Business Environment Analysis: Lidl, Save the Children Report

This report provides a comprehensive analysis of the business environment, focusing on two contrasting organizations: Lidl and Save the Children. It begins by examining the types of businesses, their purposes, and ownership structures, highlighting the differences between a retail giant and a non-profit organization. The report then delves into the influence of various stakeholders, including employees, consumers, suppliers, and managers, on the purpose and operations of each business. It further explores the organizational structures of Lidl and Save the Children, contrasting their hierarchical and flatter models, respectively, and how these structures support their objectives. The report also investigates the impact of economic, political, legal, and social factors on business activities, offering insights into how these environments shape business strategies and decision-making. The analysis includes a discussion of the functional areas within each organization, such as finance and human resources, and how they contribute to the fulfillment of their respective purposes. Overall, the report offers a detailed comparative study of the business environment, providing valuable insights into the operations and challenges faced by both for-profit and non-profit entities.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Type of business, purpose and ownership of two contrasting businesses.............................1
P2 Different stakeholders who influence the purpose.................................................................3
TASK 2............................................................................................................................................4
P3 Two businesses are organised................................................................................................4
P4 Style of organisation helps them to fulfil their purposes.......................................................5
TASK 3............................................................................................................................................6
P5 Influence of two contrasting economic environments on business activities........................6
P6 Political, legal and social factors are impacting upon the business activities........................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
.......................................................................................................................................................11

INTRODUCTION
Business environment refers to sum of all environmental components which impact on
internal environment of an organisation. It is related with surroundings and also internal and
external factors which impacts business. It consists different components which impacts as well
as gives alterations of business accordingly (Cantwell, Dunning and Lundan, 2010). Both
internal and external factors affect on decision making of company. In internal factors include
employees, consumers, government, stakeholders etc. On the other hand, external factor
political, economical, social, technological, legal and environmental. In addition to this, business
environment has several forces which shape business segment along with the product line. In this
mention report discuss about the kinds of business, purpose and also ownership. Impact of two
contrasting economic environments on operations and activities of business will be mentioned
under this report.
TASK 1
P1 Type of business, purpose and ownership of two contrasting businesses
Under this, there are two various businesses and their ownership and purpose are also
varied from the each other. The two different companies are LIDL and Save For Children
organisation. In this, purposes, types and also ownership of these two different organisations are
mention below:
LIDL
Type of business
Lidl is one of the biggest grocery retailers and it was established in year 1973. This
company has more than 10,000 stores across United Sates and Europe. LIDL organisation
belongs to the Dieter Schwarz that owns chain of stores hyper market and Handelsh of Kaufland.
Under this firm, there are around 315,000 staff members are working. At the time of 1990, it
began to open its some stored from outside of Germany but in this present time period, its stores
are establish in many different countries (Cavalcante, Kesting and Ulhøi, 2011). It takes pride in
providing better quality of goods and services at minimum cost to all consumers across Europe.
ALDI company is also fights for the rights of children and also fulfil their potentiality. Its main
focus on satisfying demands of consumers through provide better quality of services.
Purpose of LIDL
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 It deals in retail sector so it is necessary for this to attract the large number of consumers
towards firm.
 Its main motive is to earn more profit.
 LIDL business organisation assures that all board meeting run business smoothly and
helpful in attain consensus in decisions of boards (Chesbrough, 2010). In order to attract large number of consumers, LIDL organisation provides effective
quality of services and products in better manner.
Ownership of LIDL
LIDL ownership stands for private organisation own through its owners. The founder of
LIDL is Dieter Schwarz. This organisation provide its goods on reasonable rates to consumers so
that they can retain towards firm for long period of time.
Save For Children
Save the children company works in almost 120 countries. it helps in save life of children
along with their rights. It is non- profit company and established in 1919. in this present time
period it is one of the leading an independent NGO of children. Its main role is to help children
in all over the world and give them their proper rights. This organisation works for welfare of
children on an effective or better manner (Child and Möllering, 2013). In year 2016, more than
56 million of children directly by the work of partners. In addition to this, Save For Children
company works to search innovative and practical methods for individuals for get over from the
thrive and safety of children. It helps in rebuild life of people in better manner.
Purpose of Save For Children
 Improve access of children to health care and also food they require to be thrive.
 It wants to teach children and provide them their rights. Protect vulnerable children in all over the world.
Ownership of Save For Children
It is a voluntary organisation and to run this, people give charity to it. There are large
number of countries which works with Save For Children (Kaplan and Norton 2015). In addition
to this, United kingdom country and some other countries provide children healthy beginning of
life and also provide them better opportunities to learn as well as protect from any kind of harm.
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P2 Different stakeholders who influence the purpose
Stakeholder can be anyone which take interest in business. These can be persons,
organisations and groups which are impacted through business activities. In addition to this,
there are various kinds of stakeholders and external and internal (Kian Chong, Shafaghi and
Leing Tan, 2011). In internal stakeholders includes employees, owner etc. On the other hand in
external stakeholders consists government and also national communities. Key stakeholders in
business consist suppliers, consumers, national and local communities and staff members.
In addition to this, business require to assure account of influence of groups of all
stakeholders. Their interest are link with the each other. There are various stockholders are
mention below as above:
Employees- They plays a necessary role in an organisation. They work towards many
business successful and also permit to sell services along with goods of firm without base do
business in an effective of better manner. In LIDL company, main focus of employees on
achieving aims of firm and maximise productivity level. On the other hand Save For Children,
they provides better services to consumers and company provides the job security, promotional
opportunities and also good rewards to staff members.
Consumers- They take interest in LIDL organisation and they want to purchase
effective quality of services and goods which can satisfy their demands and needs in an effective
or proper manner, if in case consumers are fulfilled with product of LIDL then they will able to
take interest in business and also suggest to other people (Klapper, Lewin and Delgado, 2011). In
addition to this, consumers wants company to manufacture better quality products in exchange of
money. This company also take feedback from customers about use of products and make
changes accordingly.
Suppliers-They take interest in supply to LIDL company with products in order to get
them profit effectively. They influence LIDL organisation because if in case suppliers will out
from business then there will be requirement to this firm to search new which many not provide
similar level of standards.
On the other hand in Save For Children, without public supplying, it can not sell its
services. It will fail in earn more money in order to support charities.
Managers- These are also stakeholders because they are able to manage salaries as well
as performance level of LIDL organisation. It is necessary for manager to manage business
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standards in better manner. It is a responsibility of manager of LIDL organisation to provide
training to employees so that their skills will be increased. In addition to this, managers supervise
employees and also assure that image of firm will be better through having the effective
consumer services and some of the other different things (Klapper and Love, 2010). On the other
hand, main focus of manager of Save For Children is to lead employees so that they can work in
better manner. Their main purpose is to protect child from any problem and harm.
The structure of both companies like LIDL and Save For Children are different from the
each other and also conduct its business in successful manner. LIDL company leading the super
market chains and on the other hand Save For Children is non- profit company. In addition to
this, various people have various roles for the different businesses and without stakeholders, firm
can nor run its business in proper and smooth manner.
TASK 2
P3 Two businesses are organised
It is about organised the two different business. The structure of every business
organisations are different from the each other and it is a responsibility of manager or top
management to organise all business activities in systematic manner. Every firm has benefits as
well as objectives which make business successful (Lewis and Gates, 2015). In context to satisfy
purpose, it is necessary for companies to use the strategic planning in better manner.
Organisational structure refers to policies as well as rules which are developed to give
formation that displays how activities are to be coordinated. The main motive of organisational
structure to helps staff members through providing them reports that aids to the structure in an
organisation.
There are various kinds of organisational structure:
Matrix- It is found if companies to deal with particular one and these firms can work on
many different project at same time.
Product- IT is an effective way through which firm represents pat of goods and methods
to interact with consumers in better manner. This kind of organisational structure is helpful to
manage modifications, resolve issues and also resting for complex products.
Geographic- It is a way firm put things in to geographic areas those are international,
regional and national.
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Organisational structure of LIDL
Its organisational structure is hierarchical. There are some people in top management
which manage the people of lower or middle level in firm in an effective or better manner. LIDL
company also permits managing directors to give their contribution in take big decisions
regarding firm should take next (Machuki and Aosa, 2011). It is Germany Based organisation
and also a discounted super market. Its purpose is to severe better quality of products to
consumer and earn more profit level and also invest. It is supermarket chain in retail sector. In
addition to this, decisions are necessary and should made through top management with right
experience as well as intelligence. It is helpful for this organisation to understand issues and also
stay to organised and managed through having an individual send direct message to each person.
Save For Children organisational structure
Its organisational structure is flatter as comparison to LIDL organisation and there are not
more people are working and also organise an organisation. Organisational structure of Save For
Children is geographical and it is working in all over the world with more countries aid
minimum fortunate. In addition to this, charity is run through chair woman. Save For Children
firm is always try to keep amount down as most volunteers as well as trustees do not get.
Functional areas of LIDL
In this organisation, finance department manage invoices, P&L, balance sheet,
performance of business and payrolls. Finance department will report to business in well manner
and some of the other rest departments (Mahmood and Hanafi, 2013). This firm includes all
departments of this organisation. On the other hand, human resource department will be work for
various departments in order to provide them training and development and hire right people.
Functional areas of Save For Children
Under this managers will control as well as manage invoices, performance management,
invoices and also know information about the business. The old employees provide training to
new and also looking new methods for doing work in proper manner.
P4 Style of organisation helps them to fulfil their purposes
Aims and purposes of firms are based on business type. LIDL is private organisation and
it has more than 10000 stores in all over the world. It provides large number of services and
products in all over the world. It is necessary that business should have clear aims and objectives
and also communicate with its all stockholders in a better manner. On its website, this
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organisation mention its mission as well as vision statement and its mission is to provide better
quality of services and products at reasonable cost which are independently shown to less that its
own rivals. Organisational structure of LIDL company is hierarchical and there will less people
at top of an organisation manage the below persons (Tapscott and Caston, 2013). It is more
successful business firm and largest supermarket chain. The managers of this organisation know
about manage things in better manner. In addition to this, area manager has more control over
every person store manager has organised command chain that permits them to provide specific
orders to separate workout. Decisions are necessary and also should be made through
management with right experience as well as intelligence. If in company operations as well as
activities in order to achieve the set aims as well as targets in a better or effective manner.
On the other hand, Save the Children company organised in to the groups and people.
Under this, all staff members can organised as well as controlled in order to assure about the
required work to be controlled in an efficient and effective manner. The structure of this
organisational is geographic. It is flatter as comparison to the LIDL organisation. All volunteers
and funders communicate with the people in better manner, give training to manage and also
manage and control activities of firm effectively. It s main objective is to save the rights of all
children in all over the world. It is non- profit organisation and works for welfare of people. The
individuals of this company aids in development of motivation, positive culture and team spirit
in firm. It will be helpful in make improvement in productivity along with profitability of staff
members and firms which is necessary at any stage (Teece, 2010). Under Save For Children
organisation, there are large number of people which work for this.
TASK 3
P5 Influence of two contrasting economic environments on business activities
There are several various economic environment and also influence that impact business
country regardless as well as recognisability of firm. For all the business firms, consideration of
the economic factors are necessary in order to manage organisational operations. Under this, to
achieve aims and objectives, there is a requirement to look towards economic environment and
also various factors which can affect Save for Children and LIDL companies. From many
different changes in economic environment, LIDL company is impacted. It will result I
development, ripple affect and also recession. In addition to this, there are various economic
environment factors which can influence on business activities and these are income,
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employment, interest rate an many others. Key influences of causation of all these necessary
factors are suppliers, government and employment. There are some of the economic factors
mention below as above:
Inflation- It caused income to minimized and also limit spending of public.
Reduce cost of house- It is connected with credit crunch which caused shortage of the
mortgages being the paid lack and also be lent (Ullah and Lai, 2011).
Customer confident- Under this, with the minimum income and also job less in an
economy can reduce confidence of consumers. It affect negatively on spending power of
employees in a better manner.
Recession in UK
Recession is important totally opposite of boom in an economy of United Kingdom. At
the time of year 2008 to 2013, United Kingdom country suffered by more recession. So from
this, banks was able to give loan to people . At that time period, unemployment rate was more
and the spending power to consumers was minimum. In United Kingdom country, there are more
than the 200000 of small business firms are closed and also more than 8.7 million people lost
their jobs. It is disadvantage to company. In addition to this, it is necessary that economy should
be stable and in business stability is when the people can make any kind of predictions for
medium and short term, regarding demands of services along with the products.
Business of LIDL and Save for Children will be impacted if in case there are
modifications in an economic environment and also these are recession, ripple impact and
development (Sum, 2012). In addition to this, development is when the large number of goods
are manufactures as well as consumed. If an economy will be strong then in this case the
spending power of consumers will be enhanced and people will able to purchase more products.
P6 Political, legal and social factors are impacting upon the business activities
Legal, political and social all are the external factors which affect on the stakeholders and
also stakeholders.
Factors Impact on business activities Impact on stakeholders
Legal- It is an external
components and under this
employment and consumer
Employment law- It shows
that in what manner staff
members should be treated. At
Employment law- It will
protect staff member for
stakeholders as it will be
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legislation affect in which the
LIDL organisation operate its
business. In addition to this,
there are some of the other
things which influence through
legal factors like validity,
profit margin etc.
work place all employees
should be treated in better
manner. If all workers will be
treated equally through
manager then it will develop
positive impact on business.
Copyright- IT is varied from
company to company. The
copyright is a right and no
other person can use any
service, product with of
permission of owner of
company.
preserve for their rights.
Copyright- There is a
requirement to LIDL and Save
for children organisations to
assure that there will not ant
copyright for design for any
thing.
Political The policies and regulations of
every country are different
from the each other. During
conduct business in some of
the other countries, it is
necessary for firms to know
about that particular country
other wise it will affect
negatively on business
activities.
Stakeholders should aware
about the regulations and
political stability of other
countries. It is a responsibility
of firms to work according to
them other wise it will develop
negative impact and
profitability will be reduce.
From this stakeholders will not
take nay interest in business.
Social The tastes and preferences of
consumers are changing data
by day. It is the responsibility
of firm to produce products on
the basis of consumers
demands. Other wise they will
not purchase products of firm.
The firm should not increase
cost of its services and
products. Cost should be more
affordable through people. It
will be helpful in attract more
people and develop positive
image in the mind of
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consumers.
CONCLUSION
From the above given report, it has been concluded that business environment plays a
necessary role in achieving targets and in process of decision making. In given report studied
about the impact of two different economic environments of organisations on activities along
with operations of firm. It is a responsibility of manager of firm to analyse internal and external
both factors before developing effective organisational strategies. Legal, social and political
factors which are affecting on activities of business and also their stakeholders has been
discussed in present report.
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Online
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