in
favour of company then it will bring a valuable opportunities to expand its business to
other nations. This will increasing presence of company in Global market. Negative impact: If such taxation or import-export policies are changes in against of
company then it will negatively affect their sales figure due to lowering buying power of
targeted people (Zikmund and et. al., 2013).
Economic factors: It is related with economic situation of nation which can influences the
buying power of customers targeted by Rowlinson Knitwear. Positive impact: Preparation of analysis report by the management of Rowlinson
Knitwear makes easy to gather knowledge regarding inflation rates and income levels. Negative impact: Rowlinson Knitwear is operated in UK thus if inflation situations arises
in such nation then it will badly impact on the buying power of targeted people which
indirectly makes negative impact on the sustainability of company.
Social factors: It is related with fluctuations in interest and needs of society which has attained
power to influence the existence of company either in negative or positive manner. Positive impact: Providing quality clothing garments to school and corporate people
enhances their satisfaction level which indirectly makes positive impact on their
profitability of Rowlinson Knitwear. Negative impact: Rowlinson Knitwear charges high priced clothing products which
restricts the people of low income groups to buy their products. This will lowering their
market share.
Technological factors: It is related with technological advancements which can assist
organisation to adopt through investing huge money in order to came into market with quality
products and services (On the move with award-winning Rowlinson Knitwear, 2018). Positive impact: Invest money on e-commerce assist Rowlinson Knitwear to sell online
which can easily attracts large number of customers across worldwide. Negative impact: Lack of skilled employees to work on advanced technology increases
the cost of company as it requires to conduct training and learning programs to enhance
the skills of workforce.
8

Legal factors: It is related with fluctuations in legal laws and legislations made by government
for an organisation. Rowlinson Knitwear operated in UK therefore it is required to understand
the UK laws and Acts more carefully. Positive impact: UK government has made employment laws such as Equal right act,
data protection act etc. thus if followed by Rowlinson Knitwear then it will get maximum
support from government and employees to sustain in market for longer period of time. Negative impact: Non-compliance of these acts increases dissatisfaction among
workforce as well as faced huge penalties as well imposed by government
Environmental factors: Positive impact: Working for the betterment of environment through minimising the
wastage while performing business operations enhances the brand image of Rowlinson
Knitwear.
 Negative impact: UK government has made environmental laws for companies operated
in their nation thus if failed to follow such laws then it will bring company's existence
come into danger.
TASK 4
P5:
Internal analysis shall be conducted to identify the strength and weaknesses of an
organisation along with opportunities and threats in market. For this, manager of Rowlinson
Knitwear must required to conduct SWOT analysis to make management more capable to draw a
suitable action plans in order to eliminate weaknesses by empowering their strengths (What
SWOT Analysis is in simple words, 2016). SWOT analysis is conducted as below:
Strengths:
 It has been awarded with employer of the year 2018 at Stockport business awards.
 Has attained specialised independent retailers to provide functional, durable and
affordable clothing with fair pricing.
 Partnering with companies that are fully compliant with all health, safety and child labour
regulations. It has been ranked as one of the UK's Best workplaces in small organisation category.
Weaknesses:
9

 The company owe HSBC due to taking funds on high rate of interest.
 Capture limited market share. Limited sales figure due to selling only school and corporate wear garments.
Opportunities:
 Should deal with e-commerce companies such as Amazon, Flipkart etc. to sell products
through using their online platform. Should engaged in wide range of clothing products so as to attract maximum number of
people. Should increase their employees strength so as to produce designable clothing product.
Threats:
 Facing tough competition with many rivals such as River Island, Marks and Spencer etc.
 Funds raised from HSBC lowering their profitability due to charging high interest on
loan.
TASK 5
P6:
The management of Rowlinson Knitwear must required to carefully analyse external
factors and accordingly identify whether the company is in position to compete with such
influencing external factors more effectively. For this purpose, it is important to interrelate
external factors with the company's strength and weaknesses so that further actions shall be taken
to make company more capable to deal with influencing external factors. It can be further
described as under:
Political: Rowlinson Knitwear is mainly operated in UK only due to which it can largely
affected by the political fluctuations in such nation (Business Environment, 2018). Strength: It is operated in UK whose political situations are more stable. Weakness: It is difficult for company to expand its business to such nation where the
political situations are more stable.
Economical: It is related with economic situations such as inflation which can influences the
sustainability of company. Strength: It supply to Asia where the economic stability and inflation situations are more
stable.
10