Business and the Business Environment Report: Analysis of River Island

This report examines the business environment, focusing on River Island as a case study. It begins by defining different types and purposes of organizations, including public, private, and voluntary sectors, and their legal structures. The report then explores the size and scope of these organizations, providing details on their missions, visions, objectives, products, and services, with NHS, River Island, and Cancer Research UK as examples. The core of the report analyzes the relationship between organizational functions such as human resources, marketing, finance, research and development, and operations, and how these functions are interlinked to achieve organizational objectives. Furthermore, the report assesses the positive and negative impacts of the macro environment on business operations, and analyzes the internal and external factors of River Island to determine its strengths and weaknesses, including how these relate to the external macro environment. The report concludes with a summary of the findings and references used.

Business & the Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P 1 Different types and purposes of organizations and its legal structure .............................1
P 2 Size and Scope of range of different types of organization.............................................2
P 3 Relationship between organizational functions and link to objectives of organization. . 4
TASK 2 ...........................................................................................................................................6
P 4 Positive and negative impact of macro environment upon the business operations .......6
P 5 Internal and external analysis of specific organization in relation to determine the strength
and weakness..........................................................................................................................7
P 6 Strength and weakness interrelate with external macro ..................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Business environment refers to collection of all organizations, individuals and other
elements that can or can be under control of the firm. These can affect their execution, profits
and growth as well as survival. Every business organization is characteristic environment. There
are two components like internal and external business environment (Shenkar, Luo and Chi,
2014). This report is based on River Island. It is the high street fashion brand which offers
clothing and footwear for men and women as well as children. Report will explain different types
and purposes of organizations as well as legal structure. It will state size and scope of range of
various kinds of organizations. Furthermore, study will explain relationship between
organizational functions and link to objectives and structure.
TASK 1
P 1 Different types and purposes of organizations and its legal structure
Public Organization: National Health Service
The public organization is normally comprised of companies which are owned and
operated by government and provide the services for the citizens. It is the part of economy
composed of both public services and enterprises. Public services involve public goods and
governmental services like military, infrastructure along with health care (Botha, Kourie and
Snyman, 2014). Public enterprises is also called as state-owned that are self financing
commercial businesses. It is public ownership which provides various private goods and services
for sale and normally operate on commercial basis. For example: NHS (National Health
Service).
Purpose: NHS is the publicly funded national health care system for England. It is the largest
single payer healthcare system in the world. The main aims of national health services is to give
encompassing range of services and responding to different needs of different populations. The
purpose of company is to support and value of their employees.
Legal Structure: NHS is publicly funded national healthcare system. Publicly funded healthcare
is the kind of financing for health care designed to meet the cost of all needs of well-being for
managing the funds (Hillary, ed., 2017). The NHS is controlled by government through
Department of Health and Social Care that takes political duty for the services.
Private Organization: River Island
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It is also called as private held company which is company owned either non-
governmental organisation or by relatively small number of shareholder. Company's stock of
offered, operated and traded and exchanged privately or over the counter. For example: River
Island
Purpose: River Island is the high street fashion brand that operates in the number of markets in
the worldwide. The aim of River Island is to bring fresh and original fashion with great design
according to trends and fashion to increase consumers (Savrul, Incekara and Sener, 2014).
Legal Structure: It is the private company owned by Lewis family. Privately held organization
is normally taken to mean whose ownership shares and interest are not publicly traded. River
Island company is Private limited company.
Voluntary Organization: Cancer Research UK
Voluntary organizations are essential in which perform number of functions for welfare
of member and development of nations, integration and solidarity of the society and country. It is
the general term utilised to refer to particular kind of company which also means to non profit
organizations, non-governmental organization. For example Cancer Research UK
Purpose: Cancer Research UK is the not-for-profits and non profits organization which help to
treatment of cancer patients and other diagnosis (Kolk, 2016). The aim of Cancer Research UK
is to reduce the number of death from cancer across the worldwide.
Legal Structure: The legal structure of Cancer Research UK is the not-for-profit owned
membership company. Not-for-profit defines type of company which dose not earn profits for
owners. All of amount of money earned by and donated to not-for-profit organization that is
utilised in following the objective of firm and keeping it running. It is formed by merger of
Cancer Research Campaign and Imperial Cancer Research Fund.
P 2 Size and Scope of range of different types of organization
Public Organization: National Health Service
Size and Scope:
It s the publicly funded national health care system and largest single payer healthcare
system in the world. There were 1.187 million employees in national health services in ending of
March 2017. There were 34260 unfilled nursing and midwifery posts in England be September
2017.
Mission, vision and Objectives:
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The mission of NHS is to give health and social care and services that people and their
families will want to utilise. The vision is to allow people to live healthier and more independent
lives through high quality smooth care (Christensen and et.al., 2014). The core value of NHS is
to set core value of staff, key stakeholder like people and localised community.
Product and Services:
NHS is provided some services such as emergency treatment, infection diseases and free
for every one involving visitors. They are provided administer hospitals, treatment centres,
ambulance services, well-being and social care services, treating mental illness and utilise of
involuntary commitment powers.
Private Organization: River Island
Size and Scope:
It is the high fashion high street brand that offers in number of worldwide marketplaces.
It is privately owned by Lewis family. Company has over 350 stores in the UK, Ireland, Asia
alongside 6 online websites which operates in 4 currencies and over 100 nations worldwide.
Company has an in house design team at its headquarters in West London.
Mission, vision and Objectives:
It is one of most well-known and loved brands on the high street. The mission statement
is to set up to offer services of selling stylish clothings to young men, women and kids on
councils budget (Van der Voet, Groeneveld and Kuipers, 2014). The objective is to bring new
and original fashion within great design at the creating heart of every things.
Product and Services:
River Island has provided the clothing, footwear and accessories for men, women and
children. All the products are designed in house. They have one of the largest design team on the
high street. They can deliver fabulous new fashion in-store and online for every single week.
Voluntary Organization: Cancer Research UK
Size and Scope:
Cancer Research UK is the cancer study and awareness charity in the UK. It is the
world's largest independent cancer research charity. Over 40000 people are regular volunteer.
3964 employees worked in the organization.
Mission, vision and Objectives:
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The mission statement of Cancer Research UK is to bring forward the day when all
cancers are cured. The aim of Cancer Research UK is to raise the awareness of the disease and
influencing the public policy (Kuipers and et.al., 2014).
Product and Services:
Cancer Research UK conducts research into prevention, diagnosis and treatment of the
disease. Research actions are carried out in institutes, universities and hospitals across the UK.
P 3 Relationship between organizational functions and link to objectives of organization.
All the organizations have functions such as human resource, marketing, finance,
research and development as well as operations within the business. These functions are
interrelated with each other which help to achieve the organizational objectives and goals of
River Island.
Human Resource functions:
It is the major function of organization in which manager needs to recruit and select
candidate, providing the training and development, giving the benefits and rewards to their
employees within the River Island. Also, they need to ensure that recruit and select those
candidates who have ability to promote and advertise the product and services, controlling of the
financial resource, great researching about new good and services and designing the goods for
selling in the marketplace (Means, 2017). These human resource functions are interrelated with
marketing, finance and production activities which help to achieve the objectives of River Island.
Marketing Function:
It is the essential function of company in which manager needs to promote and advertise
the product and service, marketing research, creating the marketing plan and campaign for
achieve the marketing objectives which is increase sales and consumer awareness towards of
goods and service. Therefore, they need to skilled and qualified candidates for effective
marketing and promoting the goods, funding and financing for advertising the product and
services within the River Island. These marketing functions are interrelated with the finance and
human resource functions for promoting the goods and services in the marketplace. This kind of
interrelationship help to achieve the organizational objectives and goals (Obeidat and North,
2014).
Finance Function:
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It is the important function of River Island in which managers requires raising the funds,
controlling of all financial records and improving financial position within the organization.
Therefore, they need to employees who have ability to control of financial resource and
analysing the sales of business (Van der Voet, Groeneveld and Kuipers, 2014). Also, they must
have provided the funds for marketing department for promoting the goods and services, human
resource department for job advertisement for vacant position. These finance functions are
interrelated with marketing, human resource and production which help to achieve the objectives
and goals of River Island.
Research and Development:
It is another function of organization in which manager ensure the appropriate
researching the new product, developing them, quality control check, update the existing goods,
creating and evolving the innovation within the workplace. Therefore, they need to skilled and
qualified who have ability to effective research about the new product and check the quality
control within the River Island. They also require funds for researching and developing the
goods and services (Christensen and et.al., 2014). This kind of interrelationship can help to
achieve the objectives and goals of organization. Production function is based on R&D division,
because of investigating about new product then production manager starting their work in
relation to design the products of firm.
Operations and production function:
It is the also main function of firm in which manager needs to designing the new product,
packaging, labelling of goods, controlling of resource of organization. Therefore, operation
manager needs to employee who have ability to design and create innovative and creative
product, effective packaging and labelling of product and services. After producing the new
product, they are consulted with marketing division for promoting the goods and services
(Kuipers and et.al., 2014). They also consult with finance department for funds and finance for
producing the new product and services of River Island. Therefore, production function is
interrelated with marketing, finance and human resource functions which help to accomplish the
objective and goals of River Island.
The impact of Organizational Structure on objectives
River Island is the high street fashion brand which specialises in clothing and footwear
for men, women and children in the worldwide. It is the private company which is owned by
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Lewis family. Therefore, they follow flat structure of management in the organization which can
and can not help to objective of company. This organizational structure have many advantages
and disadvantages which create barrier in the objectives of firm (Means, 2017). In flat structure,
manager and staff are easily and effectively consulted with each other which can help to make
decision easily within the River Island. This can aid to achieve the goals and objectives of firm.
On other side, there are many conflicts arising between the staff, so that it highly effect on
working and activity in relation to achieve the objectives of River Island.
TASK 2
P 4 Positive and negative impact of macro environment upon the business operations
Macro environment is the situation which exist in economy as whole instead of particular
sector and region. It involves trends in gross domestic product, inflation, employment, spending,
monetary policy and fiscal policy. This environment can be defined as PESTLE analysis of
business environment. This analysis directly impact upon the operations and activities of River
Island.
Political Factors :
Government rules and regulations, taxation policy, free trade policy are involved in
political factors of the business environment. Therefore, all regulations are different in every
nation. These regulations have effected on operation and activities of organization. For example:
High taxation rate in the nation, so that company has paid large amount of taxes in business. This
effect negatively on operation of organization. As compared to, government has regulated the
free trade policy which can positive impact upon operation and activity of River Island.
Economic Factors:
Inflation rate, interest rate, level of disposable income, exchange rate, fluctuation in
unemployment rate, effect of globalization etc. that are involved in economic factors of the
business environment. For example: if the consumer's income level is decreased, so that
consumer do not purchase product and services which can highly impact in negative way on
operations of River Island. On other side, if the inflation rate is decreased, so that consumers are
purchase goods and services which can impact positively on operation of River Island in relation
to sales of business.
Social Factors:
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Population growth rate, changes in attitudes, standards of health, education, social trends,
lifestyle etc. which are included in social factor of the business environment. For instance: There
is high education level to people, so that they are increased awareness about product and services
which can large impact positively on operation of River Island. On other side, changes in
lifestyle and trends to people which can impact negatively upon operation of organization.
According to lifestyle, consumers are also changed their taste and preferences towards the
products and services of River Island.
Technological Factors:
New technology, education institutes, changes in infrastructure, research area of
government etc. that are involved in technological factor of the business environment. For
example, changes in infrastructure of business which is negatively effected on operations and
activities of River Island. It means management of people, handling the operation and activities
within the organization. For instance: if the company utilised new technology that can be
positively effected on operations in terms of sales of River Island.
Environmental Factors:
Green practices, carbon emission, waste management, recycling of raw materials etc.
which are included in environmental factors of business environment. For example: River Island
is not adding within the environment which can lead to drop profits and loss in consumer
satisfaction that is not good image of firm. This can negatively impact on operation and activities
of business in relation to profit of firm. For instance: if the firm has make efforts to reduce and
manage waste within the business that can highly and positively effected on operation and
functions of River Island.
Legal Factors:
Labour laws, employment regulations, consumers rights etc. which are involved in legal
factors of the business environment. For example: If the company follow Consumer Protection
Act, 1987 which securing the consumer from defective and safety goods which can positively
impact on sales and profits of River Island. For example: if the company do not complied any
kind of regulations that will negatively impact on the operation and activities of River Island.
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P 5 Internal and external analysis of specific organization in relation to determine the strength
and weakness
Internal analysis means SWOT analysis which aids to determine strength and weakness,
creating the opportunities and reducing the threats of organization. It is the strong tool of analysis
which is provided to uncover and effort the chances that can be utilised to raise operations of
River Island.
Strengths:
Company has over 350 stores across the UK, Ireland, Asia alongside 6 online sites
operating in 4 currencies over the 100 nations. Firm has situated itself all across the UK and also
expanding the business globally. River Island has various unique selling points which are always
impressive going looks and occasion wear that crate them stand out other high street stores.
Weaknesses:
Organization have not done men wear collaboration that will attract new type and wider
range of consumers. The supply chain can not contend with seasonal surges in retail that means
likes Zara have advantages. High level of competition in retails sector which is weakness of
River Island. They do not have plus size collection that is weakness as other retailers. Therefore,
they are introducing their own plus size collection of Boohoo, New looks etc.
Opportunities:
River Island can be began store points that will different from other retailers like
Topshop. It can be card scan when they make purchase and get points that can be same to M and
S rewards card. They can begin student discount, so that they do not loose sales to students like
Topshop. Also, company can begin plus size collection that can be way into niche market.
Threats:
Increasing minimum wage involving in political effect which can affect the River Island.
It means they will less money and reduce stores and staff. Raise government taxes and recession
will affect the operation as threats of River Island.
P 6 Strength and weakness interrelate with external macro
The external factors such as political, social, economic, technological, legal and
environment that are interrelated with strength and weakness of River Island. Government rules
and taxation are highly effected upon the strength and weakness of firm. If the company want
expand their business in the new market, so that rules and regulations of that nation will be
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effected on operations and business of River Island. This can be reducing the strength and
increase the weakness of firm. In order to that, if the company follow advance technology, so
that it will explore the strength and overcome the weakness as compared to their competitors.
This can help to increase competitive advantages within the retail industry. In order to that,
changes in consumer demand and lifestyle which can directly impact on strength and increase
weakness as compared to their competitors.
CONCLUSION
This report has summarised that different types of organization such as public, private
and voluntary as well as they have different purposes, legal structure and size and scope of
business. It can be concluded that various functions like human resource, marketing, finance,
production are interrelated with other which is beneficial for achieving the objectives of
organization. It can be discussed that PESTLE analysis as Macro environment factors affecting
operations of organization. Furthermore, report has completed that SWOT analysis as internal
analysis of business for determining the strength and weakness of firm. Moreover, it can be
discussed that external factors are interrelated with strength and weakness of firm.
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