Business Environment Report: SME Analysis and Organizational Functions

This report provides a comprehensive analysis of the business environment, focusing on various organizational types, their scopes, and sizes. It explores the interrelationships between different organizational functions, such as planning, organizing, and controlling, and highlights the roles of marketing, finance, and human resource management departments. The report includes a PESTLE analysis of a specific SME (Chapman-Black) and a SWOT analysis of Tesco, demonstrating how external and internal factors influence business operations. The report also examines contemporary examples to illustrate both positive and negative impacts on businesses. It covers the role of private, public, and charity organizations, as well as sole traders, and emphasizes the importance of organizational structure, including hierarchical and matrix models. The analysis provides insights into how these factors contribute to the success and challenges faced by businesses in the current market landscape.

BUSINEES AND
BUSINESS
ENVIRONMENT HND
IN BUSINESS

Table of Contents
TASK1.............................................................................................................................................2
Part 1................................................................................................................................................5
LO1 Explaining different types, scope and size of organisations...............................................5
LO2 Demonstrating interrelationship among various functions and the ways ..........................6
Part 2................................................................................................................................................7
LO3 Using contemporary examples for demonstrating both negative and positive ..................7
LO4 Determining internal weaknesses and strengths of a particular business ..........................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
.......................................................................................................................................................10

Introduction
Knowing about several operating organisations in different sectors as well as the
organisational structure followed by them has been always under keen interest. The study
describes working of different organisations being micro, Small and medium sized or large
companies have distinct organisational structure and purposes to operate across the world. A
PESTLE and SWOT analysis are carried out considering a particular organisation which is an
SME (Small and Medium-sized Enterprises).
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TASK1
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Part 1
LO1 Explaining different types, scope and size of organisations
There are mainly two types of organisation like public and private organisation. Private
organisation is the company which is owned by the individual .On the other hand public
organisation are owned by many entities or government itself. These are larger than private
organisation in term of size and scope.
Public sector organisation-This types of firm focus on welfare of general people and not on
profit maximisation or revenue generating. For example, national health services which is a
leading public sector unit that deals in health care and social care of people of United Kingdom.
They are large size enterprises with huge scope of business in market.
 Having support through government, public sector organisations are very big in term of
structure. For example, a national health services is a public sector organisation which
deals al over the country.
 These types of organisations provide different compensation to public with purpose of
better condition of people of society.
 They deliver public programmes, goods or services top customers in market.
 They have major impact on economy of United Kingdom as they are run by government.
 Improvement in these types of business organisation will lead to better economic effect
through employment.
Private sector organisation-These are kind of business which is run by an individual or entity
except government. They have main motive to gain profit and revenue at most as well as capture
lion market share in related industry. Followings are some major features of private sector
organisations.
 They only look for their own benefit from every business activity.
 These types of organisations focus on maximise their profit ion comparison to other
competitors in any sector of Unite Kingdom.
 They continue monitor their process of manufacturing and marketing to grow in future.
 This type of firm are not worried about public welfare rather it has purpose to capture
maximum share of market.
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 Although private sector companies have to fulfil their corporate social responsibilities
which is implied by legal authorities.
Charity organisation—These types of companies are run by some individuals who want to raise
funds for society benefit and better lifestyle of lower class of society. Some features of these
organisations are followings.
 They have legal personality and non profit purpose in society.
 They focus on betterment of public without profit generating from transaction.
 They do not make efforts to increase wealth or revenue for benefit of shareholders and
owners.
 They can help society through funds raising and volunteer work to make better future of
lower class of society.
 They also contribute in economy of country as there are approximate 925000 registered
charity organisations which bring 25 thousands euros per year.
Sole trader-This isa small level enterprise which is owned by single person. He is responsible
for all activities and tasks in business. Some major features of sole trader are followings.
 Only one person has all control over business activity which is sometimes difficult to
handle at same time.
 Sole trader retains all profit as he does not haver to distribute it to anyone else.
 More personal services are offered by sole trader to customers at one time.
 Sometimes, there is difficulty to raise fund by single person from outside market.
 All essential decisions are made on basis of single individual.
 Al, data is protected by owner as privacy is maintained in business activity.
Various types of organisations could be identified as profit or non-governmental organisations
(NGOs). As mentioned by Upward and Jones (2016, p.122), it could be also classified as micro,
small as well as medium-sized companies (SMEs) which have their different business purposes
and objectives. Micro enterprises are an informal business which operates like a small firm and
on a small scale. One of the most successful micro enterprises currently operating in Nottingham
is Fresh Rooms which has been set up in order to caress older people of dementia through
cleaning as well as ironing their belongings.
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According to the opinions of Lacity et al. (2016, p.327), it has a wide scope for
development since it basically focuses on delivering flexible services to the older people for
which they could live more comfortably in their homes. Considering an SME operating across
Europe and US, named, Chapman-Black, it could be stated that the services of this organisation
are increasing on a high note relating to their quality and company is on the verge of outreaching
the global economy through appropriateness and efficacy in their delivery of services. As per the
findings of Kolk et al. (2016, p.33), it is mainly a technology based company which has
contributed a significant share of the world economy through its robust growth in the recent
years at a continuum.
The existence of large size organisations such as TESCO and Primark which are retail
forerunners operating in the UK have a significant impact on the UK economy in the context of
its increased national income. Both SME, as well as the large company, are profit making
organisations whereas micro enterprise such as Fresh rooms is a production of NGO which is
engrossed in delivering superior quality care to older people (Lubik and Garnsey, 2016, p.400).
Through these enterprises, global development and growth of international, transnational as well
as global organisations have been observed through their achievements of an epitome of success.
Each of these enterprises has their own objectives and goals that differ accordingly with their
organisational behaviour.
LO2 Demonstrating interrelationship among various functions and the ways
Different functions of the organisation are planning, organising , controlling and
monitoring. In the planning function, the company makes most suitable plan form profit in
future. Second function is directing and organising in which activities ans tasks are organised for
business. Final function of the company is controlling in which gap between desired and real
result is analysed.
The functional departments operating under these companies are - marketing, finance and
human resource management departments. According to the observations of Hinkelmann et al.
(2016, p.85), each of these departments is interlinked with each other for pursuing their
departmental goals and objectives on the account of improving overall organisational
performance. Financial department is the sole driver of achieving success in the other two
departments since without the management of financial strength of the company; marketing and
human resource departments would be paralytic. As discussed by Schaltegger et al. (2016,
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p.287), success to marketing is determined through the employment of human resources in the
organisations since criteria for developing and designing marketing strategies would require
excellence of skills and potentialities. One basic advantage of interrelationships among the
departments is maintenance of absolute synchronisation and coordination among the employees
whereas the major discrepancies might lead to conflicts among them.
Besides, different organisations maintain a distinct organisational structure such as
hierarchical, matrix and divisional structure depends on several scope and size of the
organisation that might include parent, bureaucratic as well as post-bureaucratic, (SBUs)
strategic business units along with functional or matrix levels (vom Brocke et al. 2016, p.494).
SMEs like Chapman black maintain a matrix organisational structure whereas large companies
like TESCO always follow a hierarchical structure of its organisation.
Part 2
LO3 Using contemporary examples for demonstrating both negative and positive
Pestle Analysis
P Political
Political factors affects a lo
UK and US based on the p
p.270). The change in the
policies of the organisation
E Economical
The emergence of the BRIC
of the IT companies. The
customer from the side of th
the smooth development of
S Social
The socio economic factors
the organisation (Hinkelma
organisation helps in the be
Black
T Technological
The digital revolution has
great change in the cyber
customers in placing them a
great impact over the smoot
L Legal
Chapman Black maintains
companies have lot to make
support of the policies dete
Chapman Black to pay mor
E Environmental
The moving nature of the s
framing of Chapman Black
organisation for the sustaina
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Table 1: PESTLE Analysis
(Source: learner)
LO4 Determining internal weaknesses and strengths of a particular business
SWOT analysis includes strength of Tesco which is that the company has the leading
position. Weakness of the company is that there is regular changes in consumers .Opportunity is
that the company has wide range of product while its threat is that it has strong competitors in the
same industry.
A SWOT analysis of TESCO as one of the leading companies in the retail sector of UK is
being conducted which is as follows:
Strength
* Politically and economically strong
* Identification of marker competitiveness and
innovation of strategies accordingly
* Extensive brand loyalty
* Interoperability of varied products and
services which is necessary to attract customers
* Influential operations are undertaken for
motivating partners or stakeholders for receiving
greater support
 Weakness
* Communication and interaction
problem among the employees and
stakeholders
* Difficulty in using modern software or
equipments by semi-skilled employees
* Absence of language integration caused
severe threats
* Increased competitiveness resulted in
slower growth of TESCO in recent years
Opportunities
* Greater financial hold in the market
* Greater approach and demand to customers
Threats
* Lack of employability of human resource
* Slow growth rate of profitability
* Customers have utmost level of trust and confidence
* Prone to offer greater support through online customers services
* Promote the product in a more presentable and attractive way
and productivity
Table 2:
SWOT Analysis
(Source: learner)
Conclusion
It could be concluded that the operations of the organisations depend on their scope and
size of improvement and development. Their objectives mainly lie within earning of fame and
reputation, achieving epitome of growth and success as well as a determined identity across the
global economy. Even after possessing strength and opportunities there are remarkable
weaknesses and threats which are to be overcome while the process of operation is ongoing.
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References
Books and journals
Doh, J.P., Luthans, F. and Slocum, J., (2016). The world of global business 1965–2015:
Perspectives on the 50th anniversary issue of the Journal of World Business:
Introduction to the special issue. Journal of World Business, 51(1), pp.1-5.
Hinkelmann, K., Gerber, A., Karagiannis, D., Thoenssen, B., Van der Merwe, A. and Woitsch,
R., (2016). A new paradigm for the continuous alignment of business and IT:
Combining enterprise architecture modelling and enterprise ontology. Computers in
Industry, 79, pp.77-86.
Kolk, A., (2016). The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1),
pp.23-34.
Lacity, M.C., Khan, S.A. and Yan, A., (2016). Review of the empirical business services
sourcing literature: an update and future directions. Journal of Information Technology,
31(3), pp.269-328.
Lubik, S. and Garnsey, E., (2016). Early business model evolution in science-based ventures: the
case of advanced materials. Long range planning, 49(3), pp.393-408.
Schaltegger, S., Lüdeke-Freund, F. and Hansen, E.G., (2016). Business models for sustainability:
a co-evolutionary analysis of sustainable entrepreneurship, innovation, and
transformation. Organization & Environment, 29(3), pp.264-289.
Upward, A. and Jones, P., (2016). An ontology for strongly sustainable business models:
Defining an enterprise framework compatible with natural and social science.
Organization & Environment, 29(1), pp.97-123.
vom Brocke, J., Zelt, S. and Schmiedel, T., (2016). On the role of context in business process
management. International Journal of Information Management, 36(3), pp.486-495.
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