Business and Business Environment: A Comprehensive Analysis Report

This report provides a comprehensive analysis of the business environment, focusing on the different types, scope, and size of organizations, including public, private, and voluntary sectors. It delves into organizational functions, such as marketing, finance, human resources, and innovation, with a specific case study on Ryanair. The report also examines the impact of the external environment on business operations, utilizing PESTEL analysis to evaluate political, economic, social, technological, environmental, and legal factors. Furthermore, it includes a SWOT analysis of Ryanair, exploring the interrelation between its strengths, weaknesses, and external factors. The report aims to provide insights into how businesses navigate and respond to various environmental influences to achieve success.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Define different types, scope and size of company's.............................................................1
P2 Explain the scope and size of different organisations............................................................3
LO 2.................................................................................................................................................3
P3 Organisational functions........................................................................................................3
LO 3.................................................................................................................................................5
P4 Impact of external environment upon business operation.....................................................5
LO 4.................................................................................................................................................6
P5 SWOT analysis of Ryanair....................................................................................................6
P6 Inter relation of strength and weakness with external factors................................................7
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Business environment means set of function or activity of company that help in
increasing profitability and managing business. Any Organisation run its enterprise successfully
by creating good business environment inside the firm. Business can be effect of external and
internal factors such as: supplier, customers, competitors, new technologies and changes in law.
Healthy business environment is very helpful to motivate employees and other staff members. It
impacts on business growth and success (Wetherly, 2014). It also attracts customers towards
buying products. In this report it defines the purpose and structure of public, voluntary, and
private organisation. This project explain scope and size of various types of company's and their
interrelationship between organisational structure and objectives. This project also explain
weaknesses and strength of company effected by external factors.
LO 1
P1 Define different types, scope and size of company's
Organisations work for making products according to customers needs and demands. In
the world there are many companies who operate their work by giving high performance for the
purpose of making its business successful and better than their competitors. There are three types
of organisation such as public, private and voluntary (Belás, and et.al., 2015). They all had a
different structure and purpose of business.
1. Public organisations: public company's governed by government or public-ally
controlled through funding. Function of public sector organisation is to provide good quality
products and services to people and make them happy (Bouckaert, Peters, and Verhoest, 2016).
They need to follow rules and regulation applied by government in society. For example, British
Airways is the most famous public organisation in all over the world. It is the biggest airline in
UK. They had a huge number of passengers more than the other airlines. Purpose of British
Airways is to serve its best quality services and provide good experience to customer. The main
motive of this organisation is to achieve its goal to become leading airline company in the
world's. They focused on client service at all stages of person journey.
2. Private sector organisation: private organisation is a part of state or country economic
group that has operated by companies and individuals owner. This sector run its business for
purpose of making success and profit through providing their products and services. Private
sector is divided in two types small and medium size such as hospitality, leisure, food and retail.
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For example, Ryanair is private organisation. It established its headquarter in Dublin, Swords
and London (Anheier, 2014). It is a lower cost Irish airline founded in 1984. Ryanair purpose is
to offer low price services to their passengers serve within good quality and satisfaction of
people. They want to increase more passenger than the other airlines has. They focus on cost
containment and efficiency business activity. They serve its services equally to customers
without and differences . Organisation goal is to increase its passenger numbers across 180
million by 2024.
3. Voluntary organisation: voluntary sector company is a group of people who served its
services in society for the purpose of helping people. For example, Cancer research is a
voluntary organisation in UK. They perform without caring any motive of making profit. Usually
they collect funds through organizing charities functions, the purpose of Cancer research is to
provide help to person (Zald, 2017). This type of firms run its business through board members
or other trustees.
Legal structures of organisations:
Sole partnership, Partnerships, limited partnership and corporation are various types of
structures for companies. Organisations establishing their business for making profit, but it still
not possible without following any legal structure in firm. This will help in managing their
process of overall performance.
 Sole partnership, according to this structure individual person operates business in
marketplace. Advantage of this function is that one person was owns all the profit by
selling products and services to customers. But on the other side it also has disadvantages
that individual owner is responsible for loss in business.
 Partnership, this process help in managing business at its financial situations. One or
more person run organisation activity equally. They both are responsible of profit and
loss in business.
 Limited partnership, in this activity of business partners avoid individual choice liability.
Thus, for limited partnerships they have to paid or followed different income tax rules.
This type of function is based on written agreement which is very important in business.
 Corporation, it is very complex organisation business. The owner of corporation business
has its own personal choice and decisions. They can increase its bonds and sales of shares
to achieve profitability and growth of business.
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P2 Explain the scope and size of different organisations
British airways is a public organisation in UK. They provide their best or good quality
services to customers. The scope of this company is to complete its task by managing all the
requirement and objectives in business. They have a large business structure by having a huge
range of passengers. They fly over in 183 destinations, British airways has a second largest
position in airline business.
Ryanair worked under private companies. This organisation scope is to earn more profit
by serving its high performance to clients and provide full satisfaction (Rahim, 2017). They
need to achieve its business objectives by attract more people towards their business. Ryanair
served their flying services in over 220 destinations.
Cancer research organisation work for people who need help in difficult situations of life.
They arraigned charity functions at huge level for collecting money for saving people life's. They
focused on healthy policy's. In the company they had 40,000 volunteers in business and 3,964
employees are working inside firm. It was a type of charitable organisation that work is to served
its services in society.
LO 2
P3 Organisational functions
Source: Ryanair Organizational Structure. 2017
Ryanair is a very famous airline in the world. Their base at London and Dublin airports, the aim
of this organisation is to spread smile on the face of customer’s through providing its great
services and travelling packages (Harper, 2015). Michael O' Leary is the CEO of the company.
Ryanair has followed different types of organisational functions such as:
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Illustration 1: organisation chart of Ryanair

1. Marketing functions: Ryanair spread its business and service information to customers
through marketing. It was an effective process of achieving services and goods by the help of
customers. Customer satisfaction is very important for succeeding in business. Marketing is the
activity decided by owner and manger for the purpose of making relationship with people.
Ryanair used this activity for promoting their airline business all over the world through
advertising in magazine, newspaper, television, holdings and source of media. They provide all
the information about its services such as travelling package, discount offers on booking etc.
2. Finance functions: finance is very important in any business. It was depended on three
decisions. First is investment decision, this will be taken by higher authority of Ryanair. The
process of investment decision is based on planning financial conditions and budget. Second, is
financial decision, this type of function is based on according to the term of organisation. It
might be long and short term process. Finance markets and business maintains both relationship
are very important in making profitability by serving quality products and services. All the
decision is make by shareholders and other management department of Ryanair.
3. Human resource function: HR is the most important part of successful organisation.
Ryanair HR department focused on human activity in business. They focus on growth of
employee performance in Ryanair because it is very essential and effective for business
development. This department worked for motivating their employees at workplace by having
one purpose of achieving goals and objectives of business. Human resource have many functions
in organisation like selection, promotions and transfer, training to new workers, industrial
relations etc.
4. Innovation function: this function helps in attracting customers towards the Ryanair
airline services. It is possible when organisation research in marketplace about using of new
technologies that help in completing customers demands and requirement. Innovation get
developed business at different level. Through using this process Ryanair make different strategy
and plans that improve its position in business world. After knowing its competitors plans
through research they get innovation in their recent services.
Human resource, innovation, finance and marketing function are related with each other
within same purpose of achieving organisation objectives. All this activity helps Ryanair in
making its business more progressive than the other firm have.
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LO 3
P4 Impact of external environment upon business operation
Macro environmental factors effect business in negative and positive ways. PESTEL is
the best process of understanding external activity and its impact on organisation growth.
1. Political factors: political environment effect business and developing process. Ryanair
business get impact by political factors in positive and negative ways. Some time
government make laws according to make profit in business, on the other side changes in
taxes activity of government effect business growth and productivity. Changes in tax
laws forced Ryanair to increase its cost on tickets (Mkude, and Wimmer, 2015). This
will decrease its customers range and employee turn over because this type of changes
stop their income source. On the other side political factors make stability in business.
2. Economic factors: economy environment impact Ryanair business. Changes in economy
at the level of micro and macro factors effect organisation profitability. Unsuitability in
society effect company growth, it creates negative environment at workplace. But
stability in economy increase Ryanair business and help in achieving organisation
objectives. It depends upon the demands and requirement condition of economy.
3. Social factors: Social factors played its important role in raising organisation profitability
and success. Ryanair focused on values and belief of people and then create their
services. For example, Ryanair need to research in society about people like and dislike
and what is the latest trends among them. Social factors include education, interest etc. of
people. Organisation made those services which is suitable for every people where its
educated or not, because without having understanding of society trends business
company does not grow in marketplace.
4. Technological factors: most of organisation do not work according to new technologies
that will affect its business. Ryanair need to analysis market areas to know about the
latest technology used by competitors. It is very necessary in business growth. For
Example, new technology in market place impact on organisation process of making
profitability because Ryanair do not have the knowledge of this activity. Thus, for this
they need to analysis market and followed their process according to it.
5. Environmental factors: Ryanair is an airline company. They fly many times in a day,
changes in weather affect its business growth. Such changes are climate, heavy rainfall
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etc. by having all these climate changes customer’s get removed their involvement by
using its services. Environmental factors highly impact upon Ryanair business.
According to changes in situation airline need to stop their take-off process.
6. Legal factors: every organisation need to follow legal process to run their business
successfully. Legal factors is based on customers' health and safety, clients rights and
laws. Ryanair airline followed legal structure made by government. They focused on
customer’s safety and health when they are travelling under its process. Organisation
need to provide consumer services according to its rights. Changes in legal factors some
time impact negatively upon business because firm does not have much fund for modify
their services by sudden changes. All this analysis help in making business new plans and
strategy according to the situations that helps in achieving business more profitable than
its competitors in world.
LO 4
P5 SWOT analysis of Ryanair
SWOT is the best process of understanding strength, weaknesses, opportunities and treats
about themselves. Ryanair make this process in its business activity.
Strength of Ryanair: Ryanair strength is base on low cost price services. They set their
prices at per kilometre, cost per passengers and per seats in flight. Organisation established their
business in European marketplace by covering 200 destinations or 1800 routes by providing low
cost services. Their another strength is that they provide good quality services to customers
better than its competitors (Blockeel, and et.al., 2016). Low price is the advantage of firm. They
are in the largest second airline company in Europe for transporting many passengers than other
airlines have. Low fares, innovation, management focus and size is the strength of this
organisation.
Weaknesses of Ryanair: brand perception is the weakness of Ryanair. According to
customers firm low cost offer is decrease it brands image in business world. Low frequencies,
secondary airports, EU sensitivity all are the weaknesses of this firm. Their flat and low cost
mention as its weak point in society. They have low frequency in routes.
Ryanair opportunities: organisation learn its process and make improvement in
customer’s services. They allowed 20 kg baggage in flights and also offers many other services
to people that is the process of making opportunities in growth of business. Ryanair offers
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passengers opportunity to choose their own seats without and difficulty. They are very flexible in
changing ticket according to passengers situations and requirement. It also creates new aircraft
services to people that aim is to provide full satisfaction according to their needs.
Ryanair threats: Ryanair is the airline organisation, they need to focused on flying over
the sky. Accident is the threat of this firm at the time of running its process. Loss of focused and
competitive response in market area within serving same services and products to customers.
The main purpose of doing this SWOT is activity is to understand Ryanair strength and
weakness. After completing process they get improved and developed its weaknesses to faced its
competitors strategy and planning in business.
P6 Inter relation of strength and weakness with external factors
PESTEL and SWOT get related with in business of Ryanair. Using new technology and
analysis social environment is the strength of firm because if they are using the latest
technologies in their business activity they can attract consumers towards their services and
another reason of its strength is that they can also identify the latest trends in economy among
the people and focused on its value or belief that helps in making their products and services
according to it.
Ryanair weakness is based on changes in political and legal process of government. This
changes affect its business process and stop their growth of succeeding in market areas.
Environmental changes is another weakness of firm because it decreases it profitability than its
competitors.
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CONCLUSION
It has been concluded in present study that business and business environment is very
important in making firm productivity or growth. In this report it explains the different types of
organisation that have different way of purpose and legals structures. It also describes
organisations size and scope, and present relationship between company's various functions.
Thus, for analysing PESTEL and SWOT they get know the strength and weaknesses of company
and their interrelation with external environment factors.
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REFERENCES
Books and Journals
Anheier, H.K., 2014. Nonprofit organizations: Theory, management, policy. Routledge.
Belás, J., and et.al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
Blockeel, C., and et.al., 2016. A fresh look at the freeze-all protocol: a SWOT analysis. Human
reproduction.31(3). pp.491-497.
Bouckaert, G., Peters, B.G. and Verhoest, K., 2016. Coordination of public sector organizations.
Basingstoke, UK: Palgrave Macmillan.
Cornuelle, R.C., 2017. Reclaiming the American dream: The role of private individuals and
voluntary associations. Routledge.
Harper, C., 2015. Organizations: Structures, processes and outcomes. Routledge.
Mkude, C.G. and Wimmer, M.A., 2015, May. Studying Interdependencies of E-government
Challenges in Tanzania along a Pestel Analysis. In ECIS.
Rahim, M.A., 2017. Managing conflict in organizations. Routledge.
Wetherly, P., 2014. The business environment: themes and issues in a globalizing world. Oxford
University Press.
Zald, M.N., 2017. Social movements in an organizational society: Collected essays. Routledge.
Online
Ryanair Organizational Structure. 2017 [ONLINE]. Available through:
<https://www.reference.com/business-finance/ryanair-organizational-structure-
8256e0c51560315d>
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