Regent College HND Business Environment Report: Iceland Limited

This report provides a comprehensive analysis of the business environment of Iceland Limited, a British supermarket chain. It begins with an introduction to the business environment and its impact on organizations. The report then examines different types of organizations, including their vision, mission, objectives, and legal structures. It explores the link between organizational functions and objectives, with a focus on the financial, communication, authority, and partner aspects. The report conducts an external analysis using the PESTAL framework to identify key strengths, weaknesses, and macro-environmental factors affecting Iceland Limited. Internal and external investigations are performed to determine the company's capabilities and shortcomings, followed by a SWOT analysis. The report concludes with a summary of findings and recommendations for Iceland Limited, highlighting the importance of understanding both internal and external factors for business success.

UNIT 1
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
LO 1.................................................................................................................................................1
P.1 Different types of organisations and the growth of the international business................1
environment...........................................................................................................................1
P.2 Vision, mission and business objectives and legal structure............................................1
LO 2.................................................................................................................................................1
P.3 Organisation function link with organisation objective...................................................1
LO 3.................................................................................................................................................4
P.4 External analysis of your organisation to identify the key strengths and weaknesses and
macro factor interrelationship between .................................................................................4
LO 4.................................................................................................................................................6
P.5 Interior and outside investigation for the selected structure in order to determine the
capability and failing .............................................................................................................6
P 6 SWOT Analysis...............................................................................................................7
CONCLUSION ...............................................................................................................................9

INTRODUCTION
Business environment consist of various external and internal factors that affects an
organisation in different functions performed by it. In order to reduce or minimise negative
influence of these factors it is very important to analyse each and every element inside and
outside of a business. The present report is in context to Iceland limited which is a British
supermarket chain in UK. This study will determine various type of organisations and the
development international businesses. The aim and objectives of cited company will be also
identified in this report along with their functions. Furthermore, external and internal analysis
will be included in this report for identifying the factors affecting Iceland limited.
LO 1
P.1 Different types of organisations and the growth of the international business
environment
Covered in PPT
P.2 Vision, mission and business objectives and legal structure
Covered in PPT
LO 2
P.3 Organisation function link with organisation objective
This task is associated with companies objective to centre about organization work
which will provide assistance to firm in building their overall industry and that will support in
improving overall performance of the establishment . This will assist in expanding the
business as well in increasing market share. Following are the essential capacities:-
 Financial System: - this situation lays emphasis on providing fund which is a vital
capability of every single association. That act like a spotlight in increasing their
revenue . For the smooth functioning of firm , fund is required to execute various plans
for improving efficiency of organisation .Money raised by investors should be properly
utilised to achieve business goals. This capacity provides the company to accomplish
their target & increase their growth rate.
 Communication :- Consistency helps in solving several internal hindrance between
representatives of work. It helps the enterprise in conveying messages in compose
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manner. This provide the firm in selecting right path for increasing productivity of
organisation. It is that capacity which helps in communication process as well as
raise the future position of enterprise.. It provides assistance in fulfilling aim of the
company and reduce difficulties faced due to external factors.
 Authority :- The innovator has an authority who will give directions about the work and
workplace. Every single co-worker is directed by the innovator regarding the work to do
which will illuminate their productivity. Authority includes a situation where the
innovator has a right to command or give orders to its subordinates. The innovator enjoys
the position of decision making process and also have to look out that their decisions are
obeyed. These are also helpful in increasing productivity and development of individual.
 Partner :- A Partner is a person who is accountable for both, profit and losses of a
business according to the stated partnership agreement. The person who engage
themselves with other persons in the same human action is referred as a partner. Partner
also invests in the enterprise for its working and growth and are liable to gain profits in
return. The smooth working of the enterprise and to perform the daily work, partners are
a helping hand for the enterprise. With this they have an advantage to gain the profits of
the business.
At last, the main purpose is to assist and help the business for its smooth working on daily
basis. In some sectors, the main aim is to attract more number of customers while in some
sectors to achieve more profits. All this organisational objectives are helpful in attaining the
determined goals and objectives.
Here is inter-relations of functions and there objectives
Sales department- This is also one of the most important department of company because if
sales department does not able to sales the products of company in the market than it is not
possible that company can achieve its goals in desire manner. The sales department of
ICELAND LTD is also very effective as well as efficient as they use to sell there products in
desire manner and company is achieving its optimum profit and increasing the share of market.
Interrelationship between all department are most essential towards the better objective
and effective learning process in order to meet out the ICELAND LTD targets. Such as
Marketing manager required take support from sales, financial, operational department in order
to promote the company product or services.
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Marketing department- This is backbone of the company as it is very important as
without this department none of the company can achieve its goals and objectives. Marketing
department helps company to make the people aware of the products. They use to identify the
needs and wants of the products of company in the market and after collecting the information
they inform to production department to manufacture e goods as per the requirement. Ion the
other hand, after selling of the product, marketing department use to identify the level of
satisfaction customers are gaining from the product and services of Iceland limited. This
department also connected with all other departments in order collect information such as
product services from production departments, full fill marketing needs from financial
departments, take talented employees from HR departments in ICELAND LTD.
Finance Department- This is department on which the entire organisation is depended.
The finance department use to provide the fund to other departments for the smooth working of
the company. The entire profit and sales of company is achieved if there is proper flow of fund in
the company. Finance department is the blood of the organisation that full-fills the all other
departments requirements and goals. Besides, it is the another challenging and effective
management goals in order to make the effective management target opportunity. Apart from
that, finance department interrelate with each department to provide financial services to them in
the ICELAND LTD.
Human Resource Department- This is department of company use to hire the employees
when company has vacancy. If there is no employees than it is not possible that desire goals and
objectives of organisation will be met. The human resource department of Iceland limited is also
very effective and efficient as they use to fill the vacant job positions in the company.
All last overmuch purpose is assist to come through enterprise clinical and another component in
ICELAND LTD activity place. In this way, it is most all-important for backstage sector
structure. In grocery store the main subjective is gain customer in market and aim to preserved
the development charge. In this manner all such role is assistance to attain objective in market.
HR department interconnected with other departments in order to review that weather it
is requirement of any other candidate or not in ICELAND LTD. For that, HR manager has
always get information from other department. Another major relationship between thin
department is enhancement of employee performance productivity. HR is the only department
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which taking care of all the employees and ensure the healthy department. Besides, all other
department get any information regarding any issue with HR department in ICELAND LTD.
LO 3
P.4 External analysis of your organisation to identify the key strengths and weaknesses and
macro factor interrelationship between
The term PESTAL analysis is a tool used to analysis the interrelation between macro
environment and the strength and weakness of the business. PESTAL stands for political,
economical, social, technological and legal environment that affects the strength and weakness of
the organisation and impact the over all growth of the company.
 Political components:- It is highly correlated with the strength and weakness of the
business. It can increase the risky elements or maximize losses. political factors include-
tax policy, environment law. ICELAND LTD will be unable to implement the changes
introduces by the government in the tax rates due to having poor business strategy.
However, They can aware workers about the tax benefits because of effective
communication among employees. Besides, positive impact of this political factors that,
it will help to secure business from uncertain punishments from government.
 Economic factors : economic factor influenced because of the changes in exchange
rates, national income, inflation, unemployment and stock market. Due to which
ICELAND LTD bounded to enhance the product prices. It will reduce the sales growth of
the company as well.
 Social components: Cultural factor affect the business decisions and it includes belief
and practices, behaviours of the society. Changes in the trends and activities of market
influence marketing decisions of manger and strategic goals. But due to having
ineffective business strategies they are unable to take effective marketing decisions and to
implement changes according to society. however, there is good communication among
employees so they will be able to make workers aware about the changes in trends in the
society. Social factor offers get affected by changing in society goals, lifestyle, attitudes
towards work etc. this factor affect the perception of customers. For that, it is necessary
for the ICELAND LTD to conduct research in order to full fill the customer needs as well
as societal needs.
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 Technological factor: This forces affects changes in technologies of the business. The
company is having an advantage of adoptive workforce. So employees will be able to
understand the new technology during their training programs in ICELAND LTD. And
able to adopt the rapid changes in the modern technology effortlessly. However, time
bound in relation to implementing the new technology is not specified . Because of this,
it will take time to employ the modern technology in ICELAND LTD.
 Legal factor : Legal external factor is highly affected factor to company if they fails to
adopt essential legal implications and code of conduct. It is necessary for ICELAND
LTD to acquire employment law, health and safety law, corporate laws into their business
practices. Otherwise, government will take strict action against defaulters.
 Environmental factors: This factor includes- changes in climate, environmental policies
of government. It is essential for the business to consider these changes while developing
marketing strategies to achieve accuracy in understanding market trends. pollution can
impact the strategy of ICELAND LTD reduce wastage of materials by the good
communication among the departments.
 The factor such as Defects, Quality and high standards are related with each other and
also influence to one another’s In circumstances when foundation declines for deciding
the quality and falling flat than it is unable to examine full scale condition factors that
neglects to elucidate essential strategic planning. Coming up short adversely determine
the foundation in case the foundation unable to achieve the experience mentioned by
arrangement of sufficient measured items. it also helps in making an effective
foundational and can impact in disruption of supply chains. Ineffective contingency
strategies can increase the cost of raw material and results in incurring losses. However,
they can reduce wastage of materials by the good communication among the
departments.
 The factor such as Defects, Quality and high standards are related with each other and
also influence to one another’s In circumstances when foundation declines for deciding
the quality and falling flat than it is unable to examine full scale condition factors that
neglects to elucidate essential strategic planning. Coming up short adversely determine
the foundation in case the foundation unable to achieve the experience mentioned by
arrangement of sufficient measured items. it also helps in making an effective foundation.
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LO 4
P.5 Interior and outside investigation for the selected structure in order to determine the
capability and failing
This context focuses on various components which have direct effect on performance
of the employees and on market situations. On the other hand, internal and external both factors
are most important in business environment. In this way, internal factor is helpful to identify the
strength and weakness in organisation and external factor focusses on all such kind of factor
which is outside the business and influence the internal working environment. ICELAND LTD
organization is focussing on interior working to know about the weaknesses of the people
working in the business. . This examination of internal and external factors will be helpful in
determining the capabilities of the people working in the business. It causes internal examine
which is least crucial and assist in growth of industry.
Strength Weakness Agreement is aid to optimistic impinging on organization executing. It is
focal point on fidelity and written communicating((Sekaran, and Bougie, 2016)). In imperfection
some antagonistic habit is distressed is give antagonistic contact on carrying into action. (Botha,
and et.al 2014)Good person is natural fibber affirmative impact on carrying into action. In
imperfection no time bound, property do not through in piece of work place. Workers are trained
properly so that their performance level is improved and will result in reducing imperfection of
the same.
the above table focuses on intrinsic working environment & improve growth rate in
market. However, internal working environment is focusing on controlling worker performance
and provide training to each and every employee about the work. It is give positive impact on it.
In this way, Posture and imperfection of the business organization system are accompanying
with large and small state of affairs factors. Social control compares strength of the
establishment with predominant large environment.
Then again, outside factor is to be centre around some elements like lawful framework.
Along with these work should be lead in accordance with legal structure. Legitimate structure
is minimum urgent to raise the approximation rate. In court-requested plan is feeling the worry
situation in certain land and certain constabulary are kept up them steady commercial center. In
this talk it is point of convergence on the client law and condition and security law or work law
in action put. All such kinfolk of law is to be expand any wrong movement in framework. In a
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similar setting political factor is give affect on development rate in association. It is
concentrating on what specialists may obstruct in monetary framework. In this setting specialists
may authorize the new tax collection and obligation is give negative contact on conveying
enthusiastically ICELAND LTD. Legislative factor is to be in-still duty strategy and other reason
is give confirmed and hostile both effect on it. In so much a case useful effect is give uncertain
amount the level of customer in grouped division and trim the expense rate in securities industry.
Some time it will give endemic impinging on it. With the assistance of research work is help to
expand the market development and utilize new innovation to build the piece of the overall
industry. To adjustment building is the majority of import to increaser level of conveying
without hesitation. In this talk examination and change is most immeasurably critical in pertinent
application and give hopeful effect at work completing (Tukker, and Tischner, 2017.).
Innovation is the least significant in commercial center. Examination activity ensure ambivalent
amount in conveying without hesitancy & well-kept up improvement rate..
All these factors have a effect on the development rate and needs to be improved in the business.
The basic leadership function has effected and has to be improved as leadership is helpful in
increasing the overall productivity of the employees. All these factors are to be examined
carefully so that their effects are minimised on both internal and external environment of the
business.
SWOT analysis of ICELAND LTD
Strength
 ICELAND LTD having high brand
value in the market.
 Variety of product or services.
Weaknesses
 Bad publicity as non trendy store.
 Manual working increases the costs
Opportunity
 Increasing global presence Market
 Segmentation.
Threats
 Heavy Competition.
 Chances of new entrants.
P 6 SWOT Analysis
SWOT analysis shows the internal business in terms of strengths and weakness of a
company or organisation, opportunities and threats of the external business. SWOT analysis is
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meant to spark the strategic ray and to calculate the facts and figures which assists for strategic
planning. As per the discussed PESTLE and SWOT analysis study, it has been concluded that
company can adopt effective measures in order to get over from threats and challenges. Such as,
all economic factors are needs to be considered by ICELAND LTD before planning about any
new strategies. On the other hand, company can also needs to adopt all legal implications in
order to generate faithful image in front of the market development.
TOWS Analysis in order to identify key strength and weaknesses.
Strength – opportunities : High recognition of the brand, Iceland organisation has
various strengths but this research emphasized mainly on the brand value of the company and
wide range of goods as well as outlets that assist in business growth. This is the strength of the
company that helps to maintained the social factor by improving the society standard of living in
order to develop the potential needs and goals. High recognition of the brand – Iceland is a
leading supermarket chain in UK, maximum customers are aware of the brand due to high
visibility. Wide range of products – Iceland had a wide range of products and services in each of
their stores or outlets.
Weaknesses -opportunities : ICELAND has a major drawback in the market place as
the company is non trendy and out fashioned. Even though the company has various products
and brands the general public has wrong assumptions that men's and women's wear. ICELAND
supermarket had a backdrop of following old methods rather than following the new methods
which increase the different aspects such as money, time etc.
Strength -threats : The organisation has a huge number of outlets and stores in different
countries which provides an opportunity to expand the business and achieve growth.
Market Segmentation is characterized as the procedure of splitting customers in a market
into various groups within which customers share similar level of interests in the same or
comparable set of necessity satisfied by a well-defined marketing proposition.
Weaknesses -threats : The major threat for ICELAND supermarket is increasing competition in
the market, the big players such as Tesco, Sainsbury's etc, provides a tough competition to the
company.
Interrelationship with external factors
Internal factors and external factors are interconnected with each others. External factors
affect the company strength and creates new threats as well. Such as, social factors can be the
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threat for the company in terms of changes the mind of customers needs and wants. Besides,
technological factor might be the strength for the ICELAND LTD to make some new creative
outcomes and generate new innovation between the company culture. However, environmental
changes can also affect the internal environment of the ICELAND LTD by influencing the
behaviour of employees etc.
CONCLUSION
In this report business condition assist in understanding the business conditions and
country progress. This report is based on the ICELAND SUPERMARKET organization. This
company is situated in UK and provides work in marketing division. In the report bit is given
that at the workplace there is a centre that controls the representative's execution and train each
works for every task. It is give positive effect on it. Then again, outside factor is to be centre
around .components like lawful model. Along with that lines work is directed with the legitimate
framework assistance. Implementation of Legal environment is not sufficient for minimum
significant in order to maintain estimation rate. contouring the report based on the individual
pioneer. That gives directions at the workplace. They give direction to every last colleagues
related to their work and manage them timely. Internals analysis and TOWS research is provide
coordination in effects and development rate in market and bring improvement in outside the
workplace.
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