Analyzing John Lewis Partnership's Business Environment

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BUSINESS AND BUSINESS
ENVIRONMENT
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Table of Contents
INTRODUCTION............................................................................................................................. 4
LO1.................................................................................................................................................5
P1 EXPLANATION OF DIFFERENT ORGANIZATION TYPES & PURPOSE OGF THOSE
ORGANIZATIONS........................................................................................................................5
P2 Explanation of the scope, size and various other factors of the different organizations......6
M1 ANALYSIS OF THE HOW ORGANIZATION’S SCOPE, SIZE AND STRUCTURE OF DIFFERENT
ORGANIZATIONS SHARE LINK WITH THE BUSINESS OBJECTIVES AND VARIOUS PRODUCTS
AND SERVICES OFFERED............................................................................................................ 9
LO2............................................................................................................................................... 10
P3 EXPLANATION OF THE RELATIONSHIP OF THE VARIOUS ORGANIZATIONAL FUNCTIONS
AND HOW THEY ARE LINKED WITH THE STRUCTURE AND OBJECTIVES OF ORGANIZATION. . .10
M2 analysis of the disadvantages and disadvantages of different organizational functions and
their interrelationship with each other that can affect the whole structure of the organization
................................................................................................................................................. 12
LO3............................................................................................................................................... 13
P4 IDENTIFYING POSITIVE AND NEGATIVE IMPACTS THAT MACRO ENVIRONMENT WILL HAVE
UPON THE OPERATIONS OF BUSINESS WITH EXAMPLES.........................................................13
M3 USING PESTLE MODEL EXPLAIN IN DETAIL THE MACRO ENVIRONMENT OF THE BUSINESS
IN THE ORGANIZATIONAL CONTEXT........................................................................................15
LO4............................................................................................................................................... 17
P5 conducting an external and internal analysis of organizations for identifying strengths and
weaknesses.............................................................................................................................. 17
P6 EXPLAINING HOW WEAKNESSES AND STRENGTHS OF THE COMPANY ARE INTERRELATED
WITH THEIR EXTERNAL ENVIRONMENT...................................................................................18
M4 APPLYING SWOT ANALYSIS AND IDENTIFYING HOW THE DECISION-MAKING PROCESS AT
JLP IS AFFECTED BY THE BY THESE FACTORS............................................................................19
CONCLUSION............................................................................................................................... 23
REFERENCING.............................................................................................................................. 24
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INTRODUCTION
The business environment can be defined as the sum of the various internal and external
factors that affect business operations in many ways. The various factors of the business
environment comprise Government, technology, customers, suppliers, trends in the market etc.
These factors of the business have an indirect or direct impact on the business activities and
thus they are drivers of the business outcomes. The assignment report will be focusing on
different business factors and how they affect business strategies and operations. For the
detailed knowledge of the business environment, different types of organization will be
compared on different aspects such as their size, type, company’s information, scope etc. the
main objective of the assignment is to understand deeply the structure and activities of various
organizations for the growth & success of the organization in future.
In this report organization that will be chosen is The John Lewis Partnership, whose founder is
JOHN SPEDAN LEWIS. The company comes under the category of the retail industry and the
different products that the company manufacture for their customers are cosmetics,
housewares, financial services, photography, clothing etc. The Company JLP is known as the
third largest company among the other retail private limited companies. The type of company
in which it falls is a partnership.
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Figure 1: JOHN LEWIS PARTNERSHIP
LO1
P1 EXPLANATION OF DIFFERENT ORGANIZATION TYPES & PURPOSE OGF
THOSE ORGANIZATIONS
Various types of business organizations that will be discussed are the private, public, non-
government organizations etc.
Private organizations:
These organizations can be defined as the company which are usually operated or run by
private individuals and companies, the main motive of these companies is to earn profit by
planning different strategies. They are out of the control of the government (An et al., 2019).
Example:
The example of the private company is John Lewis Partnership, who are putting efforts for
increasing their profit.
Public organizations:
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These organizations work with the motive of serving the best products and services to their
citizens for their welfare. They do not work only with the motive of maximizing profit. Public
sector organizations are generally owned and operated by the government (An et al., 2019).
Example:
The Public organization is the Sainsbury’s whose operations are owned by the government.
Their products and services mainly focus on satisfying their citizens and working for the welfare
of society.
Non- government sector organizations:
The formation of the NGO is done when various persons with the same motive come together
to put their efforts for other’s benefit, then this type of organization is called as Non-
Government organization (Chenhall et al., 2017).
Example:
The best example of NGO is the Welcome Trust, whose motive is to serve their citizens with the
group of many people.
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P2 Explanation of the scope, size and various other factors of the different
organizations
SAINSBURY’S:
COMPANY’S BACKGROUND
Sainsbury’s was founded by John James Sainsbury's in the year 1869. This company comes
under the category of the public company and whose motive is to serve its citizens with
revenue generation. The term used in these companies is the Public limited company.
SERVICES & PRODUCTS
There are various products of the company and these are such as shop of the forecourt,
supermarket stores, hypermarket etc (Aluko and Knight, 2017).
SIZE & SCOPE
The type of company is large, and the number of employees and members working with the
company is 186,900. With the market analysis, it has been recorded that there is tough
competition in the market with other organizations. The company has the capacity to grow and
increase its business operations by catching up the available market opportunities to expand in
the retail market.
COMPANY’S MISSION
The company’s mission includes serving their customers with the best quality products, and
ensuring the safety and health of the citizens and also protecting the environment for the
attainment of customer's trust (Aluko and Knight, 2017).
COMPANY’S VISION
The company's vision includes gaining customer's trust so that they love to work and shop with
the company.
OBJECTIVES OF COMPANY
The main objective of the company is to provide quality products for their citizens with what
they want to a trustworthy company in the UK.
LEGAL STRUCTURE OF COMPANY
It includes that the company is the public limited company (Aluko and Knight, 2017).
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MAIN STAKEHOLDERS
Stakeholders of the company include Mike Coupe and David Tyler.
JOHN LEWIS PARTNERSHIP
COMPANY’S BACKGROUND
This company deals in the retail sector and the company’s headquarters are situated in the UK,
London.
SERVICES & PRODUCTS
Various products of the company are Photography, audio-visual, cosmetics etc.
SIZE & SCOPE
The company has the third position in context to its sales and currently, a number of workers
working with them are 8300 approx. and the scope of the company is the upper and middle-
class customers (Salaman and Storey, 2016).
COMPANY’S MISSION
The mission statement of the company is to earn profit with the collective efforts and to
provide the healthy working environment for their workers and employees (Salaman and
Storey, 2016).
COMPANY’S VISION
Company’s vision defines to be the leader in the retail industry.
OBJECTIVES OF COMPANY
The company’s objective includes distributing profit among all the partners and putting extra
efforts for increasing the profit ratio.
LEGAL STRUCTURE OF COMPANY
This company is not cited as the Public company and there are many partners who own this
company (Salaman and Storey, 2016).
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WELLCOME TRUST
COMPANY’S BACKGROUND
The company come under the category of the organization that is voluntary.
SERVICES & PRODUCTS
The company's services include the service for the benefit of society.
SIZE & SCOPE
The number of members working in this company is 2075; this company is also known by the
leader in providing funds for needy persons (Kreutzer and Kloibhofer, 2017). It deals in the
biomedical research industry.
COMPANY’S MISSION
The company wants to make improvements in the health sector with the help of brilliant minds.
COMPANY’S VISION
The company visions at providing the finest results in the health sector for humans along with
animals (Kreutzer and Kloibhofer, 2017).
OBJECTIVES OF COMPANY
The objective of the company is that it wants to serve for the benefits of the environment as
well as humans.
LEGAL STRUCTURE OF COMPANY
The trust's legal structure is that there are many people who share a common interest (Kreutzer
and Kloibhofer, 2017).
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M1 ANALYSIS OF THE HOW ORGANIZATION’S SCOPE, SIZE AND STRUCTURE OF
DIFFERENT ORGANIZATIONS SHARE LINK WITH THE BUSINESS OBJECTIVES
AND VARIOUS PRODUCTS AND SERVICES OFFERED
The organization's goal is connected or related to the structure, size and scope of the
organizations; in many organizations, it has been observed that when they have good
organizational structure they only set their objectives very huge and with that only they try to
focus on attaining success (El-Masri et al., 2015). The targets set in the organization can only be
achieved if the organization has the support of a large number of members and without that,
they will not be able to complete their task. This will happen because of the less number of
people there is no understanding between them. The organization does not have many people
who can provide training to others. Usually, an organization in the business environment set
objectives according to the size of the business, if they have invested a large sum of the amount
their targets will be higher and vice-versa. Still, there is one common goal that every
organization set in their business journey and that is the satisfaction of customers along with
earning profits, but the level of profit organizations have decided for them differ according to
the size of the organizations (El-Masri et al., 2015).
For example, the target of the John Lewis partnership will be higher than that of the other
smaller companies.
Similarly, in case of the scope and structure of the business, objectives of the business
organizations are also set according to their scope that for whom organization wants to serve
either at the national level or at international level (El-Masri et al., 2015). In the same manner,
if the organization's products and services do not need a large number of customers and size
then their structure will be small and vice versa (El-Masri et al., 2015).
Thus in this manner different size, scope and structure of the organization differ from each
other and they create an impact on the decision making.
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LO2
P3 EXPLANATION OF THE RELATIONSHIP OF THE VARIOUS ORGANIZATIONAL
FUNCTIONS AND HOW THEY ARE LINKED WITH THE STRUCTURE AND
OBJECTIVES OF ORGANIZATION
The organizational structure of the John Lewis Partnership shows that different functions in the
organization are interconnected with each other. The power to make decisions is with the head
executive of the company, but other organizational functions are assigned to the other
departmental head. It is also observed that the decision making of the chief executive is
influenced by the different functional areas in the organization. Also when there is a change in
the structure of one department of the organization, the whole organizational structure and
decision making procedure changes with that (Bai et al., 2017).
The various functional departments of the company John Lewis Partnership is interrelated to
the other departments and that interrelationship between them is discussed in this section (Bai
et al., 2017).
The functional interrelationship of the different functions at JLP
Interconnection of the human resource function with the marketing function
There is the strong relationship of the marketing function with that of the Human resource as
an instance when the marketing department wants to plan strategies for the promotion of their
product in a way that is different from its competitors than the marketing department will need
the help of HR for the planning process. Similarly at the peak season when the marketing
department will market their products in the sale or offer they will definitely require the help of
HR person (Bai et al., 2017).
Interconnection of the finance function with that of the marketing function
The finance plays an important role in almost every function and thus they also share a strong
relationship with marketing (Bai et al., 2017). The marketing functional head needs to ensure
whether the finance department has a sufficient amount of finance at the time of the peak
season. If the finances are not sufficient then the decision that marketing head was about to
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take may change. The marketing head of the JLP will not be able to plan promotional strategies
and campaigns.
Thus from the above discussion, this can be concluded that every function in the organization,
that is marketing, finance, Human Resource etc. are connected to each other and the change in
one department or function can affect the whole functioning of the organization. The functional
interrelationship also affects other departments individually and thus leave an impact on the
decision making the process of the chie3f head of the organization (Bai et al., 2017).
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M2 analysis of the disadvantages and disadvantages of different
organizational functions and their interrelationship with each other that can
affect the whole structure of the organization
The advantages and disadvantages of the various organizational structures and their
interconnection with other departments are discussed herein context to the John Lewis.
ADVANTAGES
 The employees work efficiency at the workplace will increase
 The different departments working productivity will also increase at the workplace
 The organization interconnection will also enhance the mind of the departments head
because this will help in creating innovative and creative ideas easily so that people can
interact with themselves (Heider, 2017)
 The organizational profitability can also be increased because the significant information
of the organization is shared sometimes with each other
 In the group of the more employees at the workplace, then the working environment
becomes difficult and the important information of the employees is shared by many
other departments (Heider, 2017)
DISADVANTAGES
 A control among various departments may be lost
 The individuals of the different functional departments may have clashes or conflicts
between them (Heider, 2017)
 The departments in various groups may not be as moral as others and they could use
the wrong information gathered from another department in an immoral manner
 Interconnection of the different departments may also lead to the development of the
competitive environment in the organization and this may not be good for the success
of the company, rather it may become an obstacle in the growth of the organization
(Heider, 2017)
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