Report: Analysis of Business Environment and Organizational Structures

This report provides a comprehensive analysis of the business environment, focusing on the interplay between internal and external factors affecting organizational performance. It examines three sectors: private (Burger King), public (Nestle), and voluntary (Oxfam), detailing their organizational structures, legal frameworks, and operational characteristics. The report delves into the relationships between organizational functions, such as marketing and finance, within Burger King, highlighting how these functions contribute to achieving business goals. Furthermore, it assesses the impact of macro-environmental factors on Burger King, including both internal and external analyses to determine strengths, weaknesses, and opportunities. The study also explores the connections between macro factors and internal/external features, providing insights into strategic decision-making within the context of a dynamic business environment. The report concludes with a summary of the key findings and their implications for business strategy and management.

BUSINESSES AND
BUSINESSES
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.Various types of organisation and their legal structures........................................................1
P2. Size and scope of public, private and voluntary organisation..............................................3
TASK 2............................................................................................................................................4
P3. Different relationship between organisational functions within the company.....................4
TASK 3............................................................................................................................................6
P4. Impacts of Macro Environment on Burger-king...................................................................6
TASK 4............................................................................................................................................7
P5. Internal and External analysis for determining strength and weaknesses.............................7
P6. Relationship between macro factors and internal and external features...............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Businesses environment is something which cannot operate in vacuum. They are only
operational in mix environment (Agarwal, Grassl, and Pahl, 2012). It is the sum of all the
external as well as internal factors which could actually influence the business. Basically they are
responsible for affecting the functioning of the company actions which includes employees,
management system as well as customers. Their supply and demand affect the working of the
company. There is also some set of rule and regulation that need to be followed in a company's
environment. The report is based on various organisation which are mentioned in this report. For
public sector Nestle is described, which is a transnational food and drink firm whose headquarter
is situated in Vevey, Vaud and Switzerland. For private sector Burger King is used, which is a
global chain of hamburger fast food restaurant whose headquarters are present in Miami-Dade
Country, Florida. For the voluntary sector Oxfam is explained. This company is a charitable trust
whose main focus is on alleviation of global poverty. Main purpose of this file is to understand
various types of organisation as well as their functioning and legal structures. There can be some
kind of relationship which exist between organisational functionality within the firm which are
linked to common objective. There is also description of the positive and negative impacts on
business environment due to macro factors. Strengths and weakness can be biggest factor of
improvement for this company so that is also mentioned in this report.
TASK 1
P1.Various types of organisation and their legal structures.
Business environment is that factor which contains many elements and even factors on
which the performance for any organisation basically depends. There are many types of
organisation which includes private, public and voluntary. There is many outlines under which
these sectors can be explained properly (Aterido, Hallward-Driemeier and Pagés, 2011). These
are the description for each one of them.
Private sector: These consist of the company which are run by individuals or group of
people which totally own the system. The shares of such a system can be traded in stock market
and then any one who is interested can buy them. The profit would only be shared by those
private individuals and no one is given any share of this profit. There can be so many private
firm around the world and its makes the country a better place to live in as it provides so many
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facilities and opportunities. They are analysed to have great effect over the economy of UK. It is
of great significance and importance (Auzair, 2011). There can be different types of private firms
either small or large according to capacity of the production they made, number of employees
which are working in the company and lastly the amount of capital which it holds.
A private sector example can be sole traders, partnerships and franchise. Their main
focus and aim is to earn profit. They are keenly interested in growth of the market share and also
responsible to maximizing the sales. This sector gets economy and finance for their businesses
from personal savings, bank loans, some kinds of government subsidies and even from partners.
Large industries which are part of these policies basically sell their shares in market usually for
receiving some financial support from the market.
The company mentioned in this report under private organisation is Burger King. It was
established in the year 1953 as Ins-ta Burger King which as Florida-based restaurant chain. It
menu consist of offering basic amenities like French fries, sodas as well as milkshakes. This
company offer products which are usually corresponding to large amount of unhealthy fats and
trans-fat. This collaboration operates in 40 subsidiaries approximately that has expanded its
franchise. Usually this company join hands with parties to operate location which set the
operational as well as administrative authority for a franchise.
Public sector: This field consist of that business which are controlled by the government
of this country. They tend to deliver their services and products to fulfil the demands of the
general public of that country. This company do not have their private support for provision of
funding thus they are supported by taxes which are paid by the public to the government for
carrying out these facilities effectively and efficiently. The taxes which are received by the
administration are utilised for making all the possible amenities for citizen of this country, also
they are responsible for functioning of different types of specific public ventures. Basic aim of
this sector is to deliver required and needful services to the public and use resources as wisely as
possible for the advantage of the society (Avramenko, 2012).
Public sector that is mentioned in this report is Nestle. They can be acting as providers,
producers and can even be a buyer. Basically functioning of a government body is such that it
appoints a chairman or any board of director who will actually take care of all the decisions and
functionality of the company that too with the consent of all the members of the firm. There can
be no sole leader of such a firm.
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Nestle has been founded in the year 1866 by Henri Nestle. This company has expanded
its products to approximately 8000 brands and even more (Burns and Winter, 2011). They
provide large range of products with so many markets all across the globe including coffee,
water bottles, shakes, beverages, breakfasts, cereals, infant food, junk food, tasty and healthy
food products and so on. They are even trying to provide frozen food which are very easy to
make and are like ready meals for people who shall be working and running out of time. Legal
structures of this company can include market capitalization with around 200 billion Swiss franc
and more. The consolidated sales was CHF which includes 90 billion approximately and also
large amount of net profit with huge number in the research and development department.
According to the latest survey drawn, Nestle has been seen to be reputation score of around 74.5
on the scale of 100.
Voluntary sector: This type of sector is known as a non profit organisation which is not
made with the concern of making money or profit in the real world scenario but they are formed
to help and support the society from the harsh situations that comes in their way. This type of
firms is generally owned by single person or group of people who set their target and then
accordingly they set their budget to set up the activities which needs to be done. The company
used in voluntary sector is Oxfam. They are mainly responsible for assisting those type of people
that are ready to serve people without any hope of anything in return. In order to get success in
whatever thoughts they have for their organisation then they would have to make sure that they
spend most of their time in achieving it.
Through their initiatives they are able to develop local communities and also believe in
creating a public society which would be free from any discrimination, sufferings and unlawful
full practices..
P2. Size and scope of public, private and voluntary organisation.
Public field: Nestle has so many collaborations as well as joint ventures with so many
company, it includes Cereal Partners with General Mills, Beverage Partners Worldwide with
Coca-Cola. Nestle Palmolive with Colgate-Palmolive (Chow and et. al, 2011). In 1905, this
company has merged with Anglo-Swiss Condensed Milk Company. Nestle has condensed milk
plants in Oregon for $250,000 approximately. After expanding their business to large parts of
Ban-don the price got increased to 250,000 pounds. For returning to their roots, this company has
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brought US baby-food manufacturers for around 5.5 billions. Nestle has agreed to sell their stake
from Alcon to Novartis.
Private field: Burger King has two of its charitable organisation and programs. It is a
US-based non profit establishment with multiple focuses for hunger alleviations which would
basically help in disease prevention community for education. This company has its franchises
with several charitable organisations that could support research and treatment of juvenile
cancer. They are planing for a 3G's restaurant which is to divest itself with its corporate owned
location by making them to be owned by private owners. The company has basically earned a
profit of US$68.2 million. Burger king has added in multi-tiered value menu and the products is
pricing at $94 (Commander and Svejnar, 2011).
Voluntary field: Funds are required to be raised with various sources. It includes many
shops which contains 51 stores throughout the selling goods and donation by the public. The
government allocated over $3.7m for Oxfam to work. Private donors and its corporate and
institutional funding for supporters for donation of regularly through direct debit for special
appeals.
TASK 2
P3. Different relationship between organisational functions within the company.
For this organisation that is Burger King which is mentioned in this report has various
operations and functions to be performed and they try to perform it in such a way that they could
achieve their goals as well as objectives which they have desired for. Their main aim is to ensure
that what ever tasks they have thought of should be managed properly in a effective manner as
work can be done easily then. These organisational functions are required to be set according to
demands of the customer of this company and also according to legal structure of the
organisation. Basically these targets can be achieved for the company only if the employees who
are working under this firm would perform their job effectively. They are required to be in
coordination as well as follow the right procedure in an effective manner. These are the
functionalities which has to be followed by this company.
Marketing: This is an important operation in this company which defines connection
between customer with the products of this company. Basically with the help of this their main
aim is to target the audience. Their action involve like selling, advertising, promotion and
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customer interaction with the collection of feedback. Through this Burger King can increase the
sales and earn profit with large intensity (Cronan and et. al., 2011). Their main focus is on
almost every age group of people coming in their restaurant and has provided items according to
all of those categories of people. They make sure that every one tends to get something special
according to their needs. In festival time they would try to bring to many new advertising
campaigns which will hold the customers interest and make the people gets attached to them.
Also by providing some kind of discounts they give surprises to their users.
Finance: The most crucial function for any business to work is its financial factor. On the
basis of these managers can take decisions for Burger King. The shareholders of this company is
basically dependent on these factors for making any kind of investments for this firm. Reports
which are formed according to this statistics which contains accounts and financial factor for the
company officials to take very short time to take short term decisions. By proper analysis which
is carried out between the different departments of the company then only the finance department
try to allocate budget for various sections of the firm according tot he estimations which is
generated in the company. This Burger King is facing some tough kind of compwetiton which
can make them stand alone from their rivals. The financial department for the company needs to
be very strong enough.
Human Resource: Burger King is a company which would want to achieve long term
goals. For this it is compulsory that there should be proper management of human resources
which need to be made available for the company to succeed. For making this function to work
properly this company has made so many department which are actually responsible for hiring
and making selections for the training and motivating people to reduce and avoid conflicts in the
company. Proper performance of these functions can help in increasing the productivity of the
company and also required for increasing it profitability. Their main responsibility is to ensure
the staff members of Burger King would perform very well and would have enough knowledge
about whatever work they are performing (Dahan and et.al., 2010).
Research and Development: With this research and development department for the
markets they can understand and analyse their customer to realise what they expect from their
side. They are required to identified their strength and weaknesses in the market.
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TASK 3
P4. Impacts of Macro Environment on Burger-king.
Burger King has great impression on market strategies for the fast food restaurant which
has now become the most and largest food restaurant chain. This has occurred due to various
strategies and policies that are been planned by this company. In a year there has been a
successful target of attracting more and more customers through their latest products, ideologies
and upcoming trends of catering the products which would keep their demands and requirements
in contrast (Fernando, 2011). Usually so many companies are facing some decrease in the market
share which has been observed and especially in the field of external factors and that may be
existing in macro environment.
This company has introduced so many new products in the market after proper analysing
the market status according to the favourable conditions that may have developed with time.
Some of the failures in this company have seen success in foreign market, but still it has tailored
the menu for regional taxes. This is the reason by which this company do not have much to
control over its elements. For this company to survive in the competitive environment they need
to develop policies and strategies according to the demands of the people. Through adapting
methods according to external environment there is just need of identification of some factors
which influence them badly. For carrying out analysis of all these factors PESTLE analysis is
required. All these factors are basically affecting the working and business of Burger King.
Political: This factor is basically required to show the political conditions for the
business of Burger-King. These policies are needed for identification of governmental influences
on the business of this firm. For the political stability in the country it is very much required that
globalisation should be established in the country. For carrying out business operations as well
as proper functioning of their activities these aspects are very essential.
Economical: For today's world where globalization is at its peak it is even helping so
much for this company to rise and get an increase in the international market trade agreements.
This factor is basically responsible for crossing the line of expansion for their market strategies
in the country and also make them adopt latest concepts of global supply chain for
enhancements. There can be multi nation organisation which would actually have restaurants
that should follow the economic trend in proper traditional manner. Due to this there can be so
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many opportunities which are growing in the market and also increasing their profit margin
(Gebauer, Paiola and Edvardsson, 2010).
Social: This is that one factor which requires lot of variation on time basis as it depends
on the element which decides the number of customer that would be coming at Burger King
restaurant. There is requirement of innovation in the product for development which is actually
responsible for diversifying the consumer to be attracted mostly in case who are very foodie in
nature.
Technological: For Burger King's business to flourish highly there is requirement of
technology equipments for performing various tasks. There would be so many advantages that
would be required for improving the marketing position of this company. By the use of internet
there can be access for large crowd of people in a limited and quick time interval.
Legal: These policies are required to believe in doing any kind of processing within the
company in legal form. These should be some legally as well as authenticated laws which needs
to be followed bided by all legal norms which are actually made by government of this country.
Basically Burger King has to take care of all important regulations like export as well as import
policies which are helping international trade agreements.
Environment: This factor is basically putting some kind of limits over the activities of
Burger-king. There has been changing climate which can basically effect the supply chain but at
the same time they are actually improving their sustainability status with this. There can be so
many opportunities which are provided for attracting customers who can accommodate with the
lifestyle including carbon life cycle. For this they need to adopt CSRT model which is required
to improve their image and status which will actually show how exactly they can work which
rely on the condition of the sustainability factor and its efficiency.
TASK 4
P5. Internal and External analysis for determining strength and weaknesses.
The study of this firm for carrying out its internal as well as external factors then it would
be required to do the SWOT analysis of this company (Halbert and Ingulli, 2011). Strength and
weakness is basically concludes the internal factors of the company. These are majorly required
for realising the real position of organisation in the market. Strength and weakness can define all
the factors which would be necessary for the company to succeed in future. Then the external
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analysis prior to that actually involves some kind of opportunities as well as threats which can be
responsible for creating pressure over the company to make them perform in tense situation.
They can also be responsible for providing situations in which company can improve and get
benefits of better advantages. Basically it is responsible for establishing new roots in the market
due to favourable conditions which are formed in favour of the company and improve its
productivity. The SWOT analysis for Burger King is given as follows.
Strengths: This factor is actually determining those abilities of this organisation which is
actually responsible for competing with the other companies and still should try hard to succeed.
For properly understanding the concepts of strength there can be various theories which should
be used for defining those facts. This behaviour is basically tangible quantity which is at times
behaving as intangible in nature. This company is actually the largest fast food chain world who
has so many strategic advantage which basically consists of financial support from the trading
partners that are involved with them.
Weaknesses: This factor is basically determining those qualities in which this company
is not sound enough. These are actually the incapabilities which the company comprises of and
due to which would have to withstand so many losses in the market place. These are factors
which are lacking behind in terms and qualities where their competitors can beat them. These
inefficiencies are actually making this company to not successfully achieve their task and
objectives. Since they lack some skills and techniques thus they at times become the firm which
seems firm from other firms who may be good in those factors. Basically an organisation is
considered as a weak firm if they cannot fight back their incapabilities and weaknesses and stand
strongly in front of their competitors (Hamilton and Webster, 2015). If the company has lack of
power to achieve specific goals and along with that the one which has become outdated in terms
of technologies. Burger-king fails to adopt new marketing strategies because it is a established
firm no has its own procedures of conducting its process. There is basically large competition
which is rising every now and then in this field. So basically there can be so many problems
which cause this company to act as a weak source of company. One more biggest disadvantage
for this firm is that it has still less number of branches all over the world. The presence of this
company is very less as expected.
Opportunities: These factors are basically defined for analysing those situations which
are actually favourable for the company. This can make the organisation to easily get some
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advantages from the conditions which have been created. It is those situations which are actually
responsible for providing advantages to the company within the terms and conditions of the firm.
There is continuous rise of the market competition which is increasing every day but still there
can be so many times when the company gets an advantage for benefiting the society. Right
steps should be taken by the company at right place to get some publicity as well as status in the
market place. There can be some improvement in the technological factors as well in the market
status of this company if the opportunities develop in favour of this company. By penetrating the
market through the help which is created by increasing the revenue planning schemes such as
this company has developed its new market strategies as well as make its presence in the
competitors.
Threats: These are those factors which are actually harmful for the company to not
perform well as these are the conditions which are totally not favourable for the firm activities. It
basically symbolises the vulnerability factor of the company. It is mainly responsible for getting
back hand from getting any kind of profit from the processing. It also is responsible for staking
the reliability factor for the company. There can be so many threats which are actually rising
against this company. This basically affects the status of the company and also causes decrease
in the profit margin of the company.
P6. Relationship between macro factors and internal and external features.
In this organisation, there can be so many activities and process which are basically
performing their operations in a manner which is usually related to each other. There are many
influences due to macro factors which may be positive as well as negative for the company to
succeed (López-Gamero, Molina-Azorín and Claver-Cortés, 2011). With this there is also SWOT
analysis which is basically related and also connected to macro environment factors which are
effecting its performance and company's activities.
In burger-king, there can be managers as well as team lead who are basically responsible
for following all the rule that the government has enacted and formed for the various
organisational firms. This company has to be legally correct and should produce the products and
services in accordance with the rules and regulation of the administration terms then
automatically the company can gain some success in its future.
Apart from this, there can be still many other factors which basically affect the
performance of this company it includes political factors. For UK government which has reduced
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their rates of taxes as well as their duties on the retail product which has actually caused a lot of
benefit to this company. This way the policies of the government is also playing a very crucial
role in affecting the economy and the financial status of the company. Latest technologies and
new inventions can be key for the success of this firm. It will basically help in attracting the
attention of the customer and gain some success and position in the market (Mahmood and
Hanafi, 2013).
CONCLUSION
From the above report, it has been analysed that there can be so many organisation which
has their unique characterisation and their unique role and their size and scope to distinguish
them from each other. There is also various organisational functions which are explained in this
report which has certain relationship within this company. There is PESTLE as well as SWOT
analysis of Burger-king in this report. In the last section there is a relationship which is drawn
between the two analysis.
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