FY021 Introduction to Business Studies Report: HR, Marketing, Finance

This report provides a comprehensive analysis of The Body Shop, a British cosmetics company. It begins with an introduction to business studies, followed by an examination of internal and external factors influencing the business environment. The report delves into organizational policies, human resources, physical resources, political, economic, social, technological, legal, and environmental factors. The marketing mix, particularly promotion strategies, is discussed, including advertising, direct marketing, personal selling, and public relations. The roles of HR, marketing, and finance departments are explored, highlighting their functions within the organization. Additionally, the report covers collaborative working practices and the importance of financial management and reporting. The conclusion summarizes the key findings and references relevant sources.

Introduction of
business studies

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Internal and external factors that impacts on business................................................................3
Describe the role of HR, Marketing and finance functions within organisations.......................6
Develop an understanding of collaborative working practices....................................................6
Demonstrate knowledge of the role of financial management and reporting within the
organisation..................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business studies is referred as the combination various elements such as finance, marketing,
accountancy, organisational studies as well as operations that affect all business activities and
functions in effective and efficient manner. In this report the chosen organisation is The Body
Shop which is a British cosmetic, skin care as well as perfume company which is founded in 25
March, 1976 by Anita Roddick. Headquarter of respective organisation is situated in London
Bridge, London, United Kingdom. 10,000 employees are working with organisation at 3,000
locations. In this report various internal as external factors that affect business functions and
performance, collaborating working practices is discussed. Apart from that role of financial
management and reporting in organisation is covered in this project report.
TASK
Internal and external factors that impacts on business (covered in power point presentation)
Business environment: Business environment is the collection of various internal and
external factors such as employees, customers, suppliers, government, market changes, economic
changes and technological factors that affects business functions in direct and indirect manner.
Sum of these factors influence business environment. These factors are defined below:
Internal factors: Internal factors are defined as the aspects that are in control in The Body
Shop organisation either they are tangible or intangible. Internal factors are divided into different
groups such as strengths and weaknesses. If these factors consist positive impacts than these are
known as strengths on the other hand, if these factors prevent development than it is weakness.
All internal factors that affect The Body Shop are discussed below:
Organisational policies and procedure: Organisational policies plays important role in
functioning of The Body Shop in positive and negative manner. If organisation has flexible
policies and functioning procedure than management can update these policies according to
current requirements that facilitates the respective organisation to attain organisational goals and
objectives efficiently.
Quality of human resources: Quality of human resource is important factor of internal business
environment. As the success of The Body Shop is depends upon the capabilities, skills,
commitment and attitude of human resources (Banfield, Kay and Royles, 2018). If employee

supports organisation functions than it works in favour of respective organisation and enhance its
profitability level as well. On the other hand, inefficiency of employee affects business in
negative manner.
Physical resources and technological capabilities: There are various physical resources
such as plant and equipment as well as technological capabilities are considered as the internal
competitive strengths of The Body Shop that facilitate it to gain various competitive advantages
and enhances organisational productivity. On the other hand, if business has no technological
resources it affects its performance.
External factors: External factors are those elements that are affect the organisation and The
Body Shop do not have control over them. These factors facilitate the respective organisation
prepare effective strategies and plans in order to attain all organisational goals and objectives.
There are number of external factors that directly impact on ability of business to achieve
strategic objectives. Some factors are discussed below:
Political factors: Political factors and government intervenes affect The Body Shop
organisation directly. There are various factors are included such as government policies, foreign
trade policies, labour and environmental laws and political stability or instability that impacts on
business performance.
Economic factors: Economic factors are most significant factors that on The Body Shop and
its profitability. Some factors are examined by the organisation such as interest, exchange,
inflation rates, economic growth and disposable income of customers and formulates strategies
accordingly.
Social factors: It is known as the socio-cultural factors that includes various aspects like
population growth, career attitudes, age distribution that affect the affect The Body Shop
working to know about their customers efficiently.
Technological factors: In current competitive environment technological factors affect
business in efficient manner. The Body Shop organisation adopts technological advancements,
innovation and automation that provides various competitive advantages.
Legal factors: Government have passed various legal rules and regulations that affect business in
positive and negative manner (Johnson, 2017). Health and safety, employment laws, consumer
rights and product safety affect The Body Shop and its profitability as well.

Environmental factors: Organisations must consider environment factors in business
functions and adopt corporate social responsibility. Climate changes, weather conditions and
pollution factors are considered in business functions.
Marketing Mix (promotion) (covered in poster)
Marketing Mix: Marketing mix is referred as the set of actions as well as tactics that are
used by the organisation to promote its brad and product in respective market place. There are
4Ps are covered that are product, price, place and promotion. The area of marketing mix is
extended that includes some other factors such as process, people and physical evidence. It is the
effective marketing tool that are used by The Body Shop to attain all marketing objectives in
specific target market.
Promotion: Promotions are defined as the set of various activities that facilitates the
Body Shop organisation to communicate the respective products and spread brand awareness to
customers in order to persuade them to purchase products and services (Koning, Mertens and
Roosenboom, 2018). Promotions helps business to make people aware, attract them and persuade
them to buy the products as preference over others. There are various type of promotions that
establishes the communication between buyer and seller that are described below:
Advertisement: Advertisement is related to the promoting organisational product and
service their various social media platforms and televisions. It facilitates The Body Shop
organisation to spread awareness about brand and products among potential customers and
enhance organisational sales.
Direct marketing: Direct marketing is defined as the promotional method through which
The Body Shop organisation communicating with customers directly various media channels
such as cell phones, messaging, database marketing, newspaper and online advertisements.
Personal selling: Personal selling is effective method of selling organisational products
and services through personal interaction with potential customers. It facilitates The Body Shop
organisation to resolve all queries of customers and build trust.
Public relation: Public relation is defined as the practice manages the flow of
information between an individual or organisation and the public (Kopnina, 2019). Successful
public relation provides various benefits to The Body Shop organisation through maintaining
effective and good relation.

Describe the role of HR, Marketing and finance functions within organisations
Role of HR: In The Body Shop organisation HR department plays important role in
identifying need of employees and recruit suitable candidate, deciding their pay rolls, formulate
policies for employees, maintaining employee records as well as conduct disciplinary actions.
Roles of marketing: Marketing department plays important role in promoting
organisational products and services to customers. It helps The Body Shop organisation to define
and manage brand image, managing marketing campaigns, monitoring social media and
enhancing sales of respective organisation.
Roles of Finance: Finance department manage all finance and provide it to all
department so they fulfil all their work appropriately (Strange and Humphrey, 2019). In The
Body Shop organisation it prepares all financial plans, budgets, manage cash flows, control cost
and unavoidable risk to run business in efficient manner.
Develop an understanding of collaborative working practices
Collaborative working practices: Collaborating Working practices are defined as the
process in which two or more people, entities and organisations work together in order to attain
defined goals and objectives. It is also known as the joint and partnership working. The Body
Shop organisation adopt the practice in which employees are connected with each other from
informal networks and alliances to accomplish determined goal within defined time period
(Aguilera and Grøgaard, 2019). For the growth and development collaborative working play
important role in various manner. importance are discussed below:
 It facilitates the respective organisation to solve problem in effective manner.
 Effective collaboration brings all people as well as organisational department closer.
 It opens new channels of communication and boost morale of employees.
 It enhances higher employee retention rate and enhance working of employees.
Demonstrate knowledge of the role of financial management and reporting within the
organisation
Financial management: Financial management is defined as the strategic planning,
organising all resources, directing as well as controlling all organisational financial undertakings
in The Body Shop organisation. It is related to the applying all management practices in financial
assets.

Financial reporting: Financial reporting is defined as the standard practices that provides
appropriate description to stakeholder of The Body Shop organisation about its financial
positioning, revenue, profits, cash flows and it the formal document that provides in-depth
financial information about respective organisation (Kuntze, 2019). There are various roles are
play by the financial management that are defined below:
Roles of financial management:
 Financial management identify and calculate the requirements of capital and funds of The
Body Shop organisation and divide all finance to all department according to
requirements.
 It formulated capital structure that is divided in short-term and long-term capital in order
to attain all organisational goals and objectives.
 It facilitates The Body Shop organisation in effective management of financial resources
that raise overall profitability and performance as well.
 It develops effective planning and budget that helps The Body Shop organisation to
control all finance in effective manner.
 Financial management help in effective financial decision-making, effectively utilisation
of financial resources, manage organisational cash flow and risk management in effective
manner.
CONCLUSION
As per above report, it can be concluded that internal and external factors play important
role in organisational functions and performance in effective manner. Promotions are the factors
that enhance sales as well as customer awareness. HR, marketing and financial functions plays
important role in business.

REFERENCES
Books and Journals
Aguilera, R. V. and Grøgaard, B., 2019. The dubious role of institutions in international
business: A road forward. Journal of International Business Studies. 50(1). pp.20-35.
Banfield, P., Kay, R. and Royles, D., 2018. Introduction to human resource management.
Oxford University Press.
Johnson, K., 2017. An introduction to foreign language learning and teaching. Routledge.
Koning, M., Mertens, G. and Roosenboom, P., 2018. Drivers of institutional change around the
world: The case of IFRS. Journal of International Business Studies. 49(3). pp.249-271.
Kopnina, H., 2019. Green-washing or best case practices? Using circular economy and Cradle to
Cradle case studies in business education. Journal of Cleaner Production. 219. pp.613-
621.
Kuntze, R., and et. al.,2019. Improving financial literacy in college of business students:
modernizing delivery tools. International Journal of Bank Marketing.
Strange, R. and Humphrey, J., 2019. What lies between market and hierarchy? Insights from
internalization theory and global value chain theory. Journal of International Business
Studies. 50(8). pp.1401-1413.