Business Environment Analysis: KFC, CPS, Oxfam - Module Report

This report provides a comprehensive analysis of the business environments of three organizations: KFC, Crown Prosecution Service (CPS), and Oxfam. The report begins by defining business and the business environment, then proceeds to examine the various types, purposes, and legal structures of different organizations, including public, private, and voluntary entities. KFC is used as a case study for a private organization, CPS for a public organization, and Oxfam for a voluntary organization. The report delves into the size and scope of these organizations, exploring their missions, visions, objectives, and organizational structures. It also examines the interrelation between organizational functions, such as marketing, production, human resources, and sales, and how these functions contribute to achieving organizational objectives. Furthermore, the report conducts PESTLE and SWOT analyses to assess the positive and negative impacts of the macro environment on business operations, identifying strengths, weaknesses, opportunities, and threats. Finally, the report analyzes the interrelation of weaknesses and strengths with macro environmental factors, providing a holistic view of the business environment and its impact on the chosen organizations.

Business And The Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Various types, purpose and legal structure of different organisations...................................3
P2 Size and scope of range for different companies...................................................................5
TASK 2............................................................................................................................................7
P3: Interrelation between organisational function and organisational objectives.......................7
TASK 3............................................................................................................................................8
P4 Positive and negative impacts of the macro environment on business operations................8
TASK 4............................................................................................................................................9
P5 Internal and external analysis of specific organisation to acknowledge strength and
weakness.....................................................................................................................................9
P6: Interrelation of weakness and strengths with macro environmental factors.......................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business is defined as a function that is functioned by a group of persons or single
individuals in exchange of money or profitability. Main objective of these firms are to enhance
profitability so that growth and sustainability of organisation will be maintained in the
marketplace. Apart from that, Business environment is a total of internal or external elements
which can impact on the business operations in positive or negative manner. The chosen
organisation for this assignment is KFC which is a multinational fast food chain along with
based in Texas, U.S whereas, for Public company CPS and for voluntary Oxfam is taken in this
project. This report will discuss about the several type of firms and their vision, mission or legal
structures. It also includes interrelation between different departments which is necessary for
achievement of organisational objectives. In the last, PESTLE and SWOT analysis are also
conducted for determining influences of external factors on the business operations.
TASK 1
P1 Various types, purpose and legal structure of different organisations
In a marketplace, there are various organisations which are performing their business
activities and operations so that specific goals or targets can be achieved in proper manner. These
companies have also different kind of legal structures and purposes which can be more
understood by as below:
Public organisation: These types of organisations are controlled or regulated by
government authorities for making welfare and sake of citizens of nation. These firms acquire
their funds from financial transfers, tax duties of firms etc. Then chosen organisation for this
kind is Crown Prosecution services which is a prosecuting agency that provide legal advices to
investigating agencies across the UK (Andersson, 2015). This firm was founded in 1986 and is
based in London. Purposes and legal structure of this firm are given as under:
 Purpose: Main purpose of this organisation is to provide legal advices and suggestion to
the various investigation agencies such as police, armed forces etc. It also helps them in
deciding whether a person is a criminal or not.
Legal structure: Local government: It performs its duties at lower tier in the administration. These forms
of government have duty to maintain laws and legislations within the cities or districts.

 State government: This is a sub-division of central government which have responsibility
to organise code of conduct in a specific boundary of a state.
 Central government: In this kind of legal structure, the rules and regulations are
formulated for a particular nation and these are created by central governmental
authorities.
Legal responsibilities of these firms – CPS follows basic principles which are
formulated and have to follow by crown prosecutors at the time of making decisions for a case.
For making a charge of criminal on an individual, they have to test and follow a proper
procedure which is divided in two parts such as evidential or public interest stage. In evidential,
they can charge criminal case on the basis of proper evidence against them. Whereas, in public
interest stage they have to carefully collect proper evidences and research the case in a proper
manner for making charge of criminal on a person (Moutinho, 2011).
Private organisation: These kinds of firms are managed or controlled by a single or a
group of individuals. Main aim of these organisations is to earn revenues and profitability. Taken
organisation for this kind is KFC that is a multinational chain of fast food products along with
based in Texas, U.S. Purpose and legal structure of these firms are given as under:
 Purpose: Main purpose of these firms is to providing quality food products so that a
good image of restaurant is maintained in the mindset of customers. Company also do not
want to make any compromise in the quality of their offerings.
Legal structure: Partnership: These are the kind of organisations which are associated by a group of
individuals in which each person has responsibility as per their signed agreements of
partnership. Debts and profits are also shared by both of partners as per their partnership
with business. Sole trader: These kinds of firms are operated or managed by single individuals and very
less investment is needed for handling these businesses. Business owners of these
organisations have also responsibility to manage all the profits or losses.
 Private limited company: These firms are also owned by single or a group of persons
which is owned by shareholders. In it, it is very difficult for the shareholders to sell their
shares because they are also an important part of the firm (Laudon, 2016).
Legal responsibilities which are necessary for the Private limited to follow:

These organisations have to submit yearly report in the Companies house, UK. There is
an important obligation to the owners that they have also provide report to the company if there
is any modification are happened in the structure of firms. As KFC is a multinational fast food
chain therefore, there are some legal acts such as Health and Safety Act, 1971, food hygiene
certifications, Food premises approval which have to be followed by the management of KFC.
Voluntary organisation: These kinds of firms are formed or formulated by association
of individuals which comes together and performs their duties for completing a common phase.
It is very essential for these firms to take permissions from the governmental authorities before
starting any kind of activities. For this, the taken association is Oxfam whose main objective is to
eliminate poorness along with established in 1942.
 Purpose: Major purposes of these organisations are to provide proper help and assistance
to the needy or required persons of nation so that poverty can be eliminated from the
world.
Legal structure: Trust: These structures are divided in three parties like donors, trustees and beneficiaries.
These kinds of firms are formulated for fulfilling the needs and wants of those people
who have no ability to fulfil it (Hilton, 2013).
 Association: It is a group of persons who performs their duties for completing a common
task which can related with any kind of humanity work.
Voluntary firms like Oxfam have to follow some legal requirements which are given as
under: Members or trustees of these kinds of firms have obligations or responsibilities to make
their registration under the Act of Charity, 2011. These organisations are also known as Non-
profitable organisations. In it, members are restricted for earning any kind of profitability or
money. If the company dissolved or wind up then their assets and reserve funds will be
transferred or sold to other organisation engages in similar sector.
P2 Size and scope of range for different companies
The size and scope of various kinds of organisations are as follows:-
Voluntary organisation:- Oxfam
Background details: This organisation was founded in 1942 along with 20 trusts with an
aim of eliminating poorness from the global world. It is also called Non-guaranteed firm.

Services: Its volunteers are providing their services across the world for fulfilling the
needs of needy citizens of the world.
Size & Scope: 20 charitable trusts are involved in it along with it is providing its services
across the world. Therefore, it can be said that size and scope of firm is very high in nature.
Mission and vision: Mission of this organisation is to fulfil the needs of needy citizens
along with providing necessary things to them so that they can live their life in proper manner.
Whereas, vision of this organisation is to create a world without poorness.
Objectives: Main objective of these organisations are providing essential facilities to the
needy or poor individuals of country so that living standard of them can be improved.
Organisational structure: Organisation follows hierarchical structure in the workplace
in which they have to categorise duties of whole workforce of the firm in various parts so that
effective contributions from the volunteers can be taken in an effective manner.
Legal structure – OXFAM is non-profitable organisation due to which it follows legal
structure applicable on trusts. In which, they receives donation and use it in fulfilling the needs
of needy persons of nation.
Shareholders- volunteers, trustees and donors are included in its stakeholders (Goel,
2016).
Public organisation: Crown prosecution services (CPS)
Background details: This association was formulated by government of UK for
conducting criminal prosecutions in Proper manner. It was established in the year of 1986 along
with headquarters in London.
Services: Services which are given by CPS like they examines the evidences that are
gathered by armed or police forces and decide what kinds of procedure will be followed by them
in court.
Size & Scope: Annual budget of this firm is approx £592 million and around 600
employees are providing their services in it. It also provides lawyer services in the public interest
in England and wales.
Mission and vision: Mission of CPS is to gave justice through following procedures of
court and vision is related with providing employment to the skilled and experienced advocates
in UK.

Objectives: Main objective of CPS is to determine the difficulties faced by the people in
the prosecution process and provide the solution to the victims.
Organisational structure: It is a government and independent body.
Legal structure- CPS should follow all the rules and regulations which are formulated
by governmental authorities and perform its duties at local, state or national level.
Stakeholders: Members, Directors, government authorities are its main stakeholders.
Private organisation:- KFC
Background details: This association was established in 1930 by Harland Sandars and
its headquarters are located in Texas, U.S
Products: Main products of firm are Chicken Sandwiches, Wraps, Salads and French
Fries etc.
Size: It is world's second largest fast food chain with a presence in around 20000
locations (Cairncross, 2014).
Scope: This organisation is providing products and services across the world. Therefore,
it can be said that market scope of company is very wide in nature.
Mission and vision: Mission of KFC is to provide best quality in food products to their
customers and vision of the firm is to maintain global brand image along with providing hygienic
fast food products in the world.
Objectives: Prime objective of KFC is to formulate strong chain of fast food restaurants
in the world so that good return can be received by its shareholders.
Organisational structure: This organisation has also hierarchical structure in which
decisions are taken by the directors or division heads.
Legal structure- The company is private in nature due to which it follows the legal
structure applicable on private limited company.
Shareholders- Investors, customers, owners and jury members are main stakeholders

TASK 2
P3: Interrelation between organisational function and organisational objectives
Illustration 1: Organisational Chart of Company
 MARKETING AND PRODUCTION- There is important relationship among the two
functions and marketing without production is not possible. These two departments are
interrelated with each other like production department produces the good and marketing
department helps to sale those goods. Before sales marketing of product is important for
attracting the customers and for increasing the sales. Marketing team tells what kind of
product is more in demand among the people in market and with the help of that
information production team produces the goods. The advantage of this is that the
relation between two enhances the performance of the organisation. Disadvantage is that
if one performs poor it will affect the performance of the other (Platt, 2013).
 HUMAN RESOURCE & SALES- These two are connected with each other because
when sales department need more people in their team, they will take help of HR to
recruit them. For example: KFC required delivery boy in company for home delivery
purpose, they directly go to the HR department of KFC and ask them to recruit on their
behalf. They give HR department the list of requirement of what kind of candidate they
require. In return HR people will recruit some candidate as per the requirement of the
sales team. Advantage of this relationship is that the work load is divided in them
equally. Disadvantage is that if HR fails to recruit right candidate it will affect the sales
team as well as company because lot of time consumed in recruitment process.

TASK 3
P4 Positive and negative impacts of the macro environment on business operations
PESTEL OF KFC-
 POLITICAL- This factor tells about how the government of a country affecting the
company. In case of KFC, Brexit was the major political issue that had negatively
affected the company by completely disturbing the supply chain of the company, which
in result company did not left with much food storage for further production. But on the
other hand they started stockpiling the material which helped them to cope up with that
situation and that was the positive factor for the company.
 ECONOMIC- These factors are related to the economy of the country which includes
inflation rate, GDP of the country, exchange rate, economic growth etc. KFC is also
affected by this factor of economy in which it is working, like US economy is facing
decreased inflation rate which having a good impact on the company like KFC because
low inflation means high purchasing power of customers and more sales from the
company. But the negative impact of this is that price of companies product gets reduced
at this time and may not give the same profit to the company.
 SOCIAL- These are the factor that is related to the culture, belief, social trend, health
and safety etc. As according to a report, people in UK are getting very much conscious
about their heath and they prefer to eat healthy items only. This factor is negatively
affecting the food industry and specially KFC because they are more into the production
of fried items which is unhealthy and it is decreasing the sales of KFC. Positive impact of
this factor is that if people are getting health conscious, company gets a new way to target
customers by bringing healthy items in their menu.
 TECHNOLOGICAL- This factor is related to how technology affecting the company.
In case of KFC, they have launched a technology i.e., voice activated training test for the
employees of the company which helps them to train themselves by just asking the
questions. This technology impact the company in the positive way because it will reduce
their training cost and saves their time. Negative impact of this technology is that
interaction between the employee and employer will get reduced, there will be less touch
between them (Platt, 2013).

 ENVIRONMENTAL- This factor is related to the complete environment conditions that
is affecting the company. Like because carbon dense peatland and rainforest are getting
destructed in Indonesia and Malaysia by the usage of palm oil, so company has stopped
using this oil as their ingredient. This factor is positively affecting the company as
customers believe in environment friendly product so it increases the customer trust.
 LEGAL- This factor is related to the legal laws and rules of the company which is
affecting them. Like KFC follows all employment laws properly one of them is fixed
time of work, means that hour of working for employees in KFC is fixed and they will
never get forced to work over time. This legal law affect the company positively because
if employees start getting satisfied while working it will reduce the turnover of the
employees.
TASK 4
P5 Internal and external analysis of specific organisation to acknowledge strength and weakness
SWOT ANALYSIS ON KFC
SWOT analysis is important technique for the companies to understand their internal
strength and weakness and external opportunities to uncover and threats to eliminate.
Management of KFC is also using this technique to understand their internal environment so that
they can manage their threat, grab the opportunities, increase their strength and lessen their
weaknesses.
 STRENGTH- Major Strength of KFC is that it has a large market share with more than
15000 restaurants in more than 200 countries. It makes the company one of the leading
brand in comparison to its competitors. KFC has a strong financial base which is an
advantage for the company if they want to expand or diversify. From the past few years
company has focused on variety in their menu by adding veg items in it which earlier was
not included in their menu. Their marketing strategy is excellent and very tempting which
creates the urge in the customers to eat from KFC. Parent company giving full support to
the company.
 WEAKNESS- Major Weakness of KFC is the quality of their food. They facing a lot of
criticism for the use of transfat in cooking foods which is high in fat & calories, as people
are getting health conscious they are not accepting this and opposing these type of foods.

Other than this company is having issues in franchisee, they are facing a lot of problem in
it because of conflicts among them & in results many of their outlets are getting closed.
Other than this company is also harming the environment by hurting animals for their
non-veg menu which is causing the negative impact on the brand image and they are
losing their customers. Inflation in any country can also cause weakness in the company
by reducing their sales (Traver, 2016).
 OPPORTUNITY- There are lot of opportunities for KFC in the market. Targeting health
conscious people by improving the quality of the food and adding some healthy items
into the menu is the great opportunity for the company to again gain the trust of the
customers and increase its sales. Company can also grasp the opportunity of attracting
vegetarian customers by putting variety of veg. items into their list of food which in result
increase the target customers of company.
 THREAT – KFC have the major threat from its competitors i.e., other eating joints
which are competing with KFC in every way weather it is price, quality or quantity.
Change in lifestyle and eating habit of customers is also becoming the threat for the KFC,
people has started eating healthy items that are delicious too. They are getting health
conscious in coming years because of the rapid spread of awareness about healthier food.
KFC is working globally in many countries so change in the economy of any country is
also the threat for the company, like in situation of recession and high food price in any
country, company will face the problem of decline in sales in that country but it will
affect the company entirely.
P6: Interrelation of weakness and strengths with macro environmental factors
 POLITICAL- Company is facing franchisee issues which are occurring due to political
factors. KFC is performing its functional and operational activities in most of the nations
across the world. Therefore, if any kind of changes are happened in a specific country
then it can influence on the overall profitability of organisation. Main weakness of the
company is that they are not able in managing their number of outlets which is located in
many cities. Expansion and market reach are the strength of the company because the
political condition allows the company to grow and it is the strength of the company.
 ECONOMICAL- Weakness of KFC is related to economical condition of the country in
such a way that when country faces the situation of crises or inflation it directly affects

the quality of the food of KFC which is its major weakness of company. Strength of KFC
is directly related to domestic demand and consumption level of USA which is increasing
year by year that is increasing the demand of KFC and making it number one.
 SOCIAL- Like company producing veg items for their customers who do not eat non
veg. company is trying to fulfil the need of them by understanding their tastes &
preferences and culture of eating. So this is how social factor is affecting and creating the
strength of the company. Harming environment by harming animals is the weakness of
the company because it is unethical for some human being and it is creating a bad image
of the company (Shenkar, 2014).
 TECHNOLOGICAL- Strength like companies excellent advertisement is the reason of
technological factor of the company which is increasing the customers their customers as
well as their profits. Technology is the reason why people are getting aware about health
and they are eating healthy food-and-beverages and because of which company is facing
the criticism of making food full of fat & calories.
CONCLUSION
It has been concluded from the above discussed report that there are three types of
organisations which has their own goals, aims and purposes. The management of the firms needs
to ensure that the departments are assisting each other in their working as each department needs
help from other departments in order to perform their role in an effective manner. The
management of the firms needs to use the SWOT and PESTLE analysis for determining their
strengths and weakness along with the macro environmental factors which can influence the
business operations of the firm.

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