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Business and Business Environment

Militaru Andreea-Maria
Unit 1
Table of Contents
Introduction......................................................................................................................................3
Company Overview.........................................................................................................................3
P1: Explain different types and purposes of organizations (P1, P2):..............................................3
Different types of organizations (D1)..........................................................................................3
For Profit Organization............................................................................................................3
Not-For Profit Organization.....................................................................................................4
Non-Government Organization (NGO)....................................................................................4
Micro Business.........................................................................................................................4
Small-Medium Enterprises (SMEs).........................................................................................4
Business Objectives and Purposes (M1)..................................................................................5
Sole Traders..............................................................................................................................5
Partnership................................................................................................................................5
Private Limited Companies......................................................................................................6
P2: The size and scope of a range of different types of organizations............................................6
P3: The relationship between different organizational functions and how they link to
organizational objectives and structure (M2)..................................................................................7
Functional Bodies within Dyson..................................................................................................7
Marketing.................................................................................................................................7
Finance.....................................................................................................................................8
Human Resource Management................................................................................................8
Operation/Production...............................................................................................................8
Functional Bodies relating to Dyson’s Mission.......................................................................9
Organizational Structure..............................................................................................................9
Types of Organizational Structures..............................................................................................9
Bureaucratic Structure..............................................................................................................9
Post-bureaucratic Structure......................................................................................................9
Matrix Structure.....................................................................................................................10
P4: the positive and negative impacts the macro environment has upon Dyson’s business
operations (D2)..............................................................................................................................10
Environmental and economic factors.........................................................................................10
Digital Revolution......................................................................................................................10
Social Technologies...................................................................................................................10
Cyberspace Security...................................................................................................................11
BRICS Markets..........................................................................................................................11
Transformation Process of Dyson..............................................................................................11
P4: PESTEL analysis of Dyson and the positive and negative impacts of macro-environmental
analysis on the company (P4/M3).................................................................................................11
P5: Conduct internal and external analysis of specific organization’s in order to identify strengths
and weaknesses (P5,M4)...............................................................................................................14
P6: Explain how strengths and weaknesses interrelate with external macro factors (P6).............15
Conclusion.....................................................................................................................................16
References......................................................................................................................................17
Introduction

This report can be considered as thecritical analytic demonstrationof business and business
environment. In this report different types of business structures and the interrelationship of the
different organisational functionshas been discussed broadly. All the business aspects and there
functions has been discussed in context of Dyson.Therefore the PESTLE analysis on Dyson and
SWOT analysis on Dyson and Shelter has been done in this assignment to evaluate the study of
organizational operation.It has been extracted from these analysis that the interrelation of the
factors of micro environment influences decision making of the organization.

Company Overview

Dyson Ltd is one of the leading British manufacturing companies, who produces and sell home
appliances such as heaters, bladeless fans, hand dryers and vacuum cleaners. It was established
in 1978 by James Dyson and has serving over 100 countries worldwide. Dyson had more than
12,000 employees active worldwide.Dyson would move its headquarters to Singapore announced
by them on January 2019 (Kodama, 2017).

P1: Explain different types and purposes of organizations(P1, P2):

Different types of organizations(D1)

For Profit Organization

Profit organizations are generally made for making money in term of achieving profit only.
Worldwide the amount of for profit organization is higher than the others. Therefore, the primary
goals of this for profit organizations are achieving profits by selling their product or services.
Local corner shops, restaurants, supermarkets etc. can be considered as the for profit
organization. The main motifs of these organizations are to make more profit than investments.
The owners of these companies have the authorization of spending their profits according to their
choice. The Private or public organizations can be the for profit company (Komljenovicet
al,2017).
Not-For Profit Organization

The not profit organizations are basically established for serving the community or the society at
large and usual process. Hence, they do not work for earning money or profits. These types of
organizations are used to donate earned money to the company fund for ensuring success of
other objectives of the company. Not for profit organizations also accept donation from others
for running their business. In most of the cases these types of companies do not have to pay taxes
to the government.

Non-Government Organization (NGO)

NGO can be considered as the nonprofit organization that acts and operates independently for
achieving their goals. Being organized on a community, in national and international standards
them also known as civil societies. These types of organizations mostly focus on initializing
social and political goals including the environmental and societal issues or thehumanitarian
causes. NGOS are mostly run with the help of donation or contribution by the private sectors,
celebrities, membership dues or by the governmental donations. The World Bank has divided the
NGOs into two categories one is Operational and another is Advocacy.

Micro Business

A micro business can be considered as a small business organization that includes less than 10
active employees. In most of the cases microbusiness is seen to be functioned as sole
proprietorships and they earn profit of less than $250,000 annually. Although the exact definition
of micro business differs but it can be said micro business is basically a small business that runs
by fewer employees. The operational activity within micro business is similar with other
businesses. These businesses run with a simple motif of growing towards success with proper
operational activities. Because of their less popularity sometimes they struggle in getting proper
human resources and bank loans (Franklin and Marshall, 2019).

Small-Medium Enterprises (SMEs)

Small and medium sized enterprises (SMEs) can be considered as a business that runs with less
than 250 employees and they also maintain revenue and assets below a certain threshold.
Although the small and medium sized companies plays a big role in balancing country’s
economic position. It can be said that the small and medium sized companies employed a vast
number of people that influences innovation. In some of the cases government supportsthese
organizations by providing these companies incentives, favorable tax treatments and also better
access to loans that helps in running business effectively (Libarto, 2020).

Business Objectives and Purposes(M1)

Business objectives can be considered as the pre-determined goal of the organization. Or it can
be stated as a measurable target that includes the process of achieving business success. Setting
the objectives before starting the business operations helps the organization to go for a clear
target with implementation of their further planned actions for achieving success. The main
purpose of setting pre-determined objectives are it motivates the employees and enable the
business in measuring their business. An effective objective setting in business helps in being-
Specific, Realistic, Profitable that result in ensuring stability, growth, efficiency in the working
activities.

Sole Traders

Sole traders define the trade or business owned and operated by a single person. Sole traders
usually run by one or more than one employees and currently became the most common form of
ownership in UK market. The legal requirement of doing a sole trading needs a proper business
accounts and records for Inland Revenue, who is responsible for collecting tax on profits along
with VAT accounts. Legal requirement such as Sale of Goods Act have to be followed by the
sole traders for ensuring the protection of the consumers.

Partnership

Partnership can be defined as compilation of operations and investments by two or more


individuals for running a business and sharing profit or loss together. In term of the legal
requirement it needed dissolution of partnership deed, business partnership agreement, letter of
intent, employment contract, confidentiality agreement, and Supply of Services Agreement, Sale
of Goods Agreement and Website terms of use, Website Privacy Policy etc.
Private Limited Companies

Private limited companies contain minimum 2 shareholder and 2 directors for ensuring the
business activities. These companies provide the opportunity to its shareholders and directors of
operating the business as distinct legal entities. Private limited companies are the most common
UK company incorporation and they can directly established by registering the organization with
company house. For introducing or operating a Private Limited Companies the legal
requirements such as delivering corporation tax to HMRC, managing PAYE and payroll,
providing the quarterly VAT returns for HMRC, submission of the details of annual accounts
and returns to Companies House is necessary.

P2: The size and scope of a range of different types of organizations

Micro enterprises: Micro enterprises are mostlycontaining low employment capital for having
less human resources. Therefore, a micro enterprise also runs with low investment capital and
generates less productivity and revenue than the small or medium sized enterprises. Micro
enterprises mostly can be seen in the developing countries because of their needs and necessities
turn them into forming this kind of businesses.
By running these businesses they became able to experience growth and profitability. This
generates value to their economy byincreasing the scope of growth and opportunities. And they
also achieve the scope of lowering the business costs. Therefore it can be said that the micro
enterprises are quite different than the small, Medium and large enterprises. The differentiation
can be noticed by its structure, employee number and revenue generation along with difficulties
and opportunities.

Small enterprises:Small business enterprises containsmaller number of workers which is less


than 250. Therefore with an average number of employees it can increase sales volume which
results in business enhancement. The major scope within this business is it can work in
partnership and can be owned by a sole proprietorship. Being varied by its size and structure of
revenue it possesses huge chances of development. Small sized organization’s operational
activities are quite similar with the large enterprises and different than the macro enterprises.
Being medium in size they contain an average number of employees which helps them
generating adequate revenue which is less than the large organizations but higher than the micro
businesses (Youet al ,2019).

Medium and large enterprises:medium and large companiesinclude a large number of


employees who working as voluntary memberships. It also can be extended globally. Most of the
large companies include multinational bodies for their business enlargement. Therefore it can be
said by following its structure, size, reach and number of employee it is different and much more
enhanced than the other two types of business micro and small enterprises. Generally they carry
a huge amount of market share which is much higher than the small enterprises. And they also
set a wide goal of gaining profit and success which help them to achieve it. In term of Growth
and sustainability in medium or large scale organizations runs faster than the other two
enterprises. As emerging scope within large scale organizations involvement of multinational
companies working as part of government sectors can be considered. Another scope in this
business is the huge revenue which helps in providing capital revenue for further development of
the organization. For example Dyson is a large enterprise of UK and employed more than 12,000
employees and generating huge revenue by producing innovative products for their customer
worldwide (Mölleret al,2020).

P3: The relationship between different organizational functions and how they link to
organizational objectives and structure(M2)

Functional Bodies within Dyson

Marketing

The marketing bodies of Dyson has been responsible for identifying and satisfying the demand
and needs of the consumers at proper place and time by building a good relationship and by
communicating with their customer and other operational sections of the company. The entire
marketing team of Dyson mostly focused on understanding the customer demand and choices
and they also involve there self in fulfilling them with the help of the organizational product and
services. Therefore marketing can be considered as identifying the company by its customer’s
eyes. One of the major and most significant tasks of the marketing team is to manage and
demonstrate the market mix that includes Product, price, place and promotion for increasing the
growth and revenue of the organization (Bashirand Verma, 2017).

Finance

The Finance department of Dyson is responsible for monitoring the cash flow within the
organization. They also have to maintain proper data of past and present expenditure and profit
of the organization. The accounts department of Dyson involve themselves in controling and
monitoring the investments of the company and they also need to compile them with various
legal obligations and requirements. Therefore the finance department is responsible in managing
entire investment, profit and revenue records of the organization. The process of data keeping
also includes the financial records of transactions and earnings. They are also authorized for
managing payroll administration; preparing financial statements, and also for preparing
management accounting information and analysis for guiding the operational manages on their
future plan and activities.

Human Resource Management

Dyson’s Human Resource management team works effectively for ensuring required human
capital and their development. They are responsible for recruiting suitable candidate for their
organization’s vacant position. They also carry out the employee development for ensuring their
engagement within the workplace and productivity. Hence the department focuses on identifying
suitable candidate and their development process for increasing the productivity and revenue of
the company (Gaganiset al,2019).

Operation/Production

Operation or production department of the organization plays a vital role and interlinked with the
other departments within the organization. The operational department of Dyson authorized for
observing the entire process of product development and production. The department indulge
them self in planning, scheduling ,controlling and supervising the workforce for managing the
product quality and timeline they also look forward the transportations system for ensuring
timely product delivery in the outlets.
Functional Bodies relating to Dyson’s Mission

For achieving organizational goals and fulfilling the requirements of the organization the
functional bodies of Dyson works collaboratively with the other departments. The main Moto of
this department is in affordable price delivering the quality product towards the potential
customers. Being a home appliances brand Dyson always focus on safety guidelines for the
consumers that results in satisfaction and positive feedbacks. The department works co-operating
the other department for ensuring company’s growth and success in the developing market.

Organizational Structure

Types of Organizational Structures

Bureaucratic Structure

The Bureaucratic structure can be defined as the most suitable onefor the large business
organization who conducts complex operations mostly. Therefore Bureaucratic structure helps in
ensuring a smooth administration of those complex operations. This structure mostly includes
standard procedure and process for ensuring a simple workflow. The bureaucratic structure
significantly and skillfully takes over a certain level of standardization, which is mostly
noticeable in the large scale organization that runs with large number of employees. The large
industries like Unilever, Coca-cola are the perfect example of following this particular structure
(Elingand Schaper, 2017).

Post-bureaucratic Structure

Post-bureaucratic organizational structures are generally contained several procedures and


standards. For applying the structure the company need a central command that established by
many board members where the decision has been developed and selected by a democratic
process. The companies who mostly value their employees try to implement this structure within
their workplace for enhancing employee engagement and encouragement and participation.
Matrix Structure

The matrix structure is mostly followed by the project based organizations. The Matrix structure
can be defined as a hybrid of projected and functional organizational structure. This structure
includes the management team and the employees both flexibly, where a employee can perform
and work on a project but the person is from functional group. There are three types of matrix
structure can be noticed Strong Matrix Structure, Balanced Matrix Structure and Weak Matrix
Structure. In this structure the project manager has less authority and the allocation of this
structure can be done by noting the products and functions(Čepelet al,2018).

P4: the positive and negative impacts the macro environment has upon Dyson’s business
operations (D2)

Environmental and economic factors


By noticing the climate change in the environment, Dyson started developing their products for
making it ecofriendly by consuming low energies and also offering durability of the products to
their customers. It also increases their demands in the environment conscious countries which
results in profitability and growth of the organization (Yangand Gabrielsson, 2017).

Digital Revolution

In this globalized market every business try to develop themselves digitally. Therefore the
company Dyson also introduced there digital marketing website and experiencing a huge growth
in sale worldwide. That results in huge profitability and revenue generation of the organization.

Social Technologies

Brand new social technologies are highly impacting the business organizations. In term to
survive in this emerging market Dyson is also using social technologies for getting popularity
and brand endorsement. With the help of social technologies Dyson became able to involve
market mix in their selling strategies effectively. Social technologies help the organization in
promoting and gathering feedbacks about their produced materials (Likokoand Kini, 2017).
Cyberspace Security

On Inditex committee meeting held on 11th June and 10th December the company itself signed on
the annual report related to Cyber security and information. The company also raised concern on
their future security. In term of discussing macro environmental affect Cyber security breaking
can be considered as a vital threat towards the organization.

BRICS Markets

Most of the home appliance companies are trying to get into the mass market of the BRIC
countries (Brazil, Russia, India, China). The BRIC country includes 40% of the world’s
population and more than 25% of landscapes of the earth. Therefore Dyson’s entrance in this
market makes them more profitable and achievable (Sivarajahet al,2020).

Transformation Process of Dyson

Dyson has gone through several processes of transformations for conducting operational
business along with maintains customer services. Generating curiosity about their recently
lunched products made them more popular and demanding in this competitive market. Therefore
this particular strategy helps them in stepping forward in this emerging market.

P4:PESTEL analysis of Dyson and the positive and negative impacts of macro-
environmental analysis on the company (P4/M3)
PESTEL is mainly a framework based on which the marketers analyses as well as supervise the
macro environment or the external environmental factors that impact the organisation in both
positive as well as in negative ways. The PESTEL analysis of the company Dyson is as follow –
P (political) – The political factors does not holds a strong negative impact on the company
Dyson. As well as the political factor of the other countries does not hold any influential negative
issue for this company. But nowadays, considering the present pandemic situation the political
factors creating a negative impact on the sales policy of the company as well as in the logistic
chain management and last but not the least it has also reflected a negative impact on the
production of the cost of the items that are manufactured or sold by the company. Due to
increasing status in the health crisis the total GDP is decreasing in the global market. Hence, the
sellers are increasing the price range whereas the value or the demand of the product is
decreasing. On the other hand the business depending the import and export of the company is
totally banned due to the pandemic situation. Therefore, there is a downfall of the business for
the company Dyson, as the result of the pandemic situation. The Brexit situation has cause
negative impact on the company like as for example; it has caused the huge increment of the
unemployment.
E (economical factors) – The economical factors are like the rates of the product that are issued
by the company itself, the discount rates that are provided by the company, the GST of the
product, the rate of interest and the growth rate of the product in the entire global market (Ortega
et al., 2019). These rate and the values of the product differs from one place to another or one
country to another. The whole market value and the demand of the product depend on the
internal and the external of the country. Like for example if the rate of growth of a certain in a
specific of a country or a place, it is expected that the sale of that product will be increased as
well, whereas if the expansion rate of that product is increased to an unexpected value then it can
decrease the demand of the product. Due to the brexit scenario in the entire United Kingdom’s,
the rate of interest for the bank loan has decreased to 0.25% from 0.75%, hence in this case
Brexit shed the light of positivity in the whole country (Chaouket al., 2020). The decrement of
the rate of interest has played a role of advantage for the citizen of the UK. Another positive
effect of Brexit situation is it helps to eliminate the entire tariff rate for the business which
depends on the import and the export of the goods and products. This in turn helps the
businessman to minimize the raise in cost of trade. This minimization will help to decrease the
cost of expense for the other countries. On the other hand, the pandemic situation has cause
negative impact on the economical factors of the company Dyson because of the remote working
the employees were unable to go and work to the organisation and hence, it result as the loss in
the production of the goods as well as the manufacturing of the goods and the product (Brexit
Consequences for the U.K., the EU, and the United States, 2020).
S (Socio cultural factors) – In these modern situation the socio cultural factors for the company
are very important, the companies has to fulfill the needs and wants of the customers. Hence, the
company Dyson remains conscious about fulfilling the demand of the customers and maintains
the quality of the product so as to ensure the customers’ needs (Alsharari., 2019). The pandemic
situation has created a large impact on the socio cultural factors. The first step the people has to
follow for breaking the chain of the covid scenario that they have to maintain a social distance
from one person to another. In order to maintain the social distancing the only mode of
interaction has been depended on the virtual communication. Therefore, the selling rate of the
product has decrease because people are bound to promote the product on a virtual basis
therefore; less number of people is getting influence for buying that specific product.
T (technological factors) – Dyson has always proved and showed their evidences for the
creativity and innovative skills on the field of the tools and technology Due to the present covid
situation, the technological background of this company has faced a lot of negative impact. The
pandemic situation has result in the complete lockdown over the entire global place in order to
break the chain of this disease. As a result, of the lockdown there was complete closure of the
manufacturisation of the product as well as due to the remote working scenario the innovation of
the advancement of the product was completely closed due to the lockdown phase. Hence, the
covid scenario has cause a complete loss in the field of technology because Dyson is a company
which always keeps on innovating and rejuvenating the product and the appliances. This ensures
that this company always advances their products to keep on a good hold on the modern market
(PESTEL Analysis of Amazon, 2020).
E (environmental factors) – The company Dyson entirely manufacture the product which are
mainly based on the cleanliness. . The company Dyson is more incline toward the eco friendly
product and the technologies which cause less impact on the environment. Hence, it creates a
different kind of attracting toward the customers viewpoint (Pan et al., 2019.). Nowadays, people
are becoming more concern about the environment, and maintain the ecological balance. Hence,
this cause more market value of the product manufactured by this company. The materials and
the elements that are used to manufacture the products of this company are all biodegradable in
nature. A very less amount of harmful substances are released from this company, in order to
ensure the ecological balance of the nature. Due, to the covid scenario the environmental factors
has also affected.
L (Legal factor) – the company Dyson works on an international basis therefore it has to
maintained every possible way to follow the rules and the regulations of the other countries as
well as to develop the growth of the business it also has to ensure the safety and security rules for
the employees work in that company (Bertozziet al., 2016.). In order to ensure the safety of the
worker in the company, it follows the HASAWA act of 1974. This entire Act revolves around
the safety issues of the employee. This company is totally based on the manufacturing of the
electronic goods therefore, they have to ensure about the accidental effect of the employee. This
company also follows the act of equality in between the employees of the company. Hence, as a
result these policies attract more number of employees (PESTEL Analysis: Application,
Examples and Best Practices | The Business Analyst Job Description, 2020).

P5: Conduct internal and external analysis of specific organization’s in order to identify
strengths and weaknesses (P5,M4)
Two most famous UK based company Dyson and Shelter has been taken for making their SWOT
analysis.

Strength: in term of discussing about the strength of theDyson Strong control over supply chain
can be defined.Along with thisefficient production management system, excellent product design
strategycan be considered as their most significant power. Except this huge distribution network
and better reach helps them in generating sale effectively. Along with this well planned and
suitable locations of stores and their affordable product prices helps them in generating huge
customer satisfaction (Koišováet al,2017).

On the other hand the company Shelter also has a strong digital presence in digital platforms.
They also involve a strong dealer community for conducting business efficiently. This company
also includes reliable suppliers which help in conducting business timely and on more organized
way. This business includes high skilled workforce for developing work effectively. Therefore
they provide high level of satisfaction towards their potential customers.
Weakness

In term of discussing about weakness in case of Dyson it can be said Centralized distribution
system can be considered as the leading weakness of Dyson. Along with this the other major
problem is lack of versatility in their products. Due to only home appliances manufacturing they
might not be able to get into other market.

On the other hand the leading nonprofitorganization also running with some weaknesses. For
example they need more investment for implementing new technologies in their business. Also
they are unable to expand their business at a time because of their low amount of demand and
time consuming productivity.
Opportunity

While discussing about opportunity it can be said Dyson is experiencing lots of opportunity in
this emerging market. Dyson expanded its business worldwide therefore it get the opportunity of
conducting huge sale effectively. Along with being by spreading its outlet everywhere they
became able to enhance their business network and also gets a required attention by the
customers.
On the other hand the UK based NGO Shelter also get the support of other in term of donation.
This nonprofit organization also became able to showcase its good picture in front of the public
with the help of their charitable activities covered by media.
Threat
In term of discussing about threat it can be said that the competitive market can affect heavily the
Dyson.
And on the other hand Shelter also can suffer if the contributors stop providing donations for
their projects.

P6: Explain how strengths and weaknesses interrelate with external macro factors(P6).
Strengths and weaknesses of these companies can be considered as interrelated with the external
macro factors. The strength of creativity, innovation and durability and affordability can highly
impact on the economic factor and demand of the organization or Dyson. On the other hand the
weaknesses such as Centralized distribution system, lack of diversity in their product can cause
certain loss of the organization (Gebaueret al,2017).
The external macro environmental factor such as economic, technological, political,
environmental factors also influences the Shelters strength. Such as strong digital presence in
digital platforms, strong dealer community and contributor along with efficient workforce highly
impact the organizational activities and publicity. The weakness of lack of investment and lack
of expansion can narrow down the organizational growth into the market.
In term of demonstrating opportunity linking with the macro environment it can be said due to its
huge expansion worldwide it became more recognizable towards the public it also helps in
generating revenue. On the other the NGO Shelter also have the opportunity of contribution by
others that can be by political parties, government, celebrity or other individuals.
As emerging threat it can be said Dyson’s less versatility can decrease their market value which
may result in economic loss of the organization. The organization Shelter also can be affected if
the members or the contributors stop donating for their projects. Hence, all these strengths and
weaknesses, opportunity and threats of the organizationsstrongly interrelate with external macro
factors (Kozubikovaet al,2017).
Conclusion
In these report organizations including profit, nonprofit, micro, small, medium, and large and
others has been discussed broadly. Along with these the PESTLE and SWOT analysis on the
company Dyson and Shelter has been done effectively. Hence this assessment includes the
organizational functions, structure along with their impact towards the emerging market.
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