HND Business Environment Analysis: BT Group Plc - Semester 2 Report

This report provides a comprehensive analysis of BT Group's business environment. It begins with an introduction to business environments, followed by an examination of BT Group's organizational structure, including functional and divisional structures, and an organizational chart. The report then delves into the relationship between organizational functions and objectives, highlighting how BT Group aligns its structure to achieve its goals. A significant portion of the report focuses on the impact of the macro environment, utilizing PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors affecting BT Group's operations. Furthermore, the report conducts internal and external analyses, identifying the company's strengths and weaknesses, and applies a SWOT analysis to evaluate the interrelationships with external macro factors. The conclusion summarizes the key findings, and references are provided to support the analysis.

BUSINESS ENVIRONMENT

INTRODUCTION ...........................................................................................................................................3
TASK 1 .........................................................................................................................................................3
(Covered in PPT)......................................................................................................................................3
TASK 2..........................................................................................................................................................3
P3 Relationship between organizational function and objectives ..........................................................3
TASK 3..........................................................................................................................................................5
P4 Impact of macro effect on organization’s business operations ..........................................................5
TASK 4 .........................................................................................................................................................8
P5 Internal and external analysis of BT to identify strength and weakness.............................................8
P6 Apply SWOT analysis in BT groups and their interrelationships with external macro factors.............9
CONCLUSION ............................................................................................................................................10
REFERENCES..............................................................................................................................................12

INTRODUCTION
A business contain both internal and external factor of an organization and how these
factors impact functioning of organization in business market place. Elements that are included
in business environment are consumers, competitors, geographical market place, employees,
organizational culture, decision making and role of managers. An organization can grow
effectively by making efficient planning and challenges in environment. BT Group Plc. formerly
known as British telecom was founded in 1969 (Borio, 2014). It is a multinational
telecommunication company in UK dealing with products like broadband services, television
subscriptions mobiles, broadband, fixed line broadband. The company has increased their roots
in across 180 countries and planning to penetrate market in other geographical areas. This
assessment will discuss different types of organization and their purposes, ways through which
company is focusing on different organizational function and their links to objectives and at the
end negative and positive impact macro environment in business activities, they can be analyzed
by different analytical tools like PESTLE and SWOT for better evaluation and learning .
TASK 1
(Covered in PPT)

TASK 2
P3 Relationship between organizational function and objectives
Company has different objectives and strategies for functioning of their business in
different competitive market. BT Group Plc. deals in varieties of instruments so they must have a
well-defined business structure according to organizational function in achieving their goals and
objectives (Jung, 2011).
Relationship between organization and their structure.
Company focus on increasing their business activity, sales, marketing, researches etc. for that
they need a better functioning organization (Demil, 2010). They make structure according to
need and wants in market. Classification of organizational structure
 Functional structure – Most company tend adopt functional structure for their
organization that follows a systematic chain of instruction (Chang, 2011). This helps
following better process as it will provide clear and leaner line of authority and better
decision making for different departments in an organization. It is use to allocate task
and responsibilities easily and monitor their proceedings.
 Divisional structure – it is used to spread different functions among different department
across the organization. A company has different product and functioning like research
and development wing, marketing, accounting section etc. (Barnett, 2012). Division of
different department according to work aid in proper functioning of organization. This

structure is having drawback that many employees have to do only one type of activity or
function, this may create redundancy in workplace and ultimately loss of money.
 Matrix structure – it gives better flexibility to business activity and functioning. In this
employees works in department according to functions and activities but they can be
promoted to other projects and activities of organization, this will increase develop
skillset of employee and will make them multitasking (Crane, 2016).
 Organizational chart – An organization use organizational chart to understand
complexity in organization in a graphical representation.
BT Group Plc. is using functional structure for their business for gaining better
productivity 2016 company has announced a new and modified organizational structure after
acquiring EE. In this functional structure they have made 6 linear structures according to
different roles in business activity
 2 channels focuses on serving customers for organization
 Two on public sector ( one in UK another in Ireland )
 2 lines are providing wholesale services to other companies.
Functional structure of organization
Consumer EE Public sector Global service Wholesale Openreach
Consumer – BT Group Plc. is regarded as largest ISP provider in all over UK. They are
able to serve around 10 million houses with combination of services of broadband, TV, mobile
services and TV and also in new business planning John Peter will continue to be served as CEO
(Edquist, 2010).
EE- It majorly focuses on retaining brand and consumers. They have increased high
street stores for providing better assistances and advanced services to customer as quickly as
possible. They have also started Emergency service network. CEO of this division is Marc
Allera.

Public sector- This division is earning maximum revenue for company. They focus on
investing in large and small scale business in all over UK and Ireland. CEO of that division is
Graham Sutherland (Jung, 2011).
Global services- As it are a multinational telecommunication organization. Company
has aim to serve common people all over the world and also increasing their base to serve
companies of private and public sector of different countries’.
Wholesale and Ventures- this section of business is giving wholesale business to more
than 1400 network service providers in all over the world (Auzair, 2011). They have expanded
their business to some renewed organization like Gerry McQuade, Payphones, and Fleets. Chief
sales officer of EE is the CEO of this section.
Openreach platform- This is not affected by change in structure of organization. Main
task of this organization is to provide access to Local network of telecommunication services of
BT Group.
The above mentioned structure of organization is the new structure that seems to be very
effective as it has outlined most of the factors and activities that has been used to increase brand
value and production by increasing their brand values and productivity in business market
(Chavis, 2011).
Functions of organization Sales and marketing: It is very essential for organisation to do a investigation for
knowing the requirements of customers from the organisation. BT Groups should do a
marketing in an effective way that their customers can use their products and services. Finance: It is important for each companies to have a high numbers of investment for
making their business successful within a market. Managers of this department make
budget and analyses so that they can make a proper use of finance effectively.
 Human resource: BT Groups analyze the manpower for their organization as well as
they provide training to their employees for better productivity of the company along
with that they also motivate their employees so they can work in an proper manner within
the company.
TASK 3
P4 Impact of macro effect on organization’s business operations
Macro environment are also called external business environment of an organization. It is
a strategic tool that gives detailed analysis by analyzing different factors in organizational
structure. The company is well aware about frequent changes that are happening in external

business environment (Hoang, 2010). PESTLE stands for Political, Economic, Social,
Technological, and Legal and Environmental factor. Pestle analysis of company is discussed
below
PESTLE Analysis
Political
 Politically stable
business as demand of
telecommunication
sector is very high in
UK
 Chances if military
inversion
 Corruption can
increase in regulation
od telecommunication
business
 It is a legally
contradicted
organization
 Protecting and
safeguarding
intellectual property
 Smooth trade relation
and better regulation
authority.
 Easing policy of
trading practices with
trading partners
 Legal antitrust law is
being enacted
 Better pricing
regulation authority
 Minimal tax rates
imposed on
telecommunication
Social
 Skill and knowledge
level id different in
geographical and
demographic region
 Better power structure,
hierarchy and class
structure
 Better organizational
culture. Flow of
positive vibes in
different department
insider the organization
 Entrepreneurial spirit
are encouraged and
supported in society
 Social responsibilities
are taught to
employees
 Interests and moral
values are respected in
organization (Grimpe,
2010).
 Company is dealing in
public sector so their
main aim is to serve
mankind
Environmental
 Weather condition of a
certain place
 Change in climatic
condition
 Different laws are
present that help I n
regulating climatic
condition
 Water and air pollution
may harm
telecommunication
equipment’s that are
very costly.
 Recycling of products
 Waste and inventory
management.
 Attitude and focus
towards making green
environment.
 Implementation and
planning for use of
renewable resources

services hence give
more opportunity to
grow in business
market.
 Formulation of wage
regulation for better
distribution of wages
and management of
working hours
 Compulsory benefits
for employees
 Maintaining strict
regulation and safety
measures
 Better product labeling
that is essential in
telecommunication
industry.
Economical
 Before investing in
other country they
analyses economic
condition of that region
this will aid in better
planning of resources.
 Government disrupts
growth of organization
in free market.
 Different exchange rate
in different host
country
 BT Group Plc. is
having financial
stability
 They have better
infrastructure required
for telecom industry
 Company is having
gained corporative
advantages in different
countries over the
years.
 Labors are highly
skillful
 Cost of labor and
resources is less as
Technological
 BT Group Plc. always
tries to put innovative
idea in their products.
Vodafone is the bigger
competitor of
company , so they try
to overpower the
company with latest
technologies
 Technology
advancement is the key
feature of their
products.
 With effective use of
technology they have
able to reduce cost of
infrastructure and
inventory of their
product.
 It has also helped in
better supply chain
management and value
chain management.
 They have a better
flow of technological
diffusion.
Legal factors
 Formation of antitrust
law in
telecommunication
industry and their
impact in dig rent
geographical area in all
over the country.
 Implementation of
discrimination law for
protecting rights of
employees
 Patent, copyright,
trademark and
intellectual property
laws.
 E- commerce services
and protection of
customers
 Health and safety law
for employees
 Protection of data, as
company is dealing in
networking, there are
chances that data can
be leaked and misused.

compared to other
competitors in market
 They have a systematic
business cycle stage
i.e. prosperity,
recession and recovery
 Optional sources of
income
 Providing employment
to different sectors of
organization
 Low interest rates none
their services.
By detailed analysis of macro environment of organization it is being studied that
company is having both positive and negative factor in dealing in business activities. They are
dealing in variety of networking products that are used to make life of people easier (Ahmed,
2011). Terry must put more effort on putting innovative ideas in their products for better
understanding and analysis
TASK 4
P5 Internal and external analysis of BT to identify strength and weakness
Internal and external environment factors affect the enterprise. Before decision making of
an organization they should analyses extrinsic and intrinsic surrounding because it is an
important part of planning. By this analysis business can find out their strength and weakness
and they can plan their functions or activities accordingly (Demil and Lecocq, 2010).
Internal analysis: It helps in evaluating and identifying BT groups particular
characteristics such as its capabilities, availability of resources and core competences.it shows
that all functions of an company is performing a following criteria of firms mission, objectives,
strategies and vision. In order to analyses business make sure that proper utilization of resources
should carry out in process and working activities. Resources like as physical resources, financial
resource, plant and machinery, cultural, human resources etc. with all these resources capabilities
of BT groups can easily recognized.
External analysis: It is a process which analyzed environment of which companies
operates. They use to find out events and current trends which effect their strategies decisions of
BT groups. It is done by SWOT analysis method. It includes analysis of economic such as
changes in interest rate, inflation rate etc. Legal environment aid in finding out changes in legal
regulations linked with duties changes, taxation policies and special act. Social and cultural
factors help in analyzing lifestyles, fashions, current trends and many other elements of culture.

Analysis of internal and external factors may find out weakness and strength which are
discussed in detail below: Strength: It contains unique features and characteristics of BT groups enterprise. Largest
and most necessary strength of a company is its vision clarity which satisfies consumers
and earns profits in the context of market situations. For Example: Organization can
measure its advantages by spread on performance indicators (Dong and Hou, 2009. Weakness: These are those factors which firm has to do more work for improving their
capabilities and capacity. For Example: BT groups operates its enterprise in various
countries and its limitations are that it is difficult to operate a business they have to
follow standards of control within all locations. Threats: BT Groups are facing challenges of lawsuits in several markets along with that
various continuous and laws changes as per goods standards within those markets. For
example: latest technology are developed by their rivals can be a serious issues which
have to face by organization. Opportunities: Their is an opportunity for a new environment policies for the
organization. For example:BT Groups is having an opportunity of low transportation due
to having a less cost of shipping.
Influence in decision making process
External and internal give impact on decision making process as by extrinsic analysis
consumers perception and preferences are changed accordingly. Organization also changes their
decisions for satisfying their customers’ needs and wants. On other side, intrinsic analysis also
have to change their decisions because of external changes it also take place internally within an
organization. So, these all are interrelated with each other if changes made in one factors will
change another factor automatically
P6 Apply SWOT analysis in BT groups and their interrelationships with external macro factors
SWOT method is used in British telecommunication plc. Tools which help in analyzing
external and internal factors of a company. SWOT stands for strength, weakness, opportunities
and treats are discussed in detail below: Strengths: They are having a strong base in United kingdom with higher numbers of
buyers as well as providing a strong buyers experience by great goods and services.

British telecommunication plc. is having a wide spectrum of offering a goods and
services. (Edquist, 2010). Weakness: Organization is largely depends on United Kingdom markets by having a
limited presence within a high level growth in a region of Asia Pacific. At a time of
separation of Open reach from BT groups will outcome in branding loss as well as
increasing in price. Opportunities: British telecommunication plc. Is developing a 5G by strategic
partnership with Huawei as well as Nokia as well as introducing a fresh goods and
services capitalizing their synergy from the acquisition of EE.
 Threats: British telecommunication plc. threats are having a intense competition as well
as decline in profits because of low rivals offerings along with that also having pressure
of licenses as well as government regulations.
Therefore, all tools of analyzed effect macro environment on BT decision making. Their
strengths and weaknesses of BT are linked with macro external factors. Managers of
company compare their strengths with macro factors such as economic, social, technology,
cultural, political, operational policies etc. Suddenly change in external environment affect
decisions making of British telecommunication. Interrelationship between BT strength and
weaknesses as well as macro external factors are explained below:
 Economic factors: It contains inflation rate, interest rate in market. If BT is
having an enough resources of finance then change in interest rate will not affect
its marketing and pricing strategy of the firm. Organization should always ready
to face a challenge which is raised due to changes in economy factors.
 Legal and political factors: These factors contain various policies as well as rules
and regulations. Policies changes also affect a company. As they have to face a
challenge of legal. They should have a specialized and expertise staff member.
 Cultural and Social: Companies are facing a challenge of changing cultural and
social factors. Enterprise should have best staff members, possible natural
resources etc. BT is having strength of satisfying their consumers’ needs and
demands which are based on value and beliefs.
 Technological factors: Organization is having advantages of using a latest
technology replacing with existing once. They have to adopt changing factors of
technology. For this, firm needs good resources of finance.

 Environment factors: Each enterprise use natural resources for giving services
and product. They have to follow laws of environmental along with that firm
cannot waste natural resources.
Advantages and disadvantages are the factors of macro surroundings which are related
with one other. If BT get fail to find out its strength and weakness then it will cause a difficulty
in analyzing macro factors. Along with that, it also fails in making plans of tactical and strategic.
Disadvantages will affect a firm which will not able to satisfy their needs and demands by
providing them services as per their customers which will help in increasing profit of an
organization. So, BT has to keep improving their services weaknesses.
CONCLUSION
Through analyzing this assessment one can conclude that organization in different sector
have different objectives and structure. BT Group Plc. is a large telecommunication company
deals in telecommunication networking products. For doing business an organization must have
concentrate negative and positive effects in macro environment by analyzing their strength and
weaknesses through different analytical tools like SWOT and PESTEL for better evaluation of
their productivity. Business environment has a bigger sector of exploring and finding different
facts about business in external business environment. There is larger area that is left to be
explored in future researches.

REFERENCES
Books and Journals:
Ahmed, I and et.al 2011. External factors and entrepreneurial career intentions; moderating role
of personality traits. International Journal of Academic Research. 3(5).
Auzair, S., 2011. The effect of business strategy and external environment on management
control systems: a study of Malaysian hotels. International Journal of Business and
Social Science. 2(13).
Barnett, M. L. and Salomon, R. M., 2012. Does it pay to be really good? Addressing the shape of
the relationship between social and financial performance. Strategic Management
Journal. 33(11). pp.1304-1320.
Boons, F. and Lüdeke-Freund, F., 2013. Business models for sustainable innovation: state-of-
the-art and steps towards a research agenda. Journal of Cleaner Production. 45. pp.9-19.
Borio, C., Drehmann, M. and Tsatsaronis, K., 2014. Stress-testing macro stress testing: does it
live up to expectations?. Journal of Financial Stability. 12. pp.3-15.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Chang, Y. Y., Hughes, M. and Hotho, S., 2011. Internal and external antecedents of SMEs'
innovation ambidexterity outcomes. Management Decision. 49(10). pp.1658-1676.
Chavis, L. W., Klapper, L. F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp.486-507.
Chesbrough, H., Vanhaverbeke, W. and West, J., 2014. New frontiers in open innovation. OUP
Oxford.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Demil, B. and Lecocq, X., 2010. Business model evolution: in search of dynamic consistency.
Long range planning. 43(2). pp.227-246.
Edquist, C., 2010. Systems of innovation perspectives and challenges. African Journal of
Science, Technology, Innovation and Development. 2(3). pp.14-45.
Grimpe, C. and Kaiser, U., 2010. Balancing internal and external knowledge acquisition: the
gains and pains from R&D outsourcing. Journal of management studies. 47(8). pp.1483-
1509.
Helms, M. M. and Nixon, J., 2010. Exploring SWOT analysis–where are we now? A review of
academic research from the last decade. Journal of strategy and management. 3(3).
pp.215-251.
Hoang, H. A. and Rothaermel, F. T., 2010. Leveraging internal and external experience:
exploration, exploitation, and R&D project performance. Strategic Management Journal.
31(7). pp.734- 758.
Jung, H. S., Kim, Y. and An, J. A., 2011. Effects of the Internal and External Factors of Small
and Mediumsized Corporations on Green Management Performances through the
Establishment and Utilization of Information Systems and Building Relationships for
Information and Knowledge.
Online:
Business and the environment. 2017. [Online]. Available through:
<https://www.imperial.ac.uk/environmental-policy/msc/msc-environmental-
technology/options/business-and-the-environment/>.

Macro environmental forces. 2017. [Online]. Available
through:<http://www.referenceforbusiness.com/management/Log-Mar/Macroenvironme
ntal-Forces.html>.
Priorities, stakeholders and impacts. 2018. [Online]. Available through:<
https://www.researchgate.net/figure/Priorities-stakeholders-and-impacts_tbl2_275887421.Table>
BT Announces New Organizational Structure. 2016. [Online]. Available through: <
https://commsbusiness.co.uk/news/bt-announces-new-organisational-structure/. >.