Business Environment Report: Business Environment Analysis and Impacts

This report provides a comprehensive analysis of the business environment, focusing on different types of organizations, including public, private (Waitrose case study), and voluntary sectors. It explores their legal structures, sizes, and scopes. The report examines the relationships between various organizational functions, such as human resources, finance, marketing, and information technology, and how they interrelate to achieve business objectives. Furthermore, it delves into the positive and negative impacts of the macro environment on business operations, including an internal and external analysis of Waitrose. The report also assesses how the company's strengths and weaknesses interact with external macro factors, providing a detailed understanding of the business environment and its influence on organizational performance. The report concludes with a discussion of key findings and their implications.

BUSINESS & BUSINESS
ENVIRONMENT

Table of Contents
Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types and purposes of organisations......................................................................1
P2. Size and scope of a range of different types of organisations...............................................3
TASK 2............................................................................................................................................4
P3. Relationship between different organisational functions......................................................4
TASK 3............................................................................................................................................6
P4. Positive and negative impacts the macro environment has upon business operations.........6
TASK 4............................................................................................................................................7
P5. Internal and external analysis of specific organisations.......................................................7
P6. Strengths and weaknesses interrelate with external macro factors for the chosen
organisation.................................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................10

INTRODUCTION
Business Environment is considered as a combination of overall internal and external
factors that may influence the business in few ways or others. This essentially means a
aggregation of various factors that perform together in order to make effectually make
profitability into business (Avramenko, 2012). For this report the chosen company is Waitrose
which is leading chan of British supermarket. Its headquarters is in Bracknell, UK. This report is
based on various types of organisation, that includes NHS for public sector, Waitrose for private
sector and Oxfam is for Voluntary sector. The purpose of this report is to explain different types
of organisation their legal structure, size and scope. Relationship among various organisational
functions and positive as well as negative impacts of macro environment. Internal and external
analysis of company and along with this interrelation of strength and weaknesses with external
macro factors are also mentioned in this report.
TASK 1
P1. Different types and purposes of organisations
Organisation is considered as an entity that includes large number of individuals in
groups, these groups can be seen in an association or institutions. So, different types of
organisation are mentioned below:
Public sector:
Public sector is run by the government. The main purpose of this type of organisation is
facilitate services to the citizen of nation (Ballard and et.al., 2012). For example: NHS, national
health service that facilitates services to common people without more desired to earn
profitability. It is a publicly funded national health care provider.
Types: there are three kinds of government which rule the public sectors organisation
that are central, state and local all these are explained below: Central: It is refers as a government which holds independent supremacy upon unitary
state. This generally equal in a federation that is federal government. State: This is a government of nation partition in form of federal government. It generally
shares power of political with national system. It has few political autonomy level or
directly control of government of federal.
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 Local: This is a kind of people administration of districts, towns, cities etc. It includes
municipal as well as government frameworks.
Legal structures: The legal structures is followed by NHS is Central government.
Overall laws and regulations is considered according to central government.
Stakeholders: Stakeholders are considered as a party which have an interest over firm
and can either effects or be effected through the business. Some stakeholders of NHS are
contributors, commissioners, collaborators, rivals, channels, commentators and so on.
Private sectors:
This types of organisation is also known as a citizen sector, where economy earnings is
considered as a large objectives (Bharadwaj and et. al., 2013). It is operated through private
individuals or groups which do not have to answer to any authorisation. They are free to make
their own decisions. For example: Waitrose is a British supermarket chain that creates the
division of food retail.
Mission- It believes in championing British produce, treading lightly upon surroundings,
supporting accountable sourcing as well as treating individuals fairly.
Types: There are three types of business that comes under private sector organisations
that are mentioned below:
 Sole proprietorship: It is the type of business that is owned as well as run by individual
owner. It take their own decisions. For example: doctors, beauticians and so on.
 Partnership: It is the business that is run through more than two members and all
decisions taken after communicating with all partners. For example: Waitrose is running
a partnership business.
 Limited: It is also known as Joint stock company, these types of business are governed
through registrar of companies (Craig and Campbell, 2012). It is of two kinds public and
private limited company. In Public limited some bank and another firm like Genting or
Digi are included. It do not have any members limit. Private limited generally has 2 to 50
people and its shares can be sell only to few individuals.
Legal Structures: The organisation like Waitrose follow the partnership business
structures and all the rule and regulations are followed as per the companies act 2017.
Stakeholders: Stakeholders in Waitrose are employees, owners, shareholders and so on.
Legal structure of Waitrose:
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in legal structure of Waitrose has its business expertise that legally bound with mandated
commitment with co ownership and ethical structures. It has culture of involvement and
transparency in work and activities of employees. It uses a combination of trust mechanism and
corporate structure to establish an subtle and balanced governance system to bring efficiency in
marketplace.
Voluntary Sector:
It is mainly considered as a non profit organisation. It aim to develop social impact
instead of profit and also independent from local as well as national government (Hair Jr, J.F.,
Wolfinbarger and et.al, 2015). For example: Oxfam, its responsibility is to perform social
activity also enhancing relation with group of organisation and citizens. Its is refers as a
charitable firm which is a global organized company brand that extends its support to
international poverty of country as well as tries to minimize it.
Types: There are various types of voluntary sector some are as follows: Unincorporated: It is an company which is established through an agreement among
individuals group who work together for a purpose instead to create profitability. Trust: It can be established to manage property as well as land and receive money for
specific reason for the profit of a broad community.
 Community interest company: It is a considered as a limited firm by guarantee or share
problems with various added features like community interest test, lock of asset and
covers upon dividends.
Legal structure: For this organisation, the legal structure is according to the trustees all
patterns and regulations are to be decided by them.
P2. Size and scope of a range of different types of organisations
The various kinds of organisation is generally differentiated by their scope as well as
size. These are the clear indication of difference among forms of company (Vitale, 2011).
Various types of organisation size and its scope is mentioned below:
Public sector:
In this sector the chosen company is NHS which has set up their programmes in year
2002 mainly various health sections as well as its report is performing on IT strategies. After that
a new brand of similar agency was established which related with health and care that covers a
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large part of nation. Its employees as well as work line are employed from same country and also
placed essentially in Leeds West Yorkshire. Its shared delivery collaboration contracted with
chief executive of various NHS strategic health authority. It has approx 1.4 million employees.
Vision- “ To provide proper health, good care as well as effective value”.
Mission- “ To facilitate standard quality of care to each individuals per day”.
Private sector:
For this sector the selected organisation is Waitrose which is a chain of British super
markets established in year 1904. It has approx 52, 500 employees and number of location it
serves their services is 350 approximately. Its market of share is approx 5.1% and try to make it
largest groceries retailer within UK. It also export their goods to 50 countries having location at
middle east.
Mission- It believes in championing British produce, treading lightly upon surroundings,
supporting accountable sourcing as well as treating individuals fairly.
Voluntary sector:
In this sector the chosen organisation is Oxfam, its covers large parts of country that are
caused by poverty as well as analyse the actual justice inside. It perform essentially on local
company. Also facilitates assistance for individuals to increase its skills. The main objectives of
this firm is to directly assists individuals when local capability for them is not sufficient. Its work
is to help in organisational development which provides public to bear actual issues of the world.
Vision- “The world without poverty. It want a world where all are treated as well as valued
equally”.
Mission- “To assists create lasting solutions towards injustice of poverty”
TASK 2
P3. Relationship between different organisational functions
Organisation function is a process in different different activities are carried out by
different departments in the organisation (Hilton and Platt, 2013). Waitrose make different
departments like human resource, finance , marketing, information technology and warehousing.
There are many departments that an organisation make the relationship with one another in order
to link their organisation objectives that are as follows-
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Human resource- It is the process when all the employees hire, gave proper training in
satisfying the needs of the customers. Waitrose make the HR department to recruit and select the
good employees in the organisation. This can enhance more employees to come and join the
organisation. In this organisation all HR managers maintain proper sheets that who the employee
are coming and who is not coming. This make the relationship with the finance department in
which all finance managers maintain the proper balance sheet every year IN taking the
competitive advantage of the business. This help the HR department to choose the best
objectives with the finance department so that customers can meet future and current needs of
the employees in the Waitrose. The employees should maintain a good relations between the
employee and the employer so that there will be open communication with one another. Human
resource department needs to coordinate with other department such as marketing and operations
in order to find out the workforce requirement in these departments.
Finance- This is a process in which all the finance managers maintain a proper cash
flow statement so that all employees can gather all needs in the organisation. There is a strong
relationship between HR and finance department in the Waitrose. All HR Managers should have
the proper communication skills in which organisation can attain the competitive advantage. In
the Waitrose all financiers depend on the employees to understand the growth programmes in the
business. The relationship that help all the HR managers and finance managers that help to
attain the objectives in order to fulfil the needs of the organisation. Finance department is
responsible for budgeting different activities of the businesses such as marketing and
promotional activities in order to do so it needs to coordinate their activities with their own
activities.
Marketing- It is a process in which buyers and sellers are able to communicate with each
other (Hilton and Platt, 2013). Waitrose maintain the proper marketing mix so that all customers
can come and make the position in the target market. The relationship between Marketing and
HR implements that customers can have the full knowledge to both the marketing as well as the
HR departments. In the marketing department different sales is been made so that customers can
target the particular customers. This can make the link with the different factors that had made
the managers to achieve the objectives and all customers can meet future and current needs in the
business. Marketing department is one of important factor to reach at large consumer by taking
knowledge and information to other departments and bring products in market.
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Information technology- In this process all employees should have the proper knowledge
of the data programmes so that employees can able to make different decisions in the
organisation. Waitrose made different employees who have the proper knowledge regarding
information services in which the employees gathered some needs and programmes in the
organisation. The relationship between the Information technology and the marketing make the
impact on the customers who satisfy all needs to the customers and determine various
programmes in the organisation. This relationship made Waitrose to attain the organisation
objectives who can overcome different programmes and methods for all the people who gathered
some needs and objectives. The automation sector of Information technology and marketing
help to cater different needs and programmes that used to undertake methods and objectives in
the business. Information department is also responsible for collecting and storing information of
several other departments and in order to collect information it needs to look at different
activities of other departments.
All departments help Waitrose to attain the objectives and different employees can gather
future and current needs. This can maintain the proper relationship with each other in making
some policies, procedures and some objectives in the business. All the employees in the Waitrose
gathered some needs and programmes in the business to attain the objectives.
TASK 3
P4. Positive and negative impacts the macro environment has upon business operations
Macro environment is considered as a condition which exist into economy as a whole ,
instead of a specific region. It consists the PESTLE which includes components that impact the
environment of business and directly or indirectly effects all industry. All the factors are
mentioned below:
Political factors:
This factor is related with pressures as well as opportunities which is brought by the
political institutions and at what level policies of government impact company (Janita and
Miranda, 2013). It is accountable for producing rules and regulations that is passed by UK
government party. The affects of it is seen in Waitrose. Its impacts are:
Positive: Due to this import and export are uncertain so Waitrose can import or export their
products anytime. Which will help them to work globally while expanding their business.
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Negative: If the policies made may government are not properly followed by Waitrose so it
effects their goodwill and profitability. Company will also have to bear the legal cost involved
with the legal proceeding which will increase the financial burden on the company.
Economic factor:
This factors is related to economic framework, policies and at which level it impacts the
business.
Positive: Due to change in the economic growth its increase the profitability of Waitrose as more
number of people are available to buy their products. With the increasing level of economic
standard among individuals organisation can plan effective stratifies to increase its market share.
Negative: It impact negatively when nation of economy become weak in comparison to another
countries then it directly influence the Waitrose work system as well as level of production.
Social factor:
In social factors consist of changing trends and interest of people that is very frequent at
that time (Shenkar, Luoand Chi, 2014). In case of Waitrose which suffer from recent trends and
development that occurs due to technological advancement to achieve large no. of consumer base
and provide satisfactory results organisation have to give most desirable outcomes for their
consumers.
Positive:
Social factor work positively because consumers get satisfied and they can easily beat
their competitors in clear way. With customer satisfaction company can attract more customers
by following new trends.
Negative:
on other hand when expand market share they have to invest lot of money to satisfy huge
market base because they deal with every age group people.
Technological factor:
In technological factor consist of adopting advance techniques and tools so that
production efficiency can be improved (Laudon and Traver, 2016). In case of Waitrose they
aimed to bring bring artificial intelligence to get satisfactory results to their consumer base.
Positive aspect:
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when they implement new technology in market on other hand got large no. of loyal consumer
base which helps in increase their market base. New technology will also help the organisation to
increase their efficiency.
Negative aspect:
when implement a new technology into market they have to give training and
development to their consumer base which indirectly increase their cost.
Legal factor:
In legal factors consist of various types of legal laws and regulations which adopted by
and organisation to get effective results and desirable outcomes. In case of Waitrose employment
laws, labour laws and wage laws should be apply so that effective results should be achieve.
Positive and negative aspect:
it increases motivation of employees but on other hand it increase cost and create chaos in
organisation.
Environmental factor:
In environmental factor consist of adopt eco friendly products and services to protect
environment from degradation and give best products to consumers.
Positive and negative:
With help of environmental factor organisation can grab large no. of attention of new
with old consumers but on other hand it increase cost. where as it will also increase the cost of
the operation department as adoption of eco-friendly sytems will require capital investment.
TASK 4
P5. Internal and external analysis of specific organisations
SWOT ANANLYSIS-
It is a structure that used to determine and examine external and internal factors of the
particular organisation. This structure help in making various decisions that a particular
organisation find its strengths, weaknesses, threats and opportunities (Prins and Cybercrime,
2011). Waitrose is a retail supermarket organisation which deals in the food sector. The
following SWOT analysis of Waitrose is as follows-
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Strengths- It is the internal output that an organisation is going to undertake for
becoming a successful partner in business. Waitrose is a organisation which have 300 stores in
all over the world which has become a great impact to the organisation. It is building the great
identity with the other competitors in market so that it gain the maximum input . The success of
the Waitrose is that it developed the new innovation technologies for the customers who are
purchasing its new products. This company is employing 50,000 people in all over the world.
Weaknesses- If the market is slow, then no more customers will come to buy its product,
this is the weaknesses of the organisation. Waitrose intense competition is very low so that no
more customers come to buy its product. The media do not have the competitive advantage to
understand all needs of the customers in the retail market.
Opportunities- It is a process where marketers make the good image in the market.
Waitrose make a good success in developing the good products in the market. It increases the
market percentage that more suppliers came in the market so to enhance the business in the
market. This company build a great image in the eyes of the customers so that new customers
came and purchased its products.
Threats-When the company have the competition with the rivalry firms is known as
threats in any business. Waitrose make the different products but some products do not go
globally. This is the reason when the customers do not known its product .If the demand of the
product is high then the price will be increases and more customers will buy the products. It
increases the competition through the online references and competition will be with the rivalry
firms. The major threat is when new firm came ion the Waitrose to make the disadvantage
competitive firms to be increase, then marketers will not able to buy that product. This can cause
a great supply to the competitive market and there will be over distribution of the goods.
Swot analysis of sainsburry's
It is done in order to compare organisations strength in comparison to organisations weakness.
Strength
Right expansion moves from small grocery
store to conveyance stores.
business philosophy.
Wholesale and retail banking.
Innovative promotional strategies.
Weaknesses
Brand switching.
Low margins
growing cost.
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Opportunities.
Growth in villages.
Expanding into growing economies like
Africa, Asia etc
Self check out machines could help sainsburry
opening stores for 24 hours.
Threats.
Increasing globalisation.
Has to always secure quality/Financial viable
products from world.
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