Business environment can be described as al internal and external factors which impacts on operational activities of an organisation. It is essential to observe, analyse and evaluate changes or modifications into these elements to take an appropriate action so that threats can be reduced to maintain productivity as well as profitability of an enterprise. There are different kinds of companies like private, public and voluntary which are considered as profit, non- profits and non- governmental (Welter and Smallbone, 2011). Various firm has their own structures and functions along with unique targets or goals for which they build effective plans to execute. This assignment will discuss about all factors to be analysed for running a business properly. Several differences between small, medium and large enterprises along with positive and negative impacts macro environment on business operations are given below. PESTEL and SWOT analysis are carried out by companies to reduce threats and improve benefits of opportunities.
P1 Different types of organisations with purpose and supply of goods
There are different types of organisations which are running in in current scenario of market and put efforts to achieve their desired goals or targets. It includes several types of companies such as private, public and voluntary having their own aims or objectives. They have different types of strategies or policies to carrying out their various activities or procedures to gain desirable outcomes.
Profit organisation :- This can be described as various types of private companies which are owned and run by single individuals or partners to get profits from sales of products or services. These firms are responsible for contributing precious amount to annual income of country and provide number employment opportunities to citizens (Elliot, 2011).
Business Purpose and supply of goods :- Mark & Spencer is private company which deals in selling of clothing, home products and luxury food products at global level. They have business of retailing having an aim to become world's leading volume retailer with global brand and recognition. Supply chain management of this company is based on policy of buying and dealing directly with suppliers through establishing partnership spans the whole supply-chain involving producers and raw material providers.
Not for profit organisation :- It state that all public organisations which owned and run by legal authorities to render goods or services for welfare of citizens living in country. Various types of organisations which are organised and carried out by legal authorities to render service for completing necessary needs, wants and demands of common people of nation (Cotter and Fritzsche, 2014).
Business Purpose and supply of goods :- Public sector includes National Institute and Care Excellence (NICE) and its main objective or purpose is to boost up social health care of citizens and prevent infections of several diseases like cardiovascular etc. Supply of goods or services in NICE is done in advance as it is case of health care sop that they can render appropriate medication to people in emergency cases to save patients.
Non-governmental organisation :- This can be defined as those enterprises which includes in voluntary sector and do charity functions to improve standard if living of country. These are owned by individuals or voluntary team to conduct several events or programmes to collect funds for implementing that into charity homes for providing essential goods or services to needy people.
Business Purpose and supply of goods :- Welcome Trust is kind of organisation which can includes in voluntary sector as it deals in charity. There are various kinds of small and medium charity homes are running like old age homes etc. They carried out several functions to collect funds from willing people for welfare of poor individuals and provide appropriate goods or services to needy persons.
The above mentioned organisations are belongs to different sectors with their aims and supply chain management to complete targets or objectives.
P2 Size and scope of the organisations
There are different types of enterprises such as micro, small, medium-size and large which has their own objectives, strategies, rules, market share, growth, profits, sales and many more (Zott, Amit and Massa, 2011). These various firms are differentiated as per their size and scope of benefits in order to grab opportunities and reduce threats to gain better productivity as well as profitability.
Micro enterprises :- This refers to kind of small firms which are usually observed in neighbourhood such as ice cream parlour or cafe which has minimal employees as well as capital such enterprises generally operates with less than 10 staff members and creates value to economy with improving income and decreasing manufacturing cost.
Market share and Profit Share :- Micro firms involves bakeries or ice cream parlours which has very low market share as they do business for survival. These enterprises have limited profit share as per their small investment (Hair, 2015).
Growth and Sustainability :- Growth opportunities for micro levelled firms is negligible ans sustainability is very low.
Small enterprises :- This kind of companies are usually employs small number of workers and does not have high volume of sales. These enterprises are generally operetta independently having limited size and scope as per revenue depends of firm. Small firms also differentiated in respect of size, revenues and regulatory authorization.
Market share and Profit Share :- The term market and profits share described as profitability and goodwill of organisation. Small firms invested up to 25 lacs to operate their business and gain profits as per that investment to survive in market.
Growth and Sustainability :- Small firms have very less opportunities to grab and attain growth of business. Such firms includes day care, orphanages, retirement homes are heavily regulated, restaurants, law firms, inns, dry cleaners, engineering and architectural firms.
Medium-Size enterprises :- This types of companies have 250 or more number of staff members to emerge from slow and steady growth of successful business. Medium sized enterprises invest more than 25 lacs but less then 5 corers.
Market share and Profit Share :- Medium firms have more opportunities than small ones as they can improve their productivity as well as profitability by beneficial chances of changing trends of market (Low, Chen and Wu, 2011).
Growth and Sustainability :- Medium enterprises can sustain their position by maintaining their sales or profits of company and grab more opportunities to attain growth of business.
Large enterprises :- The term large enterprises refers to those businesses which deals at national and global level having different branches at various places and huge number of staff members to manage regular activities of to achieve desired targets and objectives. In includes Mark & Spencer, Tesco, Tesla and many more.
Market share and Profit Share :- They invests above 2 corers to 5 corers and have very profitable market share with an effective as well as efficient brand image in front of competitors to attain better profits.
Growth and Sustainability :- Large firms have several opportunities to improve their productivity to increase business for achieving growth.
P3 Organisation structures and functions
There are different types of organisations with their own differentiated structure and functions. Public, private and voluntary sector have dissimilar structure and functions as per their required strategies to conduct operational activities or procedures (Van Vuuren, Roberts-Lombard and Van Tonder, 2012). Public enterprises have aim to render goods or services at minimum price to people which is affordable by common citizen. Private firms provide products for achieving their targets of profit by increasing sales or customers. Voluntary organisations usually renders services for free of cost because it includes charity homes.
Various kinds of multi national companies are running in present scenario of changing trends of market to gain their setted targets or objectives. International organisations generally have large and complex structures which are quite time consuming and difficult to understand for single individual. There are various kinds of departments such as human resource, finance, Information technology, sales & distribution and many more. Marketing techniques are essential to be conducted in appropriate manner so that it impacts positively on productivity of company through grabbing more number of customers.
Different types of factors included in internal and external business environment which effects the operational activities of company (Reeves, Love and Tillmanns, 2012). Stake holders, employees, owners, suppliers, competitors and customers are such people who affects the decision making for building an accurate strategies or policies to carrying out tasks or procedures in effective manner. This will renders support to improve productivity as well as profitability of an enterprise. Every aspect is relevant to these people as they plays an important role in running particular business successfully.
P4 Pestle analysis of UK retail industry
There are different business factors that has their direct and indirect impact on the functions of an organization. Some of them are present within the enterprise boundary and other remaining are there in the external environment. It is important that auditing of both are done on time so that accordingly corrective actions are taken on time which further helps in reducing the overall risk that may take in future. Retail sector of UK is highly effected by the macro factors and they can be identified using Pestle analysis which is done in the following report:
Political – every nation has their own government and accordingly the polices are also different. There are places which offer favorable conditions for the retailers to operate and some are also there who do not allow the retailing business to operate freely. Present political conditions of UK has their great influence on this sector as the supply chain of business gets effected by any change that take place in political sector. There are immense regulation on retailers as they have to take care of the surroundings, laws of employment and many more that restricts the capacity of firm to grow.
Economic factors – Retailers whole business activities are depended upon the flow of supply and to grow it is required that continuity in same is maintained. Due to change in the present economic conditions it becomes difficult for retails to maintain stability in the supply. As UK has a powerful economy retailers are benefited with huge population which helps in experiencing growth on regular basis. Foreign direct investments have also increased which shows that the retail market can develop in a long run. Though it is positively affected by distinct factors there are some elements too which has their negative impact on development of retailers in UK. It is important to maintain the maximum price to a limit that restricts the growth and also in case of less supply of cash in market the purchasing power of customers gets decreased.
Technological factors - There is a continuous change in the present applications which are used by the different retailers in order to compete with one another. Whenever any change take place in the present technology same needs to be adopted in same manner as only than supply in market can be maintained at same competitive level. It has both positive and negative impact as the capacity to produce develop with the improvement in techniques. On the other hand in order to adopt the improved applications the retailers like Marks and Spencer, Tesco etc. needs to invest a high amount in capital which effects the financial capacities of an enterprise. Funds which can be used to grow the product variety has to be invested in other areas hence restricts the innovative developments for retailers.
Social factors – It is a combination of those factors which is different in different countries. Due to change in trends retailers find fluctuations in its total demand. Social factors – It is a combination of those factors which is different in different countries. Due to change in trends retailers find fluctuations in its total demand. There are different element which are includes about the different factors which includes about the growth of population, age distribution, conscientiousness towards the health attitude toward the different types of carries which aids to accomplish demand and desire of customer made by the customer in proper manner. The chain of different supermarket which leads to accomplish different types of demand and desire which is made by organization
Environmental factor : This factor is concerned with the different environmental legislation which is made by organisation by the government in order to ascertain the different environmental factors which are ascertain by the super market chain. The different organisation needs to follow rules and regulation which passed by organisation in proper manner.
Legal environment factor: organization needs to accomplish all legal legislation which is implemented by organization in proper manner. In order to proper running of business.
P5 Internal and External analysis of Supermarket chain
It is very essential for the organisation to determine then different types of strength and weaknesses of the supermarket chain. There are different types of strength and weaknesses of organisation in proper manner. SWOT analysis is perform by these super market chain the super market chain
- Strength: the supermarket chain is having different strength due to implementation of different types of activities of organisation in proper manner. They shops of highly recognised in market due to large number of customer attracted in the marketplace. As there are different shops are having strong brand images. There are different variety of products which are ascertain by the different types of organisation in order to increase the sales of different products (Low, Chen and Wu, 2011).
- Weaknesses: Since the nothing is perfect to super marketplace is also having drawbacks. One of them is that market which needs to consider it about the different factors which are being out of trends or non trendy. But it is normally believed that they are keeping different types of clothes and different products which are ascertain by different marketplace. They are also not updated in case of technologies which are ascertain by organisation in order to maintain by different organisation in proper manner. They are also not update in case of technologies and that is why they are investing more amount of recruiting more no. of employee.
- Opportunities: Supermarket are the group of shops which create opportunities to recruit various employee in order to perform different functions of organisation in proper manner. There are different types of strategies which are ascertain by the organisation in order to create various function and operations of organisation in proper manner.
- Threats: As companies also have the different rivals present in the marketplace. This leads to accomplish different types of strategies which are ascertain by the organisation. So these organisation aids to accomplish different types of strategies which are ascertain by organisation to compete the different rivals present in the marketplace.
P6 Interrelation of Strength and weakness with external Macro factors
There are some strength and weakness of these companies which provide different types of services to the different customer in order to generate large number of revenues of the organization in proper manner. External factors are impact the growth and economic condition on the different company. As they are generating large number of revenues of organization in proper manner. These company are facing different types of hurdles in order to expand its business in proper manner. Company is concerned with the different factors which are ascertain by the organization in proper manner they implement an effective plan in order to perform various activities of in proper manner. They needs to adopt different types of strategies in order to accomplish different types of functions in proper manner. Brand equity of the such super marketplace is very effective. They are considered as one of leading brand in the different sector which is companies are providing different types of organization in proper manner. By implementing different types of strategies and making change in the policies company can accomplish different types of functions of organization in proper manner. There are different types of external factors which are aids to enhance the growth of the economy of organization in proper manner. Organization implement different types of strategies in order to determine the demand and desire of organization. Due to implementation of weak logistic is the main weaknesses of the these supermarket chain the management needs to determine these weakness and they aids to ascertain different types of strategies which are used by the organization in proper manner. They needs to accomplish different types of demand and desire made by the . As these company operating in different nations so they organization needs to accomplish various types of strategies which are ascertain by the organization in proper manner. They implement effective pricing strategy in order to accomplish in order to attract large number of customer in proper manner. These needs acquire various strategies which aids to maximize the level of profit of companies in proper manner. They need to accomplish demand and desire made by different customer in proper manner. These strategies which aids to perform various strategies in order to accomplish different functions and operations in stipulated manner. There are different types of strategies which are ascertain in proper manner. It aids to accomplish goals and objectives of or in effective manner. They provide different types of strategies in order to provide different functions organization in proper manner. These functions and operations are performed by organization in proper manner. It aids to accomplish demand and desire made by the company in proper manner (Reeves, Love and Tillmanns, 2012.).
The above essay had concluded that it is essential to observe, analyse and evaluate changes or modifications into these elements to take an appropriate action so that threats can be reduced to maintain productivity as well as profitability of an enterprise. There are different types of organisations which are running in in current scenario of market and put efforts to achieve their desired goals or targets. There are different types of enterprises such as micro, small, medium-size and large which has their own objectives, strategies, rules, market share, growth, profits, sales and many more. Public, private and voluntary sector have dissimilar structure and functions as per their required strategies to conduct operational activities or procedures. SWOT and PESTEL is conducted by companies to determine threats and opportunities to sort out them by taking appropriate actions.
- Cotter, R. V. and Fritzsche, D. J., 2014. The business policy game. Developments in Business Simulation and Experiential Learning. 21.
- Elliot, S., 2011. Transdisciplinary perspectives on environmental sustainability: a resource base and framework for IT-enabled business transformation. Mis quarterly.35(1). pp.197-236.
- Hair, J. F., 2015.Essentials of business research methods. ME Sharpe.
- Low, C., Chen, Y. and Wu, M., 2011. Understanding the determinants of cloud computing adoption. Industrial management & data system.111(7). pp.1006-1023.
- Reeves, M., Love, C. and Tillmanns, P., 2012. Your strategy needs a strategy. Harvard Business Review. 90(9). pp.76-83.
- 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.
- Welter, F. and Smallbone, D., 2011. Institutional perspectives on entrepreneurial behavior in challenging environments. Journal of Small Business Management. 49(1). pp.107-125.
- Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future research. Journal of management.37(4). pp.1019-1042.