Business and the Business Environment Report - Higher Nationals

This report provides a detailed analysis of the business environment, focusing on organizational structures and functions within public, private, and voluntary sectors, using Marriott hotel as a case study. It examines the relationships between organizational functions like marketing, finance, and HR, and their alignment with objectives. The report also identifies the positive and negative impacts of the macro-environment on business operations, including factors like technological innovation, market trends, and government regulations. Furthermore, it explores internal and external factors, analyzing strengths and weaknesses, and explains the interrelation between external macro factors and these strengths or weaknesses. The report covers various legal structures, the scope and purpose of different organizations, and concludes with a synthesis of the key findings.

Business and The Business
Environment

Contents
INTRODUCTION..........................................................................................................................3
TASK 1...........................................................................................................................................3
Types and purpose of organisation of public, private and voluntary sector..........................3
Size and scope of organisation...............................................................................................5
TASK 2...........................................................................................................................................6
Relationship between organisational functions and their link with objective and structure . 6
TASK 3...........................................................................................................................................8
Identifying negative and positive impact of macro-environment on business operations ....8
TASK 4.........................................................................................................................................10
Internal and external factor to analyse specific strength and weakness...............................10
Explanation of inter-relation between external macro factors and strength or weaknesses11
CONCLUSION.............................................................................................................................13
REFERENCES.............................................................................................................................14

INTRODUCTION
Business environment is defined as a set of internal and external factors and it includes
customer’s needs and expectations, demand and supply, suppliers, and different activities that are
controlled by government. Innovation in technology, market and social trends etc. are some
factors that impacts on the functions and operations of organisation and all this aspects are
influence on business environment and situation (Zhang and et. al., 2015). Marriott hotel is
selected as a private organisation for this report and it is an international hospitality organisation.
Further, the report will focus on types as well as purpose of organisation including its size, scope
and legal structure. Functions of organisation including its relation with each other will also
highlights in the upcoming report. In the last, positive and negative impacts of external
environment on business operations is discussed in the upcoming report with use of specific
example.
TASK 1
Types and purpose of organisation of public, private and voluntary sector
The term organisation is explained as a unit of individuals which is structured as well as
organised for accomplishing goals and objectives of organisation in an organised manner.
Purpose, size, scope and legal structure of public organisation is explained as below:
Private organisation- According to existing conditions private organisations is responsible
for increasing the profits and market size of organisation. It is operated by the owners which
registered firms and they are responsible for performing work with self-decisions and they are
wholly responsible to manage company functions. Moreover, Marriott is selected as private
organisation to perform work appropriately in hospitality industry (van den Heuvel, Soeters and
Gössling, 2014). Private firms offer good quality products for satisfying needs of customers
properly.
Purpose: Marriott worked with the purpose to pursue its working standards with
excellence as with this customer services and market value get enhanced on regular basis.
Legal structure

Sole proprietorship- Within a sole proprietorship an individual or single person is
responsible for operating and organising the activities of organisation. Profits and loss is bear by
the sole owner only.
Partnership- With in partnership organisation more number of individuals performs and
manage their work to operate business activities and action. Partners are responsible to formulate
a same decision (Sun and et. al., 2014). Moreover, risk and profits are decided by both
individuals for performing work in an organised manner to manage task with roles and
responsibilities of persons.
Limited organisation- The structure of a limited organisation is managed and operated
according to members. For example- organisation has to suffer loss on self-basis it means owner
are not responsible for bearing high loss.
Public organisation- This is formulated by organisation for managing decisions maker
according to government rules and regulations. Government officer take decisions in the favour
of public by offering good quality products and services to individuals at low rate. Moreover,
public organisation arranges and managed funds on self-basis and for this collection of tax is a
major source for government. NHS is a public sector organisation and it work with the purpose
of offering better and effective services to the society instead of earning profits. The main role of
NHS is to offer effective health services for improving the health conditions of society.
Purpose: NHS works with the purpose to offer better treatment to the patients by which
health and social care practices get promoted.
Legal structure State government- Policy, regulations and rules are created with motive of managing and
controlling work within state boundaries of a country. Local government- Officers and authorities of government plays an important role to
improve a small area and town at local basis (Osgerby, Marriott and Gee, 2018). Local
government is responsible to perform task at a local level.
 Central government- In context of central government organisation is responsible as well
as authorised for formulating the policy that leads all departments to perform task with
sequential process to manage operation of a country.
Voluntary organisation- Voluntary organisation are managed and formulated with different
group of individuals and it is used for combining efforts of all individuals towards same goal. In

order to formulate voluntary organisation management take permission from the ruling
government for operating all business activities in an organised manner. Oxfam is an effective
organisation and it is motivated towards removing poverty from society. There are various
resources and individuals are gathered to perform work according to decided standards.
Purpose: In this Oxfam works with the purpose to create and advance social care so that
larger benefits is offered to needed people.
Legal structure
In the context of voluntary organisation different individuals are responsible for
performing work to manage task in an organised manner. Organisation formulates legal structure
of voluntary organisation as per their motive. Trust and corporate organisation are responsible for
managing work according to systematic process.
Size and scope of organisation
Private organisation- Marriott hotel is a multi-national organisation and it offer services
at a large level. More than 65 countries are covered by the management of Marriott and this
operates business functions with more efficiency through managing hotels more than 3,000
hotels. Thus, the size of private organisation is too large and broad which offer customer services
at a large level (Nyangwe and Buhalis, 2018). From the perspective of scope Marriott hotel
perform work within hospitality industry and it is growing with rapid speed. Example-
International business tours and holidays trips are increased from last few years. So scope aids
management to accomplish more number of opportunities within market. Further, the purpose of
Marriott is to increase profits by providing effective number of services to customers.
Voluntary organisation- In present scenario, number of voluntary organisation is
increasing and it is a positive factor for organisation because it supports a country to improve
their standards. Oxfam plays an important role within voluntary organisation and it is one of the
largest charitable trust which manage work among UK to remove poverty from the society. This
is established within the year 1942 and according to current conditions more than twenty trust
work under Oxfam to reduce shortage from country. Moreover, organisation performs work
among all over the world so the size of organisation is too large. From perspective of scope
essential resources is offered to the needy citizen. So the number of living standards is improved
by management within flexible manner. Moreover, activities are performed by volunteer
members with purpose of fulfilling basic requirements of individuals.

Public organisation- Society needs that are similar with each other like, travel, health and
entertainment services is required by all individuals. So public authorities perform their role in
wide sector area to control and manage operations in an appropriate manner (Marriott, 2014).
NHS provides services in health sector and it aids company to perform their work with more
efficiency to lead a healthy life. Within Europe specifically, UK NHS provide different health
services and it offer effective primary care, healthcare and dentistry services that is charged with
low amount. Organisation options are wide and it leads management to perform task with more
efficiency. NHS provides various health services work-force and it is used for performing work
with large number of workforce management. The purpose of public organisation is to satisfy
need and wants of customers at a large level.
TASK 2
Relationship between organisational functions and their link with objective and structure
Functions of an organisation perform an important role and this is used to accomplish better
and effective results through completing all tasks according to decided goals. Marketing, finance
and production are some important function of organisation that is used in completion of task as
per company goals.
Production and marketing function- Both promoting and creation are basic capacity of
organization that help to continue their business for longer period. In the creation organization
make its merchandise or administrations for client and advertising group advance and mindful
client about the item. Showcasing division of organization likewise helps the board to anticipate
the need and request client and afterward advised creation office to create or refresh item that
fulfil need of customers (Liébana-Cabanillas, Muñoz-Leiva and Sánchez-Fernández, 2018). Like
in the event of Marriott the individuals from promoting group make examination and foresee
patterns and needs of client that is advantageous for creation division basic data to creation office
with this association create items that coordinate with their target. If there should arise an
occurrence of private association this cycle is significant in light of the fact that primary intention
of private association is to acquire benefits as it were.
Sale department and human resources- To run an association human asset or labour
force is constantly required. For complete of all exercises labour execute their endeavours during
the time spent association which help to accomplish their objectives or target productively and

successfully. For this situation HR office is mindful to recruit best possibility for organization.
Similarly as with viable representatives organization can creates viable outcome that expansion
esteem in organization items. As in deal division the primary asset is human which are chosen by
HR group. In setting of Marriott huge number of representative's are expected to put together and
deal with their global stores (Jones and et. al., 2014). They are best asset that help association to
keep up their top position. Aside from this administration of Marriott enlist applicants which help
them to make serious edge among their opponents with their powerful execution. It additionally
helps association to accomplish their assignment and objective inside restricted time period.
Finance and research or development department- To extend business in huge zone
research office assume a fundamental job they investigate openings in industry or market. For
this they require contribute gigantic sum that is expected to discover definite need of client. In
this money office helps the executives to oversee adequate sum that are required R&D group. It
is the obligation of account group to give financial assets to various branches of organization so
they work their ordinary exercises easily. For instance of Marriott organization needs to confront
rivalry from the environment and between public player so it is fundamental for them for oversee
cash aspect. As it help to purchase assets that are important for organization to play out their
everyday exercises (Gaganis, Pasiouras and Voulgari, 2019). With finishing of this exercises
director of Marriott hotel can accomplish their target and to create pay by selling their items
which are oversee by money branch of organization. Vertical Structure followed by Marriott
under private association is sole ownership that works with intention of acquiring benefits as it
were. For this account division follow structure that is chosen by top administration so
organization procure tremendous benefits for their business.
The organisation structure of Marriott is Matrix as it is a combination of both functional
and divisional structures that is processed in both directions such as horizontal and vertical. In
this different functions of an organisation get worked all together as in order to develop
collective work through which higher success and more growth is measured on continuous period
of time. It assist to make effectual decision making under which all the departments get worked
all together and shared similar reviews so that working standards get enhanced.

TASK 3
Identifying negative and positive impact of macro-environment on business operations
Macro environment define external factors and it is used for managing work according to
indirectly and directly basis. This is used for managing work according to decided task that aids
for managing task in a positive manner. But to reduce negative impacts of macro environment
management is used to analyse all factors with possible manner. Marriott hotel is one the world
largest hotel that operates 4200 branches in 79 countries. Negative and positive impacts of
Marriott hotel is mention as below:
 Political factor- The major factor related with political environment is danger related
with terrorism, political climate and international relations related with popular
destination. One of the biggest threats is terrorist attack and military conflict to manage
task according to attacks in order to save travellers from fight conditions (Doh, Luthans
and Slocum, 2016). Operations of Marriott are impacted because terrorist directly attack
on inside premises of hotel so political stable countries aids management to ensure safety
of guest for managing needs of customers in an accurate manner.
 Economic factor- One of the major economic factors by which Marriott’s operations is
impacted is the slow among economic growth. There are different events performed by
Marriott hotel but the debt crisis within Europe reduced the buying power of individuals.
Therefore, consumers not make expenses on luxury services due to which services of

Marriott are impacted (Darsin and et. al., 2019). Example- Overseas exchange rate of US
dollar discourage tourist from visiting European sector.
 Social and culture factor- Social factor formulate the rules according to the number of
individuals and it is used to formulate plans which internationally increase number of
tourist. Along with this the number of travellers is planned according to expenses which
increase the number of travellers to manage money as per experience. Culture changes
impacts on Marriott hotel operations because increase in demand is improved by offering
pack tours and services at affordable prices.
 Technological factor- Technology impacts on hotel organisation because it is used for
performing all work with online rental services. Private individuals rent rooms and homes
to the number of travellers. In context of performing all task technology factor aids
individuals to poses hotel companies with motive of managing work through minimising
operating cost of business. Therefore, Marriott operations are impacted because of change
in technology with costly factor.
 Legal factor- One of the major legal factors that impacts on Marriott future organisation
is reduced among the number of services. Authorities within cities such as government,
hospitality industry and owners of Marriott formulate rules according to laws, regulations
and safety. It is used for completion of work according to laws and it is used in
completing task by majoring task in an appropriate manner. The term legal factor is used
to define possibility with cost and service reductions (Chen and Tabari, 2017). Operations
of Marriott are impacted because management face problem to perform work according
to decided laws.
 Environmental factor- In the present scenario, current environment factors disrupt
Marriott operations like, increase in fuel prices reduce the number of travel cost. So
demand of hotel rooms is also impacted. Potential threat face by Marriott business
increase in fuel cost. A potential long-term environment impact on Marriott is controlled
through generating energy with use of solar power. It results Marriott perform work and
their operations in more effective manner. Thus, the efficiency of organisation is also
increased for closure and formulation of hotels in an organised manner.

TASK 4
Internal and external factor to analyse specific strength and weakness
This is important for organisation to identify strength and weakness in order to formulate
competitive-edge in market. Marriott provide tough competition by analysing internal workplace
environment. In the context of hospitality industry management face competition from other
hospitality organisation. It is also essential for business to complete all task according to
perspective of negative and positive aspect (Čepel and et. al., 2018). Marriott accomplish
competitive advantage with more efficiency by improving strategy for organisation according to
micro and macro environment of business. SWOT analysis of Marriott hotel is discussed
underneath:
Strength
 Top position- Marriott international is
a biggest operator and hotel
organisation within value. They
perform work at the largest level to
manage task at global level by offering
wide and upscale category services.
 Ubiquitous luxury brand- JW
Marriott is strong and a luxury brand
which offer services with loyal
customer base. The presence of hotels
with same benchmark service standards
manage and control goodwill at
international level.
Weakness
 Depend on one market- The major
reliance of respective organisation
depends on one market. So it is
challenging and weak point to cover
cost from all market.
 In-effective services- Global existence
of Marriott create complexity for
organisation because change in
geographical location also makes
difference in services so same services
is not available at all hotels.
Opportunities
 Expansion in market- For managing
all task in an accurate manner it is
important for management to manage
and complete task with acquisition in
order to increase market share.
Threats
 Loyalty increase- This is complex for
management to gain loyalty from
customers because customer easily
switch towards other hospitality
organisation.

 International travel- Person and
visitor are travelling beyond the local
area. So the number of opportunities is
vast that provide better place to
individuals.
 Increase in competition- Hospitality
industry offer low barrier entry because
guest asks for home stay, tent and
house. So competition is increased in
organisation from local competitors
also.
SWOT of Oxfam:
Strength The company has operates its functions in more than 90 countries as in order to
manage the challenges that is developed due to poverty and with this they have
work voluntary that is affiliated globally. They have also be served its services
in different sector as food, women's right, wealth and health education etc. Thus
financial transparency of a business is in good condition.
Weaknesses The reputation of business is in tougher situation they have alleged about to hire
prostitute while working overseas as particularly in Haiti. They have also be
accused by which its rapid growth is affected. It consequently affects the outlet
of both platform such as online and off-line too.
Opportunities They also need to spend higher funds as social networking by which global
presence is enhanced and it helps to reach more people by which voluntarism
opportunities also get developed.
Threat There are many other charities as well that act as its competitors by which
OXFAM target is affected and to survive in competitive era also get affected.
In support of SWOT analysis ability of a business to identifies its strength and
weaknesses is measured and with this ability to advance strength and capabilities to reduce
weaknesses is enhanced. It also has direct impact over decision making as with this working
efficiency is getting advanced within this appropriate changes is measured that provide
relatedness of about internal working standards. Thus company make adequate changes as by
analysing the demand and change in working standards by which rate of decision making and its
effectiveness both get changes.

Explanation of inter-relation between external macro factors and strength or weaknesses
Better and effective decisions are implemented by management of a firm through taking
decisions with analyses of external aspects of an organisation. In order to formulate or generate
proper results inter-relation among activities is an important aspect (Brașoveanu and Bălu, 2014).
Some aspects of strength and weaknesses are discussed as below:
 Political factor- The term political factors consists of government rules and regulations
of a particular country. Strength of Marriott hotel to obtain position is relates with
political aspect because Marriott hotels provides better support to developing countries to
generate revenue from tax and also to improve foreign exchange for organisation. On
other side, to overcome from weak-point of dependence on one market political support
helps to control business at low rate through complying tax benefits from government.
 Economical factor- Brexit decision is one of the major reason due to which economic of
UK is impacted. Therefore, financial position of organisation and individuals of both is
reduced. The strength of luxury brand relates with the economical factor like, Marriott
offer better services to the individuals by invest of high amount but due to low economic
this is complex for management to obtain high returns. It is because individuals are not in
power to purchase and consume luxury services.
 Social factor- Organisation is able to get more success through producing product and
services to keep in the mind values and belief of society. In order to gain trust
management is more focused towards improving the strength of business through
completing all task in order to improve strength of society. Individual face challenges
due to which this complex for management to enter into strategic formulation by
managing company work according to strength of Marriott hotel. On the other side, weak
point define individual not contribute towards formulation of work with digital aspects of
business.
 Technological- The technology factor relates with innovative technology and it is used
to perform task with better competitive force. By undertaking effective technology
aspects it is easy for management to manage business on online basis. The major strength
of technological factor define aspect by which more individuals are attracted towards
consume services (Bini, Bellucci and Giunta, 2018). Weakness face by Marriott hotel is
the high cost that is dynamic in nature so this is complex for Marriott hotel to work with

old technology. Therefore, strength and weakness both is managed with use of
technology in an organised manner.
 Environmental factor- There are different initiatives is formulated by organisation
which is used to save and conserve environment. It includes formulation of plans by use
solar technology in order to formulate electricity with low power technology cost. With
introduce of managing all task according to decided perspective organisation is
considered to formulate positive environment. Further, low power energy also helps to
improve goodwill of organisation. In the context of weakness external environment
factor is the excess use of fuel to travel from one place to another. It results that power of
natural resources is reduced. So weak point is the change in geographical areas.
 Legal factor- Marriott face challenges to formulate plans and these used to manage work
and plans by generating actions as per required laws. There are various functions and
operations relates with goals and objectives but due to low inappropriate funds
employe’s resign from jobs because Marriott authorities create differences between
workforces related with gender. Therefore, weak point is generated as employees create
bad image of business in society. On the other side, strength is increased by Marriott
through performing task according to international rules.
CONCLUSION
In the last, with analyse of above report it is concluded by management that plans play an
important role to manage and control operations of organisation. Business environment is an
essential factor and plans of organisation are formulated through understanding internal and
external aspects of business. Private, public and voluntary are some different types of
organisation and it is used manage task according to objectives and structure of business. So this
is used for completion according to purpose of firms. All functions of organisation relate with
each other and it is used for achieving objectives with more efficiency. Moreover, PESTLE and
SWOT model are also implemented and it is used for completion of task with understand of
micro and macro environment in order to retain for longer period in market.

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