Business and the Business Environment: UK-Based Organizations

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Business and the Business Environment on UK based organizations
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Index
Introduction....................................................................................................................................4
LO1 Explain the different types, size and scope of organizations.............................................4
P1 Explain different types and purposes of organizations; public, private and voluntary sectors
and legal structures......................................................................................................................4
P2 Explain the size and scope of a range of different types of organizations.............................6
M1 Analyze how the structure, size and scope of different organizations link to the business
objectives and product and services offered by the organization................................................6
LO2 Demonstrate the interrelationship of the various functions within an organization and
how they link to organizational structure...................................................................................7
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure.......................................................................................7
M2 Analyze the advantages and disadvantages of interrelationships between organizational
functions and the impact that can have upon organizational structure........................................9
D1 Provide a critical analysis of the complexities of different types of business structures
and the interrelationships of the different organizational functions......................................10
LO3 Use contemporary examples to demonstrate both the positive and negative
influence/impact the macro environment has on business operations....................................10
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples..............................................................................10
M3 Apply appropriately the PESTLE model to support a detailed analysis of the macro
environment within an organization..........................................................................................10
LO4. Determine the internal strengths and weaknesses of specific businesses and explain
their interrelationship with external macro factors.................................................................13
P5 Conduct internal and external analysis of specific organizations in order to identify
strengths and weaknesses..........................................................................................................13
P6 Explain how strengths and weaknesses interrelate with external macro factors..................13
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M4 Apply appropriately SWOT/TOWS analysis and justify how they influence decision-
making.......................................................................................................................................14
D2.Critically evaluates the impacts that both macro and micro factors have upon business
objectives and decision-making..................................................................................................15
Conclusion....................................................................................................................................16
References.....................................................................................................................................17
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Introduction
The assignment has shed light on the projection of business and business environment that is
based on the three types of organizations that belongs to United Kingdom. The assignment will
be differentiated into two different parts that presents a scenario based on the three types of
business environment. The first part of the assignment has come up with a revelation based on
the demonstration of three organizations in UK about their types, sizes and scopes. In case of
first part of the assignment there will be an explanation based on the different organization’s
objectives and their products and services. It will encapsulate about the functional area and
organizational structure and their collaboration of the three organizations. The other part of the
assignment will reflect the external business environment with the help of appropriate tools that
will help to depict the positive and negative influence of the organizational functions in business
operations.
LO1 Explain the different types, size and scope of organizations
P1 Explain different types and purposes of organizations; public, private and voluntary
sectors and legal structures
There is a propagation of British Broadcasting Corporation (BBC), which is a British public
service broadcaster and it’s headquarter is located in United Kingdom. This organization is
considered as on the oldest broadcasting organization that comes up authenticated news in term
of marinating business ethics (BBC News, 2019).
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Figure 1: BBC’s Logo
(Source: BBC News, 2019)
The National Trust belongs to the projection of voluntary and legal structure of organization
based in United Kingdom. This organization comes up with an intention to provide with cultural
heritage based on the theme of geographic locations. It deals with other charitable organizations
(mailout, 2019).
Figure 2: The National Trust’s Logo
(Source: mailout, 2019)
John Lewis Partnership belongs to the projection of retailing organization that can be count
under the type of private organization situated in United Kingdom. This organization comes with
an intention that serves with good clothing material, watches and jewelries (John Lewis &
Partners, 2019).
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Figure 3: John Lewis Partnership’s Logo
(Source: John Lewis & Partners, 2019)
P2 Explain the size and scope of a range of different types of organizations
BBC runs nationally with a revenue £4.954 that counts under the operating income of £39.3
million. On the other hand, the organization deals with the scope that generates news through the
means of television, radio and online media. The organization serves 20,916 employees
(Woollard and Moody, 2019).
The National Trust comes up with the reflection that center round the memberships of 5.6
million and it has the prowler of Board of Trustee. This organization serves around 12,000 staffs
that work generously for this trust and there are 61,000 volunteers (Sarwar et al.,2017).
John Lewis Partnership comes up with a reflection that center rounds the theme of private
organization and moreover, it deals with the propagation of revenue around £10.2 billion. The
organization has the net income with £172 million and this serves 83,000 employees (Widya et
al., 2018).
M1 Analyze how the structure, size and scope of different organizations link to the business
objectives and product and services offered by the organization
The collaboration between the three organizations has revealed a major differentiation, which
can be comprehended with a first of type. From the above discussion, it can be stated that BBC
belongs to the type of public service organization, whereas The National Trust belongs to
voluntary and legal structure type organization and John Lewis Partnership is a type of private
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organization. The three organizations also vary differently in terms of size and scope of the
business. In case of size, BBC serves least numbers of employees that affect the organization n to
gain in operating income of £39.3 million, whereas The National Trust and John Lewis
Partnership have more numbers of employees 12,000 staffs with 61,000 volunteers and 83,000
employees respectively that helps to spread the organization in the global market (Turnbull,
2016).
LO2 Demonstrate the interrelationship of the various functions within an organization and
how they link to organizational structure
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure.
Figure 4: BBC’s Organizational Structure
(Source: Hierarchy Structure, 2019)
BBC tries to incorporate the organizational structure under the specification of BBC trust,
Executive Board, Executive Team and Management Bard. The collaboration of BBC’s
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organizational structure helps BBC to come with objectives based on authenticated news
reporting to the audiences (GHITH, 2018).
Figure 5: The National Trust’s Organizational Structure
(Source: Kwon et al., 2016)
The National Trust runs with the help of Board of Trustee, which is directly looked after under
the supervision of director general. The organization other staffs have been divided under the
two organizational structure, which is executive and no- executive. This helps the organization
to full organization’s concerned objectives (Thomson and Brain, 2017).
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Figure 6: John Lewis Partnership’s Organizational Structure
(Source: John Lewis & Partners, 2019)
John Lewis Partnership runs with the help of organizational structure that paves attention and
concerned for employees, who ultimately help the organization to gain profitable results and
sustainability in the market. Collaboration of good understanding helps this organization to
come up with better business strategies (Dickson et al., 2018).
M2 Analyze the advantages and disadvantages of interrelationships between organizational
functions and the impact that can have upon organizational structure
There is collaboration of both merit and demerit backed by an involvement of organizational
functions that affects the organizational structures of the business. Merits of organizational
functions that will help to enhance the level of organizational structure can be comprehended
with the help of specialization of departments as per the purpose (Kwon et al., 2016).
Organizational functions put a positive impact upon the organizational structure that helps the
business to gain results based on high level of performances via productivity. On the other hand,
it comes up demerits that portray the negative impact upon the organizational structure that
creates hurdles in aligning the business priorities. The negative impact by organizational function
can be comprehended with inclusion of mixture of co-operation related to decision making
(Brown et al., 2015).
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D1 Provide a critical analysis of the complexities of different types of business structures
and the interrelationships of the different organizational functions
In case of public sector for example, BBC have a positive impact of organizational function upon
the formation of organizational structures. In case of BBC, public organization, it has helped to
business to come up with authenticated news reporting. Thus, it can be stated that BBC has
gained positivity backed by the power of organizational functional over organizational structure
that focuses on the liberty of news collection (Bitektine and Haack, 2015). On the other hand,
The National Trust has gained enhancing power backed by the implementation of organizational
functions over structure. In case of John Lewis Partnership has gained positive impact due to the
implication of organizational functions over organizational structure. This organization have
subjected to better productivity backed by the power of organizational functions over structure.
Organizational functions have helped the business to gain sustainability in the global market.
LO3 Use contemporary examples to demonstrate both the positive and negative
influence/impact the macro environment has on business operations
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples
Collaboration of macro environment has put positive impact on both the organizations such as
John Lewis Partnership and The National Trust in various ways. In case of John Lewis
Partnership, involvement of macro environment has helped to portray objectives in terms of
marketing strategies, whereas, The National Trust have gained access to deal with better
partnerships ethics that will help to gain beneficial outcomes and help to spread its market share.
On the contrary, there is an involvement of negativity channelized by macro environment upon
John Lewis Partnership and The National Trust, which can be comprehended in terms of
reliability (Dunlop and Radaelli, 2017).
M3 Apply appropriately the PESTLE model to support a detailed analysis of the macro
environment within an organization
Political Factor Economical Factor
Political factor helps to highlight the scenario
that has reflected with inclusion of corporation
In case of economic factor, it will help to
reflect the beneficial outcomes in The national
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tax rate with a percentage of 19. Political factor
of UK can be comprehended with the help of
foreign direct investment (FDI) that provides
help to the organizations during their crisis
time. Through the implication of corporation of
tax rate provides with beneficial result which
has helped The National Trust (Badewi and
Shehab, 2016).
Trust organization. UK is considered as 5th
largest economic domain which has been
announced by nominal GDP. UK has come up
with importing of goods and products that has
increased the pricing strategies by amount of
£7.83. As per the GDP, UK has planned to set
with 2% inflation rate, which has inversely
helped The national Trust to open its
headquarter in UK (Bitektine and Haack,
2015).
Social Factor Technological Factor
Social factor plays an important role that
portrays significant features in UK, which
influences the business criteria. Social factor
of UK reflects the scenario based on the
population of 65.6 million (Brown et al.,
2015). It has been assumed that by the 2039,
the population rate will be around 74
million, and this put an influence in the
National Trust organization. Thus, it can be
stated that social factor will be helping this
business to generate beneficial purposes for
the society.
Technological factor is an important factor that
usually helps to generate the business with
further development. UK is considered as one
of the strongest country in terms of
technological varsity too. Thus, it can be
stated UK technological background has
helped The National Trust to generate and
facilitate its strategies across the nation (David
et al., 2019).
Environmental Factor Legal Factor
Collaboration of economic events helps the
business in UK to come up with lessening
the ratio of negative impact. UK has been
subjected to vulnerability and faced issues
related to environment based on the
emergence of natural calamities that affect
the business like The National Trust
Legal factor helps to portray the influential
advantage to the business in UK. UK provides
leave related to maternity, holiday packages,
sick leave that helps to enhance the
organizations structure of The National Trust
(Dunlop and Radaelli, 2017).
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(Dickson et al., 2018).
Table 1: PESTEL Analysis of UK that affects The National Trust
(Source: Created by the learner)
Political Factor Economical Factor
In case of John Lewis Partnership, it has
gained help from the government of UK. Due
to the implication of present corporation tax
rate, John Lewis Partnership has gained profit
backed by the profit of 19%. Thus, it can be
stated that political factor has helped the
organization to establish and generate their
business across worldwide. It gains profitable
result via FDI and the government of UK has
planned to raise the corporation tax rate 17%
by 2020 (nibusinessinfo.co.uk. 2019).
Economic factor plays an important role
behind the establishment of the business in
UK. UK has the access that highlights about
the scenario based on largest economic
country. However, as per the decision made
by nominal GDP, UK”s inflation has put focus
on 2% and the rate fluctuates from 0.25% to
0.5%. Thus, it can be stated that low level of
economic factor has helped John Lewis
Partnership to launch it’s headquarter and
enhance across the nation due to low level of
inflation rate.
Social Factor Technological Factor
In case of social factor, this helps the business
based on the number of population. In UK,
there is involvement of 65.6 million that is
assumed to rise by the year 2039 around 74
million. Hence, it can be stated that social
factor in UK helps to influence the business
with positivity. On the other hand, UK is
considered as one of the strongest country in
terms of education and that will help John
Lewis Partnership to generate its business with
profitability.
Technological factor helps to enhance the
business strategies that take place in UK. UK is
a country that has the accessibly based on the
production of advanced technologies due to
which John Lewis Partnership has gained
profitable results in terms of utilization of
products made with the help of advancing
technologies (Thomson and Brain, 2017).
Environmental Factor Legal Factor
UK has faced weather issues that put a Implication of various types of holidays based
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