Business and Business Environment: A Comprehensive Topshop Report

This report provides a comprehensive analysis of Topshop's business environment. It begins by classifying different types of organizations, including private, public, and voluntary sectors, using Topshop, the Bank of England, and World Vision as examples. The report then examines the size, scope, purpose, and legal structures of these organizations. The core of the report involves a detailed analysis of Topshop, including its vision, mission, business objectives, size, scope, organizational structure, and stakeholders. Furthermore, it explores the interrelationship between various business functions, such as marketing, finance, and human resources, within Topshop. The report also includes PESTLE and SWOT analyses to evaluate the external and internal environments of Topshop, identifying its strengths, weaknesses, opportunities, and threats. Finally, it concludes by summarizing the key findings and insights derived from the analysis.

Business and Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Different types of organisation .............................................................................................1
P2 Size and scope of various kinds of establishment .................................................................4
TASK 2 ...........................................................................................................................................5
P3 Interrelationship between organisation function with its structure........................................5
TASK 3............................................................................................................................................7
P4 PESTLE analysis...................................................................................................................7
TASK 4 ...........................................................................................................................................9
P5 SWOT analysis .....................................................................................................................9
P6 Strength and weakness of external business environment ..................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
Every organisation contains their own surrounding which has direct impact over its
business operation and function as well as to decision of firm. However, business environment is
a combination of internal and external factor that influence company's operating situation
including employees, customers, management, supply and demand as well as firm's regulation.
Along with this, it enable firm to evaluate market threat or challenges in order to generate profit
maximisation with an optimum utilisation of resources in an effective and efficient manner (Asif,
M., and et. al., 2011). This report is based on Topshop, a multinational UK retailer of clothing,
shoes, accessories which is commenced in the year of 1964. This study covers various types of
organisation along with its legal structure, size, scope and purpose, relationship of business
function with its structure. Apart from this, application of PESTLE analysis to examine external
environment as well as usage of SWOT to identify internal capabilities of firm and pros and cons
of macro factors is also mentioned here.
TASK 1
P1 Different types of organisation
Each and every establishment is classified into various division and each of them
contains unique set of roles and responsibilities in order to accomplish organisational goals and
objectives within prescribed time limit. Along with this, there are varies types of factors or forces
in which some are controllable and few are uncontrollable which directly impact over strategic
decision making capability of company. Moreover, it helps the firm to determine its opportunity
and threat and also it helps them to make corrective course of action for attaining sustainable
profitability ratio. Apart from this, organisation is categorised into different types i.e. private,
public and voluntary which contribute towards the betterment of community as well as improves
the productivity of firm in an innovative and creative manner. Hence, the detail explanation of
various group of sector which are as follows:
Private
It is a type of company which offer limited liability, legal protection to its shareholders
but it puts certain restriction or limitation on its ownership as well as it does not trade their shares
in general public ((Besharov and Smith, 2014). Hence, in order to understand this concept,
Topshop company is considered which is one of the clothing retailer in UK. It is a subsidiary of

parent company Arcadia Group with 500 shops worldwide. The purpose and legal structure of
Topshop are as follows:
Purpose
The key goal of company is to satisfy customer on an international basis without
comprising the unique brand vision and becomes the spectrum of ever changing collections that
keep Topshop in an cutting edge trends.
Legal Structure
Some of the legal forms is described below: Sole proprietorship:It is formed and governed by an individual who bears all profit ,
gains and risk by its own as well as contains full control over decision making process in
order to achieve business objective in a productive way. Along with this, it is regarded as
popular business due to its simplicity, ease of setup and nominal cost.
 Partnership: It is a type of business entity which is run by two or more people under a
joint name with a view to generating profits. Along with this, its ownership is shared
among partners as well as the responsibility for managing firm and the income or losses
which business generates (Cavalcante, Kesting and Ulhøi, 2011).
Public
It refers to those group of firm whose securities are traded on a stock exchange and can
be bought or sold by anyone. Along with this, they are required by law to publish their complete
and accurate financial position so that shareholders can determine the value of available shares.
Hence, for in depth comprehension of public sector, Bank of England is considered, as it is a
central bank of UK which is established in the year of 1694. Moreover, it is one of the eighth
financial organization that is authorised to issue banknotes in United Kingdom as well as
regulates all commercial banks in Scotland and Northern Ireland.
Purpose
The primal mission of Bank of England is to boost up the life standard of community or
societies through marinating monetary and financial stability.
Legal Structure
It is a category of organisation which helps Bank of England to form and govern its
business operation and function in an productive in appropriate way. Hence, it uses financials

service act which help them to supervise financial market infrastructure providers such as
payment system and central securities depositors. This legal structure is classified in to three
categories:
 Central Government:It has the power to make laws for the whole country security,
protect citizens from other nations and terrorism as well as distribute budget
sensibly. Moreover, it is main state control point which implements and executes
the laws in UK (Craig and Campbell, 2012).
 State Government: They make their own appointments at different posts, but there
is always a managerial type of position in every department which answers directly
to central government to maintain check and balance on affairs as well as they abide
by rules that is imposed by central government.
 Local Government: It refers to those type who has very few legislative powers and
must act within the framework of laws passed by central parliament. In UK, they
are mainly responsible for a range of community service, including government;
matters education, highways etc.
Voluntary
They are those group of sector whose primal objective is to create social impact rather
generating profit which is also refer as not for profit organisation. Furthermore, they are
independent from local and national government and distinct from private sector. For this sector,
World Vision is effective that explains the apprehension of company. It is Christian humanitarian
aid organisation which is established in the year of 1950 (Ehret, Kashyap and Wirtz, 2013).
Purpose
Their main aim is to eradicate poverty and injustice from community and bring equality
and freedom to all children, families as well as make best decision to improve life standard of
public.
Legal Structure
The World Vision follows the structure of charitable incorporated organisation which is
specifically designed for charity. It is incorporated and regulated solely by Charity Commission
which avoids the need for duplicate fillings, as its members has limited liability and it has own
legal personality providing trustee with a certain level of protection.

P2 Size and scope of various kinds of establishment
The purpose and range of different types of organisation are as follows:
Private – Topshop Company
Vision:To provide high level of customer satisfaction and become the brand spectrum of
ever changing collections which keep Topshop ahead among industry.
Mission:To deliver the best and high quality products in order to maintain cutting edge
trends for attaining sustainable profitability and productivity ratio.
Business Objective:Its key objective is to become the first and best choice for customers
in terms of quality and price in order to generate better relationship with customers (Furman and
Gibelman, 2012).
Size: It contains 22,000 manpower who put their full effort to accomplish business vision
or objective within prescribed time limit with 500 shops across the globe.
Scope: It has huge scope as it deals into clothing, accessories, shoes, cosmetics.
Organisational structure:It applies tall structure as different levels in the hierarchy and
department managers are conducive to control over ten employees at a same time as well as
enable the employer to make best decision for accomplishing organisational goal.
Stakeholders:It includes employees, suppliers, customers, civil society, third part service
provider.
Public – Bank of England
Vision:Their primal vision is to boost and improve the life style of people by continuing
serving financial service to all households and businesses.
Mission:Its key mission is to raise the life standard of communities and societies by
rendering financial services as well as continuing to maintain monetary and financial stability.
Business Objective:It's main aim is to provide best and better services to banks, business
and public in order to maintain healthy and long lasting relationship (Grover and Kohli, 2013).
Size:
Scope: It contains huge scope as it is one of the eighth bank who is authorised to issue
notes and governs all commercial bank across UK.
Organisational structure:It follows hiearchial structure which helps them to provide
equal opportunities to personnel that enable them to attain high productivity band profitability
ratio.

Stakeholders:Its shareholders are customers, depositors, regulators, investors, taxpayers,
directors and employees.
Voluntary – World Vision
Vision:Their main vision is to remove the poor and inequality among communities and
raise their life standard by rendering them basic needs as well as other benefits like education.
Mission:Its main mission is to pursue the path of Lord Jesus Christ and work with poor
and oppressed people in order to promote human transformation, justice and show the love of
Christ to others.
Business Objective:Their main corporate goal is to make the largest contribution towards
the global good by working with families, children an communities worldwide to reach their full
potential by tackling the cause of poverty and injustice (Hopkins, 2011).
Size:It has 22,500 manpower who are highly dedicated to transform the lifestyle of
communities and families in a better way serves in 97 countries .
Scope: It has wide range of scope as they operate their function by the method of
emergency relief, community development, policy and advocacy.
Organisational structure:It run as a federation of interdependent national offices, each of
them are controlled by own boards or advisory council.
Stakeholders:Its stakeholders are children, families, communities, board members,
donors, area development program leader and staff.
TASK 2
P3 Interrelationship between organisation function with its structure
Every establishment consist of various departments which all come together to achieve
business objective and goal in an trenchant and prompt way. Along with this, each of them has
different roles and purpose to perform which lead or guide company to obtain maximisation of
profit with an optimum utilisation of resources. In regard of Topshop, it has various business
function which carry out unique set of responsibilities in order to attain high level of productivity
and profitability ratio within an industry (Kenny and Briner, 2010). Moreover, each of the
division are interconnected with each other which provides all possible support and guidance as
well as work as a team to accomplish their vision in a best manner. The interrelationship of
various business function are as follows:

Marketing and Finance Department: As the competition arising among the companies,
these two functions plays a vital role to increase market share and enhance the productivity of
company. Hence, in order to promote the firms product and advertise it into market, Topshop
marketing function requires enough funds which they seek from finance departments. Thus, with
the help of those money which is received by finance division, Topshop can position their
product in a better place and can easily reach all targeted potential customer which leads them to
gain competitive advantage in an innovative style (Klapper and Love, 2010).
Human Resource and Marketing Department: Both these functions are inseparable in
nature as company requires highly skilled and potential candidate which helps them to achieve
high proficiency ratio. However, Topshop's marketing department takes initiative to attract all
talented personnel for their business operation through various method of advertisement like
newspaper, magazine, online, social media platform, campus recruitment, job fare etc. which
leads them to acquire increased level of proficiency in an effectual and prompt way.
Organisational Chart of Topshop
From the above mentioned diagram, it has stated that Topshop is governed by President
and it has three sub division who maintain various departments of company i.e. human resource,
marketing, finance etc. which helps them to contribute their best effort towards the achievement

of goal in an innovative and creative way. Moreover, organisational structure is directly linked
with business function as it help Topshop company to grow and provide proper guidance and
clarity on managerial and operational issues in order to acquire high level of satisfaction from
workforce that add value to company's brand image (Palo and Tähtinen, 2011). Along with this,
it directly impact over organisation decision making as well as on their proficiency ratio.
Although, its interrelationship is beneficial but at the same time time it contains various pros and
cons which are as follows:
Advantages Disadvantages
 It assist organisation to streamline their
operations, improve decision making,
can operate in market location as well
as increase sales and customer service.
 It enable the company to build a better
relationship between superior and
subordinate which enhance company's
productivity.
 There is a possibility of arising conflict
of interest and disputes among
employees which impact business
decision making skill of company.
 The process of attaining organisational
goal is very time consuming which
reflect in delaying for achieving
business objective within prescribed
time period.
TASK 3
P4 PESTLE analysis
There are several forces or factors which directly influence over company's productivity
and proficiency. However, PESTLE analysis is an important aspect which enable the firm to
examine their external environment and implement a corrective course of action in order to gain
competitive advantage within a marketplace (Roness, 2017). Therefore, Topshop and Bank of
England applies the same into their business operation for acquiring sustainable profitability. The
PESTLE analysis of Topshop is described below:
Political: Recently, UK government was effected by Brexit, which created uncertainty in
business environment and financial market of Topshop. However, to overcome this

unpredictability, Topshop have to focus over all the policies and procedure of government in
order to attain high productivity.
Economical: Due to Brexit, it decreased the exchange rate for pound which increased
Topshop's export rate and it effect over its proficiency. Hence, Topshop tackle this impact by
maintain Consumer price index which help them in increasing the consumer purchasing power.
Social: In present scenario of UK population, there is high demand of trendy clothes
among women which influence Topshop profitability ratio. Thus, Topshop overcome this
negative effect by introducing latest and trendy women clothes which reflect in increase in
company's profit maximisation.
Technological:There is huge demand of innovative or upgraded technologies among the
UK majority which becomes a major challenge for Topshop operation. However, Topshop
adapts all latest and novel technologies for their business function as well as implement the
facility of online shopping that helps them to gain competitive advantage.
Legal:Due to Brexit, there was a modification in firm legislation and laws which brings
major complexities among Topshop operation. Hence, they maintain their working culture as per
the requirement of UK government which reduces the intervention of government into their
business operation (Savrul, Incekara and Sener, 2014)
Environment: Majority of consumer are seeking for eco friendly products in order to
keep them safe and fit which effect its proficiency rate. However, Topshop kept its ethical
standard and acquire the operation to recycling the materials which increased company's brand
image among industry.
PESTLE of Bank of England
Political: Recently UK government modifies regulatory capital rules due to Brexit which
impact over Bank of England business function. However, political stability of UK benefit BOE
to maintain their foreign subsidiary and shareholder interest which improves the overall
performance of company.
Economical:Because of Brexit implementation, the value of pound depreciated against
major currencies which impose huge pressure over BOE function. Thus, to tackle the same, BOE
develops an international agreement between Britain and other EU member sates which
improves the overall performance of company.

Social:There was a increasingly ageing population in BOE, UK which enable them to
shift toward savings, investment and wealth management offers. However, BOE offer as a
baseline service to meet the needs of pension age customers.
Technological:There is a high demand of innovative technologies which effect BOE
productivity and proficiency. Thus, BOE adapts latest technologies into their business operation
which increase their profit margin.
Legal: It always maintain and follows all UK policies and procedures which decrease the
intervention of government within BOE function and add value to company's brand image
(Schrader, Freimann and Seuring, 2012)
TASK 4
P5 SWOT analysis
It is an evaluation tool which allow company to examine its internal capabilities as well
as helps them to make effective or impressive decisions in order to generate maximum profit
which add value to employee and also enlarge firms brand image. Hence, Topshop and Bank of
England implies the same element into their business function for building a better working
culture. The SWOT analysis of Topshop is given below:
Strength
 It has expansive number of stores all
around the world.
 It contains various of product segment
as it deals into clothing, accessories,
shoes, cosmetics (Tammineedi, 2010).
Weakness
 It product quality is average which
challenge them to match up with other
competitors.
 It's organisational function is not much
effective which arises conflict among
employees.
Opportunity
 Possibility to expand their business into
electronics divisions as there is high
demand of technologies.
 Platform to introduce latest fashionable
or trendy clothes to young consumers
Threat
 There is a high level of rivalry among
retail companies in UK which effect
Topshop business operation.

which improves its performance.
SWOT of Bank of England
Strength
 It is the second and fastest growing
network and also it has huge customer
potential.
 It has high level of FDI inflow which
enhance its proficiency.
Weakness
 It contain high entry barrier due to huge
investment.
 They are very slow in adapting new
technology into their company's
operation.
Opportunity
 It has a platform to acquire 3G and 4G
services in their organisational
operation.
 They have a possibility of adapting
enormous equipments for enhancing
export potential.
Threat
 It has a big competition from foreign
players.
 BOE has a challenge from government
regulatory and legal policies which
effect its decision making ability.
P6 Strength and weakness of external business environment
From the preceding PESTLE and SWOT analysis, it has signified that internal and
external factor has direct effect over company's operation and function. Moreover, it enable the
company to identify current and emerging trend of market condition and help them to make best
strategic decision in order to attain productivity and profitability. In case of political force,
organisation can easily adapts the modification into their business which lead them to
accomplish their goal in an effective way (Sinuany-Stern and Sherman, 2014). Moreover, it
assist them to acquire innovation into their firm function in order to bring high level of customer
satisfaction as well as add value value to company's brand image.
CONCLUSION
It can be concluded from the above report that Business environment stands crucial for an
organization as it determines the manner in which operations are carried out. The organisation
can be categorized on the basis of their motive on private, public and voluntary sectors. The

various functions in context of an organisation such as marketing, Human resources, Finance and
operations are interrelated and assure that business objectives are fulfilled. The undertaking of
PESTLE analysis in context of the company have identified that political stability, economic
repression and favourable social trends have been positively influencing operations of this
enterprise and can be considered as an opportunity for growth. The SWOT analytical tool helped
in determining opportunity for growth which can be undertaken by this business in the coming
period.

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