Business Environment Report: Rolex and Macro Environment Analysis

This report delves into the business environment, focusing on Rolex as a case study. It begins with an introduction to the business environment, differentiating between micro and macro factors. The report then examines different types of organizations, including public, private (Rolex), and voluntary sectors, along with their legal structures. It explores the interconnectedness of various business functions, such as research and development, marketing, production, human resource management, and finance, highlighting their roles within Rolex's organizational structure. The core of the report analyzes the impact of macro-environmental factors on Rolex using a PESTEL analysis, considering political, economic, social, technological, legal, and environmental factors. Furthermore, it provides an internal and external analysis of Rolex through a SWOT analysis, identifying the company's strengths, weaknesses, opportunities, and threats. The report concludes by summarizing the key findings and the interrelation of strengths and weaknesses with external macro factors, providing a comprehensive overview of Rolex's position within its business environment.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different type of organisation and their legal structure....................................................1
P2 Size and scope of different type of organisations.............................................................1
TASK 2............................................................................................................................................1
P3 Different functions and their link with functions and organisational structure.................1
TASK 3............................................................................................................................................3
P4 Impact of macro environment on organisation and their impact......................................3
TASK 4............................................................................................................................................5
P5 Internal and external analysis of organisation...................................................................5
P6 Strengths and weaknesses interrelate with external macro factors...................................7
CONCLUSION................................................................................................................................8
REFRENCES...................................................................................................................................9

INTRODUCTION
Business environment is that in which several different sector companies exists.
Although, this is dynamic in nature which modify because of several factors. The same is of two
types micro factors which includes such elements that give small level impact on business when
change. On the other hand, another is macro level factors such as political condition,
competitors, market condition and several other (Lee, Olson and Trimi, 2012). This assignment
is based on different type of organisation such as public, private and voluntary along with their
legal structure. Impact of changes in various factors are also highlighted below. As well way of
minimising their negative impact on working of business also described. Private organisation in
this assignment is ROLEX which is watch manufacturing organisation founded in 1905 by Hans
Wilsdorf and Alfred Davis. Area serving by them is worldwide with 2800 approx number of
employees. Moreover, public company is Child support agency and voluntary is Welcome Trust
more description of these is stated below.
TASK 1
P1 Different type of organisation and their legal structure
Covered in PPT
P2 Size and scope of different type of organisations
Covered in PPT
TASK 2
P3 Different functions and their link with functions and organisational structure
Business organisation require proper structure for their working as well there are several
department in an company (Rossi,Vrontis and Thrassou, 2012). Working of every department is
interrelated and all of them are contributing their efforts in development and growth of business.
Relationship between each and every department of ROL:EX is given below:-
Research and development:- Every organisation have research and development
department same ROLEX also have. This is important for identifying current market trend and
also satisfaction level of customers with current goods and services. Through research and
development department company can gain several advantages as well it help in generating
revenue which is important for survival in market.
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Marketing department:- This is the department whose working is related with
organisational structure because if marketing of goods is doing as per the brand image then only
it is good. Marketing department is using several tools and techniques for promotion and
advertising of watches. Apart from this it is important activity for every kind of enterprise small
or large.
Production department:- Without this department company cannot produce goods for
production purpose there is requirement of the same department (Pham, Segers and Gijselaers,
2013). Organisation have to understand several production approachers which assist in
overlapping of production, extra cost, as well aids in consumption of latest products also. Their is
requirement of expertise in this division so goods are produced in fine manner by managing its
quality.
Human resource management:- HRM is the department in organisation which manage
entire working as well important for meeting day to day need of company & customers. In
simple word it can be said that this division is backbone of firm and it also help in making
coordination between several departments. Human resource management is such which also do
their operations and build skills with ability for their personnels in large manner so that they can
generate high profits and also can achieve goals and objectives too. Main motive of this
department is to hire candidate who are expertise and also manage training & development
program for employees (Gharajedaghi, 2011). So they can increase their skills and knowledge.
Accounting and finance:- This is department which manage entire working of business
because fund in important for meeting day to day activity and also in production purpose.
Department is that of company which assist in building the manage to have all account of finance
activities in proper way. Thus, this make entity to manage cash inflow and outflow, capital
management with budgetary control and looking forward to have mercantilism accounts as well
which do aids in managing everything as per the requirement (Crane and Matten,2016). Account
and finance department is the confidential entry of everyone is not allowed because there is
changes of fraud and data theft.
Above mention all the department are important and linked with organisational structure
as well they help in generating more and more revenue and also in gaining competitive
advantages.
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TASK 3
P4 Impact of macro environment on organisation and their impact
Macro environmental factors are those which is related to economy and when they
modify gives wide impact on working of business. Furthermore, international environment
consider several things in it like gross domestic production, payment, fiscal policy, money and
several other. In simple term it can be said that macro environment is large in nature and when it
changes gives direct impact on operations of business (Welter and Smallbone, 2011). PESTEL
analysis of ROLEX is given below:-
 Political factors: This factor includes rules and regulation given by a particular nation
government and must be followed by each and every organisation when they are doing
business in that. For example policies of Switzerland affect the company at wide level.
When there is changes in political factors it gives major impact on working of ROLEX
company. With the advent of globalisation, political factor bring several positive role in
the same company. As well all these rules and regulations must be fulfilled by respective
enterprise for successful business operations. This includes changes in tax rate, internal
marketing and accounting. Political factors leave negative impact on Rolex when
government intervention will increase to large extent over company. For example,
government has introduced GST over commodities which is burden over consumers
because they have to pay by adding GST tax on products.
 Economic Factors: Economical factors involve exchange rate of every country in which
company is doing their business (Elliot,2011). Apart from this each and every nation
have their own culture, customs, desire, taste and several other which must be taken in
mind while offering goods to different countries. Although, company have to taken in
mind all the factors when they are brining some new product in market as well this must
be according to need of customers. As well it is also related with the entry and exit of
competitors in market. Economic factors have negative impact on Rolex when
environment of business changes suddenly. For example, if government increases
inflation rates, then the Rolex will have to pay high amount over resources and hence it
will increase prices of the commodities. And as a result producers and consumers, both
are facing problems.
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 Social Factors: The social factors include the fashion trends in the society of every
country (Reeves, Love and Tillmanns, 2012). As per current market scenario, the modern
societies are showing more interested in the business enterprise like ROLEX. The nation
who are aware about fashion and are always anxious to adopt the modern-day trends will
always welcome the creative and innovative by the brands like same. There are surely
have ethical issues as well for example the blood diamond utilise by respective company,
some country or the people of society will regard it as holy sin to wear such diamonds.
All these social and ethical force and trends play a crucial role in the business of ROLEX.
Social factors can have negative effect over Rolex when tastes, preferences and beliefs
are changing rapidly of customers on market. It will out date the trends so fast which in
turn can cause heavy losses to Rolex.
 Technological Factors: This can be described as various kinds of technologies and
software which are utilised by an organisation for improving their productivity as well as
profitability. In current scenario of market trends, firms are fond of using innovative and
creative techniques to get appropriate outcomes. Various kinds of operational activities or
tasks are carrying out in ROLEX which is done through machines and other equipments
to generate bulk of watches on regular basis to supply them in market. It is necessary to
make sure about new techniques which should be implemented to improve regulator
outputs properly (Cotter and Fritzsche,2014). Technical equipments are helpful to make
easy to perform, record previous data for future purposes and generate better results.
Rolex is producing their goods in their own way. But it can't be said that when
technology will change or changes in ways of producing, distributing and communicating
goods and services with target markets. Sudden changes always cause severe problems.
 Legal Factors: There are different kinds of legal rules and regulations which are made
by government authorities which are mandatory to be followed by organisation. It is
necessary to confider these legislations while preparing an effective as well as efficient
plan of action. Planning can be done through building accurate strategies, policies or
practices for carrying out activities and procedures in appropriate manner to generate
desired outcomes. ROLEX should focus on various types of legislations or laws which
are mandatory to be followed while conducting several processes such as manufacturing,
packaging, marketing, distribution and so on. Some of legal norms are relevant to rights
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of employees and taxation policies which should be fulfilled by company. It is
compulsory for Rolex to follow legal guidelines like advertising standards, consumer
rights, product labeling and product safety. And if it does not do the same, may be its
brand image gets affected.
 Environmental Factors: This can be explained about various types of environmental
issue or problems which are generated through operational or other activities carried out
by an enterprise to complete their procedures for creating desired outcomes. every
organisation which is running in current scenario are required to apply ozone-friendly
activities or events to carrying out several procedures or tasks to reduce pollution of
environment (Van Vuuren, Roberts-Lombard and Van Tonder,2012). ROLEX have to
utilise different technique to conduct needed processes for gaining regular outcomes
properly. ROLEX can use pollution free vehicles for sales and distribution of product. It
is necessary to place solar plates and utilise that to save energy in accurate manner. As
government agencies and many social firms are focussing on this issue because it
becomes dangerous problem for people so that companies should be put efforts towards
it. These are related to protect the environment against unfair practices. If Rolex does not
follow these guidelines, for example Rolex is doing a lot of waste which is polluting the
environment, is emitting negative impact because it is harming environment.
The above discussed factors are necessary to be observed and analyse to run a business properly
and implementation of new concepts or modification become easy. These components must be
considered while making plan of action in ROLEX to attain desired outcomes.
TASK 4
P5 Internal and external analysis of organisation
For analysis external and internal factor SWOT analysis is the best way. Explanation of
this is given below:-
 Strength: Best strength of ROLEX is that they maintained their strong and effective
brand image in market which shows that the same is premium luxury brand. As well
respective company is the leading brand of watches. Their main strength is that ROLEX
is the first enterprise which introduce waterproof watches, automatic dating watches and
the match, which helps the divers (Zott, Amit and Massa, 2011). This is most popular and
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well known firm of watches because of its excellent and luxury products. Association
expand their business in more then 100 of countries worldwide level. Strength of
organisation help them in achieving several competitive advantages.
 Weaknesses: their major weakness is their pricing which is not affordable for each and
every sector customers. Enterprise cannot compare their price with their competitors
because as per industry average pricing is higher. Moreover, image management is
important and same enterprise is maintaining only in luxury segment. So ROLEX have to
be careful about each and every segment of marketing mix. Watches of this brand is
expensive and not affordable by each segment customers (Hair,2015). There are some
competitors also of this company and they are serving their watches in less price compare
to the same brand.
 Opportunity: changing customer preferences is best opportunity for ROLEX because
when modifications are made then company have chance that they can produce latest
watches as per need and demand of customers. They can introduce separate product line
with several brand identity under the ROLEX brand. For gaining attention of several
customers firm have to bring innovation and creativity in existing products and also have
to bring latest watches in market. The emergent economies of the world can offer it great
opportunity to get more international market and assist it to grow their business.
 Threats: ROLEX have limited dealers which fails them in delivering products on time to
their existing or potential customers. Because of ineffective distribution channel clients
are not getting their goods on time this is main reason of switching brand by customers.
They are shifting to the competitors of ROLEX as well some fake imitation of product is
issue of customers and this is damaging reputation of brand in business environment.
Increasing cost of raw material, labour cost as well rate of interest. Along with this
company have to face several business risk some technical issues are also problem
because of that progress of company can be hinder.
Conclusion of above SWOT analysis is that ROLEX is well known as popular brand in watch
industry. This brand is carrying out their business in several countries . For this enterprise have
to bring innovation in its products, because attitude of people is changing towards the using of
watches. Because there are several firm who is offering low cost same goods this is main reason
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because of that customers are not preferring expensive watches. Apart from this new style with
less cost help in easy attraction of customers.
P6 Strengths and weaknesses interrelate with external macro factors
Business environment is full of competitions which involves external and internal factors
both. When changes in these take place than it gives negative and positive both impact in
operation of company. As well major impact in decision making process of organisation. For
example major strength of ROLEX is that this brand is most popular and have good market
share. Along with this they are serving worldwide while serving at global level they must have to
follow all the rules and regulation of all the countries (Low, Chen and Wu,2011). Strength and
weakness of company is interrelated with external macro factors explanation is given given:
 Economic Factors: This consider various factors such as inflation, deflation, tax rate,
exchange rate, foreign direct investment and several other also. ROLEX is the financially
strong business they can easily overcome with all these factors. Because large scale
organisation have strong financial position in business market.
 Political and legal Factors: Every country have their own policies, rules and regulations
when ROLEX is serving worldwide then they have to follow each and every political
factor of every nation. If there is any variation in this then also they have to make such
changes in their working also.
 Technological Factors: Technologies is required in day to day activity for production
department. As well this is most dynamic in nature which get easily change or modify .
When company implement latest technology in it then it help in fine quality of
production. Whereas, if there is lack of technology then organisation is not able to
accomplish their pre determined goals and objectives. With the help of new technology
ROLEX can bring new goods in market.
 Environmental Factors: This factor gives its major impact on manufacturing of
watches. For production purpose there is requirement of resources that can be natural and
artificial both. ROLEX produce such products which don't harm environment. Every
firm have their CSR (corporate social responsibility) towards the society.
All the above mention factors are macro level factor which is to be analysed by company
on time basis for grabbing opportunities and also for removing threats which is important. With
the help of PESTAL analysis external and internal factors can be identified in better manner.
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CONCLUSION
From the above assignment it has been concluded that business environment is dynamic
in nature and give positive and negative both impact when it change. All type of companies get
effected public, private and voluntary. Impact is on micro and macro both level as well for
minimising their negative effect organisation use several tools and techniques. Enterprise have to
examine external and internal both the factors on time to time basis so they can easily identify
various elements which is beneficial for firm and also minimise impact of negative things in
association.
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REFRENCES
Books and Journals
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environment–strategic and financial choices of Campania wine firms. International
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Gharajedaghi, J., 2011. Systems thinking: Managing chaos and complexity: A platform for
designing business architecture. Elsevier.
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sustainability in the age of globalization. Oxford University Press.
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Elliot, S., 2011. Transdisciplinary perspectives on environmental sustainability: a resource base
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Cotter, R. V. and Fritzsche, D. J., 2014. The business policy game. Developments in Business
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Hair, J. F., 2015. Essentials of business research methods. ME Sharpe.
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Van Vuuren, T., Roberts-Lombard, M. and Van Tonder, E., 2012. Customer satisfaction, trust
and commitment as predictors of customer loyalty within an optometric practice
environment. Southern African Business Review, 16(3), pp.81-96.
Reeves, M., Love, C. and Tillmanns, P., 2012. Your strategy needs a strategy. Harvard Business
Review, 90(9), pp.76-83.
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