Unit 1 Business and the Business Environment: Report and Analysis

This report provides a comprehensive analysis of the business environment, focusing on Unit 1 concepts. It explores various types of organizations, including public, private, and voluntary companies, and their legal structures. The report examines the size and scope of these organizations, highlighting their functional roles and competitive dynamics. It delves into the relationships between organizational functions such as production, finance, marketing, sales, and human resources, and how these functions contribute to achieving business objectives and structures. Furthermore, the report analyzes the positive and negative impacts of the macro environment using PESTLE analysis, with a comparative study between Asda and IKEA. Finally, it assesses internal strengths and weaknesses, and their interrelation with external macro factors. The report aims to provide insights into the competitive landscape and strategic management within the business context.

Unit 1 Business and The
Business Environment

TABLE OF CONTENT
INTRODUCTION ...........................................................................................................................................3
LO1..............................................................................................................................................................4
P1 Types of organizations and legal structure.........................................................................................4
P2 Size and scope of various organizations..............................................................................................5
LO2..............................................................................................................................................................6
P3 Relationships of organization functions and their link to objectives and structure ..........................6
LO3..............................................................................................................................................................8
P4 Positive and negative impacts of macro environment .......................................................................8
LO4..............................................................................................................................................................9
P5 Internal analysis and identification of strengths and weaknesses......................................................9
P6 Strengths and weaknesses interrelation with external macro factors..............................................11
CONCLUSON .........................................................................................................................................12
REFERNCES................................................................................................................................................14

INTRODUCTION
Business environment can be understood to be widely expanded among varied
competitive aspects on global scenarios where report will be analyzing various types of
organizations based on size, functional role and scope. The study further will be analyzing
discussion on new working operational metrics where there is new scale innovation worked on
for framing higher competitive domains worked on. The report shall be focusing on
interrelationship between departments functions, and how they develop stronger reach among
wider long term goals of profitability and new goodwill metrics. The study shall be discussing
internal and external factors of business environment for bringing larger scale profound diversity
among working horizons. Study shall be also discussing new domains of interrelationship within
internal and external factors, for enhancing larger vision perspectives on commercial potential
aspects. The report shall be also analyzing new functional metrics of provident areas for keen
functional strengths arenas on which keeping active diversity within production goals, where
companies have been actively focusing on new dynamic scope horizons.

LO1
P1 Types of organizations and legal structure
There are various types of organizations which can be segregated into working horizons
and new functional aspects for keeping up informative diversity alive within varied aspects into
competitive domains. Within competitive global business industry there are various companies
coming on within business culture aspects for creating informative diversity, to pertain high
quality functional metrics and also to form stronger range of products and services (Belás,
Belás and Rózsa, 2019).
Public companies
The public companies are widely organized with high range of capital structure aspects
on which there are larger aspects of capital structure widely formed on which larger number of
people can invest shares, as they are listed on stock market for further investments. The public
companies have been also identified to be widely focused on enhancing competitive strengths
within products and services range, as wider competitive reach is formed on. The public
companies however do not allow outsiders or any shareholder to further take any active decision
among company operational decisions where there have been varied new growth competencies
an analyzed. The public companies are also owned by authorities under government which
makes legal structure dominated by only legal corporation bodies and enhanced focus on capital
and revenue scenarios. Asda is one of the biggest public company within retail industry having
varied range of products and services expanded among varied range of new capital investments
and informative diversity aspects. Asda, public company is known for wide range affordable
products, services and competent scaled up functional aspects by bringing new scale products
and advanced scale services.
Private companies
The private companies are private shareholders owned body by large competent bodies
where shares are contributed within capital investments by them, and they have whole focus on
taking active decisions among company working operations which enable wider growth among
successful horizons. The private companies are widely focused on attaining profits within
revenue goals and to form consumer’s goodwill among products, services within longer time

frame for availing higher informative diversity parameters. It can be also analyzed that the
private companies have high focus on capital structure development within varied working
aspects on larger scale paradigms which enhance larger targets at business horizons. The legal
structure is private and shareholders have the only authority within business operations, IKEA is
one of the biggest private company having wide reach among global aspects and also bringing
on wide range of products and services.
Voluntary companies
The voluntary companies are organizations whose function is to enhance working aspects
and living scenarios of people living on among varied domains where there is new effective goal
functioning formed on. The voluntary companies have stronger focus to bring cost free services
for people to enhance their living scenarios and also potentially form informative functional pace
within developing new range of services. The voluntary companies are widely developed based
on providing cost free services to people and also functionally bring on potential targets widely
among global paradigms. British Red Cross if one of the biggest voluntary company of UK,
where it has been bringing on varied range of functional services for people (Al-Khasawneh,
2020).
P2 Size and scope of various organizations
The size and scope of various organizations have high role of importance for business
competitive analysis within business industry globally where there are varied new competencies
analyzed which creates profound work growth synergy, on larger arenas and for further
determining horizons building pace.
 The public companies have wide range of capital structure which significantly develops
varied new functional scope for enriching consumers focused products and services on
business avenues, also public companies size has significant impact for larger scope
efficacy within varied domains. The public companies are also profoundly stringently
working ahead on building diverse range of products and services, for functional strength
and dynamic growth within new domains. It can be also analyzed that UK has around 3.5
million sole proprietorships (69%) in the UK at the start of 2019, 405,000 partnerships
(7%), and 2 million limited companies (34%). Out of the 2 million actively trading
limited companies in the UK (2019), around 990,000 were employers, whereas

891,000 companies were not. number of public companies (Crudu, 2019). ASDA is
involved in marketing of grocery, general merchandise and best financial services where
best low priced services have made it scope widely expanded under varied scenarios.
There are 633 retail stores of Asda, where it latest revenue figures show 30 billion $,
where company has been ranked as 10th in revenue growth rise.
 The private companies are wide range of focus on developing higher informative goals
profoundly focused on innovation parameters, where shareholders has the role to take all
decisions and there are no shares listing done which however make the scope limited
among working horizons. The private companies also are capital enlarge and profoundly
competent to bring on best quest metrics for technical strength diversity, scaling business
objectives on expansion and also to potentially work on keen paradigms within industry
efficacy profoundly. UK has -5.2 million private sector businesses in England, 334,000
in Scotland, 222,000 in Wales, and 124,000 in Northern Ireland, accounting for 35% of
the UK business population. The private companies are keenly evolving on new
paradigms of industry growth avenues and also to enhance new scope horizons for
technical growth operational metrics. IKEA revenue is 41.3 billion$, which makes scope
widely expanding among competitive global retail industry. In 2020, the number
of IKEA co-workers worldwide amounted to nearly 220,000 which signifies wide range
of functional scope in business expansion grounds.
 The voluntary companies scope is limited due to less capital investments pooled on and
limited functional consumers market reach where there has been varied lack of
innovation and functional strengths within business goals profoundly. The voluntary
companies are also diversely focused on enhancing people living standards by providing
them cost free services, also to keenly focus on new functional competent informatively.
The voluntary companies are widely formed on ethical reach of services and also to
potentially bring on wider domains growth among operations for consumer’s services
satisfaction (Fuciu, 2019). British Red Cross employs nearly 4,000 people where they
work in UK and people to help where volunteers have been working productively for
stronger scale functional expansion.

LO2
P3 Relationships of organization functions and their link to objectives and structure
The relationships of organization functions and their link to larger working objectives and
structure can be identified as widely essential where there are varied new growth parameters
profoundly working on among business enhanced vision. Stronger formation of organization
functions bring on competitive diversity and also technially evolve on keen parameters of
revenue growth and consumer goodwill.Asdaas one of the biggest public company focus on
developing stringent innovation within organizational functions and link them to higher profits,
which can be analyzed as follows (Luiz, Ganson and Wennmann, 2019).
The organizational structure of Sasinsbury is hierarchical which shows there are series of
levels of people, level above controls within each level for generating coordination among
various parameters. Production and finance: The production department function is widely correlated with
research and technology investments for bringing on varied reach of large resources, up
scaling capital to form competitive domains within products and services. It can be also
analyzed that production and finance departments interrelation have dynamic determinant
role to play among business avenues, for scaling its larger new products and
services.Asdahas been profoundly focusing on expansion of production and finance
functional role efficacy where stronger work performance enhances vision, long term
scale growth diversity and also to form larger new dynamic growth. Production and
finance as one of the most important function is operated within hierarchical structure by
evolving towards dynamic work goal operations. Structure also brings on larger vision
oriented operational work goals for keeping up competencies effectively. Marketing and sales: The interrelationship between marketing and sales departments can
be also analyzed as one of the widely dynamic and competitive aspect which enables
business domains to actively be diversified within new horizons It can be also analyzed
that by focusing on marketing and sales role companies are widely focusing on enriching
consumers oriented services within new quest goals. There has been constant diversity
demanded within digital marketing parameters of retail industry where there are new
range of functional innovation coming on by TESCO. By bringing on innovation within

marketing and promotion through digital platformsAsdaaims to be profoundly moving
ahead within retail competitive aspects and also to leverage higher functional role of
efficacy among new developed scenarios. The hierarchical structure brings on role of
marketing and sales role informatively within fundamental competitive benchmarks for
keeping up with wider work growth targets actively.
 Human resource and finance: The prominent role if of HR department to train all
employees with best skills informatively and also diverse range of dynamic services
competitively for enhancing vision perspectives widely. Finance and human resources
have dynamic working efficacy where finance department plays the role of further
investment planning and operational paradigms for quick evolution of new market
synergy, keeping workforce motivated and also keenly evolving on new arenas of wider
efficacy on larger horizons.Asdaby building stringent focus within diverse HR
parameters and finance functional scale growth aims to be competent, also keenly be
technically varied within business horizons (Gaganis,, Pasiouras and Voulgari, 2019).
Human resources within hierarchical structure are working with wide range of
coordination, stronger vision oriented aspects and to imperatively bring forward
functional scale wide efficacy synergies.
LO3
P4 Positive and negative impacts of macro environment
The macro business environment can be understood to be widely dynamic and highly
growing within competent range of functional horizons where there are varied new competent
paradigms developed on. There are various positive as well as negative aspects of macro
business environment which shall be analyzed by focusing on informative growth goals, and
by using PETSLE analysis. Pestle analysis tool will enable to gain deeper insights on new
competitive domains where Asda has to widely focus on for potentially entering on wider
domains of functional strength, higher efficacy among market domains. Asda aims to focus on
larger new arenas within public competitive industry. Asda and Ikea pestle analysis
comparison will enable detailed functional growth towards, which productively bring
competent scope for larger scale growth.

Asda IKEA Political factors:Asdawith varied
range of global expansion has to
actively focus on political stability
factors within varied countries
scenarios for upgrading its diverse
range of larger productive services
and enhanced goodwill, revenue
targets informatively. With
BREXIT implementation the
imports, exports of ASDAhas been
widely impacted where there shall
be further strategic development
formed to be widely competitive
and also form higher technical role
with rising tax prices, interest rates.
The political growth efficacy shall
be strategically planned by Asda
for more informative functional
reach among consumers.
Political factors: IKEA for further
political stability has to evolve on best
international political working scenarios,
wider scale competent stability in business
world.
 Economic factors: The range of
economic scenarios among
countries business growth has
strong role to play among business
efficacy goals where the economic
stability and strategic vision
formulation. Among wider long
term reach is highly essential for
Asda business competitive
domains where aims to potentially
Economic factors: IKEA needs to focus on
economic scale diversity by strengthening
goods, services pricing policies and evolve
on wider productive economic range.

focus actively. The economic
strength plays large role to develop
competitive role for keeping up new
functional strength diversity and
also productively bring on
competent informative growth goals
(Newman,, Tarp and Trifkovic,
2020).
 Social factors: The new
consumer’s preferences shall be
analyzed to bring on wider
innovation among consumers
advanced efficacy standards, where
new profound functional growth
shall be competitively framed on.
The social factors are also
competently stronger within
informative dynamic industry goals
on which Asda has business
expansion opportunities further and
also larger new domains goals
reach. The social factors are widely
essential for higher informative
growth goals of goodwill rise and
wider revenue targets within
business horizons.
Social factors: IKEA has to form wide
range of customer oriented products and
services as per social determinants, for
emerging towards competitive business
world.
 Technological factors: There shall
be also competitive rise on
Technological factors: Bring on
investments within new technologies in

technology grounds investments by
larger investments building on
among keen targets, where new
innovation scale and goodwill can
be profoundly enhanced.
Technology factors have wide
active functional strength to be
played on among new informative
scale efficacy and higher keen
growth among corporate scenarios
actively.
production and marketing departments
 Legal factors: The legal factors can
be also analyzed as highly strong
and widely functional for keeping
up targets at frame and to keep up
new informative scale diversity
among business horizons for
leveraging wider keen scenarios
where legal factors compliance
shall be done. Asda shall also
competitively focus on legal
strength development where there
are new domains to be enriched, for
active functional scale efficacy and
keen profound scale growth which
enables business to be competently
stronger further.
Legal factors: Higher legal factor stability
 Environment factors: The new
profound focus on CSR activities
Environmental factors: CSR following
and evaluating towards the best sustainable

and environment factors enable
business to widely expand on new
horizons of market reach, and
potentially determine new scale
efficacy profoundly which brings
on leveraging goals diversity. It
bring on wider focus on building
environment strength among
consume, also competitively focus
for consumers enhanced vision
widely among new horizons which
is positive strength within macro
business environment impacting
Asda further on larger domains.
products' development.
LO4
P5 Internal analysis and identification of strengths and weaknesses
The internal analysis and identification of strengths, weaknesses enable business
development widely where there are varied parameters of innovation competencies worked on
for bringing on keen efficacy within longer time frame and also to evaluate larger ne innovation
actively. SWOT analysis is widely essential for generating in depth analysis within working
parameters for framing higher profound new goals productively:
IKEA and Asda SWOT ANALYSIS comparison
Asda IKEA
Strengths: The internal strengths of Asda is
based on working domains where quality
of products and services are stronger
Strengths: IKEA has strength of wide rage of
products and services under portfolio, which
makes it one of the best brand within global