Business and Business Environment Report: Arcadia Group and BBC

This report provides a comprehensive analysis of the business and business environment, focusing on Arcadia Group and BBC. It begins with an introduction to the business environment and its impact on organizational decision-making. The report then delves into different types of organizations, including private, public, and voluntary sectors, examining their legal structures, purposes, and objectives. For the private sector, Arcadia Group's vision, mission, business objectives, size, scope, organizational structure, and stakeholders are detailed. Similarly, BBC is examined as a public sector entity, and World Vision is used as an example of a voluntary organization. The report also includes PESTLE and SWOT analyses, crucial for understanding the internal and external macro-environments of the businesses. The report concludes with a summary of the key findings and a list of references. The report covers topics such as sole proprietorship, partnerships, cooperatives, local, state, and central government, and trust legal structures.

Business and Business Environment

INTRODUCTION .......................................................................................................... 3
TASK 1 ....................................................................................................................... 3
P1............................................................................................................................ 3
P2 ........................................................................................................................... 7
TASK 2........................................................................................................................ 9
P3 ........................................................................................................................... 9
TASK 3...................................................................................................................... 10
P4 PESTLE Analysis ............................................................................................... 10
TASK 4 ..................................................................................................................... 13
P5 ......................................................................................................................... 13
P6 ......................................................................................................................... 14
CONCLUSION ........................................................................................................... 15
REFERNCES .............................................................................................................. 16

INTRODUCTION
Business Environment aggregates of all forces, factors and institutions which are external
to and beyond control of an individual business firm but which exercise a significant influence
on the functioning and growth of enterprises. Additionally, it has direct impact over organization
decision making which impact positively or negatively over firm’s productivity and profitability
(Shenkar, Luo and Chi, 2014). Moreover, it enable establishment to identify or examine its
strength and weakness in order to adopt challenges or threat that helps them to attain sustainable
proficiency and growth. This report is based on Arcadia Group that is one of the leading
retaining company established in the year of 2002. It deals into clothing, accessories, and shoes
with more than 2500 outlets across UK. This report covers, different kinds of organization along
with their legal structure, size, scope, purpose, interrelationship between various business
function. Implication of PESTLE and SWOT analysis for analyzing internal and external macro
environment.
TASK 1
P1
An enterprise is a process of dividing work into convenient tasks or duties, of grouping
such duties in the firm of posts of delegating authority to each position and of appointing
qualified manpower to be responsible that the work is carried out as planned in order to
accomplish common goal or objective. Along with this, every organization contains its own
purpose and legal structure which enable them to monitor or govern its business operation and
function for an attainment of high level of profitability in an appropriate manner. However,
setting up legal structure is one of the first decision during establishing a company as it defines
the way business is organized as well as allow them to determine legal obligation and can gain
better positioning within competitive marketplace. There are different kinds of organization with
its purpose and legal structure which are as follows:
Private
They are legally distinct entities with their own assets, profits and liabilities, along with
this personal finances of any shareholders are protected by limited liability. Moreover, its shares
are not offer to general public. Apart from this, its main motive behind establishment is to

maximize its profit as well as to earn profit in order to gain competitive advantage and also to
survive within marketplace for a longer period of time. The few examples of private firm are
designers, developers, retail, legal services, accounting and many more which work for
maximizing the profit with an optimum utilization of resources in an trenchant and expeditious
way. For acquiring deeper understanding of this concept, Arcadia Group is considered as it one
of the branded retailing company in UK which operate across the globe with a high and best
quality of products and services.
Purpose
The core goal of Arcadia Group is to become the first and best choice of customer by
rendering high quality of products and services in an affordable price.
Legal Structure
However, Arcadia some of the legal structure of Arcadia Group are as follows:
Sole Proprietorship: It is regarded as simplest structure in which it consist an individual
personality who is responsible for entire business operation and function as well as obliged to
take all gain and loss by its own. Some of its advantage and disadvantage are as follows:
Strength Weakness
 One of its main advantage is that it can
easily be formed by any person and the
owner has complete authority to deal
with the affairs of business.
 It contain unlimited liability which
bring several difficulties like in case of
creditors against business exceeded,
then the personal property of owner are
taken to pay their debts.
Partnership: Under this, business entity or ownership is divided among two parties who
come together with mentality to share all risk, responsibilities, profit and loss equally in order to
achieve organization common goal in an effective and efficient way (Prajogo, 2016). Some of its
advantages and disadvantages are given below:
Pros Cros

 This form of organization enjoys large
resources than a sole proprietorship
which benefit them in enlarging their
operation to get benefit from large scale
economies.
 The partnership form of business has
instability in nature as it may come to
an abrupt end of the death, lunacy or
insolvency of partner.
Cooperative: It is a private business organization that is owned and controlled by people
who use its products, supplies or services. Along with this, each member contributes equity
capital and shares in the control of firm on the basis of one firm. However, it also effect
positively or negatively over business function which are explained below:
Advantage Disadvantage
 Its core strength is that it exist and
operate for the benefit of its patron
members as well as they focused
towards improving bargaining power of
individual members and product or
service quality provided by members.
 Its negative side is that the mass of
members may lose its interest in
running firm and let small group take it
over and manage it for their own
benefit.
Public
It is also similar to private limited companies, in the sense that they are legally distinct
entities with their own assets, profits and liabilities. But one difference is that they can freely
trade their shares to general audience as well as it can be listed on a stock exchange. Moreover, it
is important for both social and economic development as their foremost aim behind setting up
their business operation is to provide a public service rather than generating or earning profit for
the betterment of community or society in a better manner. Some of its example are fire brigade,
air force, police, healthcare facilities and many more who devotedly contribute to serve
community and also protect their welfare for enhancing their living standard in a impressive
manner. In order to acquire detailed information about this sector of company, BBC is more

effective and suitable firm which is a world’s oldest and leading broadcasting organization
which is commenced in the year of 1922 and it serve worldwide with a fair and transparency in
trading their products or services. Thus, BBC is governed by Executive board and BBC trust
which help them to obtain maximization of profit. The several types of legal structure and it’s in
public sector are as follows:
Purpose
Their main aim is to enrich people’s lives with programs and services that inform, educate and
entertaining by being most creative organization in the world.
Legal Structure:
Local government: It is an authority which determine and execute measures within
restricted area inside and smaller than a whole state. Along with this, this government has two
fold aspect i.e. Mixture of both deconcentration and decentralization.
State government: Under this, it seek most of its help or support from central government
and provide proper advice and guidance to local authority in order to fulfill the requirements of
general public as well as boost up firm’s productivity
Central government: It is totally responsible for national environmental policy directed to
contributed towards sustainable economic development and to health, safety of people by
maintaining or improving quality of working environment (Kljucnikov and et. Al 2014).
Voluntary
It is fully independent from local and national government and distinct from private
sector. The key function of its establishment is to serve society and improve their life standard by
fulfilling their demand and interest in an innovative manner. Furthermore, its primal focus is to
generate social impact rather than profit for an enrichment of society or community in an
appropriate way. Some of the examples of an organization in voluntary sector are charities,
World Vision, YWCA, American Red Cross etc. who put their full effort to bring development
in education, health, housing and many more welfare service for unprivileged group within
community. To acquire more knowledge regarding voluntary, sector, World Vision is

considered as one of the not for profit organization which is highly dedicated to improve life
style of a company as well as find ways to eradicate poverty or injustice among community or
societies. It follows trust legal structure. Some of other structure are as follows:
Trust: It is governed by trust deed which set outs the objects of trust, names the trustee
and provides for an administration of trust. One of its advantages is that its formation provides
continuity in life of company even after the death of owner or trustee.
P2
Private – Arcadia Group
Vision: To generate a healthy relationship with customer and offer them best and
attractive products for retaining and capturing large number of audience attention towards brand.
Mission: To provide distinctively global, integrative and personal experience by
providing best quality of products.
Business objectives: To become a global force in fashion industry by fulfilling customer
demand and interest and boost up their morale which add value to its brand image as well as
enhance its market share.
Size: It encompasses of 22,000 manpower who contribute their best performance to
produce high and best quality of products in order to gain competitive advantage (Rastogi and
Trivedi, 2016). They adapted the strategy of acquisition into their business operation as its first
process was acquiring Jackson the Tailor and it's venture ebded in with the accquisition of
Ryman's chain of shops. In present scenario, Arcadia has 2500 outlet, in addition to seeking
growth through the acquisition and launching of new formats and forays into home sghopping ,
the group intended to enlarge its overseas presence from 57 outlets to 200 in 11 countries.
Scope: Its contain huge scope as it deal into clothing, accessories, cosmetics, shoes with
2500 outlets across UK and has its own subsidiaries like Topshop, Topman, Burton etc.
Organizational structure: It applies hierarchical structure that help them to manage all
division work properly and can render fast solution to business conflicts for creating healthy
working atmosphere.

Stakeholders: Its stakeholders are employees, suppliers, customers, civil society, and
materiality.
Public – BBC
Vision: BBC core vision is to create a world where each and every human resource be
informed and empower people live in healthy, resilient and inclusive communities.
Mission: It’s mission is to reach millions of customer through creative mode of
communication and trusted media in order to help communities and transform their lives in a
better manner.
Business objectives: BBC core goal is to attain high level of growth by providing ethical
and accurate information in order to increase market share as well as to sustain within
competitive industry.
Size: It contains highly dedicated workforce of 35,402 who are assigned with various
shifts like part time, full time and they contribute their best into attainment of increased level of
sales growth.
Scope: It has wide range of scope as it provides 10 network television services, 10
network radio services, 46 radio service plus an extensive presence. Moreover, it offer range of
carrier in the areas of journalism, broadcasting, technology as well as corporate roles such as HR,
legal finance and administration. However, BBC is planning to do merge with World Tonight
which is also a biggest player in broadcasting industry yet still the discussion is going on because
as per the report BBC radio journalist has warned them to merge with World Tonight and News-
hour team (BBC radio staff warn against 'unworkable' plan to cut costs by merging World
Tonight and Newshour teams, 2019).
Organizational structure: It follows line organizational structure allow them to make fast
decision making and maintain vertical relationship with all level of management.
Stakeholders: Its stakeholders are employees, customers, government, and general public.

Voluntary – World Vision
Vision: Its purpose is to eradicate the poverty and injustice among community or society
and enhance the life standard of people.
Mission: Their core mission is to transform human life and provide them a better life
which is filled with justice, prosperity and love (Aithal, 2016).
Business objectives: To create a world where every individual can live without fear and
poverty and can lead a life of justice, equality and abundance of richness.
Size: It has 22,500 employees who passionately work to remove scarcity and inequality
among community.
Scope: It consist great scope as it mainly centering over well being of societies specially
children and offer them education, shelter, food and clothing. Along with this, they are merged
or partners with Microsoft fro nearly 30 years as Wold Vision is getting huge support from
Microsoft in providing software donation in order to support the development of technology
infrastructure which enable them to enrich their productivity and also helps Wold Vision in
acquiring high level of satisfaction from wide range of people across the globe (Microsoft and
World Vision partner to spark digital futures, 2017).
Organizational structure: It implies divisional organizational structure in which each
departments are formed on the basis of function, product, geographic territory, and project.
Stakeholders: The stakeholders are government, employees, charitable trust, and
association, public.
TASK 2
P3
Each and every company is consist of different departments and each of them contain
their own roles and responsibilities which make them differ from other. These business function
are interlink with each other that enable Arcadia Group to accomplish its goal in an innovative or

creative way for survive among competitive industry. The interconnection among several
Arcadia Group’s departments are given below:
Marketing and Finance Department: Both these function has huge connectivity as they
require each other support. However, for advertising the product or service within marketplace,
Arcadia require enough fund which help them to attract wide range of customer towards their
brand. Hence, in order to promote product efficiently, Arcadia marketing function demand fund
from finance department which takes an initiative to evaluate all expense and budget in order to
provide full support to marketing division for promoting firm’s products in an impressive and
productive way.
Human Resource and Marketing: These two departments plays a vital role as they
contribute towards accomplishment of goals. Moreover, every company desire for hiring highly
skilled workforce who can put its best effort in an organization. For this, they seek
encouragement from marketing function in which they conduct job fare, advertisement in
newspaper, magazine, campus recruitment etc. By this, human resource department can recruit
enormous skilled manpower with the help of marketing tools which reflect Arcadia Group to
improve its overall performance innovatively and productivity (Aithal, Shailashree and Kumar,
2016).

However, Arcadia Group follows hierarchical order, which enable them to coordinate
among various departments and it facilitate them to implement best strategic decision in order to
gain competitive advantage.Although, each and every business function are interconnected
likewise organizational structure has vital role in organizational function as it enable them to
accomplish their goal in an effective and efficient manner within prescribed time limit.
Moreover, it help Arcadia Group to maintain a healthy relationship with all level of management
which lead company to attain increased level of productivity and profitability ratio. Yet, it
contain various advantages and disadvantages which are explained below:
Advantage Disadvantage
 It help them to govern or monitor each
and every function’s work easily and
can maintain a better relationship with
manpower of all level of organization.
By this firm can improve its
proficiency and can strengthen its
profit margin.
 In some cases, there will be a
possibility of arising duplication of
work as well as delay in passing the
information and receiving response
which directly impact over business
volume of sales and proficiency.
TASK 3
P4
It is technique which help firm to analyses its external macro environment and enable
them to make corrective course of action. By this, an organization can enhance its sales growth
and assist them to gain competitive edge effectively. However, Arcadia Group and BBC applies
this element to their business function which is explained below:
Arcadia Group
Political: It is concerned with government policies, procedures, political stability, interest
rate, tax policy etc. which has huge impact over company’s productivity. However, in UK due to
Brexit it effect negatively over Arcadia as it demands UK to leave EU that challenged company
profitability. Hence, Arcadia tackle this issue by reducing the cost of products in other country
like China, Romania etc. and expect UK that help them to maintain their volume of sales and it

directly reflect over its enhancement in proficiency ratio in a better manner (Bohari, Hin and
Fuad, 2017).
Economical: This factor includes inflation, deflation rate, economic stability, exchange
rate, and many more that effect over firm’s profit margin. In regard of Arcadia, it undergoes
through a drastic recession which took place few years ago which impacted negatively over
consumer buying behavior that became major threat for firm to attain proficiency. However,
Arcadia overcome this negative issue by putting their whole focus over digital sales which
attracted large number of audience towards firm and this activity helped Arcadia to survive
productively within competitive marketplace during huge recession period in UK economy.
Social: Under this, it covers demographic characteristics, norms, customs, values of
population and many more which influence greatly over organization potentiality to accomplish
their goal within prescribed time limit. Furthermore, there was a huge demand among UK female
population regarding recent trends and their fitting size which affected Arcadia sales growth and
development. Hence, Arcadia took this negative impact as an opportunity to enhance their
proficiency as they introduces new fashion style for clothing and manufactured for all size
women which enable Arcadia to retain huge audience and help them to expand its productivity in
impressive way.
Technological: It is regarded with latest innovation, advancement in technology etc. that
affect enterprise profit margin. In context of Arcadia, this factor impacted heavily over firm sales
growth as well as in expansion of business effectively as wide range of population were
demanding for online shopping that threat company’s proficiency. Therefore, Arcadia took this
challenge or threat as a platform for development as it produces or developed their own website
for online shopping which captured an attention of UK population towards Arcadia brand. Along
with this, it facilitate with an option of providing their reviews over company’s website
regarding quality of products so that they make corrective course of action in order to gain
competitive advantage. Due to this plan of action, Arcadia was enables to acquire sustainable
profitability in a marketplace (Scolozzi and et.al 2014).
Legal: It covers government legislation, laws, rules, regulation and legal procedure for
firm which is imposed by government which influence organization survival in an industry.
However, Arcadia always take one step ahead to build a healthy relationship with employees by

providing them fair reward, equal opportunity regardless of gender, age, religion as well as
generating healthy and safe working environment which help Arcadia to reduce its intervention
with government.
Environmental: This encompasses of eco friendly and environmentally friendly products
etc. which effect enterprise productivity. However, Arcadia was very much careful and sensitive
regarding environmental friendly products as it tales an initiative to minimize wastage of product
with an optimum utilization of resources that benefits that assist them to obtain profit
maximization by providing high quality of products without causing any harm to environment.
BBC
Political: It is concerned with those decisions which is made by governments and it
impact within a particular environment of business in a positive or negative way. Due to Brexit,
there was a huge negative influence over company business operation and function as it modified
entire company’s laws and government legislation which became challenging atmosphere for
BBC to survive in UK market. However, BBC were greatly benefitted by political stability in
UK which help firm to adapt changes or alteration in employment laws as well as enable them to
attain higher level of productivity and profit margin.
Economical: Under this, it consist exchange rate, consumer disposal income economic
performance, inflation rate etc. which influence company’s profitability rate. However, recent
2008 recession in UK has increased inflation which challenged BBC as it reflect in decreasing
consumer spending potentiality. Thus, in order to overcome the same threat, BBC focused on
other region business and reduce the price of products well as keeping discounts, offer and all.
By this activity, BBC was benefitted by generating its volume of sales as well as assist them to
gain a long time sustainable among UK market condition.
Social: Under this, it covers trends, consumer taste and preferences, life style, income
level etc. which has direct influence over firm’s proficiency. However, BBC undergoes through a
big challenge from UK population regarding equal pay and migration that effect negatively on
BBC business operation and function. Therefore, BBC overcome this negative impact by
building a local team who is specially assigned to oversee societal norms and attitudes that help
them to serve community in an appropriate way. Along with this, in order to deal with migration

issue it acquire international talent to manage or govern business operation that strengthen BBC
profit margin and add value to firm brand image within an industry.
Technological: It relates with innovation, automation, digital world, internet trading,
latest or novel technology and many more which affect organization productivity. However,
there was huge demand among UK population regarding fast and high speed internet service in
order to carry out their business function more accurately and effectually that impact negatively
over BBC proficiency. Thus, BBC took this negative issue as an opportunity to improve its
shortcomings as it introduced 5G internet services which add value to customer as it benefitted
them by attracting large crowd towards company brand and provide them high speed and
accessibility. Moreover it improved overall performance of firm and enhanced its sales growth
(Phadermrod, Crowder and Wills, 2019).
Legal: Being a multinational and reputed brand among UK marketplace, it always insist
them to follow all guidelines, procedure and policies of governments which prevented BBC to
reduce its interference or intervention with government and helped them to gain competitive
edge.
Environmental: It covers minimizing wastage of product, less pollution practices,
introducing environmentally friendly products etc. However, BBC acquire a policy of recycling
wastage of material and make it into useful or ecofriendly product which help BBC to retain or
hold back its customer and assist them to provide higher level of profiency and sales growth.
TASK 4
P5
In today’s competitive world, business often faced with complex situation that require an
assessment of their position and identification of innovative ways to stay head. With the correct
strategy in place, the potential of business can be improved. However, SWOT analysis is one of
the technique which can be used to identify that strategy. It help company to analyses and take
advantage of opportunity they are well placed to explore. It can be also combined with risk
analysis to examine threats facing business and ways of mitigating. However, Arcadia Group and
BBC implies this tool into business operation which is described below:
Arcadia Group

Strength
 It is well established brand that uses
successful marketing techniques and
operates in worldwide with over 2500
stores.
 They sell their products at competitive
pricing. According to the quality of
products customers are extremely
aware of their designer collaboration.
Weakness
 Online exclusives of products are not
always in stores to try on and many of
the products from graphics don’t
appear in stores which makes customer
confusing.
 Some of its clothes are similar to other
competitors like H&M which diverts
customer buying behavior and it
impact over Arcadia profitability.
Opportunity
 Optimizing marketing channels by
working with a variety of people as
they has an platform of NEWGEN
project which is working with new
and upcoming designers ( Abd.
Wahab, Muhamad and Arbab Shirani,
2014). However, this growth platform
allows them to improve their overall
performance as well as enhance its
profitability ratio.
Threat
 There is high level of competition
from is various competitors like Zara,
Mark and Spencer, H&M etc. which
impact Arcadia Group proficiency.
Hence, company should analyses
current and emerging trend of an
industry and based on that implement
productive decision which lead them
to gain competitive advantage in an
impressive manner.
SWOT Analysis of BBC
Strength
 It is one of the largest broadcaster in
world with 23,000 employees and it
always tough competition to its
contemporaries and covers its services
globally.
Weakness
 It’s operating cost is high as well as it
got caught up in controversies that it
touched sensitive issues in world that
effect BBC productivity.
Opportunity
 They have enormous possibility of
development in entertainment zone in
Threat
 It faces huge competition from CNN
that sometime impact negatively over

order to retain high number of
population which directly reflect their
business function by expanding its
productivity and profit margin.
company and help them to get
challenged by its competencies. Thus ,
they should be aware or updated
regarding all marketing trend in order
to gain best positioning within an
industry.
P6
There is a direct connection between internal and external factor of company as it help
firm to identify current and emerging trend of marketplace and allow them to implement
corrective course of action in order to acquire sustainable profitability. Moreover, it help Arcadia
to examine their various forces like political, legal, technological, economical etc. and assist
them to analyze its performance whether they are able to meet economical standard. Moreover, it
enable them to determine customer demand and interest in order to provide high level of
satisfaction which lead them to gain competitive advantage. However, in case of political factor
Arcadia and BBC is one of the leading and powerful company in United Kingdom that deliver
wide range of products as they have their own brand level. Therefore, Company may find
difficulty in hold back all resources in a specified period of time. Thus, establishment is requisite
to adapt advantage of different strategies to challenge factors in political environment. Moreover,
they will be enable to make best strategic decision which lead them to enrich their productivity
and acquire sustainable proficiency ratio within competitive marketplace.
CONCLUSION
From the above mentioned report, it has been summarized that every organization consist
of its own environment which has internal and external forces that influence directly over
company’s productivity and profitability. Along with this, there are several classification of
organization which has unique set of size, legal structure and scope that makes them differ from
each other. Furthermore, company has different departments which is interlinked among
themselves and put their best effort for an accomplishment of firm common goal. However,
PESTEL and SWOT analysis enable enterprise to determine its potentiality to acquire high level
of proficiency by evaluating their business environment.

REFERNCES
Books and Journals

Online
BBC radio staff warn against 'unworkable' plan to cut costs by merging World Tonight and
Newshour teams, 2019 .[Online]. Available Through;<https://www.pressgazette.co.uk/bbc-staff-
warn-against-plan-to-merge-world-tonight-and-newshour-teams/>
Microsoft and World Vision partner to spark digital futures, 2017 .[Online]. Available Through;
<https://www.worldvision.org/corporate/2017/07/17/microsoft-partnered-world-vision/>