HND Business and Business Environment Analysis Report

This report delves into the complexities of the business environment, examining various organizational structures and their impact on business operations. It begins with an introduction to the business environment and its influence on internal and external factors, focusing on Hennes & Mauritz (H&M) as a case study. The report explores different types of organizations, including voluntary, public, and private sectors, along with their ownership, objectives, and motives. It analyzes the scope and size of organizations, differentiating between micro, small, medium, and large businesses based on operations, turnover, workforce, and market share. The report further investigates organizational structures such as matrix, functional, and divisional structures, along with international and global company structures. It examines the interrelationship between objectives and goals within an organization, using H&M as an example. The report includes critical analyses of business operations and concludes with a discussion of key findings and their implications.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
P.1 Various Type Organization..............................................................................................1
P.2 Scope and size of organization.........................................................................................3
P.3 Function and Structure of organization............................................................................5
P.4 Pestle analysis of Hennes & Mauritz ..............................................................................7
P.5 Interior and outside investigation for the selected structure in order to determine the
capability and failing .............................................................................................................9
P.6 SWOT analysis to your organisation to identify their key strengths and weaknesses and
macro factor interrelationship between ...............................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment is important part that affect the whole internal and external factor
that would be impact on their functions such as Employee, business activity, operations,
customers and management of company. External factor are not be control by the company
because the government can be handle the whole business process in which the internal factor
are handle by organization because the company policy are managed by management that will
handle the business activity in proper manner. In this report, it will determine the different size of
organization and their scope in the future. In this report, it can be identifies many factors that
affect the business activity. In H&M, The aim of organization to increase their share value in
market and they are understood the impact of whole business process in United kingdom.
Hennes & Mauritz AB is a Swedish multinational clothing-retail company known for its fast-
fashion clothing for men, women, teenagers and children. It will analysis business operation such
as Pestle and SWOT analysis. These are business model used for analysis the operation in proper
manner. In this way, It can be easily identified the negative and positive impact on this
organization in UK.
PART 1
P.1 Various Type Organization
There are different type of organization that has different role in society as following:
Basis Voluntary public private
Ownership It is basically used for
the human society that
would provide services
for people welfare.
This organization is
basically founded by
particular person and
who has owned
The private
organization is
established by one or
more person. The main
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They are providing the
best services for those
people who has
insufficient money so
that they are helping to
those peoples.
For Example- NGO's
and DCA there are
organization are
located in United
kingdom and it can be
doing work as a
voluntary company
company but the
funding is provided by
government.
There are many
organizations in
United kingdom who
has founded by
particular one person.
For example- NHS
organization are
located in united
Kingdom.
aim to increasing a
profit and earning a lot
of money. They are
only focus on profit
and maximizing their
productivity in market.
For Example- H&M is
a private company and
it is based on a retail
business on
supermarket.
It is based on their
target to earning a lot
of profit and it can be
enhancing their
business quality for
development.
Meaning This organization is
very small scale firm
and it can not be
required a large
funding and land
areas. This is not a part
of particular company
This organization is
useful for exchanging
their share values in
market. They are focus
on their product
quality and it is public
organization so that
The private sector is
not considered as
public because they are
sharing their values in
the form of lists. They
are increasing their
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in which they have
own organization that
would not to be part of
government.
every one has to know
about their product
and firm in market.
selling prize in market.
Objective The main objective of
voluntary organization
to provide the services
for the people welfare.
They are earning a
profit for the human
being because they are
focus on their profit to
development of human
being.
The main objective to
increase their business
in all over the world
and they are
maintaining the people
and provide the
services. They are
increasing their
business for
development. There
are many enterprises
in United kingdom to
earn a profit.
There are always focus
on the profit and they
are investing a lot of
money for business
development. In this
sector, they are
concern about human
welfare and
community. There
motive to establish a
effective business so
that they increasing
their product value in
market.
Motive DCA is a voluntary
company that vision to
helping those people
who has very poor.
They are earning a
The vision of Health
organization to
provide the best
services in united
kingdom and they are
There vision to
expanding their
business in
supermarket and it is
becoming a leading
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profit for company.
This money is used for
the social community
and personal growth.
check the people in
time to time and
giving a treatment
brand in the world.
P.2 Scope and size of organization
Basis Micro business Small business Medium business Large Business
Operations This business is
very small and
their activity are
start with the
initial point. There
capital of business
is very small and
it generating a low
revenue in market.
Small business
are started from
the initial point
and there size of
firm is also small
that would be
control by the
owner of
organization that
can be manage
the whole
business in very
efficiently. Small
business are
generating small
revenue in
This organization
is medium scale
when they have
performing their
task and function
in medium level.
The size of this
firm is minimum
and usually they
are investing
small amount of
money but
generating a large
amount revenue
in market.
They have large
scale organization
and that would be
invest a lot of
money in market.
There are many
operations
performing a
different task and
generating large
revenue in market
because they have
to do work on
large project so
that the amount
invest is also very
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market. high.
Turnover Micro scale
business has small
structure so that
they can invest
low amount for
business in which
the actual
turnover is $2
million.
Small business
generating $1
million to 30
million in every
year.
Medium scale
organization are
creates $25
million to $300
million in every
year.
Large
organization is
generated large
turn over in every
year is $360
million.
Workforce Micro business is
handle by the one
or more person
and particular
group that has
been control the
whole business in
proper way. There
is no employee in
this organization.
In small business,
there are 20 to 30
employees
working together.
They have to do
work on a
particular place
in which all
employee are
working in very
efficiently.
In medium
business, they
have approx 130-
200 employees
are working
together. They
have specific time
hour to do their
work on under
this time
allotment.
In large business,
they have many
employees
working together
approx 300-500
because this is a
multinational
company so that
they have lot of
projects are there.
They have some
specific goals to
achieve their
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targets.
Market share
Profit share
The micro
business has very
low market share
value.
The profit rate of
micro business is
low and that
would not be
covered all
market.
The share value
of medium
business is
medium but not
high.
The small
business has low
profit share in
market as
compare to
medium
business.
The share value
of medium
business is also
medium as
compare to small
business.
The profit rate of
medium scale
business is
average they can
earn more profit
as compare to
large business.
The value of share
more than high
because it can use
very high share
value in market.
The large
business has high
profit share in
market because
they are spending
a lot of profit in
market.
M.1 Analyse how the structure, size and scope of different organisations link to the business
objectives
Micro scale business has small structure so that they can invest low amount for business
in which the actual turnover is $2 million. The main objective to increase their business in all
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over the world and they are maintaining the people and provide the services. They are increasing
their business for development. There are many enterprises in United kingdom to earn a profit.
D.1 Provide a critical analyses
The large business has high profit share in market because they are spending a lot of
profit in market. This organization is medium scale when they have performing their task and
function in medium level. The size of this firm is minimum and usually they are investing small
amount of money but generating a large amount revenue in market.
P.3 Function and Structure of organization
The Structure of organization on basis of their size and scope- there are different type
of structure of organization are classified as Matrix structure, Functional structure and Divisional
structure. The matrix type of structure is H&M has different functionality in market. In this
company, they are providing different type of product and it is a basis on merchandising
department that provide an effective good services (Igarashi, 2015). The manager will explore
their business activity in all over the world. It is a matrix type of structure to perform different
role in business process. Every company has to followed a particular structure in proper manner
that can be determines on the basis of their level and operations.
International and Global company structure- these type structure are useful for the
market profit and deciding the share values in market. In international structure are included for
import and export business that has to be no investment in our country because they can be using
as domestic process (Nozinovic, 2014). Global organization is very important because they will
expand their business in all over the world. This organization can be invested fund in global
market. The transactional structure is very complex because these is based on foreign
investment.
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Interrelationship between objectives and goals of organization-
H&M is very popular leading brand in United kingdom that has specific functionality are
following:
Human resource management- It is very important part of organization to manage the
whole business process. It can be control the operation of business activity. It will maintain the
whole department in proper manner in which this organization is very popular and leading in all
over the world. In H&M, there management system can be perform so many operations like
recruiting process, secure the detail of employee in accurately (Haim, 2017). Human resource
management is very important part of organization because they are managing the whole
business process in every effectively and efficiently. They will conduct many training program
for development in which it is very crucial part to handle the management. Training and
development program are very important for employee in which with the help of this program,
the employee easily developed their skill and knowledge (Deville, 2014). This program is
managed by human resource. They will provide information related policies, term and
conditions, Agreement etc.
Finance- Funding is very important thing for every organization because they can start
their business through investment in which it is a needed part of each and every organization
because without any funding cannot be established a new business. Every company has own
finance department that would manage the financial conditions (Allen, 2015). They will
determine actual requirement of business process. Financial team are directly interacted to
investor for funding that would creating a effective relationship with investor because they are
provided amount for business development.
Marketing- Marketing is process to explore their product in market and it is very easy
process to expand in all over the world. They will provide more opportunities for customer. They
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are planning a different market strategies for production in which H&M are planning a special
type of strategy that are very helpful for organization and it also increasing their productivity in
market. Marketing is the best approach to understand the need of customer and most of the
customer are directly interacted through internet so that it is the best medium to explore their
product information on internet with the help of website (Falk, 2017). Digital marketing is good
approach to directly interacted to customer and identifying the actual need.
M.2 Analyse the advantages and disadvantages of interrelationships between organisational
functions
The matrix type of structure is H&M has different functionality in market. In this
company, they are providing different type of product and it is a basis on merchandising
department that provide an effective good services. Financial team are directly interacted to
investor for funding that would creating a effective relationship with investor because they are
provided amount for business development.
P.4 Pestle analysis of Hennes & Mauritz
The first Hennes store opened of women clothing at Sweden. In 1952 they started
expansion. After 1968 Mauritz joined that company and they called Hennes & Mauritz. Today
they have more than 2000 stores in 38 different countries across the world. The various brands of
H & M is cheap Monday, COS, Monki, Weekday and many more. In importing this company
name comes in the largest one (Aebersold, 2016). It is the second in line in becoming the largest
retailer in the world. After IKEA this is most recognised company in Sweden. In UK, the
Economy growth has been increasing in United Kingdom market and they will contribute for
marketing purpose. In this way, It is very important factor when it is generating a high revenue in
market. Every business have their two types of environment that is micro environment and
macro environment. The micro environment is the internal environment of the business and
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macro environment is one of external environment. Determining the effect of macro environment
there is a model, PESTLE analysis which is used here for business operations of H&M. The
pestle analysis are as follows - Political Factors – H&M is a global brand and number of stores across the world so the
monitoring of political related risk is so much important. The political factors that are
affecting to the H&M is related to import and export and related to location problem of
production facilities (Dessein, 2017). For basic needs and different circumstances, the
policies and regulation is change and affect to their business from lower level to higher
level. United Kingdom present political circumstances is destabilised because to
BREXIT. This factor is affect the business operation in United market that has to affect
their revenue and profitability. In this factor, they are followed the government rules and
regulation is very important to affect their activity. In H&M, their functions are control
by the government and it generates an effective sustainability to get over the critical
situations.
 Economical Factors – all the Economical factors which are affect any business are
interest rates, inflation rates, exchange rates, unemployment rates and many more factors.
From these factors the over all performance also affect of any organisation. It is a basic
compulsory things for increasing the profitability and efficiency is to analyse the
economic condition of the nation in which the organisation want to run their business.
This factor is control their business activity in efficient way due to this factor, it reduces
the capability of their workforce and it can control their cost that are required in business
operations (Mohagheghi, 2017). They are directly impacted to their country economy and
reducing the revenue. This is important factor for development of enterprises because
they will handle the country economy and which are used for the growth and
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