Regent College: Business Environment Analysis Report for Waitrose

This report provides a comprehensive analysis of the business environment, focusing on Waitrose, a retail grocery store. The report begins with an introduction to the business environment and its importance. It then delves into the organizational structure and functions within Waitrose, including purchasing, product, marketing, finance, customer service, and research and development departments. The impact of macro factors, such as political, economic, social, technological, environmental, and legal (PESTEL) factors, on Waitrose's operations is examined, with both positive and negative impacts identified. The report further analyzes Waitrose's strengths and weaknesses and their influence on decision-making processes. Finally, the interrelationship between SWOT analysis and external macro factors is explored to provide a holistic view of Waitrose's business environment and strategic positioning.

Business and Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2 ...........................................................................................................................................1
P3 Functions of chosen organisation with proper structure........................................................1
TASK 3............................................................................................................................................3
P4 Impact of various macro factors on business with positive and negative impact on chosen
business.......................................................................................................................................3
P5 Identification of strength and weakness and their influence on decision making process....6
TASK 4............................................................................................................................................7
P6 Interrelationship of SWOT with external macro factors........................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Every business is comprised of environment which is related with internal and external
segment. Thus, identification of business environment is essential work which have to perform
by management or an organisation in an effective manner. This analysis is helpful in ascertain all
goals and targets on time through which maximum productivity get attain with high quality
nature as well. This procedure is helpful in increase the profit generation capacity of an entity in
their long term context. Thus, for analysing the business environment and its uncertainty,
Waitrose is one of the best example which is a retail grocery store with high quality products
with a luxury nature as well. In this project, various type of organisations are going to define
which have distinct size, scope and operation detail as well. Along with this, there are various
functions in a business organisation get determine which are linked with various operations of an
entity. Hence identification of such sort of functions and their suitability is another major work.
Further, macro business environment made a vast impact on business which have to analyse
properly by consulting example of Waitrose. Moreover, strength and weakness of Waitrose will
have to linked with external macro factors so that better and effective outcome can gain.
TASK 1
Covered in PPT
TASK 2
P3 Functions of chosen organisation with proper structure
Various functions as well as another factors which are definite on the form of goals,
objectives and structure of business. From the same, there are several kind of duties which are
provided by the company to their workers. So in this they can attain firm goals and objectives in
an systematic and effective way. It is very useful and beneficial for the industry to identify
various functions. Mentioned firm essential of maintain improvements to invest large amount of
fund in all functions (Al-Swidi and Al-Hosam, 2012). Performing plan of the cited company is
planning, organising, managing monitoring, evaluating and selecting etc. It is one of the main
situation for firm which is focus on the growth on sustainability while focusing all values and
targets which needed exploitation. There are different department in Waitrose which play
essential role in developing goals and objectives in a systematic manner.
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(Source: Waitrose functions, 2017)
Purchasing department: This section play important role in purchasing all raw material of the
products in an accurate price. It is know as function of Waitrose which is beneficial and valuable
for the firm in order to buy different number of the necessary resources due to products or
services.
Product department: One of the main and important part of the organisational structure is
product section. This will play crucial role in manufacture as well as produce the goods to the
end use. They are main part of the organisation in order to inures sells and revenue in a
systematic manner. They also play in maintaining or improving organisation structure. It is
function of cited company which is very important because within this section they can not
achieve better quality.
Marketing and sale department: It is essential part of the business which play role and duties to
producing their product with the support of communication channel such as promotion, publicity,
public relation and advertisement. It is a Waitrose functions so within this they can not achieve
high profitability of the company as well as not achieve growth and success of the firm. These
techniques are very useful as well as beneficial in attracting large number of buyers due to
particular products. Mentioned business apply sales promotion i.e. social media, newspapers,
internet and another.
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Illustration 1: Function of organisation

Finance department: It is need of the Waitrose and every organisation because within this sector
they can not achieve high productivity and profitability. So it is very important because it gives
needed assets of finance to entire functions (Avramenko, 2010). To support in operating their
business and achieving high productivity and profitability.
Customer and channel: It is other division which play essential role in order to satisfying
customer satisfaction level it identified several grievances as well as provide information due to
services and products. In this way, cited business provide different promotion mix to their buyers
in order to attract large number of the attention towards clients.
Research and development department: This is a best division which play significant role in
analysing needs and wants of customers as well as market trends. With the help of this company
can analysis their target and potential clients taste and preference regarding services or products
in systematic manner (Bansal and Hoffman,2011). From the same they try to evaluate survey
with the help of personal and professional team in order to achieve long as well as short term
goals and objectives.
TASK 3
P4 Impact of various macro factors on business with positive and negative impact on chosen
business
Business environment is dynamic in nature and get changed on frequent basis which
affect the most on working of operations by a business. Thus, identification of all external factors
is essential to ascertain and accomplish all goals and targets on time. Macro business factors are
such elements which are not in control and get changed with a due course of time. For this
relation, every organisation have to conduct a PESTEL analysis which states for political,
economical, social, legal, technological and environmental elements of business. Thus, action
plan for an organisation have to prepare by taking this factor in account.
But not all the time this impact is negative in nature else, provide positive results on a
business organisation as well (Bill Pasmore PhD and CMC, 2010). Hence, management have to
identify such outcomes and take decision on the basis of them. Waitrose have to organise a
PESTEL analysis and measure their advantages and limitations to an entity also. This support in
ascertain all goals and targets on time and business operate in more effective manner. Although,
proper steps get derive which are beneficial in long term context and enhance the development of
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business with high efficiency rate. Below is a PESTEL analysis on Waitrose who are generally
dealing in wide variety of quality products:
Basis Positive Negative
Political Government imposed many
rules and regulations which
support or reflect negative
impact on business. Positive
impact of political factor is
that might be government
introduce policies which are
beneficial for retail store.
Government instability is one
of a major negative impact on
business because it get identify
that with a modification in
political party will direct lead
to modify existing policies as
well.
Tax reform by increasing or
decreasing the tax rate in UK.
Waitrose have to determine
about all new tax reform so
that they can manipulate their
prices according to that.
Increase in Tax rate will affect
an organisation prices as well.
Thus, many companies direct
use such taxes from customers.
This affect their operations and
management as well.
Economical Waitrose have to determine the
business scenario of other
countries properly. This enable
them in starting a business at
such places where the chances
of inflation and depression are
less.
If Waitrose started there
business in such countries
where chances of stability are
low then their business get
affected.
Spent level determination is
another major task for
Waitrose. This support them in
delivering such quality
products which are according
to range and wish of
Waitrose have to critically
identify spent level of each and
every customer and then
render products according to
such a manner. In case if they
found that economical
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customers. condiction is not good and
people have poor standard of
living. This will affect their
new business venture.
Technological Waitrose have to use new
technology for their business
consent which aid them in
reach to target number of
customers. This technological
impact is positive in nature
because it will aid them in
generating more and more
revenue.
Waitose have to maintain
proper reserve in their business
context because with rapid
change in time and
environment will modify the
new technologies as well.
Thus, this will lead to increase
spent level on machine by an
organisation.
Waitrose have to use new and
upgraded version of machines
for making their productivity
effective and efficient in
manner.
Power cuts are a major reason
behind failure of machine.
Thus, management do not have
to completely depend on
machines. This is a negative
factor of technology.
Environmental Management have to consider
such approaches and tools
which will support in reducing
pollution level in environment.
Thus, lack use of plastic bag
will made a positive impact on
business.
A major negative impact
which might be made by an
organisation on environment is
using plastic bags for delivery
of products.
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Waitrose have to establish
their factories just outside the
main cities which is beneficial
in protecting the environment.
If Waitrose will not analyse
the pollution level at particular
location then this fact will also
affect their working.
Legal Follow all policies and
regulations properly. This will
not hinder the working.
By not identify all new
regulation by managers will
made a negative impact on
business.
Follow up of legal
consideration is beneficial in
long term context.
Inadequate follow up of
regulations may wind up the
business on frequent manner.
Social Conduct and organise many
events which are in favour of
society. This enable them in
making a different brand
image from others in front of
society.
If delivery of goods and
services get done without
analysing user opinion then
this will affect the operations
and working of a company.
Analyse taste and preference
level of user through which
they become able to
manufacture such quality
products which are according
to customer perspective.
A single non social activity
will directly affect the business
very badly and affect brand
image and good will as well.
P5 Identification of strength and weakness and their influence on decision making process
It is an important duty of managers and leaders to analyse all factors which are present in
internal market world and external market world. Hence, this analysis is helpful in ascertain all
targets and goal on time for making their working effective and appropriate. Waitrose have to
determine all factors which are related with business environment and prepare their strategies
according to that. Thus, internal and external audit for a company is must to derive their strength
and weakness. By considering all advantages and limitations will affect decision making process
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of a business as well (Boons and Lüdeke-Freund, 2010). Hence, management have to consider
several important concepts which will lead to support them in their better and effective growth at
new establishment. Business environment analysis is a major task which is associated with a
project and provide support in making whole work properly.
For this perspective, Waitrose have to organise the SWOT analysis in which strength and
weakness of a business are concerned as internal analysis. Along with this, a major question get
arise over here which is external audit. Thus, for such relation, management have to determine
all opportunities and threats which are concerned with a business.
STRENGTHS WEAKNESSES
 They have good employee base
which are more effective and efficient
in nature. As they also have good
skills as well.
 Provide awards and motivation to
such employees which are effective
in nature for increasing the
profitability.
 Stakeholders have good trust on
company and they contribute more
and more as well.
 Wide range of competition is one of a
major limitation.
 Many employees leave workplace due to
heavy workload which is a weakness for a
company as their information might not
remain confidential in nature.
OPPORTUNITIES THREATS
 Waitrose want to gain more market
share in recent time frame which
work as an opportunity for business.
 Success of white based packaging
which support in bringing their
market share high in market.
 Good control over on products
quality and range also work as an
opportunity for business.
 After Brexit, UK lead to suffer from
heavy economical crises. This is a major
threat for a company in failure of business
over there.
 Provide low number of promotions to
ultimate users as compared to competitors
work as another major threat in losing
market share.
 Increase in rivalries in business
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framework is a threat for a Waitrose.
TASK 4
P6 Interrelationship of SWOT with external macro factors
Waitrose have to link up their SWOT analysis with external macro factors which enable
an organisation to ascertain all targets properly. Thus, management have to coordinate all of the
aims and objectives align with the macro factors which support in making the work more
effective and efficient in nature. Below is a interrelationship of SWOT with external macro
factors which are helpful for business in operating their activities in new market world:
 Political factors:- One of a major relationship which have to maintain by an organisation
is relation between external factors with internal ones. Every time government formulate
and modify their policies and regulation of working (Gebauer, Paiola and Edvardsson,
2010). Hence, Waitrose have to maintain flexibility in their working criteria and activities
which is beneficial for them in long term context. Although, with all these changes will
have to accept by the employees as well otherwise their resistance affect the long term
objectives ascertainment.
 Economic Factors:- Starting a new business venture at such location whom have good
economical condition not at such places where crime rates and other illegal activities are
high in nature like Cuba etc. Thus, business have to linked their working with such
essentials as well for gaining strength properly and increase profitability of business.
Along with this, if they are going to start business at such places where chances of
inflation and depression are high then this consent will affect business and reflect
weakness in operations.
 Social factors:- Organisation have to identify the impact on society by their operations.
By opening new venture, they are going to provide more and more job opportunities for
such group of person who are unemployed (Hall, 2011). This aid them in gaining strength
towards a business because by this they become able to include such number of
personalities whom have capability to deal with every situation.
 Technological factors:- Rapid change in technology increase the size of volume and
require more amount of fund as well. This enable them in gaining strength for a entity
which support in ascertain all targets on time as well as increase customer satisfaction.
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Technological factor is always helpful in gaining competitive advantage for a business
which is helpful for sustainability.
CONCLUSION
It get concluded from the above report, business environment is not stable in nature and
affect the working pattern as well. Every business entity is distinct from each other and their
scope and operation activities is also differ from each other. Thus, their profit generation
capacity also get vary. Business have different mission, vision and targets and objectives as well
which are completely depend on their working. For dealing with various business situation,
management have to conduct and organise environment audit system. There are mainly two
types of analysis took place which are internal and external business analysis. By applying such
fact in business, management become able to deal with variety of situation and uncertainties of
business. Hence, growth and productivity are fully depend on them. Also, company have to link
their internal regulation of business with external macro factors to prepare appropriate action
plan.
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REFERENCES
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Gebauer, H., Paiola, M. and Edvardsson, B., 2010. Service business development in small and
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Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
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Online
Business environment. 2017. [Online]. Available through:
<http://www.investorwords.com/19252/business_environment.html>. [Accessed on
October 17th , 2017].
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