Business Environment Analysis: Unit 1 Report - Next PLC, NHS, Oxfam

This report provides a comprehensive analysis of the business environment, examining different types of organizations including private (Next PLC), public (NHS), and voluntary (Oxfam) sectors. It explores their purpose, size, scope, and legal structures. The report delves into the interrelationships between organizational departments like marketing, HR, and operations, highlighting how they contribute to organizational objectives and structure. Furthermore, it identifies the positive and negative impacts of the macro environment on business operations, supported by specific examples. The report also includes a SWOT analysis of an organization and explains the interrelation of strengths and weaknesses with external factors. The analysis covers various aspects of business operations, including financial management, marketing strategies, and organizational structures, providing a thorough understanding of the business environment and its impact on organizational performance. The report aims to provide a detailed overview of how businesses function within their environments and how they can adapt to various challenges and opportunities.

Unit 1 - Business and
The Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK1.............................................................................................................................................4
P1) Discuss different types and purpose of organisation............................................................4
P2) Size and Scope of different organisations............................................................................5
TASK2.............................................................................................................................................7
P3 Discuss interrelationship among different organisational departments and how they link to
organisational objective and structure.........................................................................................7
TASK3.............................................................................................................................................9
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................9
TASK 4..........................................................................................................................................11
P5) Conduct a SWOT analysis of organisation ........................................................................11
P6) Explain the inter-relation of strengths and weakness with external factors.......................12
CONCLUSION..............................................................................................................................14

INTRODUCTION
Business sector is wider and broader which is increasing at rapid scale. Due to impact of
environment business practices are adopted. Business environment is defined as concept which
comprises of internal and external and internal environment that impact organisational structure.
(Abdulaali, 2018). Main purpose of this report is to understand the impact of business
environment within enterprise. Next PLC, a British multinational firm headquartered in U.K.
The firm is located globally & has been operating at both national and international level. NHS
is a public sector company that aims to render effective health care services to individuals within
UK. Further, Oxfam is taken as a voluntary organisation that works to create huge social impact
within country. It has an aim to minimize poverty and provide better lifestyle to individuals
within nation. This report comprises of different types of organisations, size & scope of
enterprise, relationship between organisational functions & link to objectives, positive &
negative impacts of macro environment, internal & external analysis and inter-relation of
strength & weakness with external macro factors.
TASK1
P1) Discuss different types and purpose of organisation
Private-
Companies that are started with the purpose of profitability are known as Private
organizations. These can be undertake in the form of sole proprietorship, partnership, company
and many more. For instance, Next Plc is a private company that functions within UK market by
providing a quality goods in order to earn potential profit margin (Alaloul, 2017).
Purpose- The main aim of these entities is to earn higher revenue and earn higher
profitability by minimizing overall cost. In context of Next plc, the motive of organisation is to
attract more number of buyers in order to sustain in the market place for a longer period of time.
Legal structure-There are different legal structure is used in different companies. It
demonstrates the authority of top management executives to take business decisions that need to
be follow by subordinates. It is analysed that board members of Next Plc take effective decisions
and communicate it to others to ensure smooth functioning of business. It is analysed that Next
PLC uses hierarchical organisational in which it provides authority and responsibility to

employees as per their position within company. In addition, here employees are allowed to give
necessary suggestions and feedbacks to take effective decisions.
Public-
These entities are managed as well as controlled by government and higher authorities of
country to ensure the well being of society. There are several organisations are undertake by
government in different fields such as defence, education, health and many more with the aim to
serve the society. NHS is a public company that was situated in 1948 to provide better medical
facilities to citizens within country.
Purpose-Public organization are started of society and their upliftment. In context of
NHS, the objective of entity is to render effective health facilities to individuals in order to
improve their standard of living (Allen, 2016).
Legal Structure-These companies are controlled by government bodies to ensure overall
societal well being thus all the decisions are taken by higher authorities of NHS to operate
business effectively. It need to be follow by employees in prescribed way so that they perform
assigned task in an efficient manner (Bao, 2019). NHS is an independent body that takes its own
decisions without any interruption of Department of health. It is trust which is going to be
acquired by NHS foundation by trust by 2016.
Voluntary-
It is also known as non profit organisations that are undertake by individuals to create
huge social impact. These entities are initiated by those individuals who have the zeal to serve
society. Here, people with similar aim come and work together to serve the nation. For instance,
Oxfam, is a voluntary company that was started in 1942 and works through ample of charitable
and trust institutions within nation (Ch, 2016).
Purpose-The main aim of these companies is to create the huge social impact by
providing them better facilities to people. It ensures that all individuals within country get basic
necessities and works to improve their standard of living. In this context, Oxfam takes
appropriate steps in order to provide necessary services to needy people so that they get a better
life style.
Legal Structure- Oxfam is owned by trustees who are responsible for its liabilities and
various activities. It was founded by non governmental bodies and operated by trustees in order

to minimize poverty and injustice. The governing body of Oxfam is the council of trustees who
take all business related decisions.
P2) Size and Scope of different organisations
Scope refers to the potential of company to grow and expand operations in future. It also
comprises the scope to increase in sales as well as profit margins of organizations in upcoming
years. Size involves the number of employees working within entity, its branches and many
more. Scope and size in reference of different type of entities are given as under:
Private entity: Next PLC
Scope and size-In context of Next PLC, the scope for success and growth is wide as it is
operating business at global level known for quality products. It can also expand operations in
those countries in which it was not functioning earlier. With this, managers will be able to
inflate revenue as well as profit margin of entity. It is analysed that respective company is able to
earn higher revenue by attracting number of global as well as domestic customers. The main
reason of companies success is its qualifies employee's who are efficient enough to interact with
buyers. In addition , with quality goods at lower price provides an edge to entity over other rival
firms (Fabuš, 2017). It is a multinational company which owns nearly 500 stores within UK and
have 28500 employees who assist managers to operate business effectively.
Vision and Mission-The longer term aim of organisation is to maintain good relationship
with customers in order to sustain at market place for a longer period of time. It aims to create a
difference within industry by proving quality goods to buyer so that they give preference to
brand.
Public organisation: NHS
Scope and Size- NHS is operating within UK and provides medical services to
individuals. Company recruits large number of qualified employees in order to enhance their
reach and render timely medical facilities to individuals. As per the report, it books the revenue
of $ 540 billions during last year (Podder, 2020). There is also scope to expand business by
hiring efficient medical representatives who are competent enough to meet with needs of
patients. Mangers of entity make plans to explore operations by opening branches at different
location within country. NHS is working at global level and provide services to nearly 55 million

people. It is consider as the largest employer within UK as it provides employment to 1.3 million
people.
Vision and Mission- Mission of NHS is to render hygienic services and clean
environment to individuals in order to improve their standard of living. In addition, missions of
the entity is to provide efficient health services to people within country by providing them
proper medical check up facilities (Rialp-Criado, 2017).
Voluntary Organisation: Oxfam
Scope and Size-Oxfam is working for the social welfare thus it has scope to explore
functions at different locations within nation. It is already associated with nearly 20 charitable
trust that provides funds for various social activities. Non profit company is looking forward to
collaborate with more number of trust and voluntaries to enhance its reach to needy people. In
addition, top management of entity take effective decisions for the benefit of overall society.
Further, they can expand business operations at wide level to serve domestic as well as
international people.
Vision and Mission- The vision of organisation is to minimize or remove poverty within
country by providing necessary products to all citizens. In addition, the mission of organisation is
to maintain equality among people of nation in terms of age, religion, complexion in order to
maintain peace and justice in nation.
TASK2
P3 Discuss interrelationship among different organisational departments and how they link to
organisational objective and structure.
Marketing and HR – The function performed by HR manger is to recruit, select, and
appraise the best candidate & performer of company who have ability to perform task in
effective manner. In context of marketing department, their manager introduce the vacant post
for promoting services & product offered by organisation. Apart from this Next PLC, the
department of marketing is responsible for carry out effective marketing researched as well as
determine the needs and demands of consumers. The linkage of marketing department with
Human resources department is that the manger of marketing will provide the requirements of
Candidates to the HR managers (Stoyanova, 2017). This collaboration and coordination will aid
company to hire appropriate and capable candidate and which ultimately enhance the

productivity and profitability of company which leads towards attaining the goal of high quality
staff.
Marketing and finance- The role of finance manager is to manage the outflow and
inflow of cash within organisation as well as to provide funds budget to all department when any
need is arise (Syazali, 2019). In which the main aim of chosen firm is to develop the strong
marketing strategy which increases the sales and profit margin of company. In context of Next
PLC, if marketing manager need to fund for promotional activities then they have to ask to
finance department and has to involve them in decision making process. This interrelationship
aids company use their funds effectively. This coordination or inter relation between marketing
and finance department will affects the organisational structure too as well as help in achieving
the goal of high profitability.
Marketing and operational – The main role that is performed by the operation
department is to produce goods and services according to the requirements of consumers and the
function performed by the marketing department is to carry out promotional activities as well as
to figure out the demands of consumers with the help of marketing research. So the
interrelationship among these two department is that the manager of marting provide information
to production manger for manufacturing the goods according to the needs and preferences of
buyers. In context of selected firm, the coordination among marketing and production seems to
be very effective as they are able to meet the requirements of consumers (Wu, 2020). As well as
they are continuously adopting the changes or innovation into their products or services for
meeting the demands of end users. As well as the goal of high productivity is also achieved.
Organisational structure: It is a system that provides boundaries to each and everyone
for performing task in effective manner as well as to achieve goal of company in stipulated time.
The organisational structure that is adopted by selected firm is functional as it assists managers
to increase operational efficiency by engaging employees in decision making process of
company ( Zharan, 2017). In functional structure of organisation is has been found that all
department with company is managed by each specific mangers in order to carry out all function
and activities of firm in effectual way.

In functional organisational structure, all roles along with responsibility are assigned
according to the knowledge and experiences and due to this conflicts and disputes will not be
arises and the operation will going smoothly. Additionally the each and every members have
clarity about whom they are answerable and follower so this aids entities of company to carry out
work in effective manners. As well as in this the interrelation will also be important and it is also
maintained in such kind of structure. In this an individual will not loss their position along with
performing various functions of company. So it offers various befits to company along with
entities.
TASK3
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
Macro environment is a external variables which highly effects the growth of
organization, as it has both positive and negative impacts on Next plc. Macro environment cant
be change by company, so organization have to manage there plain and strategies according to it.
Those variables of macro environment are political, economical, ecological, social, demographic,
technological factors. There is a specific frame work techniques is normally use by every
organisation, which helps the organization to analyse the effects external environment. That is
PESTEL analysis, it stand for political, economical, social, technological, environment and legal
factors, which shows both negative and positive effect on company development. Next plc is

very focused about their brand development so they always do the PESTEL analysis to
manipulate their business plaining and strategies.
PESTEL analysis helps the Next plc to understand and analysis macro environment that
how those factors can benefit and harm the business (Abdulaali, 2018).
Impact of political factors on Next plc
Political element effect the business of every organization, but in the case of Next plc it
highly influence the business of clothings and accessories, because they have multiple branch of
company in different country, and there is various political issues and rules which poses both
positive and negative impact on business. Organisation first analyse the different factors such as
political stability, military invasion risk, intellectual property protection, tax rate and etc. It is
analysed that government provides support to company by providing its loan at lower price. In
addition it is affected with Brexit that brings several changes in the behaviour of customers
which may put negative impact on business.
Economical factors
Economical changes of the specific country shows different impact on the business of
Next plc. For the effective and beneficial business strategies, it is important to know the financial
condition of consumers, demand of customer's for the specific product and consumption of
goods, along with this, the other important thing is to compare the pricing strategies of
competitors, their financial growth, productivity (Alaloul, 2017). Decreases in the financial
growth of that particular area effect the selling of product, so for that company have manage
their pricing strategies on the basis of it, similar to this other factors of economy is compared
with businesses planing and change according to it. Higher growth rate of country in terms of
finance, population, helps the Next plc in increasing the profit. Here, it is also analysed that there
are several benefits are provided by higher authorities to company. In addition changes in current
policies such as foreign trade, business laws and more also affect the business performance in an
effecinet manner.

Effect of social factors on Next plc
Analysis of social elements help the Next plc to understand developing Modern and
ethical needs of consumer related to the products (Allen, 2016). )So it very important to co-
operate with social and cultural demand of customer which finally results in exponential growth
of the business. Some time sudden change in the demand and values of consumer related to the
particular dressing-sync can cause the loss of business, so it is important to update the product.
Due to change in current buying habits and behaviour of customers sales and profit margin of
organisation is highly affecting. Thus, managers need to make necessary changes in current plans
and strategies for further benefits.
Technological factors
The accomplishment of modern technology by Next plc competitor, negatively impact
the Next plc growth. But modern technology is also updated by the Next plc for the production
of inventive clothes and accessories, and those techniques also helps in the transportation of
product at effective and time saving way. Aid to reduce the waste of product row material and
finally increases the profitability. It is analysed that company need to invest huge amount
machines and tools to adopt new techniques. With this, organisation will be able to provide
better services to individuals but it will increase overall cost.
Environment factors
Next plc is have their branches in different country's, and for the smooth flow of business
they need to follow the environmental standards of those country's. For example every country
have different norms related to the use of row material for product, pollution. Next plc is
following all those norms and change their plain related to the product and other functions of
business. There are huge waste is generated by healthcare organization thus they need to use
appropriate techniques to manage it which will incurred huge cost. Some other environmental
elements effect the production are availability of row material on the basis of season (Bao,
2019).

Legal factors
There are the multiples lows and legal frame work for different organisation, and every
country have there own legal frame work. Next plc is following all those political aspects for the
smooth ruining of company. By analysing copyright, patents laws, anti trust laws, employment
law, health and safety law. Here, managers need to make necessary changes in their current
policies such as employment, customer protection law and many more that is time taking.
TASK 4
P5) Conduct a SWOT analysis of organisation
It is a tool which is used by entity to analyse internal factors affecting organisational
functions and operations. It is an effective tool which is being used & reliable information is
required. In relevance of Next PLC, they too uses this framework & which is mentioned ad
follows-
Strength
 Main strength of firm is that it is located
at global level & is has strong customer
base.
 Another strength is that it has strong
distributed & wide chain of network on
the basis of which it is easy to access to
resources (Ch, 2016).
Weakness
 The ratio of profitability & net
contribution of chosen entity is
below the average of industry.
 Another weakness is that it financial
planning is not done efficiently which
impacts their overall structure.
Opportunity
 The core competencies of selected firm
can be used by as competitive a
advantage.
 Change of consumer behaviour leads
new opportunity for enterprise (Fabuš,
2017).
Threat
 Due to wide use of technology within
a retailing competitors might affects
the competency level of Next PLC.
 As new products & fashion is
entering in market, it is threat for a
company as they are slow in

producing innovating product.
SWOT analysis of NHS
Strength Weaknesses
It is providing effective health care services to
patients within country with a huge employee
base.
NHS also imports necessary equipments from
other countries in order to provide better
healthy facilitates to individuals.
It is analysed that there is huge cost is incurred
in providing better and enhanced health
services to people.
Higher cost is reducing the quality of services
as NHS do not own huge funds to arrange
better facilitates.
Opportunities Threats
There are new business initiatives are present
within health care sector.
There is also an opportunity for NHS to
explore its business in different countries.
There are several other private organisations
who are providing better health facilities tom
patients which is a threat for company.
In addition, increased level of technology is
also creating threat for healthcare organisation
as now there is new and advance machines are
used for medical treatment of patients.
Therefore, it is seen that SWOT analysis is an appropriate framework which is essential to be
used so that market data is gathered internally. Also, decisions making process is required to be
carried out in effective way.
P6) Explain the inter-relation of strengths and weakness with external factors
There are ample of internal factors such as strengths and weakness that are affected with
external elements such as political, economical, social, technological and many more. There are
great inter-relation between these two elements. In context of Next PLC, this inter-relation is
mentioned below: