Business and Business Environment Report: Starbucks and NHS Analysis

This report provides a detailed analysis of the business environment, focusing on the organizational structures, objectives, and operations of three distinct organizations: Starbucks, NHS, and Oxfam. The report begins by defining the business environment and its impact on business operations. It then explores different types of organizations, including private, public, and voluntary, along with their legal structures and purposes. The analysis of Starbucks examines its private organizational structure, objectives, and scope, while NHS is presented as an example of a public organization, detailing its mission, size, and structure. Oxfam is used to represent a voluntary organization, with a focus on its purpose, size, and scope. The report also explores the relationships between organizational objectives and structures, and identifies the positive and negative impacts of the macro environment on business operations. Finally, it evaluates the strengths and weaknesses of the organizations through internal and external analysis, explaining how these interrelate with external macro factors. The conclusion summarizes the key findings and offers insights into the dynamic interplay of these factors in shaping business success.

Business and business
environment

Contents
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1: Different type and purpose of organization with their legal structure..........................................3
P2: Explain the size and scope of a range of different type of organisation.......................................5
TASK 2.................................................................................................................................................7
P3: Relationship between various organisation objective and structure............................................7
TASK 3.................................................................................................................................................8
P4. Identify the positive and negative impacts the macro environment ahs upon business operations
...........................................................................................................................................................8
TASK 4...............................................................................................................................................10
P 5 evaluation of strength and weakness of organization through internal and external analysis.....10
P6 Explain how strengths and weaknesses interrelate with external macro factors.........................11
CONCLUSION...................................................................................................................................11
REFERENCES....................................................................................................................................13

INTRODUCTION
Business environment refers to the collection of shareholders like employee, supplier,
government, customer and technology that can affect the internal as well as external aspects
of the business. These factors influence the performance of business and provide desirable
insight in order to improve the operation and build successful strategy (Adeoye and
Elegunde, 2012). For the better understanding of report Starbucks company has been selected
that has leading multinational chain of coffee house. The company incorporate their business
in the year 1971 and has successfully delivered the services worldwide. This report cover
topics like explanation of diverse type and scope of an organisation and represent the
interrelationships between different functional areas. Further, analyse external factor which
either positively or negatively affect its operations. The strength and weakness needs to be
effectively studied in order to gain a sustainable performance.
TASK 1
P1: Different type and purpose of organization with their legal structure
Group of people work together to achieve the individual as well as organisational goal
happened in an organisation. There are 3 type of organisation which is discussed below:
Private organisation: These are the organisation which is started by the individual
and the motive is to earn profit. They contribute huge share to the economy and helps in
generating employment in an economy. Private companies have to follow rules and
regulations set by the government along with that they have their own policies and plan to
conduct the business with efficiency with addition to it they have their own ways to achieve
profits. The profit made by the private company is beneficial to its stake holders like
shareholder, owners, investors etc. Other than that business can also collaborate with public
bodies and the government to form a public-private company (Wetherly, 2014). Example of
Starbucks a private company in UK is taken here.
Purpose: The purpose of Starbucks is to achieve profit, sustain and grow. To follow a
culture and run business ethically helps entity to gain desirable reputation.
Legal structure:

Sole proprietorship: Under this a single individual run business and aim to achieve
profit for single person. Capital requirements are less in such type of business and profit and
loss is borne by the sole individual. No legal permission is required for such type of business.
Partnership: Limit of member is between 2-20 member. Partnership deed is prepared
under this which talks about profit share ratio, capital bought and various rules of the
partnership. Paperwork is required under this and it is time consuming in nature.
Corporation: It is started by the group of individual. The motive is to achieve profits
but it requires lot of paper works an agreement which ultimately turns into contract.
Stakeholder is the interested parties under this.
Public organisation: These organisation is owned and run by the govt and public
bodies. The aim is to render services to the citizen of the country. State, central and local
government runs this business in welfare of the country and its people. Even the funding is
raised by the government. National healthcare services (NHS)I is a public company in UK
which aims to work for social welfare by offering specialised services at reasonable prices
and earn revenue at the same time.
Purpose: Improving the economy of the country and spreading all the required
awareness to the public and helping the country to grow more. For instance, the purpose of
NHS is to diversify healthcare facility for the wellbeing of people belonging to diverse
category or income group without any discrimination between rich and poor.
Legal structure:
Central government: Its motive is to control and manage the resources of the
economy by helping the organisation to perform work properly. They have the power to
make rules and regulations in the benefit of the economy. Organisation who come under
central government need to take permission about all major things and need to disclose all the
important stuff.
State government: Some product and services are provided by state government only
so they share their power with national govt. also.
Local government: Requirements at individual level are identified by them. They
collect funds also by way of council tax.

Voluntary organisation: The main and only objective of the organisation is to do
social services which can benefit the society (Apăvăloaie, 2014). Anybody who wants to
work for a social cause can provide their services to support this good cause. The people who
have started this business are not looking for the profit. They want to contribute by their own
way to improve society living standards. This enterprise helps the helpful ones by providing
those funds and resources and contributing by their own way. Oxfam is the company here
which aim to eliminate property worldwide. The association operate worldwide and has
effectively developed independent section that has cover the unprivileged section of society
effectively.
Purpose: Objective is to help society by providing their services and improve the
standards of the society. In case of Oxfam company its purpose is to eradicate the issue og
global poverty by transmitting equal rights for poor people.
Legal structure:
Trust: Trustees start this type of charitable business for the welfare of the society.
Trust deed is the document which mentions each and every detail about the trust. It follows
legal norms and is characterised as legal charitable trust.
Un-incorporated association: The rules and regulations under this type of charity is
not mentioned in any constitution. There is lot of restriction in distribution of funds and
capital. It is not a legal entity as it does not follow any law and regulations.
P2: Explain the size and scope of a range of different type of organisation
Private, public and voluntary are different types of the organisation that operate in
dynamic business environment with the objective to attend their predetermined goals. Each
entity has its own purpose of existence due to which they take all the necessary actions in
order to maintain the interest of internal and external stakeholders. External opportunities in
form of profit maximization or social welfare are overviewed and significant efforts are made
to maximize the potential of employees in order to attain the purpose successfully.
Private organisation: Private organisation is an essential part of economy that is
carried out by the group of individuals that formulate the registered company. The purpose of
these corporations is to gain desirable amount of profit and gain dominant position into the
market. Herein, Starbucks company always try to understand the perspective of customer and
provide desirable amount of varieties to cover the requirements of potential target market.

Background: It is the well-known multinational company that has the leading chain
of Coffee houses all over the globe. Advanced tool and techniques are used to understand the
customer behaviour that helps to flourish the operation of entity (Blanchard, Tolbert and
Mencken, 2012).
Vision: The vision of company is to deliver finest coffee and focus on personalized
services in order to build long term relationship with the customer.
Mission: Mission of company is to enrich the existing abilities and potential of their
staff as well as nurtured them to create a desirable and warm culture. Focus is given to
maintain the uniqueness in their outlet as well as product all over the world.
Objective: Objective of Starbucks is to maintain the explicit position of reputed brand
all over the nation in order to gain competitive advantage over other rivalries.
Size: Starbucks has huge size due to which team manager are able to diversify the
business all over the globe. The company serve in approximately 28000 geographical areas
for which around 2 lack employees are hired depicting the large size of entity.
Scope: The scope of Starbucks is to gain the advantage of economies of scale by
successfully operating its business in distinct market. Expansion is the primary scope of
company due to which it can effectively covered both developed and developing countries.
Structure: The managers of Starbucks company have effectively adopts Matrix
organisation structure in order to effectively flow the communication amongst the employees
and better delivery services to the customer.
Public organisation: This organisation are controlled, run and operated by
government bodies to offer desirable services for the significance of citizen.
Background: National Health Services (NHS) is a part of healthcare system that
operates in UK. Comprehensive range of services like dental treatment as well as optical
services is delivered at nominal prices. The company started their operations in the year 1948
and has maintained significant position (Koišová and et. al., 2017).
Vision: Vision of company is to improve the health of each and every individual by
making the health care facilities affordable for everyone.
Mission: Mission of company is to come up with latest technology and techniques for
the betterment of health services in order to receive better result.

Objective: The aim of NHS is to provide innovative healthcare services and
maintained the trust of patients.
Size: The leading size of the NHS Company has made it possible to operate within
four countries of United Kingdom that include Scotland, Wales, North Island and England.
The Healthcare sector has employed over 1.5 million staff that on the continuous basis look
for the better health of patients.
Scope: The scope of NHS company is to improve the health system and protect the
lives of people from paying heavy financial expenditure.
Structure: Hierarchical structure is followed by NHS company where all the
instructions are delivered from higher level of authority to lower level.
Voluntary organisation: voluntary organisation basically include non profit
organisation that works for the specific objective which is social welfare. Their main
objective is to develop the society and minimise the bridge between rich and poor people.
Background: OXFAM is well known part of the voluntary organisation that works to
remove global poverty. It started its operation in the year 1942 and has built 19 charitable
organisations which independently work to mitigate the poverty.
Vision: vision of the organisation is to see the interest of people and spread awareness
in order to make the movement resultant in eradicating the global poverty.
Mission: Mission of Oxfam company is to provide solution for the overall
development of nation.
Objective: Objective of the organisation is making the Independence charitable
organisation which involves the support of society. Efforts are made to allocate the funds to
cover up basic requirement of the underprivileged part of society (Starbucks Organizational
Structure, 2017).
Size: The organisational continuously expanding its size and fight against the
undesirable causes of poverty. Oxfam now has more than 10,000 individuals working hard to
fight poverty in over 90 nations. This firm spent $1.14 billion and reached more than 22.2
million people in its long term development and humanitarian assistance programs.
Scope: The scope of OXFAM company is to rebuild the lives of people who are poor.
Campaigns are prepared to prepare sustainable and long lasting changes. This firm has large

scope because they work in more than 90 nations, with thousands of partners, allies and
communities to save and protect lives in emergencies, assist individual rebuild their
livelihood and campaign for sustainable, lasting change. Together, they stand up to challenge
the inequalities that keep people poor.
Structure: Functional structure is effectively followed by company to work against
global cause.
Size of the firm
•Micro/little company – The size of the separate kinds of association is nearly little then the
medium just as huge firm. In this particular organization will have under 100 workers. In this
spending plan of an organization is lower than the other medium just as huge organization so
they direct business in like manner. What's more, when an organization working at the
particular level then they lead their business tasks and capacities at the neighbourhood
market.
•Medium company – According to the medium kinds organizations, their size is similarly
more than full scale level just as not exactly the huge organizations. The quantities of
representatives working at the particular size organization are more than 100 and under 900.
The individual organization for the most part work at the public level as their business will be
settled at the distinctive area of the particular country or zone.
•Large company – The last sort of the association size is huge in which in excess of 1000
representatives are filling in just as their business activities and capacities is settled at the
neighbourhood, country and universal level. The particular kinds of firm hold high pieces of
the pie just as incentive at the possible commercial centre. The separate sort of firm gets
speculators just as investors at the global level which help in powerful business development.
TASK 2
P3: Relationship between various organisation objective and structure
An organisation comprises of different department operations that are interrelated
with one another in order to actively work in the favour of entity. The interrelationship is
listed down below:
Marketing and finance: Marketing department of Starbucks company is responsible
to understand the customer behaviour in order to enhance the football of the store. Effective

understanding of the customer behaviour through interaction and market research helps in
carrying out the planning and promotional strategy. The finance department of Starbucks
company is responsible to keep the accounting of all the monetary transaction due to which
budgets are prepared for specific tenure. These budgets are used by marketing department in
order to prepare campaigns and promote traffic of customers.
Marketing and HR: HR department is responsible to carry the whole recruitment
cycle, evaluation process, conduct orientation session and provide training to the employees
in order to maintain smooth functioning of business. The HR manager of Starbucks
comprises of employee portal based on which the entire essential records in relation to the
salary and personal details are listed down for better management of staff. Generally,
marketing manager of respective company transmit essential information to human resource
department about the change in trend or policies based on which training is offered to
candidate in order to enrich their capability.
Organisation structure: Starbucks company has adopted Matrix organisation
structure which involve intersection with different functional areas of the business (Oxfam,
2017). Different departments like finance marketing operational and HR are interrelated and
together helps to carry out the better monitoring and controlling process.
Matrix organisational structure- It is a company structure in which the reporting
relationship are establish as a grid or matrix rather than in the traditional hierarchy. In other
word, within these kind of structure, employees have dual reporting relationships, basically to
both functional administration and product manager. Phillips and Caterpillar are some
effective example of this structure.
Divisional organisational structure- It is kind of structure that teams each organisational
function into division. Each division contains all the required assets and functions within it to
support that product line or geography. In this structure type, the business firm is categorised
in to factors that are offered accountabilities supported on operational needs, Each section

handles a particular area of set of strategic objectives. McDonald’s is an effective example of
this kind of structure.
Functional organisational structure- It is a structure that utilised to organise and manage
employees. They are grouped based on their particular skills and knowledge. It vertically
structures each division with roles from president to finance and sales departments, to
consumer service, to employees allotted to one commodity and service. Starbucks is a good
example of this kind of organisational structure.

TASK 3
P4. Identify the positive and negative impacts the macro environment ahs upon business
operations
To determine the positive and negative impact of macro environment factor, the
management of Starbucks can use PESTEL analysis model. The explanation of it is as under:
Political factor- It consider different factor like government interference, taxation policy,
trade restriction, labour laws, foreign exchange and many more (Akhtar, 2018). When
changes are generated in laws and policies then business of Starbucks influence in diverse
form. For example by adopting Starbucks, management able to conduct their work in
effective manner at the international market as well as their also ensure that business
operations and functions are conducted in legal manner.
Positive- Political stability of UK positively impacts the firm in term of support
investment that makes development in its business. Free trade is another aspect of political
factor which also favourably impact Starbucks in term of operating its business globally.
Negative- Global war affects political condition of the company that negatively impacted
Satrbucks’s business. Instable political situation of some nations affect the business of
respective firm in negative form.
Economical factor- It include different components like economic growth, inflation or
deflation, employment or unemployment rate, interest rate, exchange rate currency rate and
many more. In context of Starbucks, It is a UK brand where country has enormous economic
condition. For example by adopt economic factor respective company able to develop
strategies and plans leaded to business, products or services in effective manner which ensure
that products can affordable by potential customer properly.
Positive- Strong economic system of UK assists Starbucks in generate high revenue as
well creating employment. The company provide employment to candidates of all over globe
that positively affect the firm term of increasing employment rate.
Negative- Maximisation in taxation rates and labour cost is the major components that
affect economic growth of Starbucks. Due to Brexit, inflation arise and cause of which
supplier make changes in their commodities and raw material in term of increase cost of them
which directly affect economic condition of business venture.
Social factor- This factor involve several aspects like values, culture, beliefs, taste &
preferences, demographic factors etc. When any kind of fluctuation occurred in these factors

then business of Starbucks impacted. For example by considering social factors Starbucks
able to offer products or drinks according to preference of customer of a specific nation.
Positive- The administration of respective offer quality products as per customers taste &
preferences which positively influence business firm. The firm also make focus on the health
of customer so also offer sugar free and healthily organic coffee to its consumers which
favourably impact the firm.
Negative- Sometime the venture forced to organise CSR activities so that they can make
engagement in development of growth which n negatively affect the company in term of
provide better satisfaction.
Technological factor- It include diverse factors such as advance technology, technical
innovation, artificial intelligence, research and development etc. (El-Zayaty, 2018). There is
several kind of technology introduced day by day which influences the business of Starbucks.
For example by adopting technology in business operation Starbucks able to conduct their
operations in effective manner with minimum wastage as well as it also help in conducting
work in less time.
Positive-The administration of respective company use effective technology in its
promotion of goods and services which positively influence its business. Along with the form
also offer its goods and services through online technology like mobile order and also offer
online payment services which positively affect it.
Negative- Regular acceptance of technologies increases the all over cost of company that
affect economic system of Starbucks. The rising availability of home use specialty coffee
machines is a main threat to Starbucks as it maximize the accessibility of substitutes
regarding its products.