Business Environment Report: Organizational Analysis

This report delves into the intricacies of the business environment, analyzing various organizational types, sizes, and scopes. It examines the public, private, and voluntary sectors, providing examples such as Sainsbury's, Microlease, and Oxfam. The report explores the interrelation of organizational functions and their alignment with objectives, while also evaluating the positive and negative impacts of the macro environment on business operations. Furthermore, it conducts an internal and external analysis, incorporating SWOT/TOWS analysis to assess strengths, weaknesses, opportunities, and threats. The analysis includes the relationships between strengths and weaknesses with external macro factors, offering a comprehensive understanding of the business landscape. The report concludes with an overview of how organizations navigate and interact with the business environment, considering both internal and external factors.

UNIT 1
BUSINESS
&
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Various types, size and scope of organisations .....................................................................4
P2. Size and Scope of a range of different types of organisations chosen for the purpose........6
TASK 2............................................................................................................................................9
P3 Relationship between different organizational functions and how they link to
organizational objectives and structure chosen for the purpose..................................................9
TASK 3..........................................................................................................................................10
P4 Positive and negative impacts of macro environment upon business operations................10
TASK 4..........................................................................................................................................12
P5 Internal and external analysis with strength and weakness, SWOT /TOWS analysis.........12
This has been observed especially in the developed markets of North America, Europe and is
growing in Asia. According to the Frost & Sullivan research Microlease is far the largest
market for rental and leasing services for electronic test equipment with a revenue share of
25%. .........................................................................................................................................13
6 Inter-relation of strengths and weakness with external macro factors...................................14
CONCLUSION..............................................................................................................................15
REFERENCES .............................................................................................................................16

INTRODUCTION
The functions of the business within a whole gambit of number of micro macro factors
and have top negotiate its way through it. The success and sustainability of business depends on
how efficiently it interacts with environment. Business environment is a combination of various
internal factors like management, men, machinery etc. and external factors comprising socio,
economic and other factors. In today's combative business environment there is immense
competition in market adding on to it today customer has also become intelligent which leads to
frequent change in their aspirations and expectations (Asif, Garvare and Ahmad, 2011). Thus, a
firm to attain profitability, growth and large market share is required to cater the needs of its
consumers by analysing prevailing opportunities, rival’s tactics, consumers tastes and
preferences so as to make relevant changes in its present products or services or to introduce a
new product.
This project discusses about Sainsbury's which is a multinational public retail company.
It is the second largest supermarket retail dealing in groceries and general commodities.
Microlease is a private limited form providing total solutions for electronic test equipment’s to
help users deploy equipment’s in most cost-effective manner. Oxfam is a charitable voluntary
organisation working with the objective of eradicating global poverty.
This assignment will discuss about different types, size and scope of firms along with
explaining interrelation of its various functions and how they link to organisation's structure
(Bhaduri and Ha-Brookshire, 2011).

Further, it will explain both positive and negative impact of macro environment on the working
of firm's operations. Moreover, it will relationship of company's strength and weaknesses with its
external factors.
TASK 1
P1 Various types, size and scope of organisations
Organisation irrespective of their type proves to be a major source of employment and
economic development of a nation. A firm during its origin requires to take decision related to its
sole purpose for conducting business that further shapes its vision, mission and objectives. Firms
are basically segregated on basis of them for profit or not for profit perspective. Mentioned
below are the three main sectors public, private and voluntary in which most firms are divided:
Public Sector: Public limited company are those where in firm has sold a proportion of
its shares to general public for the purpose of fund generation. Public companies conducts its
business operation on the basis of guideline, policies and legislations laid down by government
who controls its functioning for providing products and services as per demand and needs of
general public at affordable prices regardless of income or wealth generation. Public companies
are one of the major source of employment generations as they require large workforce to carry
out and manage its operations (Cavusgil and et. al., 2014). For instance, Sainsbury's Ltd. is
second largest supermarket chain across the globe. It main products includes groceries, dairy
products, fresh food and others at affordable prices and high quality.
Purpose: Public limited firms conduct their business with main objectives of contributing
in the economic growth and improving standard of living of the people of a country. These firms
follow a holistic approach for providing benefits to citizens by giving them employment
opportunities, to provide them with basic necessities of life at reasonable prices and many such
other social benefits.
Private Sector: These Private firms forms that portion of economy wherein goods and
services are manufactured and provided to customers as per their requirements for generating
higher profits. These companies are self-owned and are managed by individual(s) without any
government interference. They however conduct their business activities as per guidelines

incorporated by government and have a well-defined structure, vision and mission statements
and objectives. For example, Microlease limited is a private brand that sells, purchase, finance,
rents and lease test equipment’s across the world (Chetwood and et. al, 2014).
It products ranges from radio frequency spectrum, mobile communication equipment’s, signal
generators and other products at reasonable prices.
Voluntary Sector: Voluntary organizations are the firms created by a group of people who
shares same interests and motives of contributing and benefiting society somehow. These firms
work towards redressing major social issues and enhancing the life of its members. Voluntary
firms are characterized by its not profit objectives and requires no legal forms to carry out its
activities. The main source of funds of these organizations is its members only who contribute
for company's expenses apart from that other sources includes donations, charity, government
aids and subsidies (Crane and Matten, 2013). One such organisation is Oxfam International,
which is a charitable firm founded in 1942 with its headquarters at Oxford, England. It is one of
the world's leading firm in providing emergency relief services and undertaking long term
development programs for providing assistance to vulnerable committee.
Purpose: Major areas of its working includes disaster relief, poverty eradication, advocacy,
policy research and pro migration.
Legal structure of the sector
Private sector: - It is basically of two types: -
Sole proprietorship:- Sole proprietorship is a firm that is owned and run by one person who has
direct control over all activities of business. The sole proprietor is accountable to formulate and
manage all process, policies receives all profits and is responsible for all debts and losses. For
example Graham Harvey & company is a sole proprietorship has a wide range of tax services
and accounting at very affordable price and also the initial consultation is always free.
Partnership: - It is an union or joint venture of two or more persons who agrees to sign a
partnership deed defining their profit sharing and capital ratios . For example, Uber with Spotify
can sync the spotify accounts of the Uber and also select the playlist and have the music which
has been already playing when customers open the door of the car. (Gharajedaghi, 2011).
Public sector: - Mentioned below are government bodies covered under this. For example, NHS
is an executive of the non-departmental of the public body which has the department of health

care which provides the free facility to the public and it also oversees the planing, delivery and
budget.
Central government: - Central government is responsible for administrating and regulating
business operations of both state and local government. For example, State government: - Enterprises under state interference are subject to follow all laws and
regulations that are implemented by government.
 Local government: - Local government in general deals in providing goods and services
that benefits citizens in addition to undertaking activities for social welfare of people.
P2. Size and Scope of a range of different types of organisations chosen for the purpose
The basic criteria of segmenting organizations are on basis of no of employees required
to handle its operations, scope of a firm that in general are segregated on basis of number of
people required to carry out and manage its operations, its scope which is ascertained to be
depicting size of firm and also various geographical locations where company is conducting its
operations along with its mission and vision. Size and scope of Sainsbury's, Microlease and
Oxfam International are mentioned below: -
Sainsbury's: Sainsbury's is the third largest food retailers in UK. It a well-known brand that
deals in groceries and other expanded range of general merchandise. Sainsbury's is known for
offering quality products at fair prices (Gilboy, 2016). Founded in 1869 by John James
Sainsburys with a shop in London the company become the largest retailer of groceries in 1922 ,
was early adopter of self-service retailing in the UK. The holding Company , Sainsbury is split
into three divisions: Sainsbury’s LTD, Sainsbury’s Bank, Sainsbury’s Argos.
Over the years the company continued to refine its product offering and maintain its leadership
in terms of shop design, convenience and cleanliness. Also the company had fluctuation on the
share market and he place as the largest retailer it’s been taken by Tesco but not for long time.
Sainsbury has recovered from financial issues and in 2010 had won a multimillion-pound deal
with Organising Committee of the Olympic and Paralympic Games. Under the deal Sainsburys
become involved in high-profile events.
Size: Sainsbury's is the largest retailer of commodities across UK. It offers a variety of
food and non-food items at reasonable amount to its consumers. The firm has around 872 stores

offering around 30,000 products to around 19 million consumers. It has team of 150,000
employees that manages its operations in UK, Scotland, Ireland, Belfast, US.
Scope: Sainsbury's captures 16% market share in US. Apart from offering a wide range
of 30,000 products ranging from groceries, dairy products to non-food items Sainsbury's also
deals in financial and property sectors. Other areas of operations includes Sainsbury’s Fuel, cafe,
poultry farms, banks and energy. With digitalization era, Sainsbury's has effectively make its
online presence by launching online shopping portal “Sainsbury's Online” where in customers
can choose and place order through their phones (Kian Chong, Shafaghi and Leing Tan, 2011).
For example:- organisation has several departments and organisational complexity is
multiple entitles for differentiating the organisation among themselves. It also refers to the
number of resources which involves the division, projects and teams. It also shown the structure
of the organisation and also the system which has huge complexity in the Sainsbury.
Vision: “Migros – a better life everyday”. “Quality perfect, prices lower”
Mission: “Our mission is to be the consumer's first choice for food, delivering products
of outstanding quality and great service at a competitive cost through working faster, simpler,
and together”
Microlease: Microlease is a public limited firm that provides total solutions for test
equipment’s.
It deals in purchase, sell, lease, rental of test equipment’s to its clients comprising state-of-the-art
warehouse, logistics systems and laboratories.
Microlease has 40 years experience on the market as a provider for electronic TestEquipment
and become the expert in TestEquipment management and have evolved into a global
organisation with offices across Europe, the US and Asia, supplying equipment to all the major
names in the industry.
The Microlease group includes both Microlease and Livingston and means strong technical
expertise and understanding of industries such as Aerospac and defence, automotive and
transport, contract manufacturing, semiconductor and components, telecommunications, and
general electronics.
Also the company build strong relationships with all the major Test Equipment manufacturers to

offer equipment in innovative ways. Their customers are leaders in a vast assortment of
industries and both wireless technology and wired systems work because of them. Network
function, satellites transmit, loud speakers boom, circuit boards hum, and computers for every
application work only because of the customers they have.
Size: Microlease has a team of around 350 specialists that strives to provides advice and
solutions to its customers expanded in around 150 countries. It offers around 8000 products and
has a net worth of around £485 million. The company has operations and state-of-the-art
warehouses, laboratories and logistics systems in Europe, the America, and Asia.
Scope: Microlease is the largest multinational brand offering top test equipment brands
with its objective of providing right customised equipment’s, finance solutions and services for
each customer at affordable price. Strong relationships with all the major brands and constant
investments in product and service innovation.
Vision: "Integrity - Continual improvement - Inclusivity”
Mission: “Our Mission is to put the "brains" (software) behind all those "eyes" (cameras) that
surround us.”
for example:- it is important to have the simplification of the imperative business for the small
sizes of the companies such as Microlease where it is critically growing for the small and mid
size of the business. Competing with the global marketplace which brings the complexity for the
organisation.
Oxfam International: It is a global organization that was establishes in 1942 with association of
20 independent charitable firms. It works towards reducing poverty and injustice faced by people
around the globe (Li, and et. al., 2011). They are becoming a world leader in delivery of
emergency relief. Oxfam is now an International Confederation of 19 organizations working
together with partners and local communities in more than 90 Countries. They are based in
Australia, Belgium, Brazil, Canada, Denmark, France, Germany, Great Britain, Hong Kong,
Ireland, India, Italy. Mexico, The Netherlands, New Zealand, Quebec, South Africa, Spain and
the United States.

Around the globe Oxfam is determined to find practical and innovative ways to mobilize people
to lift themselves out of poverty and trive.
Size: Oxfam international runs its emergency relief campaigns and development
programs at global level in around 100 nations with its 3000 partners in order to provide training
and financial help to vulnerable people in developing and disaster-prone areas. Oxfam has more
than 1200 shops worldwide with about 630 Oxfam shos in the UK. There are about 100
specialist bookshops including books and music and Oxfam is the largest retailer of second –
hand books in Europe, selling around 12 million books a year.
Scope: Oxfam International undertakes various relief programs against food, poverty,
disasters. They are continuously working with its members for the betterment of human rights.
Oxfam policy is to create a World where people are valued and treated equally, to enjoy their
rights as full citizens, and can influence decisions affecting their lives. They want to create
solutions to the injustice of poverty, to build a future that is secure just and free from poverty.
Vision: “ the main aim of the Oxfam international is A just world without poverty.”
Mission: “To create lasting solutions to poverty, hunger, and social injustice.”
for example:- Complexity of the project management is introduced the large numbers of unique
complexities of the large projects, often virtual teams, diverse and also it posses the challenges
for the success of the projects.
TASK 2
P3 Relationship between different organizational functions and how they link to organizational
objectives and structure chosen for the purpose.
Microlease is a private firm that deals in providing test equipment of best quality in
affordable prices to its clients that consists of industries like telecommunications, wireless,
defense, aerospace, automotive, semiconductors and wired system. It is one of the leading global
firm which has successfully diversified its business operations both geographically as well as in
relation to its product line (López-Gamero, Molina-Azorín and Claver-Cortés, 2011). It clientele
comprises customers from around 13 countries across world demanding a variety of products
including as it provides variety of commodities ranging from radio frequency spectrum, network
analyzer, signal generators and many other instruments. Its services help minimise the costs of

acquiring test equipment, optimise its use and maximise return at end of life without stretching
capital expenditure, and include rental, leasing, sale of new and used equipment and buy-back as
well as full asset management. Microlease currently provides equipment from leading
manufacturers, including Anritsu, Keithley, Keysight Technologies, Rohde & Schwarz,
Tektronix and Viavi. (Frost&Sullivan – 2017). Thus, in order to maintain the lead and to provide
most innovative and customized products as per consumers’ needs firm has to maintain
coordination among all its divisions so that work efficiency could be maintained as people work
in one direction without any role or responsibilities conflicts towards achieving firm's aim of
providing quality products at reasonable cost (Meiners, Ringleb and Edwards, 2014).
Interrelation of various departments of Microlease is mentioned below:
Research and development: R&D department plays significant part in success of
Microlease s it provides detailed information about needs and requirements of its clients so that it
can provide the best solutions for electronic test equipment by either making changes in the
present products or by proving an entire new product customize as per its client’s specifications.
R&D functions in close association with finance unit which sanctioned funds that are requisite
for carry out market research. The interrelationship between marketing and research and
development department both the departments truly focuses on the understanding and also the
acting of the customers needs. From the interrelation of both the departments it makes much
easier the task and work of the organization and the result which it get is more productive. R&D
department conduct research on the development of the departments where it identifies the needs
and demands of the customers. On the other hand from research it fulfills the needs of the
customers through marketing where all the strategy of selling the products has been applied such
as advertising, benefits etc.
Human resource department: HR department of Microlease carry out various activities
related to hiring, managing its employees along with designing various compensation and
benefits, training and development programs and works towards maintaining cordial relations
with its workforce in order to motivate them to be competitive by enhancing their skills and
proficiency and work with best of their capabilities to complete their assigned tasks. HR unit
assists other departments like marketing unit by providing them with professionals having right
capabilities so that they can assist clients in managing their queries, understanding their
requirement and providing them with viable solutions for it. Sales management always needs to

ensure the goods in the terms with the human resources with the professional employees with the
same company. It also fostering the relationships and also the collaboration is necessary. Both
the sales and HR department correlate with each other because sales department has to
communicate for what exactly looking for taking and giving the HR department. Its
responsibility of the HR department that hire the better salesperson for the sales department. It
has over deciding the types of the salesperson for better experience candidates. (Sekaran and
Bougie, 2016).
TASK 3
P4 Positive and negative impacts of macro environment upon business operations.
Business firms like Microlease that operates its activities in global market are subject to
impacted with various external environment factors that can affects its profitability and sales
volumes. As macro environment is beyond the control of any business Microlease is required to
be proactive in planning out strategies and plans by scanning market dynamics in order to
successfully avoid or deal with market threats or uncertainties.

Mentioned below is company's PESTEL analysis to forecast positive or negative impact on its
business activities.
PESTLE
Analysis
Description Positive effects Negative impact
Political These factors include all the
policies, legislations
incorporated by government of
a particular nation Microlease
is a multinational company is
subject to various political
issues like labour laws, tax
policy, political stability and
other that are greatly impacts it
sustainability (Tayur,
Ganeshan and Magazine,
2012).
Microlease carefully
analyse various laws
related to conducting
business operations
and employees of
particularly nation to
avoid any legal issues
that can hamper its
business
Microlease is subject
to experience heavy
loss in case firms
become inefficient in
handling any changes
occurring in present
political scenario, tax
or labour laws etc.
Economical It includes factors like wages,
growth rate, economic,
conditions salaries, etc.
prevailing in specific country.
Firm in order to maintain its
profitability and growth need
to closely watch over inflation,
foreign exchange rates so that
it can manage its funds
accordingly.
Microlease can expand
its market share by
providing best quality
products to potential
clients at affordable
price to earn profits
and maximise its sales.
In case specific nation
is experiencing
inflation, phase
purchasing power of
consumers will be low
pertaining loss to
Microlease.
Social It refers to responsibility of a
firm to fulfil its corporate
social responsibility in order to
build positive brand image
Providing quality
equipment’s with ISO
quality standards with
reasonable price help
In case Microlease
fails to provide
standardised products,
it will lose its market

Microlease is providing quality
test equipment’s with ISO
55000 standards to its clients
at reasonable prices
firm to build trust and
positive brand image
among its clients
which help Microlease
to retain present
customers and attract
potential ones.
share.
Technological It forms one of the major
component in improving and
increasing the profitability and
gain market share by getting
an edge over business rivals.
Microlease in relation to
changing technology has
adopted the latest techniques
which has led to increase in its
utilizing its giving resource by
<30% to 70%.
Microlease have
successfully utilized
the latest technology
to cater the needs of
its customers which
has helped the firm to
increase its clientele
and market share.
With advance
technology firm might
experience loss due to
incapability and
inefficiency of its
employees to cope up
with new technology.
Legal factor From the laws and policies
which is directly impact the
way of doing business and
taking the decisions with full
power.
positive impact of the
legal factors is
sometimes the policies
and laws are under the
benefits of the
organisation
Negative impact of the
legal factors is from
the new laws and
policies it affects the
whole organisation
working environment
Environmental
factors
It means the factors which
operate the business and also
analyse the needs in depth and
all the implication from having
it
The positive impacts
of the environmental
factor is from
considering this
factors organisation
makes the eco friendly
The negative impact
of the enviornmental
factors is from making
the products which is
harmful for the
environment and

products which is
useful for both the
customers and
organisation because it
retains customers.
affects the
environmental factor.
TASK 4
P5 Internal and external analysis with strength and weakness, SWOT /TOWS analysis
A SWOT analysis is a high-level strategic planning model that helps organizations identify
where they are doing well where they can improve, both from an internal and external
perspective. It is an acronym for “Strenghts, Weaknesses, Opportunities and Threats.
Bellow i am going to present a SWOT analysis for Microlease.
STRENGTH
Core competency of Microlease lies in its
logistics, IT and technical expertise leading to
optimum use of its resources
Firm is financially sound
Firm provides innovative products apt for
client’s requirements (Türetken and et. al.,
2011, June)
Highlighting its strong focus on international
expansion, Microlease, the leadingtest
equipment rental and asset management
organisation, has announced international sales
growth of more than 53% per annum achieved
WEAKNESSES
Lack of proficient employees in comparison to
adoption of latest technology
Lacks in customer care services

over the past two years.
OPPORTUNITIES
With investment in new inventory company is
expected to develop close relations with
OEM's giving them competitive advantage.
THREAT
Due to emergence of other market competitors
providing better customer and another services
company is expected to face great competitor.
Microlease has provide over the years they are strong by keeping the high standards of quality in
all aspects of the business, calibrating equipments in accordance with the Original Equipment
Manufacturer’s specifications, or acting in the best interest of the communities.
This has been observed especially in the developed markets of North America, Europe and is
growing in Asia. According to the Frost & Sullivan research Microlease is far the largest market
for rental and leasing services for electronic test equipment with a revenue share of 25%.
Key factors to stay on the market to rent/lease electronic equipment include requirement length,
economic uncertainty, technology evolution, and lower cost of ownership.
Despite the economic uncertainty the Microlease has managed to stay on the market and their
goal is market share to rich 28% by 2025.
6 Inter-relation of strengths and weakness with external macro factors.
Business is greatly impacted by various external factors that need to be analysed in order
generate positive results. Inter relation of macro environment with strengths and weakness
discussed in detail below:
Political- Any changes occurring political stability or other political factors pertaining to
a specific country in which Microlease is conducting its activities, firm is likeable to have great
impact on its operations. This is because Microlease needs to fulfil several legal formalities and
has to take permission from government of a particular company in relation to set up its
infrastructure, project and so on (Vaiman, Sigurjonsson and Davidsson, 2011). Strengths- being Microlease being an international company requires to make essential
alterations in its strategies, firm policies and operations in accordance with the rules and
regulation, laws that are incorporated by government of particular nation.

 Weaknesses- Recently Microlease fails to follow recent tax policies introduced by
government causing company to experience heavy fine.
Economical- It is essential for Microlease to identify and analyse all available sources of
funds with the company in order to determine and select most feasible and suitable source of
fund generation. Strengths- UK economy being one of the strongest economy having immense growth
and development potential which serves as a major opportunity for firm to expand its
business operations and gain control over large market share. Weaknesses- At the time of recession prevailing in 2011 in UK, Microlease experienced
sudden decrease in its profit and sales volumes (Wack, 2017).
Social- Microlease being a global company providing test equipment’s aims at providing
qualitative products at affordable price to its customers with ISO standards as per their needs and
specifications.
 Strengths- By providing standardised products at affordable prices Microlease is able to
build up positive image as well as trust in the company helping it to retain existing and
attract new customers.
 Weaknesses- Microlease still lacks in providing good and satisfactory services to its
customers.
Technological- Microlease core competency lies in its adoption of latest technology by
which open the gates of innovating new and improved products as per changing needs of
customers there by helping company to remain competitive in gaining edge over its market rivals
(Zeng, Li and Duan, 2012).
Strengths- Microlease by making use of latest technique in its process has develops its
efficiency of optimum utilizing its resources which rose to <30% to 70%. If has benefited
company in saving its cost of production over its operations.
 Weaknesses- With introduction of new technology company is providing to provide
necessary training to its employees so as to make them proficient in handling new
technology (Yu and Ramanathan, 2013).
Legal & environmental factor:- legal environment includes the laws and policies of the
government which rendered the decisions by the variety of commission and agencies at the each

and every level of the government. Environmental factors which entail everything which changes
the environment. It also involves the climate, soil, natural vegetarian and land forms.
Strength:- The strength of the legal factors is sometimes the policies and laws are under
the benefits of the organisation and the strength of the environmental factor is from considering
this factors organisation makes the eco friendly products which is useful for both the customers
and organisation because it retains customers.
Weakness:- the weakness of both the factors is from the new laws and policies it affects
the whole organisation working environment and also from making the products which is
harmful for the environment and affects the environmental factor.
CONCLUSION
The project undertaken concludes that business is subject to several internal and external
factors that impact its profitability and sustainability. A firm divided in to various types, size and
scope depending upon its profit or nonprofit gaining objectives. Also, a firm is to analyze its
micro environment can conduct SWOT and PESTEL analysis.

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