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University name
Student Name
Business environment
Date
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Table of Contents

LO 1: Explain the different types, size and scope of the organization ................................................... 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 the range of different types of organization ................................. 5
M1: Analyze how the structure, size and scope of different organizations link to the business
objectives and product and services offered by the organziation ....................................................... 5
LO 2: Demonstrate the interrelationship of the various functions within an organization and how
they link to organizational structure ......................................................................................................... 6
P3: Explain the relationship between different organizational functions and how they are linked
to organizational objectives and structure............................................................................................ 6
M2: Analyze the advantages and disadvantages of the interrelationship between organizational
functions and the impact that can have upon organizational structure............................................. 7
LO 3: Use contemporary examples to demonstrate both the positive and negative influence/impact
the macro environment has on business operations................................................................................. 8
P4: Identify the negative and positive impacts the macro environment has upon business
operations, supported by specific examples. ......................................................................................... 8
Political factors...................................................................................................................................... 8
Economic factors................................................................................................................................... 8
Social factors ......................................................................................................................................... 9
Technological factors ............................................................................................................................ 9
Environmental factors........................................................................................................................... 9
Legal factors .......................................................................................................................................... 9
LO 4: Determine the internal strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors ........................................................................................ 10
P5: Conduct internal and external analysis of a specific organization in order to identify
strengths and weaknesses ..................................................................................................................... 10
Strengths ............................................................................................................................................. 10
Weaknesses ........................................................................................................................................ 10
P6: Explain how strengths and weaknesses interrelate with external macro factors ..................... 11
M4: Apply SWOT/TOWS analysis appropriately and justify how they influence decision making
................................................................................................................................................................ 11
Strengths ............................................................................................................................................. 11
Weaknesses ........................................................................................................................................ 11
Opportunities ...................................................................................................................................... 11
Threats ................................................................................................................................................ 12
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References .................................................................................................................................................. 13
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LO 1: Explain the different types, size and scope of the organization

P1: Explain different types and purposes of organizations; public, private and voluntary

sectors and legal structures.

A sole proprietorship is the business owned and operated by a single individual. This is the sole

profit-taking for the business. The partnership is the entity of business for more than one individual

who engages in the business operations following the deeds. The private limited company is the

company with the limited liability and the private shares. The example of this is the Bestway

Company in the UK. The company has 30 members with the main purpose of profit-making. The

public limited company is the business when the ownership membership is also open for the public.

Asda is the PLC. It is the business entity with a profit motive. The company has no upper limit for

a maximum number of persons. There are certain differences between the private and public

limited companies. The minimum members must be two, and the 50 is the maximum members.

The Asda has the minimum seven and no limits on maximum.

The transfer of shares is restricted in case of Bestway, whereas the Asda has share

transferability opportunity as the public company. The issuance of the prospectus is also permitted

in the Asda, unlike Bestway. The limitation of the number of directors is 2 for the Bestway and

the 3 in Asda. The voluntary organization is the joined hands of the group of individuals who are

involved in the agreement for specific purpose attainment. These forms of the organizations are

formed for the development of socio-economic level for rural people etc. The charitable

organizations are the non-profit companies which are the techniques known form of the public

charity. It aims at the goals of the general philanthropy like the educational, charitable and religious

objectives. The government organization is the organization with at least 51% paid-up share equity

owned by the body of government. The example of this form is the NHS. The last one is the
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cooperatives; these are formed by the various individuals with the same mind who operate the

activities of financial form for their personal benefits. Such companies are effective in the process

of marketing for equipment, farm products and the collection of raw materials.

P2: Explain the size and scope of the range of different types of organization

The size and scope of the various organizations differ. The first one is the sole proprietorship. The

Elixir in London is an example of a sole proprietorship with the 1 million capital amount, 20

employees and 2.5 million revenue per annum. The scope of the company includes various

operations. The partnership-based companies in Grapevine in Birmingham with the 40 employees

and 50 million GBP revenue per annum. The company has the scope of adding more partners. The

Bestway group is the example of a private limited company which is the conglomerate in London.

The public limited company example in England is Asda. It has opportunities to expand its

business operations. The business can also expand for investment in the new projects. The

cooperatives in the UK is Cooperative bank. This can also expand the business in a short time

period. Most of the employees are operating here. The number of employees in the cooperative

bank is 4000.

M1: Analyze how the structure, size and scope of different organizations link to the business

objectives and product and services offered by the organziation

Form of Structure Size Scope

organizations

Proprietorship Narrow Small or Big in Size All powers are

entitled to one person

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Partnership Horizontal Depends upon the The expanded level of

level of operations. the scope due to

unlimited liabilities

Company Vertical and Based upon execution Wide scope

Horizontal of the operations and

activities.

LO 2: 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 are

linked to organizational objectives and structure

Organizational structures are based upon the functions of business for the companies as

companies are always making the objectives and organizational structure linked with the role they

are serving for their customers. Associated British Foods Plc. is the company selected for this task.

This company aims at providing nutritious, safe and affordable clothing and food that is the

greatest value for the money. The mission of the business is splitting the business into five key

segments, including retail, agriculture, sugar, grocery and ingredients. These operations are the

key functions of the organization. The organizational structure of the group is decentralized, and

the overriding principles are minimal in the company. The operations of the company are linked

with the structure as the company assign functions to the related parties. This is evident from their

organizational chart as follow,

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Figure 01: Organizational Structure of Associated British Foods Plc.: [Source:(Bah & Fang,

2015) ]

M2: Analyze the advantages and disadvantages of the interrelationship between

organizational functions and the impact that can have upon the organizational structure

The advantages of the interrelationship of the different organizational functions include

cost effectiveness, less human resources inefficient utilization, management of the strategies in-

time and decision making improvement. The HRM and the IT team of Associated British Foods

Plc. Holds hands to end up in a more empowered and app-based system of managing the Food

delivery methods (Craig & Campbell, 2012). The company has also complied with the new

resources management techniques through suggestions for ingredients. The company also has the

effect of the interrelationship on organizational structure. The company does not control and

monitor tightly for all departments without any integration. All departments consider statutory

meetings for final decision making.

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LO 3: Use contemporary examples to demonstrate both the positive and negative

influence/impact the macro environment has on business operations

P4: Identify the negative and positive impacts the macro environment has upon business

operations, supported by specific examples.

The macro-environment of an organization can put negative as well as a positive impact on the

growth and development of the business. Therefore, it is considered as important to focus on the

macro or external environment of the company. In the below discussion, it is discussed how the

PESTLE Analysis of ASDA can be impacted by the macro environment.

Political factors

It focuses on government regulations and government changes which can impact the

business regulations. ASDA has its major operations in the UK and other areas. Therefore, the

government regulations and uncertain political environment of UK impact the sales and business

operations of ASDA in direct way (Klapper, Lewin, & Delgado, 2011). Therefore, it is essential

for a company to understand the changes in the political environment and develop strategies to

deal with them.

Economic factors

The focus of these factors is on monetary aspects such as interest rate and tax rates in the

country. The GPD of the country is also necessary to consider by an organziation to analyse the

price trends in the market. ASDA focuses on the business operations that lead to low cost and high

profit. The situation of the UK economy is not considered as healthy for the firms and can pose a

serious threat to the success of the company. Therefore, it is essential for ASDA to understand the

changes in the economic environment and develop strategies to overcome sudden situations.
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Social factors

It shed light on cultural values and demographics of the target customers. Due to a change

in the technology and globalization, the choices of customers are changing rapidly. ASDSA offers

products to customers which best suit them. People in the country prefer to buy products from the

same place that is a positive aspect for ASDA and leads to higher sales. For this purpose, ASDA

is offering high quality products at low cost because it would help the company to retain customers.

Technological factors

Organizations around the globe are enjoying various benefits of technology because it has

helped companies to improve business functions and to earn double. In every department of

ASDA, the software is implemented to store and analyze the consumers and employee’s data to

make effective decisions (Gupta, 2013).

Environmental factors

These factors are associated with the environment and planet focus. ASDA is spending

highly on the environmental practices and ensure green marketing and green business practices. It

would help the company to attract customers in large number.

Legal factors

Without a legal factor, an organziation would not operate business practices in a country. Legal

factors can include trade laws, Company law and employment law. ASDA makes sure the

implementation of all laws in the company (Bah & Fang, 2015).

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LO 4: Determine the internal strengths and weaknesses of specific businesses and explain

their interrelationship with external macro factors

P5: Conduct internal and external analysis of a specific organization in order to identify

strengths and weaknesses

There are different resources of ASDA which help the company to get a competitive edge in the

market. The employees of ASDA are an important resource for the company because they put their

efforts for the development of the company. Other than this, company capital, intellectual

resources and physical resources are important resources for ASDA. Every department of ASDA

such as marketing, finance, HR and research department is considered as a great source for the

success of the company (Smith, 2016). The external environment of the company is described in

the above discussion that shows how a company should develop strategies according to the

external environment.

Strengths

From the internal and external analysis, it is clear that ASDA is one of the important

supermarkets in the UK that contribute to the economy of the country highly. Company has a green

marketing strategy and company spend highly on the sustainable practices.

Weaknesses

From the internal and external analysis, it can be said that ASDA needs to work on the

training of the employees because it would help the company to achieve business goals. In sum,

the company has high-cost business operations which should be considered as essential to change.
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P6: Explain how strengths and weaknesses interrelate with external macro factors

Every element of the macro environment is interrelated with the strengths and weaknesses of a

business. For example, the uncertain political environment would pose a threat to the strategies of

the company that become weaknesses. In the same way, an effective and clean political

environment would be the strength of the company. The suitable economic and social environment

would positively impact on the success of the business (Bah & Fang, 2015). In the same way,

effective legal elements and environment policies would be strengths for the company because it

helps the company to impact the environment in a positive way.

M4: Apply SWOT/TOWS analysis appropriately and justify how they influence decision

making

Strengths

ASDA has an effective marketing team that attract customers through marketing strategies.

The implementation of software in the finance department helps the company to mitigate data-

related risks. The sales of the company increased by 6% in 2018 due to sustainable practices.

Weaknesses

The cost of business operations is increasing, such as numbers of employees more than need put

a negative impact on the sales of the company. The training of employees is a serious issue for the

company.

Opportunities

ASDA is going to expand in other countries which create many benefits for the company

related to large numbers of customers and higher sales.

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Threats

Government regulations related to environment and sustainability would force ASDA to

spend more on sustainable business practice. It would affect the decisions of ASDA in a negative

way.
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References

Bah, E.-h., & Fang, L. (2015). Impact of the business environment on output and productivity in
Africa. Journal of Development Economics, 114, 159-171.
Craig, T., & Campbell, D. (2012). Organisations and the business environment: Routledge.
Gupta, A. (2013). Environment & PEST analysis: an approach to the external business
environment. International Journal of Modern Social Sciences, 2(1), 34-43.
Klapper, L., Lewin, A., & Delgado, J. M. Q. (2011). The impact of the business environment on
the business creation process Entrepreneurship and Economic Development (pp. 108-123):
Springer.
Smith, B. (2016). Nature and Geography: Tragic Voids within Marketing Textbooks and the
External Business Environment Global Perspectives on Contemporary Marketing
Education (pp. 47-64): IGI Global.