Business Environment: Organization Analysis, PESTLE and SWOT Impact

This report provides a comprehensive analysis of the business environment, examining different types of organizations such as public, private, and voluntary sectors. It explores the size, scope, and legal structures of these organizations, as well as the relationships between organizational functions and their alignment with business objectives. The report delves into the impact of the PESTLE analysis on companies like Oxfam and Rolls-Royce, highlighting both positive and negative effects. Furthermore, it presents internal and external analyses to identify strengths and weaknesses (SWOT), including the interrelation of SWOT with external macro factors. The report aims to provide insights for strategic decision-making, particularly for companies like SWIRE, OXFAM & Rolls-Royce, by exploring opportunities and the influence of the external environment.

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
P1.Different types and purposes of organization........................................................................3
P2. Size and scope of various types of organizations.................................................................4
P3.The organisational function or their relationship and there connection with the business
objectives and structure...............................................................................................................6
P4.The Pestle analysis of the organisations and their negative or positive effects -...................7
P5. The external or internal analysis of organisation in identifying the weaknesses or
strengths......................................................................................................................................9
P6.The weaknesses or strength and their interconnection with external macro factor -...........10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment is related to both internal and external factors that influence the
business and organization. This report will present different types of organization such as public,
private and voluntary and also focus on scope, size and legal structure of organization. It will
also present the relationship between different organizational functions and their link to
organization objective and structure. It will focus on positive and negative impact of macro
environment (PESTLE) upon different business such as Oxfam and Rolls-Royce and show their
internal and external analysis to identify strengths and weakness (SWOT). This will also present
interrelation of SWOT analysis with external macro factors (PESTLE) of company. This report
help companies like SWIRE, OXFAM & Rolls-Royce to develop opportunities and make
positive decision to meed the weakness. It will also help to explore the opportunities and
relationship between companies followed by the external environment influence and impact.
P1.Different types and purposes of organization
Public Sector: In this sector organization or company run by Government or non-profit
organization that provide services for social purpose. Purpose of this sector is to deliver public
goods and services and governmental services such as police, military, public transport, public
infrastructure, and more for betterment of the public and society This sector operates with money
raised from taxes (Farah, 2020). Taking the example of Rolls-Royce, which is one of the leading
company in UK. It focuses has been set on approach that seek to offer a good value and services
to customers. Rolls-Royce deliver positive contribution towards the society.
Legal Structure: In this sector due to legal structure company gives its shares for trading and on
stock market to the public. According to government law making, Rolls-Royce has compulsory
to present its financial status and position policy to maintain good relationship with public.
Private Sector: In this sector profit based and private company comes which run by individuals
and companies. In this sector most companies run with an objective to make profit. They are
financed by private money from shareholders or friends and by bank loans. Purpose of this sector
is to make profit. They are also important source of growth and development in economy for the
country (Ivanova, 2019). Taking example of SWIRE which is multinational retail company. It

has been search importance on generating a big range of revenue and net income. It is operated
to obtain a competitive advantage of their own.
Legal Structure: In private sector due to legal structure owner have limited shares of their
liability. SWIRE cannot increase or raise money by selling shares to investors, banks or in stock
market. SWIRE has more flexibility to operate company. They can change their business from
private to public by selling shares.
Voluntary Sector: It is the group of individuals who involves for attaining a specific purpose. It
is carry out social activities undertaken some non-profit and non-governmental organization.
Purpose of this sector is providing benefits and services to the society at large scale without any
return profit. They also conduct social wealth and help improvement event for society. Taking
the example of OXFAM, It is famous in UK for their social services. They conduct events and
campaigns for society betterment and to spread awareness for child education and health
problems.
Legal Structure: In voluntary sector few legal requirements needed to set up the business.
OXFAM is not a legal organization (Johannessen, 2020). OXFAM has complete control over the
business there no legal structure needed. It has close contact with customers. They don't need to
share profits. By holding an effective leadership OXFAM support its internal factors.
P2. Size and scope of various types of organizations
The comparison of small, medium and large organizations is done in the following table.
Small organizations Medium organizations Large organizations
Small enterprises have
minimal capital and employee
rate of 1-99. The equity of
these organizations is held by
the founder itself because its
legal structure is of sole
proprietorship or limited
partnership (Akter, Ali and
Chang, 2019). These
corporations can probably
Medium enterprises gain finite
revenue and its employee rates
differ from 100-499. Its equity
is almost held privately as the
enterprise legal structure is
multiple partnership or private
limited companies. In these
corporations, decision making
and strategic planning is done
by multiple members
Large enterprises earn
increased capitals and its
amount of employee is more
than 500. The equity in these
companies is mostly held by
public investors and the legal
structure in these
organizations has
stakeholders, and these have
to fulfil a large amount of

make high profits. The
decisions and plans in these
associations are solely made
by the owners. These
companies have informal
process of work and most of
the capital requirements are
reached by lowering personal
net value. In growing
countries, the importance
compels small entrepreneurs
to replenish the huge majority
in the sector of small
businesses. These
organizations build value for
the economy by constructing
small businesses and enlarging
the income and decreasing the
overall prices of business. The
reason behind the amount of
small entrepreneurs is raised
because no appropriate job
and training is accessible for
them. It aim is to cover local
markets with small customer
base. These organizations
have limited opportunities of
development and get small
inputs from network, friends
and family.
including ceo and leaders of
the firm. These organizations
have little formal procedures
of operating along with
limited sources of revenue that
are harsh to access. These
firms create a bridge amid
small and large organizations.
Medium enterprises aim to
cover niche markets by
accessing diversifications
along with the limited base of
consumers. Medium sized
organizations have restricted
opportunities of growth and
has personnel development in
these enterprises is limited for
key staff members only. It gets
small number of input from its
trusted professional, friends
and networks. Its global
growth is very high because
those types of enterprises
encourages employment rate
which supports in boosting
developments in the economy.
Medium organizations adapt
world of dynamic business
very rapidly by shifting to E-
commerce and delivering
services via online process for
legal formalities. These firms
have professional management
in the business environment.
Hierarchy of organizations
make decisions and
management strategies in
those firms. Large
organizations include very
formal and professional
processes and structures in
them. They get a huge number
of sources for funding. Large
organization aims to diverse
globally and target heavy
potential customers from the
diverse markets. Those
organizations provide multiple
routes and programs of career
development for its
employees. These
organizations have massive
growth globally and get
external inputs significantly
from consultants and network.
Large organizations have their
distinct governance structure
(Bala and et.al, 2020).

customer convenience.
P3.The organisational function or their relationship and there connection with the business
objectives and structure.
The organisation is core area of the management because its important for the smooth
functioning of the management in every organisation. Lets discuss more in detail about the
various functions involve in the company and how they build their connection.
Finance and Production team are both closely related with each other work because production
requires monetary expenditure for their goods and raw materials, labour or newly updated
machinery and its the duty of the finance team to make budget or provide it to production so that
they able to allocate their funds accordingly (Larson and Foropon, 2018). The company enjoys
the progress as because if both the expertise work together and it will bring efficiency in the
workplace.
Conversely, the company also face issues because if the production not be able to meet the
demand properly than it will definitely decrease the sales of the company and weaken the
finance function as it will have less fund.
Marketing or HR department works is similar in the management context although they have
very different function, the marketing can work with HR to develop their skills in learning new
things about behaviour of business likewise HR can learn the technological development involve
with the employees (Ordonez‐Ponce and Clarke,, 2020). The benefits with those connection
helps the organisation in achieving their gaol or increase their profitability as they able attract
large number of qualified candidates through digital marketing and will be cost effective.
This strategy can become more expensive for the company because its results are
unpredictable as they don't know whether the selected candidates stay with the company as its
become risky or costly to train such staff.
Finance or HR also interrelate with each other as HR functions is costly affair for the company
so they need guidance of finance team in allocating their funds properly beforehand. They both
perform towards one specific aim in order to achieve the maximum level of profitability or
performance.

On the other hand, the company may face the issue of conflict and lack of coordination between
the team as they don't have any superior person to follow and work on the individual basis.
The impact of interrelationship on organisational structure -
Simple – it is generally use by small business because the division of labour are not followed by
this method (Latif“and et.al”, 2020). There is a huge effect of the interrelationship of business
functions because they work together in achieving the business development or objectives
together.
Functional – the company divide its workforce according to the specialisation of individual such
as in marketing, finance, personnel or operations. The interrelationship would effect on the
overall efficiency of the company as it has more professional bodies who joins there task to be
able to achieve the target.
Mutidivisional – this are used by big organisation with many business segments because those
organisation structures its leadership team according to the products, projects or subsidiary in
which they operate. There will be healthy coordination or communication between the
management and the positive environment will motivate the employees.
Matrix – this method is least used by organisation because of its complex nature as its structures
employees across various departments, divisions or superiors. The interconnection may bring
positive impact on the organisation towards the achievement of the gaol as they will be more
productive as team.
P4.The Pestle analysis of the organisations and their negative or positive effects -
The detailed analysis of the Pestle of Oxfam organisation -
Political – Oxfam is engaged with the political leaders to reduced the taxes in order to control
the poverty. Most importantly, most of the leaders of Oxfam is associated with the issues such
related with the environmental degradation, gender equality matter or security (AlAdresiand
Darun,, 2017). The class classification can become the hectic task for the company as they have
to promote the product to general public.
Economic – Oxfam basically relies on its disposable income so that it further increase its
objective in fundraising or by selling its times through their shops. The participants in the
London Marathon are the main source its revenue generation for its fundraising activity. If

Oxfam done its operation in the foreign trade than an unstable currency can demotivate the
international investors.
Social – it acquire the more credibility both institutional and individual as it has supporters
across the globe. Its perspectives in changing the poverty line or reduce the gap between the poor
or rich is frequently passing on digital platforms like on blogs or its website,as a result its
expands its branding.
Technological – this factor can make the company to make modification in the products as er
demand of the customers as they able to face the competitors in the market (Otieno, “and et.al”
2020). Oxfam sold its electronic equipments over its shops but unfortunately the company face
rejection because of its price while some of the its donation comes from both individual or
institution. This items are also sold on the digital platforms and have the participant like
Amazon.
Legal – Oxfam came in the highlight and become highly influential because of its initiative
towards global warming and implementing laws as well in developed countries or US. The laws
are made to safeguard the buyers or ensure a certain level of quality or reasonable price but it can
affect the overall financial stability of the company.
The Pestle of Rolls-Royce explain below in detail -
Political – this can effect the profitability of Rolls-Royce in a certain country or market if the
company makes wages at the lower rate. Conversely, the important factor like the rising level of
taxation would might demotivate the Rolls Royce in accordance with the maximisation of the
profit.
Economic – the rate of expected growth for the Rolls-Royce is largely depend upon the GDP of
that particular country as how fast its grows (Čepel“and et.al” 2018). If the company involve in
the international trade market than the exchange rate of the country would impact on the
profitability of that country, if the rate is low than Rolls -Royce's might decrease its sells.
Social – social factor can impact the culture of the organisation in both the aspects be it
marketing or operational because if the company did the research before sells its product than it

definitely expands it market. On the other hand, the differences in the educational degrees
between both the target market or marketers may make it hard to relate effectively.
Technological – this factor also have greater impact on the companies growth as if the Rolls-
Royce expand its profits because of the technology advancement than they further reinvest its
fund in the research and development. The improvement in the technology in context with the
product is also matters in the company but if the modification comes out drastic than the
company suffer badly.
Environmental – Before entering in the market the should checks the law regulation and rules
of environment pollution an should follow those in order to survive in the market. But the
climate change can ruin some products and it become useless.
Legal – Rolls-Royce leadership should consider the legal factor for ex. The discrimination law
or the Anti-trust law in the overall country in the industrial goods and services as it can protect
the intellectual property rights (Abdel-Basset, Mohamed and Smarandache, 2018). The
implementation of laws can become expensive affairs for the company and effect its overall
growth.
P5. The external or internal analysis of organisation in identifying the weaknesses or strengths.
The SWOT analysis of the Oxfam -
Strength – Oxfam is able to target in different countries because it has the possession in
achieving the clear gaols. The company also has the strength as it able to make alliance with
large supports and helps in boosting and creating its brand. It also able to expand its roots
because its main issue is to deal with global warming and poverty.
Weaknesses - its existence in the retail stores is very low as compared to its competitors across
the world. This is may be because of its brand name as a retail store is very less known by people
or it largely famous as non-profit organisation. Additionally, its sold its product in faired prices
as a result its very less attractive with luxury products.
Opportunities - through digital platforms or online communication as it already set up by
Oxfam, it increases there chances of fundraising through doing marketing on those channels.
Likewise it also have the opportunities to expand its branding as a retail store.
Threat - the main threats that the Oxfam face is that they have no function of customer
motivation in both whether its physical shops or on online platforms (Peral, Maté and

Marco2017) . And its also face continuous threatened because of its reduction in the quality
standard of the product.
The Swot of Rolls-Royce -
Strength – the companies growth expands because it adopts the focussed simplified business
structure and it build the strong research and development team (Queirós Faria,. and
Almeida,2017). The Rolls-Royce is also adopts the advanced technology method to make it more
systematic solutions or life.
Weaknesses – the business faces challenge because of the disruptive technological modification
or changes as they also the risk management which is not really strong. The company also face
the high debt to equity ratio.
Opportunities – Rolls-Royce have the opportunity to make an eye on the important factor like
digitalization, electrification and renovating etc. as by using this platforms company able to
know its customers better and serving their needs (Cepel,“and et.al”2019) . Moreover, to build
the joint ventures or collaborations is also very strong tool for the growth.
Threat – the low quality goods is also become major threat for the company specifically in the
emerging and in the low income markets. As the companies done its operations in so may
different countries as its more likely to exposed to currency fluctuations.
P6.The weaknesses or strength and their interconnection with external macro factor -
The details analysis of the impact of the macro upon business objectives or decision-making of
Oxfam -
Political – As the Oxfam has made connections in government sectors in accordance with the
poverty control management as this helps in companies to strong its roots in the global market
where there are huge competitors occur (Bondarenko“and et.al” 2017). But at the same time it
might weaken the organisation's objective as Oxfam main aim can be diverted and their
expertise probably give their precious time to the poverty events.
Economical – the accessibility of disposable income is a great source of income for the company
as they able to target in different countries and also able to achieve the clarity of goal and
inspiring donors. Oxfam may not able to attract the new buyers or their return might not be
fruitful as they are least famous in the global market as retail stores.

Social – The main aim of the Oxfam is to reduce the gap between poor and rich so the company
should be more recognized because of the vital initiative and able to increase its brand name
around the world (Margariti, 2019). The profitability of the company can be reduced because
Oxfam has very less stores in the retail stores as the implementation of such social events is
usually very expensive.
Technological – Oxfam is selling their products through online as well, this will become useful
in achieving more target buyers and by using online suggestions forms they get to know their
customers better or able to deliver the products as per there need or desire. As Oxfam is not
globally recognized so it might be possible that they not be able to connect with the maximum
number of customer.
Legal – Oxfam is showing their concern with the global warming effects mainly in Africa or
other develops countries as a result, company enjoys its possession and able to acquire its desire
goals. The company may not be ale to get the result of what it expected because of the increasing
competition arises in the market and might ruin its funds and products or resources.
CONCLUSION
This report helps to understand the various types of business and business functions with focus
on Rolls-Royce, SWIRE, & OXAFM in the UK context. It helped to understand the different
size, scope and range of Rolls-Royce, OXFAM & SWIRE. It also shows the relationship
between different companies. This report helps Oxfam & Rolls-Royce to analysis their strength,
weakness, opportunities and threat (SWOT) and also their external macro factors (PESTLE).
This is also showed the interrelation between internal and external macro factors. It helps
companies to explore opportunities.

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