Detailed Analysis of Business Environment and Organizational Impact

This report provides a comprehensive analysis of the business environment, examining its impact on organizational operations. It explores both internal and external factors influencing business strategies, with a specific focus on Zara (private), NHS (public), and Oxfam (voluntary) organizations. The report delves into different types and purposes of organizations, their size and scope, and the interrelationships between various business functions such as HR, finance, R&D, operations, marketing, and sales. It also assesses the positive and negative impacts of the macro and micro environments on these organizations, incorporating internal and external analyses to identify strengths and weaknesses. The report highlights key aspects of each organization's objectives, legal structure, and business strategies, offering a detailed overview of the business landscape and its implications for strategic decision-making.

Business and Business
Environment

EXECUTIVE SUMMARY
This report will entirely focus on overall business environment and its impact upon
company's operations. Both external and internal factors have impacted upon strategical concerns
of business firms. Different types of business organizations are also performing well in present
world. Away with this, it is required for ZARA to properly analyse both macro and micro
environment so that maximum benefits it can gain right on time with the help of developing
effective strategies.

Table of Contents
EXECUTIVE SUMMARY..............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Different types and purposes of organisation.........................................................................4
P2 Size and Scope of various types of organisation....................................................................5
TASK 2............................................................................................................................................7
P3 Relationship between various functions of organisation in respect to objectives..................7
TASK 3............................................................................................................................................9
P4 Positive and negative impact of macro environment upon business organisation.................9
TASK 4...........................................................................................................................................11
P5 Internal and External analysis to strengths and weakness of organisation..........................11
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................15

INTRODUCTION
Business environment is being considered as both internal and external factors that
impacts upon operations of a company. Employees, customers and managing team are some of
internal elements and on the other hand, Government, rivals, public, economy, technological
aspects and other elements comes under external environment which majorly impacts upon
business deeds. Away with this, it is essential for every single business organisation to develop
products and services according to needs of customers (Business environment. 2018). In present
assignment, firms which has been taken are ZARA as private, NHS as public and Oxfam as
Voluntary organization that will help in understanding different types and purpose of companies
in United Kingdom. Along with this, interrelationship among functions of a company has also
been included. Report will also focus on both micro and macro environmental factors which
affects business in both positive and negative manner are also enclosed with the assessment
which will help in understanding different concepts related to environment.
TASK 1
P1 Different types and purposes of organization
In market, there are different types of organisation that are lead business to give products
and services to provide satisfaction and fulfil the need of the society. Government and
individuals are two major factors which begin and run firm to create cash and financial economy
of nation. Away with this, these are various types of association which are expressed underneath:
Private association: This division include firms which are developed and kept running by
individuals for making income. They builds business openings and delivers services so that
customers needs can be fully satisfied considering aim of earning profit. This outcomes into
upgrade in financial states of country and its economy as well. ZARA is private retail firm which
manufacture Clothing products, individual consideration and different items to clients (Vaiman,
Sigurjonsson and Davidsson, 2011).
Purpose : ZARAs main objective is to Manufacture trendy clothes so that needs of
customers can be fully satisfied. This causes organization to improve its notoriety and picture in
market in regard to equal brands.
Public association: It is another part which is supported and directed by government for
improvement of nation. A number of Public projects, elements and administrations are given by
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them to satisfaction of needs of society. NHS is being considered as a public organization which
delivers medicinal services to individuals of United Kingdom.
Purpose : National Health Services work is to offer help and wellbeing administrations to
people in all over United Kingdom (Wack, 2017).
Voluntary Organization: This segment involves firms whose work is to lead social
Standards and give benefits as well. Non-benefit, for benefit and Voluntary are three types of
different association which give things and administrations to penniless individuals. Their point
is to improve society without objective of creating benefit. Oxfam is to enhance standards for
everyday comforts of individuals who are in need. It gives formative and philanthropic help to
moms and youngsters.
Purpose: Main purpose which is being found that Oxfam does is that it helps those who
are needy and aid them in running with the world through raising their standards of living the
life. Oxfam a charitable organisation delivers free services to to assist in the development of
structures which directly benefit people facing the realities of poverty and injustice.
P2 Size and Scope of various types of organisation
There are three types of companies or organisation public sector, private sector and non
government organistions that conduct business with different purpose and scope (Chetwood and
et. al, 2014). Such companies also differentiate on the basis of size, structure scope and
objective. In this regard, description of size and scope of mentioned three types of are given as
below:
Public organisation: NHS (National Health Service) is a publicly funded organisation of
UK, which provides health care services and emergency treatment to individuals.
Products and services: This health institution provides services like critical and normal
medical care to the people. These services are provided by them at free cost. It includes eye tests,
prescriptions, dental care, ophthalmology, long-term healthcare and more (Yu and Ramanathan,
2013).
Size and scope: NHS has near about 211 clinical commissioning groups with approximate
1.4 million of service providers. Government department of UK is responsible for NHS and
spent more than €110 billion annually for providing free services to poor and helpless people.
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Vision and mission: Mission of National Health Services is to bring together those persons
who want to give services to patients. In this regard, main vision of NHS organisation is to
improve care for patients and serve across boundaries as well.
Business objectives: NHS main goal is to provide emergency treatment to patients and care
services to old age people on minimum charge.
Legal structure:
· State Government: This is government which share their political right with national
level authorities. They have right to make decisions and control federal government that
is run state. For an example: Policy made for schools in Vermont, England needs to be
followed by every single school that are coming under local government.
· Local Government: It is another type of public administration which comprises lower
level power in a state. They conduct measures and activities of specifies area by top
authority. For an instance, development of campaigns like “Maintain Peace” near
gardening areas around the houses that are coming in their sector and so on.
· Central Government: This is higher and supreme governing association of a unitary
state. They make policies and rules which other bodies require to follow in time of their
functioning (Zsambok and Klein, 2014). For an example: Giving approval to constructor
to build high range buildings.
Private organisation: ZARA is a retailer company of UK which deals in private sector. It
serves products in entire world and ranked on 30 in best global brands.
Products and services: This company offers trendy or fashionable clothes and bags
through online and offline procedure in all over the world.
Size and scope: ZARA has nearly 7,475 stores which spread internationally, where
customer can find out a range of trendy clothes for both men and women (Meiners, Ringleb and
Edwards, 2014). Currently, it has near about 12,000 employees and earned approx 450 billion
pound per year.
Vision and mission: To become one of the best retailer company in the world is main
vision of ZARA. While to serve best style of dress as per high status is mission of this firm.
Business objectives: Goal of ZARA is to increase demand of customers and exceed their
satisfaction level by giving them opportunity to acquire new designs of clothes and bags.
Legal structure:
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· Sole proprietorship: Business which is launched and handled by individuals to generate
income for livelihood, are come under sole proprietorship of private sector. Companies
like groceries, tailors, departmental stores etc. are some examples of sole trading
companies (Sekaran and Bougie 2016).
· Partnership: It includes those private organisations which are incorporated by two or
more business owners after made an agreement. All partners signed a legal document to
take equal participation in decision making activities as well as experience equal loss or
profit also.
Voluntary organisation: OXFAM is a non-profit organisation of UK, also known as
international non-governmental company.
Products and services: It is a part of international movement to fight for injustices which
cause poverty.
Size and scope: Near about 20 NGOs are associated with this company with some
partners in over 19 countries who help in eradicating poverty from whole world.
Vision and mission: Fight for poverty is mission of this company and protect rights of
people as well. In addition to this, its vision is to improve condition of society by mobilising
power of individuals to reduce poverty (Saleem, 2017).
Business objectives: OXFAM goal is to help people in starting their business for
livelihood and improve their living condition.
TASK 2
P3 Relationship between various functions of organisation in respect to objectives
In an association, individuals are divided into various sub sections for execution of tasks in
compelling way. For running a business there are need support of all the departments of the
organisation and company like finance department, HR department, marketing department and
operation department. In these units individuals are divided in regard to their aptitudes and
capacities. This encourages organization to have loyal employees for business and helps in
delivering right service to individuals. Along these, interrelation with one another has been done
beneath:
Human resource department:
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HR section is to oversee employees of ZARA for having adequate staff individuals for
conduction of exercises. Recruitment, selection, remuneration, representative relations, preparing
and improvement are different way which are executed by administration of ZARA. This
encourages the company for designing and convey employees for doing different units of
financial, marketing, sales, R&D for the individuals. (Tayur, Ganeshan and Magazine, 2012).
Financial department:
This department have responsibility is to oversee reserves appropriately. They outline
plan, direct examining and control stream of cash in various business exercises. For this,
budgetary plans that are positive and negative, income articulation and monetary record are kept
up by administration of ZARA. This causes them to know about benefit. Through this supports
assignment to promoting and activity individuals is made in regard to advertise requests.
R&D department:
This unit’s responsibility is to lead study for picking up data about requests and need of
public and adversary firms. It is vital that items and services are given by organization in as
indicated by necessities of individuals. ZARA is a fashion store whose R&D group lead
statistical surveying for getting learning about economic situations. This causes them to develop
new and imaginative items and bundles for drawing in clients.
Operational department:
This unit assumes basic responsibility in firm which is to make and develop or
manufacture items. It is important that things are manufactured and given in as per request of
purchaser for achievement of their needs. In ZARA, task group duty is to take care that adequate
items are accessible in store. Along this, things ought to be of good quality which encourages
administration to manage mark picture.
Marketing department:
It is another vital unit whose obligation is to illuminate individuals about firm and its
item. For this, promoting plan is figured in which advertising blend, target market, spending plan
and other data is characterized. Item, value, put, advancement, individuals, process and physical
proof are 7 P's which are characterized by showcasing group (Türetken and et. al., 2011).
Publicizing, deals advancement, exposure are directed by them which enable deals to individuals
to persuade purchasers. In this, back group coordination is kept up in regard to choice about
reserve portion in advertising exercises.
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Sales department:
This unit includes individuals who associate and speak with clients. Sales representative
of ZARA obligation is to give data to purchasers about item, its highlights and properties. Along
this, they additionally take input to discover their sentiments and proposals in regard to nature of
thing and changes. In this, showcasing group bolster is to mindful open about things which assist
them with convincing and influence effectively. They help R&D group to roll out improvements
in things in as indicated by prerequisites of clients.
Organisation structure:
Practical, divisional, Matrix and task are distinctive sorts of structure which are utilized
by organization to plan framework. Economic situation, goals, estimate, degree is different
strategies which decide appropriation of staff individuals in office. ZARA is a retail location
which has branches around the world. For this, divisional association structure is received by
administration for conduction of business universally. In this manner, assets are used
productively and position of firm is keep up in regard to contenders (Crane and Matten, 2016).
TASK 3
P4 Positive and negative impact of macro environment upon business organization
PESTEL analysis is tool which is used by the company to find out and identify the place
and demand or value in the market. This analysis is done on the basic of four factor. These four
factor are as following:
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Illustration 1: ZARA – Organization chart, 2018

Political factor: Thee factor are mainly the policies of the government of thatr country
which affect that coutry’s business negatively and positively.(Gharajedaghi, 2011).
· Positive impact: The change in the government polices is in the favor of the company
then it is beneficial for the company..· Negative impact: The rules and laws or policies which are made or launched by
the government are not in the favor of the country it is not good for the company.
They create negative impact which is the weakness of the company.· Economic factor: Economic growth is include interest rate, inflation, tariffs and taxation
charge and all these factor create impact directly and indirectly on the economy of the
country by the business of the company. This impact can be positive and negative.
(Gilboy, 2016).· Positive impact:. If the company the sales of the ZARA increase, it earn profit which
affect the economy positively.· Negative impact:. If the company borrow money from any financial institution and the
interest rate is high then impact negatively to the company.
Social factor: .In this factor the company should make loyal to its customer by providing
them those products and services whose they have need. ZARA made clothes according their
consumers needs and demand.
Positive impact: It crate positive impact on its customer by providing them clothes
according the culture, occasion and as per their need. It provide offers and discount on their
products which create positive impact on the customers and attach the customer emotionally with
the company (Li and et. al., 2011).· Negative impact: If the customer did not get good quality product it is negative for the
company. And the high price of the bad product is also a issue. The bad management of
the company is also a issue for the company.
Technological factor: It is another component which determines that technology benefits
firms in conduction of operations effectively.
· Positive impact: Favorable impact can be seen in ZARA with the help of technological
factors with the help of electronic machines and these may directly get implemented
among stores where a customer can pay for products and services that are being
purchased in just few seconds.
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· Negative impact: Through using internet, it is being analysed that online sharing of
important details can be used by ethical hackers against ZARA, this may impact upon
their own profit margins as well.
TASK 4
P5 Internal and External analysis to strengths and weakness of organization
SWOT analysis is a strategy which is used by the companies and organisations to identify
strength, weakness, opportunities and threat of a product and service in a particular market and
competitive market. There are two types of factor one is external and another is internal. In
external factor strength and weakness are included and in internal factor threat and opportunities
are included (Zeng, Li and Duan, 2015).
SWOT Analysis of ZARA:
Strengths
ZARA is famous trendy clothing company which makes good quality product according
their customers needs and demand and provide them at that price which that can pay easily. It
provide its product at that cost which is not out of reach from their customers. The quality and
the price is beneficial for both consumer and the company because it provide profit to the
company. It provide offers and discount on its product which increase the business of the
company.
Weaknesses
When sometimes the company provide its products at low cost during the time when
customers rejected the quality and the design of the product then face some losses. It is also
happen with ZARA and it face loss and the employees of the company are not increase its
growth. And it is cause of the low productivity because employees are not feeling motivation so
they are not do work with proper interest.
Opportunities
For getting more opportunities it can open its more store and this way it can save its
transportation cost. This company do its business globally so the costumer of that country where
its stores are not available it can open its store there and save transportation cost. It use get
opportuniteies by using new technologies which are useful for the company and the customer.
Threats
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There are many threat for ZARA but one important threat is that it is not all the items
which the customers expect from them and quality related problem can be issue for the company.
Entrance of new fashion and clothing companies are create competition for it. Change in the
government laws and policies also a threat for the company. (Sekaran and Bougie 2016).
P6 Interrelatin of Strength and weakness with external Macro factors
ZARA is retail store which has its store globally, so the macro factors affects. Strengths
and weaknesses in respect its business positively in the form of strength and negatively as a
weakness. The factors which are create impact on it are as following: (Meiners, Ringleb and
Edwards, 2014):
Political factor:
· Strengths: The political environment of the country is affect positively to the business of
the country when it is safe and peaceful.
· Weaknesses: Change in government laws and policies which affect the business in
negative way.
Economic factor:
· Strengths: It is related to the purchasing power of the consumer if the consumer purchase
more product, the company earn more profit which affect the economy positively.
· Weaknesses: If the quality of the product is not much good according the customer it is
the reason of the weakness. (Zsambok and Klein, 2014).
Social factor:· Strengths: The company is made the product according the trend and fashion for the
consumer want by this way its increase its sales.· Weaknesses: . Sometimes its set the price the price of its products much high which are
out of the reach of the customer.
Technological factor:· Strengths: By using the latest technologies it fulfill its customers demand. By the
shopping app it provides its product and make easy to purchase the procuts to its
customers.· Weaknesses: More use of technologies are create a gap between the customer and
product because some customer believe in to by product by shop but those place where
there are no store of ZARA it is a problem (Chetwood and et. al, 2014).
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