Icon College: Business Environment Analysis and Strategic Functions

This report provides a detailed analysis of the business environment, focusing on organizational types, functions, and structures. It examines public, private, and voluntary sector companies, analyzing their size, scope, and capital investments. The report explores the relationships between various organizational functions, their links to strategic objectives, and organizational structure, using ASDA as a case study. It also includes an internal and external analysis of specific organizations, identifying strengths, weaknesses, and the impact of the macro-environment using SWOT and PESTLE models. The report discusses the positive and negative impacts of political factors, such as Brexit, on business operations, and it highlights the interrelation between internal strengths and weaknesses with external macro elements. It further explores how different organizational functions like marketing, HR, and operations interrelate and impact the overall structure of a company like ASDA. The conclusion summarizes the key findings and provides insights into the dynamic nature of the business environment.

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION......................................................................................................................................3
LO1.............................................................................................................................................................3
P1 Types and purposes of organisations..........................................................................................3
P2 Size and scope of various companies..........................................................................................5
LO 2............................................................................................................................................................6
P3- Explaining relationship between several organizational functions and how they link to
strategic objectives and organizational structure..............................................................................6
P-4 Explaining the negative and positive impact of macro environment on business operation8
LO4...........................................................................................................................................................10
P-5 Analyzing the internal and external analysis of specific organizations in order to identify
strengths and weaknesses................................................................................................................10
LO 4..........................................................................................................................................................11
P6- Explaining how strengths and weaknesses interrelate with external macro elements.......11
CONCLUSION........................................................................................................................................12
REFERENCES........................................................................................................................................14

INTRODUCTION
Business environment can be understood as widely diversifying aspect where
varied scale innovation and creative functional pace is being synchronised among
companies businesses, where this further heads on among larger technical
determinants. With changing business environment factors, there are varied scale
expertise rise among companies business operations, specific functional strengthened
scope. The report will be analysing types and purposes of various organisations, where
main factors of differentiation will be analysed strategically. Private, public and
voluntary sector companies will be worked on by analysing size, scope and business
capital investments factors for bringing on productive wide scal changes. Report will
also further examine size, scope and relationship within various functions, their linkage
with company business connectivity for larger imperative growth connectivity targets.
Study will further analyse internal and external business factors, by using swot and
pestle business models which determines specific competent growth within competitive
industry framework (Hock-Doepge and et.al, 2021). The research will further also
examine in detail analysis of correlation between internal and external business factors,
and their varied scale competencies which enhances wider technical strengthened
productive goals.
LO1
P1 Types and purposes of organisations
The global business environment has varied types of organisations whcih can be
further divided on basis of size, structure and further capital investments for bringing on
imperative connetcive benchmrks. Public companies can be understood as
organisations, where shares are listed on trading stock exchange, where ownership is
found to be divided in form of shares investments. The public corporations are widely
large in capital structure whcih opens up paths for new fundamnetal investents, where
further scale technical exoansion is further focused on atcively for reaching larger
customer target markets. Public companies opens up space for people to invest on

trading stock exhngae, where they become part as shareholder but active decision
making power is not given to them. This further shows that public companies, example
Asda- is one of the oldest and biggest strcutured public comany where retail services
are widley advnaced functionally operated among customers prefrences (Ram, 2021).
Private companies are owned by private owners and shareholders, where the
have potentialities to own shares within comapnies and further also holds tehcnical
expertose related for strengthened innovation. The shareholders are private owners,
whch further also enhances socpe for strengthening yeidling opportunities towads
varied fundamnetal vision oriented targets. The private companies are also diffrenet
from publi companies on basis of factor, that sahres are not listed on trade stock market
whcih lowers potentailkties for strignent connetcive benchmarks. Aim of private
companies is to enhance revenue targets and further expand customers goodwil, which
further enables to connectively bring on bets products and sercvices within competitive
industry. Example of private company is John lewis Partnership, where the brand has
been providing large scale rise on varied best customers services. This further heads on
profound focus towrads bringing larger scale connetcive diversity where private
companies are furthr able to expand best technical strengthened scope within retail
industry (Cherunilam, 2021).
Voluntary sector companies refers to organisations whose main job is to crate
social impact rather than busines profit, where it further enhances socpe for larger scale
sustinable growth within world. The voluntary companies are working with speicifc
working efficacy targets, for strengthening communities wellfare and larger evolvment to
determine creative fucntional pace. Charity purposes enhances vision oriented
benchmarks for serving people and creating change within society, where NGO furtjer
also opens up new platforms for tehcnical connetcive expansion rise informatively. It
can be also analysed that main goal is not to earn profit within revenue, but to
strengthen up varied secale services actively within longer time periods. Britsh red
cross is one of the best volubtary organisation, where further competent productive
focus is devloped among communities engagement and to enhance vision orfiented
growth goals. There are no shares listed in voluatry companies, and neither profitability

is further competeitively focused on within NGO companies where major focus is
developed on strengthening scaled up work competencie (Wong, Sinnandavar and Soh,
2021). NGO have best fucntional scale worked on for strengtheing communities
enganment, where British Red Cross has been fucntionally expaning towrads best
social class services for strengthening ideologies.
P2 Size and scope of various companies
Public company has large size and scope for bringing on expanded functional
rise among customer market, where shares are also listed among customers within
share trade market which enhances space for strengthened diversification parameters.
Asda, one of the biggest public sector company wide scope and size with
around145,000 dedicated workforce and has around 18,000 million customers within
stores round world. It can be further analysed that Public companies have varied size
and scope, with extended usage of best capital structure targets and for larger technical
primitive growth investments. Asda has best retail services with its premium quality
structure operations, enlarged working efficacy targets and further consistency bringing
on evolved effectively. Asda has around operating income of 584.2 million which further
enhances scope to bring on large scale expertise factors and enhanced vision oriented
paradigms (Asda leadership update, 2021).
John Lewis partnership is one of the largest owned private company in UK with
gross sales of over £11.7 billion and employs around 80,000 employees which has
expanded wide scale functional innovation within business hemispheres. The brand
offers promising quality structure operations and technological operational parameters
for enhanced business positioning, larger functional pace scenarios where technical
strengthened scope is varied. The size and scope of private company is variedly
expanded on large aspects and working connective benchmarks, where diversified
scale consistencies are worked on for dynamic business goals and for technical
developed productive strengthened scope. This further can be also analysed that
private companies hold huge capital structure, for varied scale connective
benchmarks and technical connective paradigms which enhances services with
strengthened working goals. Private companies have expanded scope to bring on

detailed changes, with best scale working competencies rise where further connected
productive diversity within products and services is large.
Voluntary companies, have limited operations and services for creating large
range change within society, where main goal is to bring on better living conditions for
people and to also strengthen up working functional goals proactively. The British Red
cross organisation, is one of the best and biggest voluntary sector company having
massive operations for strengthening people living standards and providing
communities engagement aspects actively. It was formed in 1870, with more than
17,200 volunteers and 2,400 staff which further enhances scope for larger scale
technical strength. It was established to work for prevention and alleviation of human
suffering, for providing support among people within time of crisis and for larger
connected diversity scope. Voluntary company, British Red Cross is widely known to
bring on strategic functional growth rise actively and larger determinants connected for
yielding best technical innovation within society. The NGO and voluntary companies
have further also limited capital structure for bringing on change within services, which
further limits scope within strategic run aspects (Nam and Bao Tram, 2021).
LO 2
P3- Explaining relationship between several organizational functions and how they link
to strategic objectives and organizational structure
ASDA is the biggest supermarket in retail industry, it works with different
departments, which all are interrelated with organizational objectives and structure as
well for example;
Marketing with human resource department-
Both departments work together which define their interrelation and purpose
such as to achieve goals and objectives of ASDA. HR manager communication and
collaborate with marketing section to promote vacancies in market which help to gain
the attention of job seekers, who wants to work in well-known brands like chosen one
(Suárez. and et.al., 2020). Collaboration between both sections may lead to flow
productivity in organizational structure smoothly and help to achieve business

objectives, like increasing performance of brand more than its rivals, for which
collaboration and coordination between each department employee is essential.
HRM with operational department-
Just like above, human resource management and operations departments also
perform together, because they both attempts to gain objectives of ASDA and seek to
benefits other departments staff in organizational structure like marketing, finance etc.
HRM coordinate with operations team just to known and determine workforce
requirement and their expectations related to it, which allow them to hire staff
accordingly (Abbasi and et.al., 2020). Interrelationship between both, help to achieve
aims of supermarket in term of increasing workforce, productivity and customer
satisfaction. It also contributes to continue flow to work in organizational structure that is
essential
Operational with marketing department-
Marketing department coordinate with operation department because they are
capable to understand what customers demand for and seek to buy. Their coordination
may support to increase sales of brand, which is not possible to maximize for any
company in such an easy manner. Communication and coordination between both units
increase speed of workers to deliver quality products to customers which in return help
to maximize their satisfactory level in unexpected manner. It makes promotion and
production process easy and efforts less that help to keep flow from supply chain to
finance in structure of brand.
Benefits and drawbacks of interrelationship between functions-
The best thing above interconnection between marketing and HRM or human
resource and operations is that it helps to increase employees as well as ASDA
performance level. It allows organization of maximize customer base and give tough
competition to competitors like Tesco, Morrison’s, Sainsbury etc. When marketing team
coordinate with HR units, they may easily promote jobs vacancies according to their
expectations that allow human resource manager to hire and select skilled workers who

may contribute to reach at international level and move forward in the future, which
strengthen supermarket to grab the attention of global buyers and investors.
On the other hand, interrelationship between each organization functions may
lead to create conflicts because each member keeps different perspectives regarding
varied things which don’t meet with other. It may create issues and affect performance
of workers that is not beneficial at all for supermarket growth in retail industry.
Impact of interconnection between functions upon ASDA structure-
Coordination and communication between marketing, human resource and
production or operation departments within supermarket may put positive impact on
organizational structure in term of increasing speed of candidate regarding delivery
quality services, determining needs and expectations of each workers or unit. On the
other side, it may put negative impact on structure in term of decreasing staff
productivity and increasing conflict because of different perspectives.
P-4 Explaining the negative and positive impact of macro environment on business
operation
The external business environment factors can be further analyzed by heading
on focus towards pestle analysis ,where Asda is one of the largest and oldest retail
company within UK industry on which external business environment plays specific
role. Below are the integral aspects within pestle analysis, for bringing functional scale
enlarged functional strengthened scope worked on.
PESTEL ANALYSIS
POLITICAL FACTOR: The positive impact of using political factor by Asda is then they
can relatively stable political environment in United Kingdom. it has been seen that
Brexit has resulted in creating lot of uncertainty because of this many companies like
Asda have to think about Future proof supply change which will result in giving
response to Brexit (Agapie, and et.al., 2018). It has also resulted in a source of hope
between United Kingdom and European Union for their deals for both parties and many
organizations. but on the other and negative effect was the company have to face
different types of impact that are related to national, international, directive concerning

employment, legislation, Texas and consumer rights. In addition to this war and
instability also have impacted the organization decision making.
ECONOMIC FACTOR: The positive impact of using economic factors are related to
fulfilling all the necessary needs of the customer which will result in organization but on
the other hand the negative impact was the company needs to focus on economic
factors that are related to cost of credit, labor supply and demand, energy prices and it
also includes rising strategies that affects the company in harder manner. For example
after the pandemic lockdown the company have to face several problems that are
related to reducing shopping activities as many of the people in the UK have lost their
jobs.
SOCIAL FACTOR: The positive impact of social factors an Asda is it still uses number
of the product which results in Catering large number of ethnic group. The company
also has different types of social changes that are related to healthy lifestyle, celebrity
following and aging population which is very important for Asda. The negative impact is
that in the countries in which Asda is operated they want organic, vain and vegetarian
food on the other hand they also demand for certain ethnic food which is also high
demanded product and United Kingdom and other countries (Vargo, and et.al., 2017).
TECHNOLOGICAL FACTORS: The positive impact of using technological factor is that
it helps them working on best and better manner as they have been One of the big
supermarket in UK and have to use different types of techniques so that their customer
do not have to wait so long. but on the other hand negative impact is that they have to
face different types of issues is they have to use different types of technology which will
result in growing, super fasting broadband Anne mobile apps along with virtually all to
include delivery services and other things.
ENVIROMENTAL FACTORS: The positive impact of using environmental factor is that
it will result in reducing pollution, green economy, carbon print, organic food Anne has
ideas waste which is very important for Asda. On the other end the navigated impact is
that using of plastics as nowadays the entire customer want that the company should be
environmentally friendly. On the other hand they also have pressure from the
government to operate their organization by using environmentally friendly manner.

LEGAL FACTORS: The positive impact of using legal factors are they can follow
different rules and regulations which will not result in facing any problems in the future
but on the other hand the company also have to face the negative impact because of
their food safety breaches in north and then that was amount euro 3000000. The
company also has to give minimum wages to their employees which were decided by
the government of United Kingdom (Manninen, and et.al., 2018).
From the above factors it can be analyzed that Asda with changing business
productivity phase and industry competitive aspects external factors among working
culture has to be further evolved actively. This further also synchronizes focus for
extensive scale growth rise evolved among commercial domains, where new
investments have to be further pertained strategically for larger connective revenue rise.
ASda has been also primitively evolving to bring on new services, where further scope
relies towards extending investments within technological parameters effectively.
LO4
P-5 Analyzing the internal and external analysis of specific organizations in order to
identify strengths and weaknesses.
Internal business environment factors can be further analyzed within Asda by
heading on towards swot analysis factors, for productive in depth analysis among new
productive functional pace and synergies for larger technical strengthened scope.
STRENGTH: The strength of Asda is there using drug products and services for their
customers along with this they also provide financial services which include as the
smart place, mobile and money. On the other hand they also have good connection at
the time of maintaining their social networking sites that is by sharing the views and
feedbacks of their customers. Along with all this day even provide marketing campaigns
about it project IT services and customer delight. In addition to the biggest extent of the
company are their various awards of excellent services in the year 2009 the company
had got Oracle retail week awards.
WEAKNESS: The weakness of the companies is their little global presence as
compared to its competitors. They have also been restricted in several countries

because they have the fear of strong competition from local vendors. On the other hand
their competitors have fixed the dairy products prices because of this the company have
to face huge loss of the customers as their price is different from that. Along with their
product sold by the company also have low quality which have impacted the company's
reputation (Rachinger, and et.al., 2019).
OPPORTUNITY: The Company has different types of opportunity data related to
expansion in gnu domains as they can expand their business in new areas that are
jewelry, photo department and other. Along with this all they can also expand their
stores in the countries like India and China that will result in gaining more visibility of
their brand. They can also come in partnership or joint venture with their smaller
company which will help them to expand his business operation. They also have that
personality to make long term goals by targeting 100% recyclable packaging
sustainable sourced fish which will also result in reducing food waste.
THREATS: The threats of the company are price war between the existing retailer in
different countries on the other hand they also have to phrase that is related to changing
policies of the government in the terms of fact. The price cut of their competitors also
impact the business of Asda and existence of many online independent retailer is also
threat of organization. The threat of the company is it online existence as the company
have relay upon its different competitors and if they start selling the products in low
price then the company also make the strategy to sell at low price which result in
affecting the profits of the company (Zweig haft, 2017).
From the above analyzed factors Asda has further scope to invest on ne
technology metrics, best scale connective diversity within trainings for employees and to
enhance new functional pace goals actively
LO 4
P6- Explaining how strengths and weaknesses interrelate with external macro elements
A strength and weakness of any brand put impact on their success and
unexpected progress within specific sector or market. These two elements are
interrelated with external macro factors like political, social, economic, legal,

environmental and technology. For example, in term of interrelation, ASDA strength is
related to technological and other forces such as it helps firm to use key resource and
competencies to grab key opportunity provided by technology and social factors like
customer retention and advance technology implementation. Organization may use its
power in term of strength to overcome negative impact of those external factors that
may decrease sales and productivity of brand. A strength is interrelating with certain
forces in term of increase productivity of venture and improving performance level as
well, which is quite essential to enhance.
Just like strengths, organization weaknesses also interrelate with some external
macro forces. For example, it may put negative impact on firm success and bring
challenge in process strategic marketing and production planning as well as progress of
brand. Each weakness like lack of global presence interrelate with specific factor like
technology, because it may help to generate strong and effective brand image in market
or all over the world. Strengths and weaknesses interrelation in with each element may
affect organization success, productivity, profitability and performance level. It drives the
attention of managers and leaders to conduct beneficial activities that help to gain
competitive edge by overcome weaknesses and grabbing chances offer by certain
factors such as rules, technology etc.
SWOT analysis influence decision making-
This model is used in the context of ASDA that help to identify key strengths,
weaknesses, opportunities and threats that affect firm growth and success within retail
industry. SWOT analysis influence decision making activity of management in positive
manner, in term of driving attention of those chances that they may grab by developing
effective plans and strategies, which in return increase productivity and performance
level of brand in competitive form. It influences in term of increasing worker’s
productivity for which manager may take decision to provide training which made each
candidate capable to overcome threat such as intense competitive environment.