RGT: Unit 1 - Business & Business Environment Report

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UNIT 1 - BUSINESS & BUSINESS
ENVIRONMENT (RGT)
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Table of Contents
TABLE OF FIGURES.......................................................................................................................................3
INTRODUCTION...........................................................................................................................................4
TASK 1- LO1 & LO2.......................................................................................................................................5
EXPLAINING THE DIFFERENT TYPES OF ORGANISATIONS........................................................................6
EXPLANATION OF EACH OF THE ORGANIZATIONS CHOSEN IN THIS REPORT..........................................8
JOHN LEWIS PARTNERSHIP......................................................................................................................8
SAINSBURY’S............................................................................................................................................9
WELLCOME TRUST.................................................................................................................................10
DISCUSSING THE GROWTH OF INTERNATIONAL BUSINESS ENVIRONMENT..........................................11
FUNCTIONS OF JOHN LEWIS PARTNERSHIP WITH ORGANISATIONAL CHART.......................................12
EXPLAINING HOW THESE FUNCTIONS OF ORGANIZATIONAL STRUCTURE ARE INTERRELATED TO EACH
OTHER....................................................................................................................................................14
ANALYZING THE ADVANTAGES AND DISADVANTAGES OF DIFFERENT INTERRELATIONSHIPS OF THE
ORGANIZATIONS AND THE IMPACT THEY HAVE ON THE ORGANIZATIONAL STRUCTURE.....................16
TASK 2 LO3 & LO4......................................................................................................................................17
INTRODUCTION.....................................................................................................................................17
BODY.....................................................................................................................................................17
USING PESTLE ANALYSIS OF THE JOHN LEWIS PARTNERSHIP AND EVALUATING THE VARIOUS MACRO
ENVIRONMENTAL FACTORS BY HIGHLIGHTING THE POSITIVE AND NEGATIVE IMPACTS......................17
APPLYING SWOT ANALYSIS TO JOHN LEWIS PARTNERSHIP FOR IDENTIFYING THE RELATIONSHIP
BETWEEN STRENGTHS AND WEAKNESSES............................................................................................20
EXPLAINING THE INTERRELATIONSHIP OF THE ABOVE FACTORS WITH THE MACRO ENVIRONMENTAL
FACTORS OF THE BUSINESS ENVIRONMENT.........................................................................................21
COMPARING THE STRENGTHS AND WEAKNESSES OF THE JOHN LEWIS WITH THE SIMILAR
ORGANIZATION (ASOS)..........................................................................................................................22
PRESENTING THE CRITICAL REFLECTION OF THE KEY FINDINGS AND EXPLAINING HOW THEY
INFLUENCE THE DECISION MAKING.......................................................................................................23
CONCLUSION.............................................................................................................................................24
REFERENCES..............................................................................................................................................25
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TABLE OF FIGURES
FIGURE 1: JOHN LEWIS PARTNERSHIP LOGO...............................................................................................5
Figure 2: TYPES OF BUSINESS ORGANISATIONS...........................................................................................6
FIGURE 3: INTERNATIONAL BUSINESS DEVELOPMENT GENERAL FRAMEWORK.......................................11
Figure 4: ORGANISATIONAL STRUCTURE WITH THEIR FUNCTIONS...........................................................12
Figure 5: JOHN LEWIS PARTNERSHIP FUNCTIONS INTERRELATION...........................................................14
Figure 6: PESTLE STRUCTURE.....................................................................................................................18
FIGURE 7: INTERRELATIONSHIP BETWEEN SWOT AND MACRO ENVIRONMENTAL FACTORS...................21
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INTRODUCTION
The business environment is the summation of the different internal and external factors that
will have an impact on business activities. The business environment factors may include the
customers, suppliers, technology, trends of market, owner's response etc. these factors directly
or indirectly affect the business in many ways. In this assignment, various factors and their
impact on business will be deliberated. Different types of organizations will be chosen in this
assignment to have the detailed study of the business environment and later on, the
organization's information will be discussed such as size, profitability, brand image, scope,
structure etc. The deep understanding of the business environment will help the organization
to develop and grow to achieve their aims and objectives.
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TASK 1- LO1 & LO2
INTRODUCTION
In this section of the assignment, the focus will be on the different types of organizations with
reference to the John Lewis partnership (Storey and Salaman, 2017). It will also provide the
explanation of the chosen organizations with details and at last, the functions of one of the
organizations will be explained by showing the organizational chart with analysis of advantages
and disadvantages of the organization.
BODY
The company John Lewis Partnership is based on the employee, the owner of the company is
its employees (Storey and Salaman, 2017). The company is involved in the departmental stores,
banking and financial services and other retail store activities.
FIGURE 1: JOHN LEWIS PARTNERSHIP LOGO
[Source: Storey and Salaman, 2017]
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EXPLAINING THE DIFFERENT TYPES OF ORGANISATIONS
There are various types of' business organizations that are discussed hereunder:
Figure 2: TYPES OF BUSINESS ORGANISATIONS
[Source: Jansen, 2017]
Public Sector:
The public sector organizations are those bodies which are controlled and owned by the
government (Jansen, 2017). The main motive of the public sector organizations id to serve their
citizens, they generally do not work for only profit making.
For Example:
Sainsbury’s is the company which is owned by the public sector and it deals in the activities
which help to serve the citizens. It does not focus more on profit maximization.
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Private Sector:
The private sector is the organizations that are owned by individuals who run in the country's
economy (Jansen, 2017). The aim of the private sector is to maximize their profit.
For Example:
John Lewis Partnerships the private sector company which has the intention of increasing the
profitability of the organization
Non –Governmental Organizations:
The non-government organization is the department which is concerned for the public welfare.
This organization is not for the profit motive (Jansen, 2017). Many people having the same
interest come together and form the group and perform many activities for safety and
protection of the humans and the environment.
For Example, Wellcome Trust is the voluntary sector organization which works for the welfare
of the citizens.
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EXPLANATION OF EACH OF THE ORGANIZATIONS CHOSEN IN THIS REPORT
JOHN LEWIS PARTNERSHIP
Background
John Lewis Partnership is a private company, which falls under the retail industry (Storey and
Salaman, 2017). The company was founded by John Spedan Lewis and it has its Headquarters in
London, UK.
Products and services
The company’s products include clothing, audiovisual, cosmetics, photography, housewares etc.
Scope and size
This Company has approx. 83000 numbers of employees. John Lewis Partnership is known to be
the third largest private companies of UK. The company's scope is usually the middle and
upper-class people.
Mission
John Lewis is the company which provides a healthy environment to work, all the partners work
together to achieve success with higher profitability ratio (Storey and Salaman, 2017).
Vision
The vision statement of the company is to be the largest private limited retail industry.
Objectives
The objectives of the company are to maximize the profit by doing many business activities so
as to share that profit between all the partners of the organization.
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Key stakeholders
The key person in the company is Sir Charlie Mayfield.
Legal structure
The John Lewis Partnership is not quoted publically. This is the partnership private company
fully owned by the partners, there are also 25 other limited companies with John Lewis.
SAINSBURY’S
Background
This is the public limited company which works for the welfare of the society. The company was founded
in 1869 by John James Sainsbury (Sorrentino et al., 2018).
Products and services
The products of the company include a supermarket, forecourt shop, hypermarket etc.
Scope and size
There are 186,900 employees working in the company and this company is the large size organization
type (Sorrentino et al., 2018). The company can grow in the retail market as there are intense
competition and opportunities to grow and expand.
Mission
The mission of the company includes the health and safety of the community and environment by
providing the best quality products to gain the trust of the people.
Vision
The vision of the company is to gain the trust of the customers so that the persons will adore to shop
and work (Sorrentino et al., 2018).
Objectives
The objective of the company is to be the most trustworthy companies in the UK.
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Key stakeholders
The key persons of the company include David Tyler and Mike Coupe (Sorrentino et al., 2018).
Legal Structure
The company is quoted publically. This is a public company and does not own by the private persons.
WELLCOME TRUST
Background
Wellcome trust IS the voluntary organization that was founded in 1936 by Sir Henry Wellcome. Its
Headquarters is in London UK (Farrar and Davies, 2016).
Products and services
It serves to the welfare of the society and the area that it serves is an overseas and united kingdom (.
Scope and size
The trust is the biomedical research industry which has 2075 employees working with it and it is known
as the largest fund providing company of UK (Farrar and Davies, 2016).
Mission
The mission of the company is to use the sharpest minds for attaining astonishing improvements in
health.
Vision
The vision statement of the trust is to provide the best possible results in the health sector of the
humans as well as animals (Farrar and Davies, 2016).
Objectives
The main objective of the trust is to serve the citizens as well as to the environment.
Key stakeholders
The key persons of the organization are Baroness Eliza Manningham-Buller, Dr Jeremy Farra (Farrar and
Davies, 2016).
Legal structure
The trust is made for the welfare of society. The Trust comprises many people with same interest.
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DISCUSSING THE GROWTH OF INTERNATIONAL BUSINESS ENVIRONMENT
The international business environmental factors are largely affected by the external and
internal environment. The cultural variances are and social trends of the different regions have
an impact on the international market (Hamilton and Webster, 2018). But due to the increase in
the interests and change in taste & preferences of the customers the international market is
growing at a very faster rate (Hamilton and Webster, 2018).
The motives for the growth of the international market are the rising competitiveness among
the different companies. As there are opportunities to grow, many companies are formulating
strategies to expand and grow in the international market to increase their brand image, to
attract more customers and to gain the higher profitability margins (Hamilton and Webster, 2018).
FIGURE 3: INTERNATIONAL BUSINESS DEVELOPMENT GENERAL FRAMEWORK
[Source: Hamilton and Webster, 2018]
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