Business Environment Report: Analyzing UK Business Environments

This report provides an in-depth analysis of the business environment, focusing on three diverse organizations in the UK: Zara (private), NHS (public), and Oxfam (charitable). It examines both internal and external factors influencing these businesses, including their size, scope, legal structure, and stakeholder relationships. The report details the purpose and objectives of each organization, exploring how they operate within their respective sectors and the interrelationship between different functions within each entity, such as HR, finance, sales, and marketing. The analysis covers the impact of strategic essentials, machinery, political affairs, money matters, rivalry, work and other costs, learning and abilities, ecological forces, foreign exchange marketplaces, trade in and sell abroad regulation, deal concurrences and even the climate. The report also discusses the organizational structures, vision, and mission of each organization, offering a comprehensive overview of their operations and the factors that shape their business environments. This report contributes to understanding the complexities of different types of organizations operating within the UK business landscape.

Business Environment

INTRODUCTION
Business environment is being defined as both interior and exterior aspects which influences
upon processes of an establishment. Workers, target audiences and administrating group are
some of interior aspects and on the other hand administration, competitors, communal, financial
system, technical components and other factors includes as macro atmospheric components that
mainly influences over commerce accomplishment. In addition to it, this is important for each
entity or particular firm to improve goods and its facilities as per demands of target audiences
(Business environment. 2018). The aim of this report is to determine different kinds of
organisations and how the business of impact through external and internal business
environmental factors. In existing report, organisations that has been considered are ZARA as
confidential, NHS as public and Oxfam as charitable organisation which will assist in
acknowledging diverse kinds and reason of firms in UK. In addition to it, interrelationship
between functions of an organisation has also been considered. The document will discuss about
different kind of organisations like public, private and voluntary by considering their size, scope
and legal structure. This written document will also concentrate on both internal and external
atmospheric aspects that influences commerce in both optimistic and unenthusiastic form re also
included with the evaluation that will assist in acknowledging several models associated to
atmosphere.
SECTION 1
Diverse kinds and reasons of organisations
In marketplace, there are diverse kinds of companies that lead commerce to offer goods
and facilities with the purpose of providing satisfaction to necessities of public. Government and
people are two main components which begin and operate company to generate cash and fiscal
economic system of nation. Along with this, there are several types of association that are
defined as below:
Private association- This form considers companies which are developed and maintain
operations by people for earning income. They make business openings and delivers facilities so
that consumers requirements can be totally fulfilled including goal of earning profitability. This
results into upgrade in fiscal phase of nation and its financial system as well (Čepel and et. al.,
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2018). Zara is private retail Sector Company which produces clothing commodities, people
deliberation and different items to customers.
Purpose- The main purpose of private sector organisations is to meet consumer needs by
offering products and services as per their demands. Zara’s major purpose is to produce stylish
garments so that demands of consumers can be totally fulfilled. Due to this, establishment to
develop its disrepute and representation in marketplace in order to equivalent brands.
Public association- It is other form that is based and engaged through national authorities for
development of country. A range of communal tasks, essentials and management are offered by
this kind of venture to satisfaction of demands of community (Gaganis, Pasiouras and Voulgari,
2019). NHS is being included as a public organisation which shares medical facilities to people
of UK.
Purpose- The main motive of public sector firm is to offer services to local people and
community for their welfare and development. National health services employment is to
provide assist and welfare management to individual across UK.
Voluntary organisation- This segment considers companies whose ask is to direct communal
benchmarks and offer advantages as well. Non-benefit, for advantage and Voluntary are three
kinds of differ organization which offer things and management to penniless people. Their point
is to develop community without purpose of framing advantage. Oxfam is to develop
benchmarks for each day comforts of people that are required. It offers influential and charitable
assist to moms and young people.
Purpose- The major reason of voluntary firms is doing work for social welfare. Main
motive is being ascertained that Oxfam does is that it assists those who are deprived and aid
them in operating with the globe by increasing their benchmarks of living the life. Oxfam a
helpful company brings free facilities to help in the growth of formations that instantly advantage
individual suffering the realism of scarcity and unfairness.
Development in global commerce has been featured o several components considering
modifications in machinery, political affairs, money matters, rivalry, work and other costs,
learning and abilities, ecological forces, foreign exchange marketplaces, trade in and sell abroad
regulation, deal concurrences and even the climate. Globally commerce has development
radically in current years as of tactical essentials and ecological modifications. Strategic
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essentials consider the demand to influence core skills, obtain assets, get new marketplaces and
competition the activities of competitors.
Size and scope of different kinds of establishment
Public, confidential and charitable are three major types of companies that operate business
with different purpose and scope. Such firms also distinguish on the basis of size, organization
range and purpose. In this context, explanation of size and scope of defined three kinds of
enterprises are defined as under:
Public organisation- NHS is a visibly financed company of UK that offers health care
facilities and urgent behaviour to people.
Products and services- This health organization offers facilities as significant and non-
critical medical care to individuals with payment (Belás and et. al., 2019). It also offer free
facilities and different services like eye tests, consult, dental care, ophthalmology, long term
healthcare and many more.
Size and scope- NHS has close to about 211 medical duty teams with estimated 1.4
million of facility providers. Government division of UK is accountable for NHS and exhausted
more than €110 billion yearly for offering free facilities to deprived and powerless individuals. It
is heath care provider so it has a large scope in term of offering diverse kind of services to
people.
Vision and mission- Mission of National Health Services is to carry together those
individuals that need to offer facilities to patients (Krajnakova, Navickas and Kontautiene,
2018). In this context, major vision o NHS Company is to develop care for patients and provide
crossways limits as well.
Business objectives- NHS main aim is to offer urgent situation behaviour to patients and
care facilities to old age individual on lowest charge.
Legal structure:
 State government- It is national authority that deliver political precise with nationwide
rank government. They have authority to take decision and manage federal government
which operate condition (Luiz, Ganson and Wennmann, 2019). For an instance, Policy
framed for schools in Vermont, England requires t be considered by each single
educational institute that are includes as domestic national authority.
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 Local government- It is other kind of community management that includes inferior
degree authority in a nation. They organise processes and actions of particular region
through top government. For example, growth of operations such as “Maintain pace” near
gardening regions approximately the houses that are coming in their division and so on.
 Central government- It is great and highest managing organization of a unitary state.
They create policies and rules that other bodies need to consider during their task. For
instance, offering endorsement to constructor to frame high range buildings.
Organisational structure- Health care firm need precision in the execution of job
accountabilities and multiple layers of accountability in order to function. NHS use and follow
vertical organisational structure with many layers of administration.
Stakeholder- The stakeholder of NHS is customers, employees, chief executive officers,
director of public prosecutor and other directors.
Private organisation-
Private organisation- Zara is a retail sector firm of UK that compacts in confidential
industry. It offers commodities in whole globe and positioned on 30 in greatest international
firms.
Products and services- This firm provides fashionable and stylish apparels and bags by
online and offline process in all over the globe.
Size and scope- Zara has virtually 7,475 outlets that extend globally, where consumer can
identify several trendy clothes for both male and female (Khajeheian, Friedrichsen and
Mödinger, 2018). In current era, 12,000 people workers and estimated 450 billion pound per
annum.
Vision and mission- To become one of the greatest trader firms in the globe is major
purpose of Zara. While to provide effective form of dress according high rank is aim of this
company.
Business objectives- Goal of Zara is to develop need of consumers and surpass their
fulfilment extent through offering them chance to obtain new designs of garments and bags.
Legal structure:
 Sole proprietorship- Commerce that is commenced and managed by persons to create
revenue for living, are come under sole proprietorship of confidential industry (Kokodey,
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Gnezdova and Lomachenko, 2018). Establishments such as groceries, tailor,
departmental outlets etc. are some examples of sole trading organizations. Partnership- It considers those confidential companies that are considered by two or
more commerce proprietor after made conformity. All associates marked a lawful file to
obtain equivalent contribution in determination devising actions and experience similar
loss or profit also.
Organizational structure- Zara runs with a bend managerial formation that prominence
high execution. The lean structure also workings to minimize the figure of administrative
hierarchy extents and disperse determination devising.
Stakeholder- The main stakeholder of Zara are CEO, managers, employees, customers,
suppliers, retailers, store workers and many more.
Voluntary organization- Oxfam is a non-profit company of UK, also acknowledged as global
non-governmental firm.
Products and services- It is fraction of global association to struggle for unfairness which
cause deficiency.
Size and scope- Near about 20 NGOs are related with this firm with some associates in over
19 nations that assist in eliminating scarcity from entire globe.
Vision and mission- Fight for poverty is mission of this establishment and defend rights of
inhabitants as well. Along with this, its revelation is to develop state of community through
condition of community through mobilizing power of people to minimize poverty.
Business objectives- Oxfam aim is to assist individuals in starting their commerce for living
and develop their living situation.
Legal structure-
 Unincorporated association-It indicates to firm that is formulated by large unit of
individual without a purpose to make income. The funds is provided in commerce is for
community development.
 Trust- It states to establishment that act as an agent, trustee or fiduciary in the behalf of
an individual and commerce for the motive of management, ultimate transmit of
resources to a helpful party and administration. The venture is not flexible in nature so
modifications are not bringing in easy form.
Organizational structure- The organizational structure which is followed by Oxfam is
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network structure because they operate internationally so it needed systematized
organizational structure.
Stakeholder- The main stakeholder of Oxfam are trustees, volunteers, sponsors and others.
Relationship among different functions of establishment in respect to objectives
In an organization, persons are classified into several sub sections for implementation of
works in inducing form. Human resource, finance, R&D, Marketing, sales are different
departments that are developed by BOD of Zara. In these divisions people are classified in regard
to their knowledge, qualification and skills (Popescu and Popescu, 2019). This encourages
company to have satisfactory subordinates for commerce and assists in sharing right facilities to
people. In addition to it, interrelation with one another has been defined as under:
Human resource department with finance- HR division is to supervise workers of Zara
for having appropriate staff people for transmission of exercise. Cconscription, assortment,
reward, representative relationships, organizing and development are diverse activities that are
performed through management of Zara. This motivates them to assign and communicate staff
people in diverse units that are fiscal, marketing, sales, R&D. In this form, superiors can generate
rivalry atmosphere in working environment and fulfil requests of persons. This division also
relate with finance function as it hire workers for filling the vacant position of this department.
Along with this, finance department also design financial statement of HR division’s expenses.
Sales division with marketing- This department considers people who relate and
communicate customers. Sales executive of Zara compulsion is to provide information to
customers about goods, its underlines and properties. In addition to it, they additionally obtain
input to determine their responses and suggestions in context of nature products and
modifications. In it, showcasing unit support is to watchful open about things that help them with
inducing and impact appropriately. They assist research and development team to roll out
developments in items in as specified through fundamentals of target audiences. Marketing
division interrelate with sales as it help in offering promotional tools for creating awareness and
sales division relate to marketing for offering information about sales of commodities and other
sales related information.
Organisational structure:
Practical, divisional, matrix and task are unique kinds of framework that are used through
company to plan structure. Financial situation, goals, estimates, degree is different plan of
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actions that determine commandeering of employees people in office. Zara is a retail firm that
has subdivisions round the globe (Hamilton and Webster, 2018). For this, divisional organization
framework is obtained by administration for transference of commerce universally. In this form,
assets are used resourcefully and place of company is sustain in reference to candidates.
SECTION 2
Internal and external analysis to strengths and weaknesses of company
PEST analysis is technique and method which is implemented by administration to analyse
and measure impact of external atmospheric components over a business venture. Government,
financial situation, public, technology and environment are numerous macro elements (Ndoro,
Louw and Kanyangale, 2019). These are factors that administration of Zara needs to include at
time of system designing and plan of actions formulation. Therefore, the description of external
components and their influence on organisation:
Political factor- Government had formulated policies of taxation, licensing and other for
controlling establishment. Zara is a global company, so there execution is influenced through
legislative and political phase of country.
 Positive impact: Political stability of UK is the main benefit of Zara to run business
internationally (Teece, 2018). It assists administration to sustain company and its
operations through having large market reach and consumer base.
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Illustration 1: ZARA – Organization chart, 2018

 Negative impact: National authority had made employ legislation that supermarket
should offer mix of job options that is inferior and higher remunerated, flexible.
Therefore, accomplish need of several individual belonging to segment that are student,
middle and lower ground people.
Economic factor: This factor considers interest rate, development, exchange rate and inflation
which based on fiscal conditions of nation. These are factors that influence on funds of company
and its profits margins. Zara has store in improving nation that is UK and other that have
effective inflation and GDP rate. Therefore, organisation has good number of purchaser to earn
profit for their business.
 Positive impact: UK has developing GDP which benefits Zara to make development
in their business.
 Negative impact: Bank modifies their interest rate for administrating capital outflow
that influence on superiors of Zara to expand establishment to other country.
Social factor: This component explains that company offer goods and services for providing
satisfaction of community. Zara is trade organisation that provides range of food products,
personal care and other commodities to individuals.
 Positive impact: In UK, individual prefer to buy commodities from supermarket where
all things are accessible in one store (Asongu, Amavilah and Andres, 2020). Their
purchasing behaviour has modified to purchase quality products which advantageous
Zara to have effective consumer base to develop sales volume and profit.
 Negative impact: In UK, population is subsiding that impact on labor force and outcome
into their shortage. It analyze that administration of Zara suffers issue in context of
workers.
Technological factor: It is another factor that monitors those technology advantages
establishments in transmission of operations efficiently. Positive impact: Constructive influence can be demonstrated in Zara with the assistance
of technical aspects with the assist of electronic apparatus and these may instantly get
executed between outlets where a consumer can disburse for commodities and facilities
which are being bought in just few seconds.
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 Negative impact: With the utilization of internet, it is being determined that online
delivering of essential facts can be utilized through ethical hackers regarding Zara
(Atulkar and Kesari, 2018). This may influence over their revenue as well.
SWOT analysis
It is a tactic and strategic tool which is utilised through administration to determine
rivalry situation of organisation. It is a model by which strengths of system are determined by
superiors of Zara for use of market opportunities. Weaknesses and threats are identified to
prevent them and minimise from influencing business activities, operations and market image.
Strengths- Zara is famous trendy apparel establishment that offer quality products at
affordable costs. They provide range of commodities that respective firm is at small scale and
few chain stores than other supermarket. There are about 10,000 outlets spread all over the globe
that assist company to have large market reach and consumer base. Zara provides goods at low
cost and discounts which assists administration to make business developed and maintain for
long time.
Weaknesses- Organisation offer commodities at low prices which analyse that quality of
goods are not so appropriate. Zara offer goods at low costs, so establishment revenue based on
sales volume. Administration is not capable to pat appropriate compensation to workers in
reference to their performing. This produces dissatisfaction and influence on their execution.
Opportunities- Administration of Zara needs developing their spending in advertisement for
competing rivals. Develop store in other countries like Asia, Africa and many more (Bouwman
and et. al., 2018). The respective venture need repositioning its brand image more reasonable
than company that offer cheap items. This assists seniors to develop their business and profit.
Threats- There are high competition which is created and generated by H&M, E-Spirit and
USB and others. This firm does not offer all kind of products, so purchasers are not capable to
earn complete shopping experience at one store. Government modifications their taxation and
other policies that affect business of Zara. In current era, due to COVID19 crisis changes are
occurred in government laws and legislation which generate threats for Zara business.
Interrelation of strengths and weaknesses with external macro factors
Macro environment components assist management to evaluate their influence on company
and its operations. Zara is retail Sector Company which has stores internationally, so top
personnel need determining macro factors impact over business (Hamilton and Webster, 2018).
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Capability and weakness in reference to political, economical, social and technological are
understood which is defined as under:
Political factor: Strengths: In UK, there is stability in political condition which positively affects Zara in
term of making business expansion globally. Weaknesses: In UK, national authorities’ make modifications in their polices and
employment legislations which influence the administration of respective organization’s
business.
Economic factor: Strengths: The situation of inflation in UK assists Zara to have effective range of
consumer base to but commodities. Weaknesses: Unemployment rate of respective venture influence prices and profits,
because individuals command shift to shameful products. For it. They will not desire to
purchase commodities from different cheap outlets.
Social factor:
 Strengths: There is movement that individual and customer choose to but goods in size
and from one shop that advantageous Zara to improve their trades. Along with this online
shopping option also help in developing profits and customer base.
 Weaknesses: Zara provides affordable products that outcome into people attitude that
product may not be of effective quality.
Technological factor: Strengths: In Zara, purchasers are offered high tech experiences and pay by online mode
like card and others which assist them to make payment easy (Čepel and et. al., 2018).
 Weaknesses: E-commerce that is due to development of internet which impact on sales
and revenue of respective business venture.
CONCLUSION
This has been summarised from the defined information that communal, confidential and
charitable are diverse kinds of organisations. These are establishments that have different size,
scope, aim, structure and reason of doing business. PEST analysis also beneficial to determine
the impact of external environmental components over business. SWOT analysis assists an
establishment to evaluate qualities for utilising public. Apart from this, risk aspects can be
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