Comprehensive Business Environment Analysis of JCB, NHS, and OXFAM

This report provides a detailed analysis of the business environments of three organizations: JCB (a private sector manufacturing company), NHS (a public sector healthcare provider), and OXFAM (a voluntary non-profit organization). The report begins with an overview of the different types of organizations, their purposes, and legal structures. It then examines the size and scope of each organization, including their vision, mission, and key operational aspects. The core of the report delves into the relationships between various organizational functions, such as marketing, finance, operations, production, human resources, and sales, and how these functions contribute to achieving organizational objectives. Furthermore, the report utilizes PESTEL analysis to identify the positive and negative impacts of the macro environment (political, economic, social, technological, environmental, and legal factors) on business operations. Finally, the report discusses internal and external analysis of the organizations to identify their strengths and weaknesses, providing a comprehensive understanding of their respective business environments.

BUSINESS AND
BUSINESS
ENVIRONMENT
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Explain different type and purpose of the organisations.......................................................3
P2 Explain the size and scope of different organisations............................................................4
P3 Explain the relationship between different functions and how they are related to
organisational objectives and structure.......................................................................................6
P4 Identify the positive and negative impacts the macro environment has upon business
operations....................................................................................................................................7
P5 Explain internal and external analysis of organisation in order to identify strengths and
weaknesses..................................................................................................................................8
P6 Critically analysis interrelationship between the macro environment in context of strength
and weaknesses:..........................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
Business Environment is the total of all the internal and external factors impacting the
businesses of an organisation like suppliers, customers, human resource, economic policies and
conditions, etc. This has a direct and indirect impact on the decisions of an organisation
(Shaughnessy, 2016). It affects the marketing and business strategies and helps in analysing the
market. The company chosen for this report is JCB and they have a vast operation having global
businesses. JCB is a private sector organisation founded in 1945 in UK. NHS(National Health
Service) is in public sector and is chosen for this report and for voluntary organisations OXFAM.
The report includes different types of organisations and the size and scope, different organisation
functions and the relationship with organisational structure, impact of external factors and
internal factors on the organisation.
TASK 1
P1 Explain different type and purpose of the organisations
The help the organisations grow, it is important to identify the role of the organisations as
different organisations have different type and structure.
Types of organisations
Private sector organisation- They are owned and operated by the private organisations,
individuals and agencies and have little contribution of government. Their organisational goal is
to increase profits. JCB is in the manufacturing of equipments for constructions and is in private
sector.
 Purpose- They want to provide the good quality products to customers for housing and
construction. The products of JCB involves cost so they want to satisfy the needs of
customers (Stacey, 2016 ).
 Legal Structure- There are different types of organisations in the private sector and they
are differentiated on the bases on their role and responsibilities. The simplest form of
business organisation is Sole Trader which is operated by individuals. The partnership is
the form of business organisation which is operated by two or more individuals. In
limited liability partnership the individuals have limited operations in an organisation to
an extent of their investment. Limited company is operated by directors and have a
separate legal entity.
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JCB is a limited company and the business is owned and operated by the investors and
shareholders.
Public sector organisation- The are operated by the state government, agencies and
organisations who want to contribute to the society. The use the resources of the organisation and
benefit to the society. NHS (National Health Organisation) is the government organisation which
provides good service to the society.
 Purpose- NHS is funded by government and is focuses on providing affordable services
to the people. The healthcare services are free for the people and is funded by the central
welfare department (Beatty, Samuelson and Abril, 2018).
 Legal Structure- The departmental undertaking is a public sector organisation which is
operated by a minister or by the ministry like Railways. Statutory corporations are
operated and funded by government and they are included in the act of parliament,
central or state government. The government companies have 51% paid up capital by the
government.
NHS is a public sector organisation of UK and funded by the welfare department. It is
operated by government and headed by Secretory of State heath care.
Voluntary organisations- These are the non profit organisations and civil societies
which do not have a structure. They are formed to help the society and do not have strategies for
making profits. OXFAM is a non profit organisation which is formed to remove charity and it is
operated by 20 charitable organisations (Bentley, Omer and Twedt, 2019).
 Purpose- They are working for helping the poor getting the basic requirements. They
understands the societies and the need for reducing poverty.
 Legal Structure- The unincorporated associations are formed by people who come
together to solve a purpose of the society. A trust is formed when there is a need to solve
the money and land problems. A limited liability company is a separate legal entity and
the people are getting salary.
OXFAM is a limited liability company which is formed by trustees and they work to
remove poverty. They have roles and they need to achieve the goals of an organisation.
P2 Explain the size and scope of different organisations.
JCB was founded in 1945 in UK and have operations in more than 21 countries. It is a
private sector organisation and their size and operations are increasing.
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 Vision of JCB- JCB aims to provide the growth by employing people in the IT and
recognised the financial needs of customers.
 Mission of JCB- To innovate the business to provide good quality services to customers
and provide the care to customers. They want to give a better environment to the future
generations.
 Size of JCB- The number of employees in an organisation is more than 11000. They
have operations in many countries.
 Scope of JCB- Their products are costly and gives a large share of profits. They are the
best company who provides manufacturing equipments to the construction sector. They
can extend its markets to light equipments (JCB, 2020).
NHS (National health services) provides services free of cost to the people who cannot
afford it and they are in public sector. They give better facilities to the society.
 Vision of NHS- The organisation focuses on providing healthcare facilities to the people
who could not afford it.
 Mission of NHS- Their mission is to provide equal facilities to people so that they can
get good treatment.
 Size of NHS- They have 2 lakh employees and 190 authorities who provide services to
the benefit the society (Key facts and figures about the NHS, 2020).
 Scope of NHS- They focus on improving their operations so that they can provide better
health facilities to the people.
OXFAM is formed to provide the fair environment to the society by removing poverty
and helps in giving them basic facilities.
 Vision of OXFAM- To provide the quality environment to the people of UK so that
poverty can be reduced.
 Mission of OXFAM- The mission of OXFAM is to provide the better facilities to the
society so that they can the equal treatment and can fullfill their needs.
 Size of OXFAM- They are operating worldwide and have more than 10000 employees
and 50000 volunteers serving 90 countries (NGO profile: Oxfam International, 2020).
 Scope of OXFAM- They are extending their operations to provide the society with better
eating habits.
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P3 Explain the relationship between different functions and how they are related to
organisational objectives and structure.
The organisations have different department and these departments are inter related to
each other to provide success.
The marketing department and finance department
The finance department in an organisation provide funds to other departments and help
them in managing their activities accordingly. They manage the accounts and determine how
much funds to be allocated. The marketing department makes the promotional strategies of the
organisation which will help them in advertising and promotions. The marketing department
manages with the finance department and manage the activities.
JCB has a marketing department who do market research about the behaviour of
customers and analyse the external factors of the markets for which they will require funds and
finance department will manage it.
The operations department and production department
The operations department in an organisation manages the process and helps in other
departments so that they can function effectively. The production department manages the
demand and supply so that the organisation can satisfy the needs of customers. The operations
department manages the back end operations of the organisation and manages the demand and
supply so that they can manage the inventory of the organisation (Goss, 2015).
The operations and production department of JCB manages the products of the
organisation so that they can provide the fast products to customers and provide them customer
service.
The human resource department and sales department
The human resource department selects the employees of the organisation so that they
can provide quality products and helps in achieving profits. The sales department in an
organisation sells the products and services. They find customers and understands their need and
then sell the products.
The human resource department should help the employees in understanding the goals of
an organisation. They should provide them with training and development so that they are skilled
to perform. The sales department is responsible to provide efficiency in the performance of
employees (McDowell, Harris and Geho, 2016.).
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P4 Identify the positive and negative impacts the macro environment has upon business
operations.
PESTEL analysis is important to understand the external factors which impacts the
decision of the organisation which are outside the operations of the organisation (Shchepakin and
Krivosheyeva, 2015).
Political factors- The organisations have operations in many countries so its is important
that they identify those factors which are different in different countries. They are export and
import rules, taxes like custom duty, excise duty, direct tax, etc.
 Positive impact- The JCB has made expansion decisions as the political condition of UK
is helping the organisation.
 Negative impact- JCB is affected by the political decisions of the country. Their market
gets affected during conflicts. They are involving the external factors which the
organisation should understand to achieve the goals and increase profits.
Economic factors- These factors affects the business of the organisations as they impact
the buying power of the customers. They are the inflation rates, rate of interest, taxes, etc.
 Positive impact- JCB is employing people in countries where they are operating as they
analyse the economic factors and then make investment decisions.
 Negative impact- The recession has affected the business as more than 1000 employees
lost their job.
Social Factors- The buying habits of customers are impacting the business of the
organisation. They are important for making the strategies of the organisation and they need to
identify the education, family structure, looks, etc.
 Positive impact- They help JCB in understanding the needs of the customers so that they
can satisfy it.
 Negative impact- The CSR activities of JCB is affecting their profits and they have to
invest in it to help the society.
Technological factors- The external factors affect the business of the organisation and
they have to monitor them as techno,logical advancement affects the business.
 Positive impact- They are helping JCB in innovating their products and providing
customer satisfaction which is important to achieve as it is their business strategy.
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 Negative impact- They have to involve cost in innovating products and they have to
make promotion strategies.
Environmental factors- The businesses are using the resources of the society so they
should contribute to the environment to have long term success.
 Positive impact- The customers of JCB feel that the products are of good quality and it is
safe to purchase from them .
 Negative impact- JCB have to invest in providing safe environment to the customers so
that they can contribute to the society.
Legal factors- The businesses are affected by the legal factors and privacy issues in an
organisation like brand name copy, logo, and other things which are important to them.
 Positive factors- JCB is protected by the legal factors and they have protected their
rights so that they can operate their business.
 Negative factors- JCB has many legal challenges so it becomes complex for them and it
involves cost to maintain it.
P5 Explain internal and external analysis of organisation in order to identify strengths and
weaknesses.
SWOT analysis helps the business organisations to identify the internal factors which
affects the business of an organisation. It is analysing the factors which determine the strengths,
weaknesses, opportunities and threats of an organisation (Stacey, 2016).
Strength-
 JCB is dealing with many products and have operations worldwide. They have the
competitive advantage as they are one of the best organisations of UK to provide the
satisfaction to customers.
 Their brand name and market size is attracting the customers as they are providing
quality products to customers.
 JCB is having innovation in their products which is helping them in the operations and
improving their performance. They provide efficiency in operations and helps in their
process.
Weakness-
 The products of JCB involves cost as they are large equipments and the damage in them
affects the operating cost of the organisation and they are affecting their business.
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 They are involved in legal charges and it affects their business as they involve cost and
the process is costly.
Opportunities-
 Market of Asia provide maximum returns to the input of JCB services thus their might be
huge possibilities to develop a potential market in different countries of Asia.
 One major opportunity for JCB is the acceptance of their new products by its potential
customers (Biloslavo, Bagnoli and Edgar, 2018). Thus, JCB can introduce their quality
products on competitive prices in order to grab desired opportunities easily.
 Now a day, services of JCB are highly admired in governmental projects thus it would
provide them higher and deeper pocket returns easily.
 A huge network dealer of JCB is relatively effective in terms of providing appropriate
and timely services to its customers. These practices will assist in developing a strong
customers base for firm.
Threats-
 JCB basically provides construction types of equipment which are highly and dependent
on the success of construction business site. Thus, it can create dependency upon other
sector for the success of JCB’s own services which may be a major threat for the firm.
 The company is facing heavy competition in the marketplace form the other companies.
The major competitors of the JCB are Caterpillar, CAT, etc. So it’s important for
company to take measures in order to maintain its position in marketplace.
P6 Critically analysis interrelationship between the macro environment in context of strength and
weaknesses:
It includes various factor which is affect company performance and business operation.
Macro environment refers to those factors which is help to analysis company strength and
weakness in order to gain competitive advantage of market. It includes all external factor which
leads to accordingly plan business strategies to grape the opportunities and take prevention from
threat. These includes various factors like political, economical, social, legal, technological and
environmental(Stacey, 2016). All these factors influencing in decision making procedure of
company. There are interrelated to each other within in context of company strength and
weakness so categorised on that basis:
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Basis Political Economical Social
Strength Political factor
considered rule
regulation and laws.
JCB is one of the
company which is
famous for dealing in
construction
equipment
manufacturing
company so it is
strength to follow
guidelines and
increase
productivity(Al-
Jawarneh, 2016).
Economical factors
refers to labour cost,
taxes, unemployment,
inflation and recession
all these factors affect
company. In context of
company. There are
various factors to
influencing them. It
includes JCB has new
plants in different
countries so provides
goods and services
accordingly to the
need of customer.
Social factors are those
which is related to
demographic location,
ethnic background,
social status,lifestyle
and trends. In
relevance of JCB is a
greater strength to take
resources from the
society and then
deliver goods
according to the need
and wants of customer
and satisfy them.
Weakness Political factors
includes changes rules
and regulation so
company also change
their policy so it is
affect the business
operations.
JCB is a deal in heavy
equipment so their
plants in different
location so it is affect
economical conditions
of different location so
it is difficult for
company to adopt the
changes.
It is deal in
construction and
diversify business so it
face lot of problems
when market trends
and customer taste and
preferences are
changed(Dana, 2018).
Basis Technological Environmental Legal
Strength JCB is greater strength
in context of
technology because it
deals in heavy
Environment which is
related to company
produce a eco-friendly
products which is not
JCB is a diversify
business and it deal
indifferent segments
so it fulfil all legal
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equipment so it easily
adopt the new
techniques. It leads to
provide a new
experience and create
strong relationship
with customer.
harmful for the
environment. In
relevance of company
is also uses eco-
friendly raw material
in order to does not
damage a
environment.
practices which is help
to drive sustainable
business model(Park,
2016).
Weakness Technological changes
like modernization of
communication pattern
so main obstacle in
competition from other
manufacturing
companies. JCB is
face this situation
because goods are not
fast moving so require
dealer to market the
product in different
locations(Schwertner,
2017).
Sometimes companies
not fulfil the
requirement and
damage a environment
so organisation affects
business in term of
create negative image
in the mind of
customer.
In relevance of
company, under this
various legal
formalities which is
must be completed by
firm but it is not fulfil
according that so it
affects operation of
business.
Therefore from above aspect is majorly shows interrelationship between macro
environment factors in context of strength and weaknesses in order to achieve sustainable growth
of business. These factors help to determine competitive edge in the market. It also help to
determine opportunity for business in the market so in order to effective use of resources.
CONCLUSION
After a brief analysis of above report, it has been concluded that business environment affect all
over the function of business. In these report consist, various form of organisations that is
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included private, public and volunteer organisation on that basis of size, scope and legal
organisation which is essential to each and every company to follow legislation and regulation.
The SWOT model is analysis in that identifies strength, weakness, opportunity and threat for
company in order to increase profitability,increase productivity and helps to improvement of
performance. It also determine various factor which is impact business operations and help to
gain competitive advantage. It also included show interrelationship between different factor of
macro environment in context of strength and weakness. It is related to measures current
situation in order to achieve objective of the company.
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